Julius Baer has taken important steps out of the crisis. A central task still lies ahead for the bank: the appointment of a new permanent CEO. The first-quarter results show why this choice is so crucial, according to finews.asia.
More new money and a significant increase in assets under management (AuM): Julius Baer reports a remarkable result for the first quarter.
All set? Has the wealth manager finally left behind the Signa debacle involving Austrian entrepreneur and investor René Benko from last year?
Analysts Disappointed by Net New Money Inflows
The figures are good. However, Julius Baer has not (yet) fully convinced the analysts. The bank particularly disappointed in net new money inflows, but performed significantly better than expected in assets under management and gross margin. Overall, analysts had expected net new money inflows of 5.1 billion francs and total client assets under management of 457 billion Swiss francs.
This makes it all the more important for Julius Baer to quickly clarify who will be the bank’s next permanent CEO. The search is reportedly in full swing. One name that keeps coming up in this context is Ralph Hamers.
Julius Baer Needs a Private Banker, Not a Retail Banker
The smart and easy-going Dutchman, who surprisingly took over the helm at UBS in the fall of 2020, was never able to fully dispel doubts about him during his entire tenure in Switzerland. This was partly due to the investigations against him in his home country that were already underway before he joined UBS. The prosecutor's decision on whether to charge the UBS chief is still pending.
The investigation concerns whether Hamers, in his time as head of the major bank ING, is personally liable for violations of anti-money laundering regulations. The skepticism about him was probably somewhat exaggerated. After all, he did not make any major mistakes during his tenure until the spring of 2023.
Nevertheless, a CEO like Hamers would be the wrong choice. The Dutchman’s greatest achievement was the accelerated digitization of Switzerland’s largest bank. Julius Baer doesn’t need a retail banker, but a proven private banker. Someone who can inspire additional confidence in the market so that the wealth bank can further increase its net new money inflows.
The Stigma of the Interim Chief
There is no shortage of potential names, as research by finews.com has shown. Names frequently mentioned include Annabel Spring, CEO of HSBC Global Private Banking, or Giorgio Pradelli, CEO of EFG International.
Nic Dreckmann, however, has poor chances. Although the interim chief has done a good job so far, his biggest flaw is that he comes from within the ranks. And the bank has not had much luck appointing people from within recently. Therefore, they now prefer an external solution.
