Credit Suisse’s Key Tokyo Private Banker Leads Exodus to LGT
(Bloomberg) -- Yoshitaka Nagakura, a senior private banker at Credit Suisse Group AG in Tokyo, left to spearhead a new operation for LGT Private Banking in Japan, according to people with knowledge of the matter.
Nagakura started earlier this year as market head for Japan, where LGT is in the process of setting up a new private banking business, the people said, asking not to be identified as the move isn’t public. He is among about two dozen former Credit Suisse staff who have joined or are in the process of joining the firm, the people said.
The departures come after Russ McFarland, a desk head for Credit Suisse in Tokyo, left to join Bank of America Corp. The Swiss bank is still reeling from a $5.5 billion hit from losses from transactions with U.S. family office Archegos Capital Management, and the collapse of U.K. supply chain finance firm Greensill Capital Ltd in March. It was forced to raise $2 billion from investors last week.
Still, Chief Executive Officer Thomas Gottstein was positive about the outlook for the bank’s wealth management business last week, saying the unit should benefit from higher assets under management, delivering “broadly stable net interest and improving recurring commissions and fees.”
Representatives for Credit Suisse in New York and LGT in Singapore declined to comment. Nagakura also declined to comment.
LGT’s push into Japan comes amid fierce competition for private wealth management in Asia, where the region’s billionaires outnumber their U.S. counterparts. Banks from Sumitomo Mitsui Financial Group Inc. to Goldman Sachs Group Inc. are stepping up efforts to manage more money for the wealthy in Japan where households hold more than half of their 1.95 quadrillion yen of assets in cash and deposits, according to Bank of Japan data.
Controlled by the Liechtenstein royal family for close to a century, LGT last year said it had about 170 billion Swiss francs ($185 billion) in private banking assets under management. The firm has more than 3,000 employees and plans to expand its private banking operations in more markets internationally.
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