StanChart sees AEB integrated by Q2 2009

GENEVA (Reuters) - Standard Chartered expects to complete the acquisition of the American Express Bank (AEB) by the second quarter of 2009 and plans to continue to add staff in its private banking segment.

Asia-focused bank Standard Chartered bought AEB last year in a $860 million deal that accelerated its private banking expansion.

"This year we are growing the business significantly," Peter Flavel, Global Head of the group's private bank said at the Reuters Wealth Management Summit.

"For the integration we are on target or ahead of target. We'll complete early next year, by the second quarter."

Although present in Asia since the middle of the 19th century, Standard Chartered only launched its private banking business in early 2007.

Flavel said that the bank had now more than 300 relationship managers and aimed to grow this number by a further 100-150 over the next 3 to 4 years.

Standard Chartered started its private banking business with around 150 private bankers. The AEB deal was expected to add another 120 relationship managers.

RISK APPETITE

Standard Chartered Private Bank's is mainly targeting clients in the fast-growing Asian economies. One half of its private banking customers has assets of $10 million each while the other half has $25 million of wealth.

Flavel said Asia had not been immune to the market turmoil rocking global markets and even traditionally risk-prone Asian investors had moved out of structured products into safer investments.

"People are moving money into cash and more protected instruments. Gold is also playing a part in that," Flavel said.

But some investors were already starting to regain a risk appetite.

"We are getting a number of queries from people saying 'we understand the turmoil now, we understand that sentiment is against these assets but we also want to start thinking about when this storm rides through what are the right positions to take'," Flavel added.

(For more on the Reuters Wealth Management Summit, see [ID:nWEALTH]

(Reporting by Lisa Jucca; Editing by Jon Loades-Carter)