Bernhard Hodler's Shadow Boxing

Bernhard Hodler's Shadow Boxing

Investors got their first look at new Julius Baer Chief Executive Bernhard Hodler on Wednesday. The Swiss banker passed muster – except in one delicate point.

Julius Baer is Boris Collardi – at least until last November, when the dynamic and restless CEO of the past nine years defected for a prestigious partnership at rival Pictet & Cie. The move parachuted 57-year-old deputy boss Bernhard Hodler into the top spot.

The discreet former risk boss couldn't be more different than Collardi, whose big shoes he is attempting to fill. If he is daunted by the prospect, he didn't show it speaking publicly for the first time since his appointment. He appeared confident, relaxed, and in control to finews.asia as the bank reported a 14 percent rise in full-year net profit and a small acquisition in Brazil.

Forcing Fees

What differences to Collardi could be drawn out? Hodler made clear that Julius Baer will continue as a purely private bank without meandering into riskier, balance-sheet intensive investment banking. Instead, he plans to focus on steering wealthy clients towards mandates which generate regular fees, a model which is smoother for banks to plan because they can budget expected revenue.

In Switzerland and continental Europe, nearly all clients have signed fee mandates. Globally, that share is just 50 percent. «We'll keep rolling it out,» Hodler said. He also stuck to Julius Baer's strategic markets – Asia, Europe, and Latin American – but signaled the bank could pull back offerings in some markets.

«We cannot offer the same depth and quality of services to 200 different markets,» Hodler said. The bank pulled back on its recent massive growth last year, hiring just 41 private bankers from 166 the prior year. Hodler aims to recruit roughly 80 this year, he said, especially in the key Asian, European, and Latin American markets.

Hiring Push

This year, the bank has already hired in the U.K. this year in a bid to take on domestic giants like HSBC and hometown rival UBS. Germany, where the bank still isn't profitable despite years of investment, is also expected to benefit from hiring.

Does Hodler fear losing clients and assets to Pictet when Collardi joins the rival bank in June, as some of his colleagues fear? «We don’t see any signs of either clients or relationship managers leaving,» the new CEO said, he said.