Not only Reyl, all Intesa Sanpaolo’s moves in wealth management
How Intesa Sanpaolo moves between Italy, Switzerland and China in the wealth management sector. Emanuela Rossi's article after the Reyl operation
Intesa Sanpaolo also continues to expand in wealth management. The novelty of these days is the entry into Reyl, a banking group based in Switzerland that is very active in the sector, to establish a subject that aims to broaden geographic and business horizons. Just a few months ago, Ca 'de Sass had almost simultaneously launched two other important operations: the purchase of 50% + 1 share of Rbm Salute (to reach 100% by 2029) and the start of activities of wealth management in China through its own company.
PURCHASE OF 69% OF REYL THROUGH FIDEURAM
The latest move to strengthen in the home sector of the leading Italian banking group, we said, is that of Fideuram-Intesa Sanpaolo Private Banking, the private banking division of Intesa Sanpaolo, and Reyl, an independent and diversified banking group based in Geneva. Thanks to the strategic partnership agreement that has been signed, Fideuram will acquire a 69% stake in Reyl and the latter will confer its Swiss banking subsidiary Intesa Sanpaolo Private Bank (Suisse) Morval. Once the transaction is finalized, expected within the first half of next year and after the usual regulatory approvals, Intesa Sanpaolo Private Bank (Suisse) Morval will be merged into Reyl, thus giving rise to a large international private banking group, with headquarters in Geneva, about 400 employees, assets under administration of more than € 16.71 billion (Swiss francs 18 billion) and regulatory net assets of about € 232.06 million (Swiss francs 250 million).
The hypothesis is that the new entity operates not only in Switzerland, where Fideuram-Isb Pb has its headquarters for international private banking activities, but also in the European Union, Latin America, the Middle and Far East.
HOW REYL WILL CHANGE
Reyl's partners, Francois Reyl, Pasha Bakhtiar, Nicolas Duchene, Thomas Fontaine, Christian Fringhian and Lorenzo Rocco di Torrepadula, will retain significant stakes in the bank and will continue to work on its development and long-term strategy, Corriere della wrote. Sera : “In addition to Switzerland, the bank will also be present in the European Union, Latin America, the Middle East and the Far East”.
ENTRANCE IN RBM HEALTH
Just a few months ago, in December 2019, Ca 'de Sass had created another interesting synergy. The boards of directors of Intesa Sanpaolo and Intesa Sanpaolo Vita had approved the entry with a controlling stake in the capital of Rbm Assicurazione Salute, owned by the Rbh Group of the Favaretto family, founded in 2007 and in third place in the health insurance market with 17.7% of the total share. Having obtained the authorizations from IVASS and the Antitrust Authority, Intesa Sanpaolo Vita purchased 50% +1 share directly in cash in July, at a price of 325 million euros, but it is expected to rise to 100 % of capital progressively from 2026 (70%) to 2029 (100%). The purchase price will be determined according to a mixed formula – equity and income – based on the achievement of pre-established growth objectives.
An operation, and the group led by Carlo Messina has clearly claimed it, with which Intesa Sanpaolo aims to become a leader in the wealth management sector. In July the group explained that it was “significantly strengthening its positioning in the Health business, which grew in Italy by 9.3% in the 2015-2019 period and with further expansion prospects for the next few years”. The new company, which will take the name of Intesa Sanpaolo Rbm Salute, will see the confirmation of Marco Vecchietti in the role of managing director and general manager.
At the moment, in the ranking of insurance groups, Intesa Sanpaolo Vita is the second operator in Italy, with 690 million euros in premiums and a market share of 21.5%.
ACTIVITIES IN CHINA
Just a few days earlier the group had announced the start of wealth management activities in China through its own company, YI TSAI (“Italian Talent”), belonging to the International Subsidiary Banks Division. Thanks to the Fund Distribution License obtained by local authorities, Intesa Sanpaolo was the first foreign bank to carry out such activities in the Asian country. For TSAI, established in 2016, there was first a pilot phase carried out in the area of Qingdao City, Pilot Zone for the development of Wealth Management activities in China. In March 2019 Intesa Sanpaolo signed a Memorandum of Understanding with the Municipality of Qingdao for the development of the Pilot Zone, in the presence of Chinese President Xi Jinping and Prime Minister Giuseppe Conte, on the occasion of Xi's state visit to Italy .
YI TSAI, in accordance with the license obtained, distributes Public Funds and Privately Distributed Funds, selected in the offer of Penghua (a company owned by Eurizon Capital) and of some Asset Management companies in China. The distribution activity is entrusted to YI TSAI's network of Financial Advisors, organized and governed on the basis of Intesa Sanpaolo best practices. “It is a source of satisfaction to establish ourselves as the first foreign bank to be able to develop wealth management activities in China thanks to obtaining the Fund Distribution License – Messina said last December -. After the start of operations in the pilot area of Qingdao, we will focus on the expansion in other provinces of the People's Republic with dedicated branches and on the development of an increasingly attractive offer for the Chinese market, making use of top-level partners. With this initiative, we want to offer high-profile customers 360-degree financial consultancy services aimed at the management and planning of savings in the long term, strengthened by our skills and our credibility recognized by the main international financial institutions. With YI TSAI – concluded the CEO – we believe we have taken a significant step for Intesa Sanpaolo's international development in the field of wealth management ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/non-solo-reyl-tutte-le-mosse-di-intesa-sanpaolo-nel-wealth-management/ on Tue, 06 Oct 2020 07:34:37 +0000.