Follow the leaders

With the sector continually evolving, FST takes a closer look at those doing it best, focusing on three of the largest financial services companies in the region. Also featured are those not far behind and the leaders directing their success.

EUROPE’S BIG THREE

Who is UBS?
UBS is one of the world's leading financial firms. In fact, UBS is:

• The world’s leading wealth management business.
• A global investment banking and securities firm.
• A key asset manager.
• The market leader in Swiss corporate and individual client banking.

As an organization, UBS combines financial strength with a culture that embraces change. As an integrated firm, UBS creates added value for clients by drawing on the combined resources and expertise of all its businesses.

UBS is present in all major financial centers worldwide, with offices in 50 countries. UBS employs more than 69,500 people, 39 percent in the Americas, 37 percent in Switzerland, 16 percent in the rest of Europe and eight percent in the Asia Pacific time zone.

Recent history

The company was formed on 29 June 1998, when Union Bank of Switzerland and Swiss Bank Corporation merged to form UBS.

2005
In China, Global Asset Management announces the formation of a joint venture fund management company in partnership with the Chinese State Development Investment Corporation. It is approved by China’s regulatory authorities in April.

A Group Offshoring Team is set up to coordinate all offshoring activities of UBS. Besides providing support, advice and coordination, the team will establish the UBS India Service Centre in Hyderabad, India.

2004
In February, UBS and Crédit Lyonnais reach an agreement for UBS to acquire Laing & Cruickshank, a leading UK provider of wealth management services, for approximately UK£160 million. With this agreement UBS sets out on a series of bolt-on acquisitions in 2004 in order to further accelerate its successful organic growth program.

In May, the Federal Reserve Board (Fed) and the Swiss Federal Banking Commission (SFBC) sanction UBS in connection with violations of an agreement governing its involvement in the “Extended Custodial Inventory Program” for US dollar banknotes. The Fed levies a civil penalty of US$100 million. In response to the violations UBS institutes corrective and disciplinary measures and exits the international banknote trading business. 



2003

In January, Investment Dealer's Digest names UBS Warburg as its 'Bank of the Year'. This is the first time a non-US owned financial institution has won this prestigious award.

On 27 February, UBS Global Asset Management is named Best Overall Group at the European Fund Awards 2003 in Luxembourg.

In March, UBS introduces a new set of internal policies and procedures to ensure that employees comply with laws based on the internationally recognised OECD convention against bribery of public officials.

2002
In January, the Scorpio Partnership Ltd. survey confirms UBS' status as largest private bank in the world in 2001 with US$433.5 billion in assets under management, up from US$416 billion in 2000. 

UBS sells the private bank HYPOSWISS, a wholly owned subsidiary, to Cantonal Bank of St Gallen.

UBS establishes a Group diversity initiative that links standing regional and global diversity initiatives and guidelines among the different businesses and operations around the world.

2001
UBS announces a record annual result for 2000 with a net profit of CHF7792 million. Due to the acquisition of PaineWebber headcount within UBS rose substantially to 71,076 and total shareholder's equity was CHF44,833 million.

2000
UBS Global Shares listed on New York Stock Exchange begin trading on May 16. UBS is the first non-US financial services group to list its Global Registered Share directly on the NYSE. It provides UBS with the strategic flexibility to benefit from potential expansion opportunities in the United States.

Who is HSBC?
Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBC’s international network comprises over 9500 offices in 76 countries and territories in Europe, the Asia Pacific region, the Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by nearly 200,000 shareholders in some 100 countries and territories. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

Recent history

The HSBC Group has a unique international pedigree. Many of its principal companies opened for business over a century ago and they have a history rich in variety and achievement. The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.

2005
In 2005, HSBC marked 140 years in China by increasing its stake in the country.

The Group opened new branches in Chongqing and Chengdu in the west of the country and in March became the first foreign bank to provide local currency services from its branch in Beijing.

In the Middle East, HSBC reopened its branch in Kuwait, while in the US the integration of Household International with the Group’s North American operations was completed, under the name ‘HSBC Finance Corporation’.

2004
HSBC grew organically and through strategic acquisitions in 2004.

The Bank of Bermuda joined the Group in February and minority stakes were acquired in India’s UTI Bank and China’s Bank of Communications Ltd. In the UK, HSBC bought the retail financial services arm of the Marks and Spencer Group.

The HSBC brand was adopted by its Mexican subsidiary, G F Bital, early in the year and in September the majority of the bank’s North American businesses, including Household International, were united under the name HSBC North America.

