By Gabriel Chen

A MAJOR global financial institution is going ahead with a hiring spree in Singapore in the next few months in defiance of the gloom in the financial sector.
That was the good news delivered by newly appointed chief executive for BNP Paribas Wealth Management Asia-Pacific Serge Forti as he hits the ground running.

BNP Paribas, France's biggest bank, has a headcount of about 300 at its wealth management unit here. This number is likely to rise to nearly 500 by the end of the first quarter of next year, Mr Forti said.

About 30 of the new staff here will be senior relationship managers, each with over five years of experience and each bringing with him clients representing at least US$200 million (S$300 million) in assets.

'We already have the list of people,' said Mr Forti at a lunch meeting with the media yesterday at The Tower Club.

He replaces Mr Michel Longhini, who is now based in Paris as chief executive of Wealth Management International. Mr Forti said that the new hires will also include information technology (IT) staff.

The global IT development team - which serves the key software development needs of its 11 locations worldwide - will grow in strength from slightly over 20 currently to 100 staff members by the end of the first quarter next year.

The IT team will move to HarbourFront from its temporary premises at Tung Centre in Collyer Quay.

BNP will also take on some Fortis staff. The French bank recently acquired beleaguered Fortis' Belgium and Luxembourg operations, as well as the international franchises.

'If we're doing quite well in this crisis, it's because we've been very reactive to our clients,' said Mr Forti, who has 34 years' experience with BNP Paribas group.

Analysts say the fact that any bank is hiring to this extent is good news for the wealth management industry, given that Swiss wealth managers like UBS and Credit Suisse are said to be cutting jobs here.

Mr Forti said next year will be a 'challenging year' for wealth managers due to conditions of financial markets and increasingly risk-averse clients.

But the tough times will provide an opportunity for them due to its 'name that is becoming increasingly well known and easy to sell'.

'We're a huge player in the wealth management business, and we want to be the largest, the most profitable and the most attractive for our clients and their assets.'

Mr Forti said that he has not retrenched any staff from his wealth management unit - and has no intention to cut jobs.

He said new money is flowing into the bank, as some European clients pull funds from distressed banks.

For instance, new cash at its wealth management operations in Asia should hit about US$5.5 billion this year, up from US$3.4 billion last year. Next year, he expects US$8 billion in new cash.

He expects the bank's business to grow much faster than the 10 per cent growth projected for the Asian wealth management industry.

BNP Paribas has not been immune from the effects of US Investment bank Lehman Brothers' collapse in September, which froze credit markets.

But it has dodged the worst of the financial crisis, taking the opportunity to make acquisitions such as Fortis' operations in Belgium and Luxembourg.

The formula? Part of it has to do with being conservative.

'There are a lot of clients asking the bank to do products they've seen,' MrForti explained.

'Instead, we ask them to send us a letter, by paper, and they have to say 'We want you to do this product for us'.'

'For some products, we don't want to do them and we don't want to promote them. If a client is seeking a product, we'll serve the client, but we'll never force the sale.'

This article was first published in The Straits Times on .