UPDATE 3-Vontobel looking for buys, H1 profit beats f'casts
* Vontobel looking at numerous targets in private banking
* H1 profit 62.4 mln Sfr ahead of avg forecast of 50 mln Sfr
* Shares down 0.9 pct as costs, inflows disappoint
(Rewrites with CEO comment, updates shares)
ZURICH, Aug 12 (Reuters) - Swiss private bank Vontobel (VONN.S) is still looking for acquisitions as consolidation in the sector picks up, the group's head said on Wednesday after the bank posted forecast-beating first-half net profit.
Vontobel, which recently agreed to buy the private banking arm of German's Commerzbank (CBKG.DE), has looked at numerous opportunities, Chief Executive Herbert Scheidt said. [ID:nLU732960]
"We believe consolidation activity will speed up in the context of banks (being) forced to sell non-core activities," Scheidt told journalists.
The European Commission said last month European banks that received state aid, such as Royal Bank of Scotland (RBS.L), may need to sell assets to get approval for the state bailouts. [ID:nBRQ007454]
Dutch bank ING (ING.AS) aims to sell its Swiss and Asian private banking assets, sources told Reuters last week, while Dutch Van Lanschot (VLAN.AS) and Switzerland's UBP have also said they are looking for acquisitions. [ID:nL7427736] [ID:nLB298568] [ID:nL4599481]
"We are focusing on the quality of the assets, size, culture and affordability," said Scheidt, adding that quality depended on the assets being "compliance clean".
First-half net profit at Vontobel fell 46 percent to 62.4 million Swiss francs ($57.7 million) as decreased fee and commission income hit its revenue, but the result beat the average forecast of 50 million francs in a Reuters poll.
The bank said the environment remained challenging and it expected markets to be volatile over the coming months.
Shares in Vontobel were down 0.9 percent at 34.25 francs by 1158 GMT, underperforming the DJ Stoxx bank sector index .SX7P, which was down 0.2 percent.
Analysts pointed at negative factors such as a rising cost-income ratio and lower-than-expected inflows.
"Private banking was heavily down, as was asset management, with cost declines unable to keep up with the fall in revenue as a result of lower assets under management and client activity," said Helvea analyst Peter Thorne in a note to clients.
Net new money was 800 million francs over the period, slightly below forecasts, while assets under management fell to 65 billion francs from 74 billion francs a year earlier as the negative performance of invested assets during the year more than offset inflows.
The bank had a mid-term target of 100 billion francs for assets under management, Scheidt said .
Vontobel also said its Tier 1 capital, a measure of a bank's financial strength, rose to 20.8 percent, which it said was several times higher than regulatory requirements, from 18.4 percent at the end of 2008. (Reporting by Martin de Sa'Pinto, editing by Will Waterman and Gilbert Kreijger) ($1=1.083 Swiss Franc)
