Page 2 of 2

«Yes, we continue to look at acquisitions and to acquire», says Lee. «But there must be a meaningful business to acquire – for us in Asia, a $5 billion to $10 billion business is not very meaningful. We would be interested in a business that is at $20 billion to $30 billion, or even higher.»

Scale vs Resources

He is clear on why consolidation is suddenly a buzzword in the private banking industry and that it will probably dominate headlines for some time to come. «ncreasing cost pressures force private banks to build critical mass so I think consolidation will continue not just in Asia but also in Switzerland,» he says. Switzerland used to be home to more than 300 private banks – today that number is far lower, he notes.

«In Asia as well we have already seen significant players exit the market – these were by no means banks who struggled for resources but rather banks that struggled to build scale.» The OCBC-Barclays deal comes to mind, as does the DBS-Société Générale one.

Asia to Outpace

Are banks turning to acquisitions to bolster tepid toplines? Not so for Julius Baer says Lee. «Our net new money targets are between 4 to 6 percent for the global business. Asia ia a high-growth area, so our net new money in Asia will have to be even higher.»

An investment bank analyst concurs: «They [Julius Baer] should have no problem meeting targets, even if Collardi hires away some talent in the last quarter of 2018. That is probably the thinking behind the bench strength that they built.» Lee is characteristically confident. «We will continue to deliver above market average for Asia», he says.

Click here to read the previous installment finews.asia's exclusive interview with Julius Baer's Jimmy Lee