Swiss wealth manager Julius Bär will cut 300 jobs this year, its chief executive said on Monday, as it looks to boost profitability after a double-digit percentage earnings fall in 2019.
The private bank wants to boost profitability with a new three-year strategy to deal with continued margin pressures, Philipp Rickenbacher said.
The Zurich-based lender aims to improve its adjusted cost-income ratio to 67% by 2022, better than its previous 68% target and the 71% level achieved in 2019, by cutting costs by CHF200 million ($206.7 million) and growing income.
“We will accelerate our investments in human advice and technology,” Rickenbacher said. “And we will shift our leadership focus from an asset-gathering strategy to one of sustainable profit growth.”
Ultra-wealthy clientele
Since becoming CEO in September, Rickenbacher has reduced the size of Bär’s executive board to boost efficiency and client focus, particularly on ultra-wealthy clientele.
Bär said on Monday it expected to improve revenues by more than CHF150 million over the three-year period by broadening its offerings for wealthy and ultra-wealthy clients and increasing technology investments to enhance its client advice.
On an unadjusted basis, net profit attributable to shareholdersExternal link fell 37% to CHF465 million in 2019, after a CHF250 million impact from legal provisions and a goodwill impairment on its underperforming Italian asset manager Kairos hit earnings.
More
More
Julius Bär ordered to repay CHF153 million missing German funds
This content was published on
A Swiss court on Wednesday overturned a previous verdict that Julius Bär should not he held responsible. The Swiss wealth manager has been pursued for damages by a German state department that tracks down assets from the former East Germany. Julius Bär has always maintained that it was not to blame, having acquired a German…
Should raw milk sales be banned or should consumers decide?
Swiss food regulations do not allow raw milk to be sold for direct consumption. However, a loophole allows 400 raw milk vending machines to do just that.
COP29: Swiss NGOs call for strong financial support
This content was published on
Ahead of COP29, Swiss NGOs call for wealthy nations to pay $1,000 billion a year to help other countries solve climate problems.
Real Swiss wages likely to rise in 2025, says UBS bank
This content was published on
Higher wages and falling inflation are likely to boost Swiss purchasing power, which will be dragged back by rising health premiums.
This content was published on
Switzerland has a new tectonic map at a scale of 1:500,000, containing updates to geometry, distribution and nomenclature of the tectonic units.
This content was published on
Swiss artist Daniel Spoerri, known for his artworks using leftover food with dirty cutlery and crockery, has passed away in Vienna at the age of 94.
Climate change tipped to alter Swiss avalanche patterns by 2100
This content was published on
Climate change is expected to result in fewer avalanches overall in Switzerland but to increase the danger of wet snow avalanches by 2100.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Julius Bär takes CHF99 million hit on ailing Italian unit
This content was published on
Julius Bär issued the warning on Tuesday, less than three months into the tenure of new CEO Philipp Rickenbacher. Although assets under management have grown 10% so far this year (CHF422 billion), net new money has weighed in with a disappointing 3% growth. “It is therefore unlikely that the group will achieve its medium-term target…
This content was published on
The Julius Baer bank has been ordered to refund nearly CHF100 million to Germany in a legal dispute over funds from the defunct GDR.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.