Two Swiss-headquartered private banks with a significant presence in Luxembourg this week underscored the growing consolidation in European wealth management, each announcing separate acquisitions. The separate moves by EFG and Edmond de Rothschild highlight the intensifying competition among firms seeking scale and specialisation in a rapidly evolving sector.
EFG International —the 9th largest Swiss private bank with 175.4 billion euro in assets under management— on Tuesday said that the acquisition of Geneva-based Cité Gestion would further strengthen its presence in its Swiss home market. Cité Gestion will add some 8 billion euro in AUM once the transaction has been closed.
Cité Gestion is a medium-sized private bank and runs a multi custody business focused on serving Ultra High Net Worth Individuals (UHNWIs) domiciled in Switzerland, Western Europe, Latin America and the Middle East and employs 130 people with offices in Geneva, Lausanne, Lugano and Zurich.
Meanwhile, Geneva-headquartered Edmond de Rothschild —the 7th biggest private bank in Switzerland— said on Tuesday that it plans to acquire a 70 percent majority stake in London-based wealth manager Hottinger & Co. It already owns 42.5 percent since 2022, when it took a first step into the partnership. Hottinger is a small private bank with 1.2 billion euro in assets under management.
Need for scale
The consolidation news comes at a time when private banks across Europe are consolidating as global shifts in wealth management, with increasing pressure on management fees and rising investment demands due to digitalisation make it important to scale.
At the same time, some retail banks in Europe are looking to accelerate their growth in private banking. ING, for example, last year forced out tens of thousands of retail clients in Luxembourg as it shifted its domestic focus here towards private banking, and its CEO recently announced that the Dutch bank is keen to acquire a private bank in Germany, Italy or Spain.
EFG announced the acquisition of Cité Gestion as part of its annual financial results. The bank reported a rise of 6 percent in net profits, to 321.6 million Swiss francs (341 million euro). Assets under management expanded by 16 percent, driven by strong net new assets of 10.1 billion francs, positive foreign exchange impacts of 6.3 billion and favourable market performance of 7.0 billion francs. Net banking fee and commission income last year rose 5 percent to 1.5 billion francs.
“We have entered the final year of our current strategic cycle with confidence. Throughout 2025 we will accelerate the bank’s transformation,” said EFG CEO Giorgio Pradelli in a statement. Its shares on the Swiss stock exchange reached a record-high following the release of the results.