Swiss private banks are gearing up for an increase in acquisitions following a fall in profits as well as a US tax program that prompted more than one-third to report a loss last year, according to a study by KPMG.
From the past seven months to the end of July 2014, the transactions included a total of nine deals involving around CHF125 billion of AuM.
The deals in the first seven months of 2014 represented 10% of AuM of the banks analyzed in this report.
The deals account to a volume of assets more than five times the amount traded in 2013.
These deals included BTG Pactual’s acquisition of BSI, acquisition of AIG Private Bank by Aabar Investmentsas well as deals involving HSBC and LGT, and Morgan Stanley and Safra Sarasin.
KPMG said that the M&A expected to gain further momentum in the second half of the year as US tax outcomes become clearer.
Additionally, a number of further banks are determining whether they wish to invest and build their business in Switzerland or exit the market.
According to KPMG, banks record provisions totalling to about CHF900 million for the disclosure program by the end of 2013.