World Economy

Credit Suisse Targets Rich Thais

Credit Suisse Targets Rich ThaisCredit Suisse Targets Rich Thais

Credit Suisse Group AG is targeting Thai millionaires as part of the firm’s goal to bolster the new money it attracts from wealthy clients in the Asia-Pacific region.

The Swiss bank is adding a client-relationship team of six in Bangkok, a total expected to increase to 12 by the end of the year, said Francesco de Ferrari, Credit Suisse’s head of Asia-Pacific private banking. Thailand is now the sixth market in the region in which the firm will have an onshore wealth presence, he said, adding that the bank had previously handled its wealthy Thai customers from Singapore and other regional hubs, Bloomberg reported.

The bank is being lured by the pool of wealth held by the nation’s rich—estimated at $456 billion in a 2015 report by Cap Gemini and RBC Wealth Management—as well as by central-bank moves since last year to ease restrictions on overseas investment. That included allowing Thai nationals to invest directly overseas and raising limits for foreign-exchange deposits at local banks.

“There is a potential in Thailand where we increasingly see ultra-high net worth entrepreneurs who diversified” their investments overseas, de Ferrari, who has led Credit Suisse’s Asia-Pacific wealth team since 2012, said in an interview on Monday. “We are very positive about it.”

Led by Chief Executive Officer Tidjane Thiam, Credit Suisse is seeking to double pretax income and client assets under management in the Asia-Pacific region by 2018. The Swiss lender has hired more relationship managers in the area, boosting its total to 630 as of March from 520 at the end of 2014.

Pretax profit of the wealth unit that de Ferrari heads has more than doubled to 344 million Swiss francs ($351 million) in 2015, from 155 million francs in 2012 when he started in his current role. Client assets at the Asia-Pacific private-banking unit stood at 150 billion francs as of December, little changed from a year ago, but about a third higher from the 2012 level, data provided by the bank show. The firm was ranked by Asian Private Banker as the third-largest private bank by assets in the region last year.

Credit Suisse attracted net new assets of 17.8 billion Swiss francs in the Asia-Pacific region last year and the bank wants to boost that figure to 25 billion francs annually by 2018. In the region, Credit Suisse’s wealth unit has operations in Hong Kong, Singapore, Japan, Australia and India. Its securities business has operated in Thailand since 2000.