Julius Baer has announced 400 job cuts and shrunk its executive board in a cost-cutting push under new CEO Stefan Bollinger.
The impacted jobs constitute about 5% of the Swiss private bank’s workforce.
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The company’s executive board has now been trimmed from 15 to 5 members, as it eyes another CHF110m in cost savings.
This new board includes Bollinger, chief operating officer (COO) and deputy CEO Nic Dreckmann, chief risk officer Oliver Bartholet, chief financial officer Evie Kostakis, and group general counsel Christoph Hiestand.
The CEO will now directly oversee all revenue-generating sectors and the front business, with region heads and the heads of markets and investment and wealth management solutions reporting to him.
The COO’s responsibilities will expand to include client strategy and experience and HR and corporate affairs.
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By GlobalDataBollinger stated: “A new leadership structure and a leaner Executive Board will increase accountability, instil disciplined entrepreneurship top down, and reinforce our enduring client focus.
“This is the first move to create a leaner, more straightforward way of running our business. We are going to apply the same principles through the entire organisation. I am convinced our clients and all other stakeholders will feel the difference.”
In conjunction with the update on this restructure, the bank announced its results for 2024, with net profit soaring 125% year-on-year to CHF1.02bn.
The bank reported CHF497bn in assets under management (AuM) as of 31 December 2024, a 16% increase from the prior year.
This was largely the result of net new money inflows of CHF14.2bn and favourable stock market conditions.
The company’s operating income stood at CHF3.86bn in 2024, up 19% from 2023.
Operating expenses increased by 3% to CHF2.81bn, driven by rise in personnel expenses and technology investments.
Julius Baer’s adjusted cost/income ratio in 2024 was 70.9%, which it says is “still unsatisfactory” and “far removed” from the 64% goal originally envisioned for 2025.
Besides, the company has decided not to initiate a new share repurchase programme.
