Swiss private bank BSI is considering joint ventures with Gulf partners as well as acquisitions to expand in the region, an executive said. Saad Osseiran, a managing director at BSI based in Bahrain, told Reuters the bank would like to grow in the region over the next three years. “Organic growth is a priority when approaching the region but also BSI could look into opportunities to either acquire or create a joint venture with a local partner,” he said. BSI, a unit of Italian insurance group Generali, opened its first Middle East office in Bahrain in October to offer services to the oil-exporting region's institutions, wealthy families and individuals. Private banks are facing tough times in the financial crisis with troubled groups Saad and Algosaibi the latest victims. “The worst is yet to come, there's a lagging effect (of the crisis spreading to the region) due to the lack of transparency and the illiquid nature of investments here,” Osseiran said. A large portion of oil revenues has been invested in regional real estate, whose boom ground to a halt last year, threatening financial institutions which had relied on rising property prices. “Investors in the region are extremely careful, most are looking for safety”, Osseiran said, adding BSI seeks to capitalize on its reputation as a conservative Swiss bank to attract mandates in the current mood. He said further sovereign fixed-income issues such as a recent $750 million Islamic bond issue by Bahrain would see strong investor interest. Osseiran said BSI nevertheless has a positive long-term view on the region, as other sectors such as energy, infrastructure and health still need significant investments.
