A brief history of Crédit Agricole Private Banking from its UAE head

Fouad Hamiyeh gives the lowdown on the bank's presence here.

Fouad Hamiyeh, head of business in the UAE at Credit Agricole Private Banking. Jeffrey E Biteng / The National

Crédit Agricole is one of the leading European banking groups, and has had a presence in the Middle East for more than 150 years. Like many global banks, it has offered private banking and wealth management services to high net worth individuals in the region for some time. Fouad Hamiyeh, the head of the business in the UAE, explains the strategy in an email exchange.
Can you explain the set-up at Crédit Agricole Private Banking? It is a Swiss corporate entity but owned by the French parent bank. How does this work?
Crédit Agricole (Suisse) operates under the "Crédit Agricole Private Banking" brand in the Middle East. It is the main wealth management entity of the Crédit Agricole Group, the world's eighth-largest bank by total assets. The bank is strongly backed by the Crédit Agricole Group's financial strength and an extensive international network.
Crédit Agricole (Suisse) is headquartered in Geneva and benefits from the strong know-how of Swiss private banking. With a global network having multi-booking capabilities, the bank offers geographical diversification opportunities and access to diverse investment solutions and estate planning strategies.
In France, Crédit Agricole is the "people's bank". How does this square with the elite image of private banking?
In addition to being a bank which is very close to its retail customers in France, Crédit Agricole is one of the world's most stable financial groups, with more than US$103 billion of shareholders' equity, $323bn of liquidity reserves and total of assets of $2.30 trillion.
Crédit Agricole Private Banking is quite well positioned in the industry as it is part of a major financial group that has asset management, retail, corporate and investment banking offerings. Having a broader group platform enables the bank to partner with clients in their aspirations as they expand their businesses, while offering wealth management solutions.
 
What is the rationale for your presence in the Middle East? How would you describe your average banking customer here?
We are one of the leading players in the region's private banking industry. With a rich Mena heritage spanning over a century, the bank continues to be firmly committed to the region. The bank's regional links can be traced back to 1858 with the establishment of "Compagnie universelle du canal maritime de Suez", and then with the founding of "Banque de l'Indochine" in 1875. Both entities later merged in 1974 to become "Banque Indosuez", which was the first foreign bank to be set up in Jeddah, and interestingly had the address of PO Box No 1.
Banque Indosuez set up a branch in Djibouti in 1908 to assist the construction of the railway line from Djibouti to Ethiopia. Banque Indosuez was later acquired by Crédit Agricole in 1996. With its deep local knowledge and expertise, Crédit Agricole Private Banking further expanded in the region and opened offices in Lebanon, Dubai and Abu Dhabi to reach out to clients across Mena.
The bank's customers include a cross-section of wealthy individuals across the region. With the fast-paced growth of regional wealth, the private banking landscape is rapidly evolving and there is an emergence of a new generation of wealthy people. This wealthy new generation comprises some of our new customers, and many of them are entrepreneurs. These new clients are well educated, knowledgeable, and are highly sophisticated in their wealth management needs. We are adapting to the changing landscape, taking a partnering approach and offering bespoke solutions to meet the requirements of both existing and new customers across the region.
 
How do you interact with the family offices of the big trading groups in the region? Is this your core market?
Crédit Agricole Private Banking offers a wide range of services to family offices, among which business succession planning, trust and estate planning, family governance and global custody are of certain significance. Family offices are a high potential business for the private banking industry in the region.
What are the trends in global private banking? Given increasing scrutiny and regulation in Europe and the US, does Crédit Agricole Private Banking see the emerging markets as the future for private banking?
Greater complexity, industry consolidation and innovation are seen as some of the major trends in global private banking. The industry's focus on liquidity and capital efficiency is leading to greater complexity. On the other hand, industry consolidation is seen as inevitable to remain competitive, and to counter increasing costs and falling revenues. Similarly, innovation is a key factor as private banks need to reinvent themselves and move away from products selling into providing bespoke and customised services.
We think emerging markets offer tremendous growth opportunities for private banking, as they are expected to represent more than a third of the global millionaires' wealth. In this context, the GCC is even more relevant for the industry as the region is seen to be gaining a greater share of global wealth. With 61 private banks in the region, the GCC remains an attractive and fast-growing market with continued capital flows and rising profitability.
 
The new Abu Dhabi Global Market will have an emphasis on private banking as one of its unique selling points. Have you any plans to have a presence there?
Crédit Agricole Private Banking already has an office in Abu Dhabi. Our Middle East offices in Abu Dhabi, Dubai and Beirut are part of a strategic regional network which works very closely with our global headquarters in Geneva.
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