Credit Suisse and Julius Baer in ‘possible merger talks’

Credit Suisse under pressure to reduce exposure to investment banking

Acquiring Julius Baer would boost Credit Suisse’s wealth management assets to SFr1.1 trillion. Photograph: Gianluca Colla/Bloomberg
Acquiring Julius Baer would boost Credit Suisse’s wealth management assets to SFr1.1 trillion. Photograph: Gianluca Colla/Bloomberg

Credit Suisse and Julius Baer held talks about a possible merger, Swiss newspaper SonntagsZeitung reported, citing people it didn't identify.

There haven’t been any official negotiations and the situation may be re-evaluated if Julius Baer resolves its issues with US tax authorities, the paper said.

Hans-Peter Waefler, a spokesman for Credit Suisse, declined to comment. Spokespeople for Julius Baer couldn’t be immediately reached for comment.

Credit Suisse, Switzerland’s second-biggest bank, has been under pressure to focus more on managing money for the wealthy and reduce its exposure to investment banking.

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Acquiring Julius Baer, which had CHF274.2 billion (€227.4 billion) in assets under management at the end of June, would boost Credit Suisse’s wealth management assets to SFr1.1 trillion.

Credit Suisse, which is based in Zurich, is the fourth-biggest wealth manager by assets, according to the annual ranking by Scorpio Partnership, which ranks Julius Baer 12th.

– (Bloomberg)