Latest news with #StefanBollinger
Yahoo
a day ago
- Business
- Yahoo
Julius Baer seeks $159m in cost cuts by 2028 in strategy update
Julius Baer has announced new financial goals for the coming three-year period, including SFr130m ($159m) in cost cuts by 2028. This follows the previously announced gross cost savings target of SFr110m ($133.9m) as part of the 2023–2025 cost programme. For the strategic cycle 2026 to 2028, Julius Baer targets a net new money growth of 4–5% and an adjusted return on Common Equity Tier 1 capital (RoCET1) of at least 30%. It also seeks to achieve an adjusted cost/income ratio of less than 67% by 2028. The focus will be on optimising the operating model, simplifying processes and IT systems, and maintaining strict cost discipline, particularly in non-personnel expenses. Over the past 20 weeks, Julius Baer has undertaken various measures to enhance transparency, accountability, and client focus while streamlining management processes. Changes to governance structures have included a reduced executive board, the establishment of a new global wealth management committee, and the creation of a new global products and solutions unit. The group has also improved risk management through a focused risk organisation and leadership, alongside a review of its credit book. Julius Baer is also committed to improving its risk and compliance management processes, which includes establishing a new risk organisation led by Ivan Ivanic, appointed as chief risk officer, effective 1 July 2025. Additionally, the group plans to invest in digital transformation to enhance the client experience and support front employees. A new digital business transformation unit has been created, and an IT infrastructure project is underway in Switzerland. Julius Baer CEO Stefan Bollinger said: 'Since January, we have made a lot of progress on multiple fronts aimed at strengthening our organisation and the trust of all our stakeholders. 'The last 20 weeks only reinforced my conviction in the uniqueness of this franchise, the high quality and commitment of our employees, as well as the significant underlying business potential.' In April, Julius Baer also announced an organisational overhaul to streamline operations, setting up a new Global Products & Solutions unit and reorganising its client business into three global regions. "Julius Baer seeks $159m in cost cuts by 2028 in strategy update" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Times
3 days ago
- Business
- Business Times
Julius Baer's new goals fail to impress in setback for CEO
[ZURICH] Julius Baer Group unveiled fresh targets aimed at cutting costs and setting the Swiss wealth manager on the road to better profitability, though investors saw little reason to cheer. Shares in the Zurich-based lender fell after the open on Tuesday (Jun 3), following chief executive officer Stefan Bollinger's announcement of an extra 130 million Swiss francs (S$205 million) in cost cuts through 2028. The bank set a weaker efficiency target, and gave little detail on growth measures. Bollinger and new chairman Noel Quinn are seeking to put the bank on a path for growth after a string of missteps including the 2023 losses linked to the Signa real estate collapse. Yet both of Bollinger's strategy announcements since taking over in January have left investors looking for more. Baer shares were down 1.5 per cent at 9.47 am in Zurich. The firm scrapped medium-term targets for profitability, and instead introduced a goal for net new money, a key metric for wealth managers. The bank aims to improve the measure by 4 to 5 per cent over the next three years. 'Baer has reported an underwhelming strategy update as net new money and cost income ratio targets fail to excite relative to expectations,' analysts including Tom Hallett at KBW wrote in a note. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up On growth, the bank said it intends to 'sharpen segmentation and coverage, enhance its product offering, strengthen top positions in core geographies, and increase productivity.' Buybacks frozen In May the bank booked another large loss from property developments it helped finance. The 130 million Swiss francs loan-loss charge related to its private debt business and selected positions in its mortgage operation. In the same month Julius Baer disclosed that regulators had ordered it to hand over 4.4 million Swiss francs because of alleged failings in money-laundering controls related to transactions that had occurred between 2009 and 2019. Baer confirmed that a share buyback programme is on hold until it has clarity over the outcome of an investigation into the Benko losses by the regulator Finma has concluded. Anke Reingen, an analyst at RBC Capital Markets, said that the target updates 'make sense' but that investors would need to see 'evidence of a better outcome and buybacks to resume to see earnings growth and upgrades coming through.' BLOOMBERG
Business Recorder
3 days ago
- Business
- Business Recorder
Julius Baer to make further cost cuts of $159 million by 2028
ZURICH: Julius Baer will implement more cost-saving measures amounting to 130 million Swiss francs ($159.02 million) by 2028, the Swiss private bank said on Tuesday, as CEO Stefan Bollinger seeks to turn the page on past setbacks and restore confidence. The wealth manager announced a writedown of 130 million Swiss francs last month, which followed losses of 586 million Swiss francs made public early last year, leading to a management shake-up. Bollinger took over as CEO in January, and ex-HSBC chief Noel Quinn joined the bank as its new chairman in May. Julius Baer said it was targeting an adjusted cost-to-income ratio of less than 67% and aiming for a 4–5% net new money growth target by 2028, in a strategy update. Shares were down 2% in early trading. Julius Baer told to pay $5mn for money laundering control failures 'Julius Baer's new strategy under recently-appointed CEO Stefan Bollinger is based on fairly conservative assumptions, which should make new targets achievable, but equally those new targets are well-below market expectations,' Citi analysts said in a research note. The bank had already announced a gross cost savings target of 110 million Swiss francs by end-2025, which it anticipated to exceed by around 20 million Swiss francs. 'Julius Baer is committed to upgrading its risk and compliance management processes and accountability throughout the organisation,' it said on Tuesday.
Business Times
3 days ago
- Business
- Business Times
Julius Baer focuses on costs as CEO sets ‘realistic' goals
JULIUS Baer is stepping up its efforts on cost cutting while setting 'realistic' performance targets, as chief executive officer Stefan Bollinger seeks to move past a string of legacy issues. The Zurich-based wealth manager will seek 130 million Swiss francs (S$205 million) in cost reductions to 2028, according to a statement ahead of an investor day on Tuesday (Jun 3), while introducing a less ambitious efficiency goal. Bollinger and new chairman Noel Quinn are seeking to put the bank on a path for growth after 2023 losses linked to the Benko real estate collapse. Yet the bank is struggling to put the previous era behind it, amid restructuring and a continued drip feed of bad news. The firm scrapped medium-term targets for profitability, and instead introduced a goal for net new money, a key metric for wealth managers. The bank aims to improve the measure by 4 to 5 per cent over the next three years. In May the bank booked another large loss from property developments it helped finance. The 130 million Swiss francs loan-loss charge related to its private debt business and selected positions in its mortgage operation. 'Baer has reported an underwhelming strategy update as net new money and cost income ratio targets fail to excite relative to expectations,' analysts including Thomas Hallett at KBW wrote in a note. In the same month Julius Baer disclosed that regulators had ordered it to hand over 4.4 million Swiss francs because of alleged failings in money-laundering controls related to transactions that had occurred between 2009 and 2019. Baer confirmed that a share buyback programme is on hold until it has clarity over the outcome of an investigation into the Benko losses by the regulator Finma has concluded. Anke Reingen, an analyst at RBC Capital Markets, said that the target updates 'make sense' but that investors would need to see 'evidence of a better outcome and buybacks to resume to see earnings growth and upgrades coming through.' BLOOMBERG
Bloomberg
3 days ago
- Business
- Bloomberg
Julius Baer Boosts Cost Cutting as Bollinger Seeks Growth Path
Julius Baer Group Ltd is stepping up cost cutting as Chief Executive Officer Stefan Bollinger seeks to move past a string of legacy issues. The Zurich-based wealth manager will seek 130 million Swiss francs ($159 million) annually in cost reductions to 2028, according to a statement ahead of an investor day on Tuesday.
