Swiss banks retreat could leave sport high and dry

THE CHOPPY WATERS of investment banking have left UBS and Credit Suisse feeling rather seasick. They have both been buffeted by tough markets and tighter regulation which has left them considering whether they are really cut out for the game. Both have separately said they will be focusing much more on their roots in private wealth management which is both steadier and plays to the strengths of long Swiss traditions of looking after the money of the super rich. The question for Frontloaded readers is how much that strategy change will impact on their brand marketing ambitions. Credit Suisse sponsors Roger Federer and it is easy to see his role as brand ambassador continuing, especially with his recent return to form. UBS has taken a more risky route with sponsorship of Formula One, combining with the exploits of a rogue trader briefly earning them the reputation as the raciest bank in the City. UBS has also been active in golf which feels somewhat more in line with the image it is trying to present but arguably neither is guaranteed to survive a refocus on wealth management. Its F1 Chinese Grand Prix deal runs until 2018 however, which may be long enough for it to reacquire the appetite for expansion particularly among the Asian customers it is targeting.