"Sal. Oppenheim, Europe's largest independent private bank founded in 1789, is to open an office in the capital city of Hungary, after setting up shop in the Czech Republic in 2005 and last month in Warsaw. Sal. Oppenheim, which manages assets of about EUR 152 billion, aims to manage assets of EUR 50-60 bn in Hungary.The head of the Budapest office will be Árpád Pál, the former chief executive of the Budapest Stock Exchange (BSE).
The Budapest office, which is set to open its doors next week, is part of Sal. Oppenheim's expansion strategy that targeted to boost the ratio of revenues generated by foreign activities to 50% from 40% within total revenues.
The Luxembourg-based bank, which was founded 220 years ago in Cologne, currently considers the Budapest opening its last expansion step, but later it might decide to enter Russia and Ukraine, local daily Világgazdaság reported on Tuesday.
The Budapest office will operate under Sal. Oppenheim's Austrian division, which is held 87% by the parent company and 13% by the management.
Portfolio.hu viewpoint:
While Sal. Oppenheim would not become a major player on the Hungarian market with the targeted EUR 50-60 bn (HUF 13-15 bn) worth of managed assets, its entry is without a doubt good news for the development prospects of the local private banking segment. The new player, which represents the classic and prestigious Swiss services, will put its rivals to the test, since Sal. Oppenheim will most probably try to entice the wealthiest clients available."
Source: Portfolio Online Financial Journal
07.05.2008