JP Morgan to expand in Switzerland, add 400 jobs

JP Morgan plans a big expansion in Switzerland, particularly in private banking in Geneva, adding more than 400 jobs in total, the co-head for the US bank in Switzerland was quoted as saying on Wednesday.

Martin Schuetz told the TagesAnzeiger newspaper in an interview the bank planned to increase its private banking team in Geneva to over 1,000 by the end of 2012 from 650 now and double its staff in Zurich to 120 by next year.

"Switzerland remains a highly attractive location for JP Morgan," Schuetz said. "Our customers really value the advantages of a strong currency, minimal inflation, a prudent central bank and high service quality."

However, he noted that the recent weakening of Switzerland's prized banking secrecy after a global crackdown would mean lower margins and more competition in the industry.

"Private banks and wealth managers based in Switzerland must tighten their processes in advice and back office and significantly cut costs," he said.

JP Morgan will more intensively use the powerful platform it has built in Geneva to manage the money of wealthy foreigners to service markets like Singapore and Hong Kong, he said.

The expansion is also aimed at helping the bank serve big international firms based in Switzerland due to its low taxes and stable conditions as well as the booming commodity trading centres of Geneva and Zug, Schuetz said.