RBS Coutts out to expand its Middle East operations

Dubai: RBS Coutts, the international private banking arm of the Royal Bank of Scotland (RBS), plans to expand its Middle East operations by significantly increasing its customer reach and total assets under management from the region in the next four years, an RBS Coutts executive told Gulf News in an interview.

"Currently we have about $4 billion (Dh14.6 billion) [worth of] assets under management from the region. In the next four years we want to more than double that amount," said James Fleming, RBS Coutts Global Head of Middle East.

RBS, which recently sold its UAE retail banking business to Abu Dhabi Commercial Bank, is refocusing its Middle East business around its core operations such as investment banking, wholesale banking and wealth management.

The wealth management arm of RBS is known as Coutts & Co in the United Kingdom. Internationally, it is known as RBS Coutts. The company has been in Dubai since 1999. It opened its Abu Dhabi and Doha operations in 2000.

Human capital

"In the Middle East we see huge opportunities for expansion of our wealth management business underpinned by the strong economies and the natural resources wealth. Thus we want to significantly invest in our people resources and market reach in the region," Fleming said.

The company has about 16 private bankers dedicated to the region and based in Dubai, Abu Dhabi, Doha, London and Geneva. In the next four years they want to take that number to about 60.

"Our key resource is talent. We believe there is an urgent need to invest in local and regional human [resources]. Going forward we will be recruiting personnel, both fresh graduates and experienced bankers from the region," Fleming said.

In wealth management and private banking, RBS Coutts is focused on high net worth and ultra-high net worth individuals from the region.

"Our core market is clients with a minimum of $1 million of assets. But generally our focus is more on people with $5 million and up to hundreds of millions, and for that we have a very broad-based international proposition which covers the whole range of financial disciplines such as taking deposits, managing money and preserving wealth for the next generation," he said.

RBS Coutts as a brand has existed for more than 300 years and has worked closely with many wealthy families around the world.

"As wealth managers we are more focused towards private individuals and family clients rather than institutional clients. The integrity of [RBS] Coutts is linked to its longevity, international brand image and long-standing relationships we have with some of the wealthiest families in the world."

In the context of the global recession, the focus of wealth managers and their clients is more on preservation of wealth.

Liquidity concerns

Like clients elsewhere in the world, Middle East wealth management clients are also concerned about the safety of their money and liquidity of their investments.

"Increasingly short-term liquid instruments are favoured by wealth management clients. In the current environment, asset allocation is largely determined by their time horizon. But I would say liquidity is the most important priority in the minds of all investors now. That is true about Middle Eastern investors too," Fleming said.