2003
HSBC’s purchase of Household International Inc. added substantially to the Group's business and profile in the United States; Household’s network of over 1300 branches in 45 states provided consumer finance to 53 million customers. In France CCF agreed to increase its stake in French private bank Banque Eurofin S.A. to 83.95 percent and to acquire two further branches of Banque Worms. HSBC also acquired Keppel Insurance Pte Ltd, a provider of life insurance and Islamic insurance in Singapore; and took full ownership of Equator Holdings Ltd.

2002
From 2002, the HSBC identity carried the strapline of ‘The world's local bank', emphasising the Group's experience and understanding of a great variety of markets and cultures.

HSBC acquired and recapitalized Grupo Financiero Bital in Mexico at a total cost of US$1.9 billion. This new member of the Group brought 5.5 million new customers and 1400 branches in to the network. Elsewhere, HSBC acquired a 10 percent share of Ping An Insurance Company of China, the second largest life insurance operator in the country.

2001
Purchases during the year included the NRMA Building Society Limited in Australia, Demirbank of Turkey and a 97 percent interest in China Securities Investment Trust Corporation, Taiwan’s leading asset management company. In December, the bank also took an 8 percent share in the Bank of Shanghai. 2001 also saw the opening of the only branch in the HSBC network that is open 365 days a year - in Pune in Western India.

2000
In April, HSBC announced a US$11 billion recommended offer for Crédit Commercial de France (CCF). Established in 1894, CCF brought into the Group a network of 650 branches in France and long experience of personal, corporate, investment and private banking, greatly strengthening HSBC’s presence in the euro zone. The deal was completed in July and in that month HSBC Holdings plc was listed on the Paris Stock Exchange for the first time.

Who is Deutsche Bank?

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. It has €1.035 billion in assets, 64,103 employees from 130 nations and unparalleled financial services in 73 countries. A leader in Germany and Europe, the bank is continuously growing in North America, Asia, and key emerging markets.

Deutsche Bank comprises three Group Divisions: Corporate
and Investment Bank (CIB), Private Clients and Asset Management
(PCAM) and Corporate Investments (CI). The Management Board of Deutsche Bank AG has as its prime responsibility the strategic management, resource allocation, financial accounting and disclosure, risk management and control of the Group.

Recent history

Founded in Berlin in 1870 to support the internationalisation of business and to promote and facilitate trade relations between Germany, other European countries, and overseas markets, Deutsche Bank has developed into a leading global provider of financial services.

Its purpose: "to transact banking business of all kinds, in particular to promote and facilitate trade relations between Germany, other European countries and overseas markets".

2005
Deutsche Bank and Al Azizia Commercial Investment Company (ACIC) sign a Joint Proposal for the establishment of an investment banking joint venture to provide equities brokerage and other financial services in Saudi Arabia.

Deutsche Bank becomes sole owner of Bender Securities (Istanbul). Deutsche Bank signs a definitive agreement to acquire the remaining 60 percent of Bender Menkul Degerler Anonim Sirketi (“Bender Securities”) it does not already own. Deutsche Bank initially acquired a 40 percent equity stake in Bender Securities from its senior management in July 2000.

2004
Deutsche Bank and United Financial Group, Moscow, agree to form a strategic partnership. As part of this agreement, Deutsche Bank acquires a 40 percent stake in UFG.

2003
Deutsche Bank acquires the Swiss Private Bank Rued Blass & Cie from
Zurich Financial Services.

Deutsche Bank sells its 13 percent stake in Phoenix AG and its 5.6 percent stake in Heidelberg Cement as well as 100 percent of its minority stake (34.6 percent) in the
Gerling group.

2002
Deutsche Bank announces the realignment of its management structure: strategic and operational tasks are separated, whereby the Group Board of Managing Directors, reduced from eight to five members, will concentrate on strategic management, control and risk management, as well as the allocation of resources.

Deutsche Bank concludes the purchase of the US asset manager Zurich Scudder Investments from Zurich Financial Services, Zurich. This is part of a comprehensive transaction also involving the sale of Deutsche Bank's shares in the insurance company Deutscher Herold and all of its insurance activities in Italy, Spain and Portugal to Zurich Financial Services. With the acquisition of Scudder, Deutsche Bank becomes the fourth-largest asset manager in the world with leading positions in Europe, Asia and America.

At the beginning of October, Deutsche Bank 24, Private Banking, parts of Corporate Banking, and the online broker Maxblue are combined under the umbrella of the Deutsche Bank brand name in the new corporate division “Private & Business Clients”.

2001
Deutsche Bank introduces a new Group structure focused on two customer-oriented groups: The Corporate and Investment Banking Group combines all activities in the field of "Sales and Trading", "Corporate Finance" and "Transaction Banking". The Private Clients and Asset Management Group combines the business fields "Personal Banking", "Private Banking" and "Asset Management".

