DUBAI, July 29 (Reuters) - Credit Suisse has moved
the head of its Middle East private banking equity research
division to Geneva, two sources told Reuters on Sunday, the
latest European bank to scale back research roles in the region.
Kamran Butt will support private banking sales in
Switzerland with market research after spending six years in
Dubai, two people familiar with the matter said.
"Other analysts from outside the Middle East will be
covering the local market here," said one source, who spoke on
condition of anonymity because the matter is not public.
Credit Suisse confirmed Butt's departure on Sunday and said
it remained committed to the Middle East and North Africa
region.
"Kamran Butt is relocating to Switzerland to take on a new
role as Investment Strategist, Advisory and Sales for Middle
East and Africa, and the Indian subcontinent," said a bank
spokesman. "The bank is looking to replace the role locally."
The Swiss bank unveiled measures this month to boost its
capital base in response to criticism from the central bank, and
also announced new cost cuts, including at the investment bank,
although some analysts have called for even more radical steps.
Leading global investment banks have been cutting research
staff in the Middle East to save costs amid tough global
conditions and a dearth of work in the region.
In the past year, Credit Suisse and Deutsche Bank
have cut top equity research jobs while Japan's
largest bank Nomura has shut down its research
department, sources told Reuters.
Middle East private banking staffing is down about 30
percent in the last two years due to redundancies and relocating
staff to other regions, the second source said.
In February, sources said HSBC was significantly
scaling down its private banking operations in the Middle East.
Europe's biggest lender moved its top private banker in the
region to London.
The Middle East and Africa wealth management sector grew 8.6
percent in 2010 and overall assets under management could grow
to $6.7 trillion by 2015 helped by high oil prices, a study by
the Boston Consulting Group in June last year showed.
The region's private banking sector has several pure-play
private banks like Julius Baer and Sarasin Alpen,
competing with diversified banks such as, J.P. Morgan Chase
and UBS.