From Geneva to Brazil and Dubai, How Mirabaud Bank Is Navigating Global Market Shifts

Founded in Switzerland in 1819, Mirabaud Bank has weathered countless changes in financial markets, from geopolitical conflict and global recessions to ever-shifting centers of investment. Once solely focused on the local Swiss banking world, the firm has taken on a more expansive investment view over the years, with locations that span the globe — from Europe and South America to the Middle East, including centers in Abu Dhabi and Dubai, United Arab Emirates.

Lionel Aeschlimann, the bank’s head of asset management, said the 200-year-old institution is more than ready to navigate the somewhat murky waters of today’s increasingly internationally connected financial markets, drawing on the foundation of a historically reliable Swiss sector.

“We see significant opportunity for the Swiss financial industry due to the country’s many broad tailwinds — such as the pro-business environment, the open and diversified economy, the high standards of education, and the willingness to embrace innovation,” he said in a recent interview. “International clients are, and will continue to be, drawn to these inherent Swiss qualities.”

Acknowledging Challenges

It’s no secret that even storied Swiss institutions have faced unexpected stumbling blocks recently, particularly Credit Suisse, which collapsed in March 2023.

Aeschlimann noted that both Swiss and other banks have been rocked by the “impact of elevated rates and slowing growth, geopolitical threats and the need for continued adaptation to technological innovation like [artificial intelligence],” along with increases in market regulation.

Still, Mirabaud Bank is further strengthening its existing international network while focusing on providing a wider range of investment opportunities. But how, some might wonder, can this growth be justified?

It's simple, says Aeschlimann — there are still plenty of reasons to be optimistic about the state of banking in Switzerland and beyond. He notes, “The framework underpinning the market is still sound. Switzerland has long been renowned for economic and political stability, while its competitive landscape appeals to companies of all sizes and financial sectors.

“While a small market, Switzerland is open to the world’s major economies,” he continued. “As such, Switzerland’s financial industry and its broader economy can better withstand the underperformance of any individual region.”

Mirabaud Bank’s Global Strategy

Mirabaud Bank's strategic footprint extends across various global markets, including expanding operations in Latin America, particularly through the Mirabaud Family Office Brazil, and supporting family businesses in the Middle East.

In Brazil, the firm announced plans to increase its presence in a growing wealth management sector. The bank's current management of 1 billion reais (approximately $199 million) is set for a considerable scale-up, with a goal to triple its managed assets in the country within two years of 2023. The firm’s strategy is underpinned by Brazil’s economic landscape, which is rich in sectors like construction, agribusiness, and technology startups.

This move comes as Brazil's wealth management landscape shows marked growth, with independent wealth firms witnessing an 8.3% increase in assets under management in the first half of 2023, totaling 460.4 billion reais, according to financial and capital markets association Anbima. Mirabaud's expansion into Brazil aligns with the firm’s broader Latin American strategy, which includes managing $3.8 billion for clients across the region from a global operation encompassing $35 billion in managed assets.

In the Middle East, which the group had identified as one of the key growth regions, Mirabaud has been present since 2007, becoming the first Swiss bank to obtain a Category 1 license in 2010 and the only full-fledged Swiss private bank before expanding in the Abu Dhabi Global Market in 2019.

The region’s family businesses contribute approximately 70% of the UAE’s gross domestic product, as per data from the UAE Ministry of Economy.

“Wealth management goes beyond the pure financial aspects; it’s about understanding our clients’ goals, addressing the intricacies of succession planning, generating value, and contributing to the well-being of our clients and their family businesses,” said Samir Atitallah, CEO of Mirabaud Middle East Limited. He knows how valuable it is to leverage Mirabaud’s experience as a bicentenary family business to support the region’s family businesses.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.