On October 3, trading in the Deutsche Bank share starts on the New York Stock Exchange.

In November, the three large German banks Deutsche Bank, Dresdner Bank and Commerzbank merge their mortage bank subsidiaries Eurohypo, Rheinhyp and Deutsche Hyp into Eurohypo AG to become the largest mortgage bank in Germany.

2000
2000 Deutsche Bank invests vigorously in e-commerce.

The planned merger with Dresdner Bank is cancelled.

BEST OF THE REST

More about… Banca Intesa

Banca Intesa is one of the leading Italian banking groups and one of the main players in the European financial sector. It was established in 1998 with the integration of Cariplo and Banco Ambrosiano Veneto. In 1999 Banca Commerciale Italiana joined Gruppo Intesa. As a result of that merger (May 2001) the Group was named IntesaBci. In December 2002 at the Shareholders’ Meeting it was resolved to change the corporate name to Banca Intesa and it became effective as of 1st January 2003.

Banca Intesa operates through a customer-oriented organisational structure made up of five business units: the Retail Division, the Corporate Division’ the specialised subsidiary Banca Intesa Infrastrutture e Sviluppo, the Italian Subsidiary Banks, and the International Subsidiary Banks Division.

 The Banca Intesa logo represents an aqueduct, a stone structure to transport water, an image of solidity, dynamism and development. Being socially useful, the aqueduct is also a symbol of solidarity, in line with the responsibility that the Group has toward society.

The CEO…Corrado Passera

Education
First-class honours degree in Business Administration, Bocconi University (Milan)
Master in Business Administration at The Wharton School (Philadelphia)

Current posts
Managing Director and Chief Executive Officer of Banca Intesa Spa (from May 2002)
 Director of Crédit Agricole.
Director of Olimpia S.p.A.
Director of RCS MediaGroup
Director and Member of the Executive Committee of ABI - Italian Bankers' Association
Director of Bocconi University - Milan
Member of the Advisory Board of Scuola Normale Superiore of Pisa
Member of the International Advisory Board of The Wharton School
Member of the General Council of Fondazione Giorgio Cini

Past experience
1980/1985: McKinsey & Co, Senior Engagement Manager
1985/1990: CIR, Chief Operating Officer

1988/1995: Credito Romagnolo, Deputy Chairman
July
1990/May 1991: Arnoldo Mondadori Editore, Chief Operating Officer
May 1991/September 1992: Gruppo Espresso - Repubblica, Deputy Chairman and CEO
September 1992 / July 1996: Olivetti, Managing Director and CEO
July 1996/January 1998: Banco Ambrosiano Veneto, Managing Director and CEO

February 1998/April 2002: Poste Italiane, Managing Director and CEO

More about… ABN AMRO

ABN AMRO is an international bank with European roots. It ranks 11th in Europe and 20th in the world based on tier 1 capital, with over 3500 branches in more than 60 countries and territories, a staff of over 105,000 full-time equivalents and total assets of €975.1 billion (as at 31 March 2006).

It has a clear focus on consumer and commercial clients in its local markets and focus globally on select multinational corporations and financial institutions, as well as private clients. Our business mix gives us a competitive edge in our chosen markets and client segments.

Its strategy is built on leveraging its advantages as a Group to create the best value for – and with – our clients. We are active in four principal customer segments: Personal Banking, Private Banking, Business and Commercial and Corporate and Institutional.

Although we serve a broad range of clients, our strategic focus is on the mid-market segment. This is the client area where we have a strong and distinctive competitive advantage and where we feel we can be most profitable in the future.

The ABN AMRO Corporate Values and Business Principles provide the framework within which we carry out our operations.

The Chairman…Rijkman Groenik

Education
Law degree from the University of Utrecht
Business Administration from Manchester Business School (one year)

Current posts
Appointed Chairman of the Managing Board in May 2000. He is responsible for the strategy of ABN AMRO as well as Group Audit, Group Legal & Compliance and Human Resources. Focused the bank's strategy on mid-market consumer and commercial clients to maximise the bank's competitive advantage globally. Spearheaded developments of unique client-preferred servicing models globally. Structured the bank along client-facing and product business units (BUs) to enhance access to our network and our global product capabilities.

Past experience
1974: Joined Amro Bank
1976: Appointed head of Product Management Retail Accounts
1978: Head of Syndicated Loans
1980: Head of International Corporate Accounts in the International Division
1982: Director of the Dutch Special Credit Department
1986: Senior Executive Vice President of Corporate Business
1988: Appointed to the Managing Board of Amro Bank.

