Tidjane Thiam wants to play an active part in the consolidation of Swiss private banking. His plans may yet be thwarted.

Credit Suisse Chief Executive Tidjane Thiam (pictured) is convinced about the quality of Swiss private banking and considers the industry to be one of the most attractive in the world of banking. His ambition to expand the business within Credit Suisse (CS) comes as little surprise.

Until the end of 2017, Thiam will take the new unit, Credit Suisse (Schweiz), to the stock exchange in an initial public offering. The money generated through the IPO may then be used to buy smaller Swiss private banks, Thiam said. We will give private banks, under pressure in today's market, a platform for their clients' assets, the CEO grandly announced at the presentation of CS' strategy in October.

Not for Sale

One would think that with billion of francs from the IPO and the second-biggest private bank at his disposal, Thiam won't need to work hard to convince his smaller rivals of the advantages of joining his troops. Not so, it seems.

Jan Langlo, director at the Association of Swiss Private Banks, doesn't much like Thiam's plans. In an article in «Le Matin Dimanche» (available in print only) Langlo gives Thiam's strategy short shrift.

«Tidjane Thiam has every right to call on Swiss private banks to merge with Credit Suisse,» Langlo said. «The answer of our members at least is clear: We're not for sale.»

Time for Rivals to Act

Langlo is speaking for renowned institutes such Geneva's Pictet, Lombard Odier and Mirabaud, but also for Rahn & Bodmer in Zurich. The association's nine member firms have a combined 700 billion francs under management and 6,500 employees. And these bankers value their independence, Langlo said.

Apart from the unwillingness of his prey – and unfriendly takeovers don't work in banking – Thiam faces a second major obstacle in his bid to keep his October promise: Rivals such as Julius Baer and Union Bancaire Privée (UBP) have plenty of time to swallow the best bites on the market before CS sells the Swiss unit at the end of 2017.

And in the meantime, CS may become the victim of a takeover bid itself as analysts expect.