Willing to further expand its footprint in Europe – not only to strengthen existing relationships but also to reach new clients – the New-York based group recently announced the opening of new private banking offices in Paris and Frankfurt.
Although City decided to open a booking center in Luxembourg in 2018 – so it could keep administrating the accounts of its wealthy European clients no matter what happened with Brexit – it is currently relocating staff from Luxembourg to the new offices and already planning to further increase headcount in the coming months.
According to Global Head of City Private Bank Ida Liu, “Paris and Frankfurt are two of Europe’s fastest growing ultra-high net worth markets, and our presence on the ground will allow us to better serve our existing clients and build new client relationships.”
Although this new European wealth’s strategy may have an impact on City’s revenue (going up to $4 billion in 2021), Luxembourg remains a centre of excellence in private banking. First, for its sound and stable economy – recently confirmed by renowned rating agencies like Fitch and DBRS Morningstar, with a triple A – attracting international banking institutions and clients, but especially for its unique multijurisdictional expertise. Let’s take the example of a wealthy manufacturer, operating in one country but having the wife and kids living in another. He will probably wonder how to properly manage and pass on its properties and assets in such an environment… And Luxembourg remains the perfect place to do so.