Swiss private bank Pictet has decided to move its European headquarters to Frankfurt, relocating the function from Luxembourg. The grand duchy has served as the main European hub of the Geneva-based private bank for about three decades.
The bank said that its former Pictet & Cie (Europe) S.A. “transferred its registered office from Luxembourg” to Frankfurt per 26 May “by way of a cross border conversion from a Luxembourg Societé Anonyme into a German Aktiengesellschaft.”
“In terms of its legal personality, the German company will be a continuation of the Luxembourg company and will operate under the name of Bank Pictet et Cie (Europe) AG,” it said in a statement issued to the German press on Wednesday.
This subsidiary will employ approximately 630 people, the statement said. A spokesperson told Investment Officer that «only 70 people» will be actually based in Frankfurt. Almost all of the current Luxembourg staff (350) will remain in Luxembourg, «apart from a few managerial functions», he said.
Schröder to serve as Europe CEO
Pictet manager and equity partner Christian Schröder has been appointed as new Chief Executive Officer of Bank Pictet & Cie (Europe) AG. Schröder told a Frankfurt newspaper that the move is partly justified by the proximity to the European Central Bank and the search for talent. Attracting talent is a major problem for Luxembourg-based financial services organisations.
Pictet has been present with its European bank in Luxembourg for over thirty years. Its Luxembourg office will continue its operations as a branch focused on asset management. Luxembourg will remain an important location, according to Schröder. «Luxembourg remains essential, especially for the fund business,» he told the Frankfurter Allgemeine Zeitung.
Pictet established its first branch in Frankfurt in 2000. Schröder said the decision to turn it into the European head office stems from a long process that has taken several years. «During this time after Brexit, financial centres have reorganised themselves, and we wondered which location in Europe is most suitable in the long run,» he told FAZ. «Germany is the strongest country in Europe.»
That is why the choice fell on the financial centre of Frankfurt, he said in the interview. In addition, the proximity to the ECB, regulators, competitors, and the search for talent are of great importance. «You also have to be close to the competitors,» he said.
Growth market
Pictet also considers Germany as a growth market in asset management. «A window is opening there right now,» Schröder said, referring to the impact of intergenerational wealth transfers that release funds that need to be invested. «Germany has a business landscape characterised by SMEs, and a window is opening there right now.»
Pictet managed approximately 616 billion euros in assets at the end of 2022. The Pictet Group employs a total of around 5,300 employees worldwide.