Julius Bär eyes Asian clients after Bank of America Merrill Lynch acquisition

Swiss private bank Julius Bär is aiming to have a majority of its clients from Asia after it acquired Bank of America Merrill Lynch's private banking business outside the United States.

Julius Bär expects to report a loss this year in the wake of the deal in August last year. Positive returns would start to kick in next year, as the integration of the businesses picks up steam, chief executive Boris Collardi said yesterday.

The bank expects the integration to be completed in the first quarter of 2015, with a majority of assets under management to be transferred this year.

Collardi said the synergies from the acquisition would start to appear next year and be reflected in a better bottom line by 2015. The benefits of the purchase would be seen in sales of products and services, as well as cost efficiency, he said.

The deal may boost client assets by as much as 72 billion Swiss francs (HK$576 billion) by 2015, Collardi added.

The first phase of the integration began this week with the Hong Kong and Singapore businesses, which represent one-third of the acquired business. After the integration, about a quarter of the bank's total assets will be managed in Asia, making it one of the top five international wealth managers in Asia, its second home market.

The acquired unit's financial advisers, clients and related assets under management will be transferred to the Julius Bär platforms in stages.