ZKB sells Austrian subsidiary to LLB
Published: Tuesday, Jul 2nd 2024, 07:50
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Zürcher Kantonalbank (ZKB) is selling its asset management subsidiary in Austria to Liechtensteinische Landesbank (LLB). Around 120 employees are thus transferring to the Liechtenstein financial institution.
ZKB decided on the sale as part of a review of its strategy, the largest Swiss cantonal bank and LLB announced in separate announcements on Tuesday. The takeover of ZKB Austria by LLB, which has offices in Salzburg and Vienna, involves client assets of around 3.1 billion euros. The parties have agreed not to disclose the purchase price.
Focus on existing markets
ZKB Private Banking will now continue to focus on its existing markets, the ZKB press release continues. At the same time, the Austrian subsidiary is being given the opportunity to develop further as part of a larger organization in Austria.
The agreement is subject to approval by the supervisory and competition authorities. Kantonalbank expects the transaction to be completed by the first quarter of 2025 at the latest.
Expansion of activities
LLB sees the takeover as an "ideal expansion" of its activities in Austria. Last but not least, ZKB Austria will contribute to the targeted expansion and further development of the Salzburg location. Following the takeover, ZKB Austria will be merged with LLB (Austria) in a second step.
LLB has significantly expanded its private banking activities in Austria in recent years, not least through acquisitions. It acquired Semper Constantia Privatbank in 2018 and took over the private banking clients of Credit Suisse in 2021.
The purchase price for ZKB Austria will be settled in cash by the Liechtenstein bank, the statement continues. This will reduce the capital ratio (Tier 1) by around 1 percent. However, it still "clearly" exceeds the target of over 16 percent.
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