Following the merger of ABN and Amro Bank in 1990, he was appointed to the Managing Board, with responsibility for the Netherlands division. In January 2000 he announced a reorganisation of the branch network in the Netherlands and an acceleration of the implementation of the multi-channel distribution strategy.

Directorships and advisory roles outside ABN AMRO include:
• SHV
• Amsterdam Society for City Restoration
• Struik Holding
• Stedelijk Museum

More about… Fortis

Fortis occupies a leading position in banking and insurance in the Benelux countries. It offers internationally operating companies throughout Europe an integrated network and provides wealthy individuals and business people with advanced services based on a unique set of competences. Fortis’s expertise in niche markets such as shipping, commodities, export and project finance and fund administration has made it a regional and world leader in those areas. It also provides retail-banking services in France, Poland and Turkey. Last, Fortis successfully combines its banking and insurance expertise in growth markets in Europe and Asia and leads the bancassurance markets in Spain and Portugal.
Fortis aims to be a leading financial institution in Europe and is pursuing selective expansion in Asia and North America. We will therefore be pursuing three roads to profitable growth while continuing to strictly control costs and risks. These are sharpening our customer focus, expanding the non-Benelux profit share and seizing non-organic growth opportunities in order to accelerate our plans.

The CEO…Jean-Paul Votron

Education
Graduated from ICHEC College in Brussels in 1973 with a master’s degree in Commercial and Financial Sciences, followed by a special degree in Business Strategies and International Management. Jean-Paul Votron is 55, married, with two Children.

Current post
As of October 2004 Jean-Paul Votron is CEO of Fortis and responsible for the day-to-day management of the group, as well as for formulating strategic proposals for discussion and decision making in the Fortis Board.

 He is a member of the Fortis Board 
and Chairman of the Boards of Fortis Bank and Fortis Insurance

.

Past experience
1975: Started his career at Unilever, where he had management responsibilities in international sales, marketing and general management. 1991-1997: Served in different positions with Citibank in Europe and the US. He was President of Citibank Belgium and Marketing Director for Europe, Director of Marketing and technology US and Europe Consumer Bank, Director Insurance in the US, Head of US Investment Business (Chicago), and Chairman and CEO of Citibank FSB, a branch network in the US.


1997-2001: Senior Executive Vice President International Consumer Banking and E-Commerce at ABN-AMRO
2002: Rejoined Citigroup, where he was appointed a member of the Management Committee of Citigroup. Until recently, Votron was Citigroup’s CEO Retail Bank for Western Europe, Central Europe, Russia, Middle East and Africa.

More about… Nordea Bank

Nordea is the leading financial services group in the Nordic and Baltic Sea region making it possible for customers to reach their goals by providing a wide range of products, services and solutions within banking, asset management and insurance.
Nordea has almost 11 million customers, more than 1100 branch offices and a leading netbanking position with 4.4 million e-customers. The Nordea share is listed on the stock exchanges in Stockholm, Helsinki and Copenhagen.

The Group's business organisation includes three business areas: Retail Banking, Corporate and Institutional Banking, and Asset Management & Life. Each business area is responsible for financial results, customer relations, distribution, products and business development and support.

Vital support functions are Group Processing and Technology, Group Corporate Centre, Group Credit and Risk Control and Group Legal and Compliance.

The CEO…Lars G Nordström

Education
Law studies at Uppsala University
Current post
Nordström is President and Group CEO. He is charged with the day-to-day management of Nordea Bank and the Nordea Group’s affairs in accordance with rules and regulations and instructions provided by the Board of Directors.
The CEO is responsible to the Board for the management of the Nordea Group’s operations and he is also responsible for developing and maintaining effective systems for internal control within the Group.

Past experience
1970-1993: Skandinaviska Enskilda Banken (Executive Vice President 1989-1993)
1993-1998: Executive Vice President, Member of Group Executive Management, Nordbanken
1998-2000: CEO Nordbanken
1998-1999: Executive Vice President, Member of Group Executive Board, Head of Retail Banking, MeritaNordbanken
1999-2000: Executive Vice President, Member of Group Executive Committee, Head of Retail Banking, Nordic Baltic Holding
2000-2002: Executive Vice President, Member of Group Executive Management, Head of Retail Banking, Nordea

Other assignments:
Board Chairman of the Royal Swedish Opera

Board Chairman of the Finnish-Swedish Chamber of Commerce and European Financial Management & Marketing Association (EFMA). 

Board member of the Swedish-American Chamber of Commerce. and Viking Line Abp, Finland