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.”
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.