Safra Bank in Sao Paulo's financial centre October 23, 2009.STRINGER/BRAZIL/Reuters
J. Safra Sarasin Holding Ltd., the Swiss private bank owned by billionaire Joseph Safra, indicated it may make further acquisitions after the purchase of Morgan Stanley's Geneva unit.
The company "is ideally positioned to pursue our growth strategy and act as a leading player in the ongoing industry consolidation" in Switzerland, vice-chairman Jacob Safra, son of Joseph Safra, said in a statement from Geneva on Tuesday, as the firm reported client assets rose 12 per cent to 147.4 billion Swiss francs ($147-billion U.S.) last year.
Safra Sarasin, part of the Safra international banking group founded in the Syrian city of Aleppo in the 19th century, is expanding in Switzerland after several foreign banks retreated amid international scrutiny of the industry and low profitability. The firm acquired Bank Sarasin from the Dutch Rabobank Group in 2012, adding private banking and institutional asset management customers in Europe, the Middle East and Asia.
The Morgan Stanley Swiss private bank deal struck last year may involve 10 billion francs of client assets, according to a person with knowledge of the transaction, who asked not to be named as the integration process isn't finished.
Safra Sarasin added 723 million francs of net new money from clients in 2014 and reported a 14-per-cent increase in profit to 205 million francs, according to its annual report. The company had 3.8 billion francs in shareholder equity at the end of 2014, compared with 3.5 billion francs a year earlier.
U.S. Program
Safra Sarasin set aside "adequate provisions," including for a U.S. Justice Department disclosure program for Swiss banks, it said. Dozens of banks have joined the program, which forms a key part of the U.S. crackdown on Americans hiding undeclared wealth offshore. Safra Sarasin hasn't disclosed whether it applied to category 2 of the program, aimed at Swiss banks seeking a non-prosecution agreement in exchange for co-operation and a fine, or another category for firms seeking the Justice Department's assurance they won't be investigated.
Joseph Safra is the sole owner of the Safra banking group, which also includes Sao Paulo-based Banco Safra SA and Safra National Bank in New York. He is the world's 97th-richest person worth $11.7-billion, according to the Bloomberg Billionaires Index.