Private banking generates one quarter of Raiffeisen's deposits

Over one quarter of the volume of deposits made by individuals with the Raiffeisen Bank come from private banking clients, Octavia Cutus, head of the wealth management department told ZF. For standard clients, the bank has been operating deposit interest rates below the market average for well over a year. However, with top clients it is willing to negotiate preferential interests, depending on the amount deposited, with the business becoming more cost-efficient. Currently, the private banking department of Raiffeisen Bank manages assets worth around 200 million euros for more than 500 clients. As a result, the average value of a portfolio stands at 400,000 euros per client. According to Cutus, bank deposits continue to be favoured by clients with high amounts of capital, this being the dominant conservative attitude towards risk noticed by all bankers specialising in this particular field. Raiffeisen’s private banking service is made up of two basic categories – the 40,000 to 100,000-euro category (or for equivalent sums in other currencies), and the over 100,000-euro category, which includes more diversified investment alternatives. Clients who have at their disposal funds of over one million euros and require more specialised portfolios than the bank together with Raiffeisen Asset Management and Raiffeisen Capital & Investment can offer, have access to the financial facilities on foreign markets through Kathrein & Co – the private investment bank held by Raiffeisen Zentralbank Osterreich in Austria.