Credit Suisse set to grow WM business

GENEVA (Reuters) - Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) is likely to channel some of the proceeds of the recent sale of its Winterthur insurance business to French insurer AXA AXA.PA into growing its wealth management business, a top Credit Suisse Manager said.

"You can expect where the cash generated from the sale will be directed," said Arthur Vayloyan, Head of Private banking Investment Services and Products told the Reuters Wealth Management Summit on Monday.

"Logically you will see money being directed to private banking," he said.

Since the sale was announced in June, investors have eagerly awaited a clear signal as to how the proceeds of the disposal would be spent.

Credit Suisse has said that part of the money could go into acquisitions and has not ruled out returning any cash which is surplus to requirements to shareholders.

Credit Suisse's main Swiss rival, UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz), has made a string of acquisitions this year which have extended its wealth management reach, acquiring, among others, the brokerage services of Piper Jaffray in the United States and leading Brazilian private bank Banco Pactual.

Vayloyan said that many smaller potential targets were expensively priced and that Credit Suisse was likely to be reluctant to be seen to be overpaying for any assets.

"We see some of the small players are pretty richly valued. When you see us we are relatively pale compared to it," said Vayloyan. "We are extremely cost-conscious."

Credit Suisse had made acquisitions in the past which had required significant management effort to improve the businesses.  Continued...