The private banks on the shores of Lake Geneva are profiting from the rapid decline of the oil price and the instability in the Middle East. The institutes are attracting massive amounts of assets from that region, despite or perhaps because of the war in Syria, the simmering dispute between Iran and Saudi Arabia and the fighting in Yemen.

The bank balances of clients based in that region are flush with cash and the bankers don't expect the tide to turn soon, according to a survey by «L'Agefi» newspaper (pay-wall).

Security, Diversification, Performance

The very rich clients from the Middle East are not just looking for security, but also for diversification and performance. Christophe Lalandre, head of Lombard Odier's branch in Dubai, told the newspaper, that the clients were keen to invest their money in traditionally important wealth management centers such as in Switzerland.

The Swiss daughter of National Bank of Abu Dhabi also reported substantial inflows of money from the Middle East and expects this trend to accelerate still.

The money from that region is one of the major growth factors for his business, according to Lionel Pilloud, head of the Geneva branch of Bank Vontobel. Pilloud is concentrating mainly on clients from the Emirates, Jordan and Lebanon.

Bonanza – and Time Bomb

Geneva is now managing some 200 billion francs in assets from the Middle East, according to some estimates. This in turn will generate even more new money, newspaper «L'Agefi» said.

The private banks in Geneva thus are all smiles, while UBS and Credit Suisse are quietly concerned about the oil price. They may yet have to deal with bad credits from the oil industry – to the tune of billions of francs.