* Private bank head: no plans to enter Asia, Latin America
* Focus on Germany, Switzerland - Vontobel PB chief Fanconi
* Aim is 50 bln francs in assets under management long-term
By Oliver Hirt
ZURICH, March 30 (Reuters) - Swiss private bank Vontobel will focus on profitable growth in its core European markets, not join the dash for new money in emerging markets, private banking head Peter Fanconi told Reuters.
Fanconi said the bank had no plans to enter Asia and Latin America, which many of its rivals see as the future for Swiss wealth managers after the Alpine country bowed to global pressure and softened the client secrecy rules that had once been synonymous with Swiss banking and accounted for its appeal to some.
The group, which bought German bank Commerzbank's Swiss wealth management business in 2009, would keep its focus on core markets Switzerland and Germany, Fanconi said.
"I am convinced that this strategy is right," he said. "Given its size, Vontobel cannot be present everywhere. We have no plans for a larger presence in Asia," he said. "We have also no ambitions to start a local business in South America."
Many competitors were growing strongly in Asia but were not profitable, he said, adding: "Profitability is more important than net new money growth in the short-term."
Other Swiss wealth managers are pushing hard into the Asian market, with Julius Baer calling Asia its second home market.
EUROPEAN POTENTIAL
Vontobel aimed to grow its assets under management by about two thirds to around 50 billion francs, Fanconi said.
Vontobel's assets under management fell by 1 percent in 2010 to 29.6 billion francs as the strength of the franc wiped out net new money inflow of 1.2 billion francs.
Fanconi took the helm at Vontobel's private banking business two years ago. He led the takeover of Commerzbank Switzerland, opened new locations in Bern and Basel and invested in Milan.
While many other Swiss banks pulled out of the off-shore business with U.S. clients, Fanconi launched a unit that focuses precisely on such clients.
The bank's main markets, however, are Switzerland and Germany, with a presence in Liechtenstein, Italy and Austria.
Vontobel had plenty of opportunities in these markets and further acquisitions were also an option, Fanconi said.
"We see a large potential and have ambitious growth targets," he said. "I can well imagine that we open further locations in Switzerland and Germany and hire more staff."
"Should targets of the size of Commerzbank or even larger come up and fit our strategy, we would act," he said.
Vontobel could digest a bank with assets under management of about 10 billion francs -- around twice the size of Commerzbank's Swiss operations at the time, he said.
"We are always looking at objects, and there are targets on the market. But we are not close to an announcement," he said. (Writing by Sven Egenter; Editing by Will Waterman)