Julius Baer: Stefan Bollinger’s Magic Triangle
Expectations were high for the strategy update from Julius Baer’s new CEO, Stefan Bollinger. The share-price reaction shows that not all investors hopes were met.
Julius Baer CEO Stefan Bollinger has been in charge for barely six months. After initial organizational moves – trimming the executive board and reorganising regions and business lines – the wealth manager relies on a new strategy to unlock its potential.
Presenting the plan to investors in London on Tuesday, Bollinger spoke of the «performance challenges» the bank has faced since 2022. High-profile credit incidents (Signa/René Benko) hurt the bank’s reputation and consumed management time. Net new-money growth was lacklustre, operating profit stagnated, and costs rose.
His antidote: an intense focus on growth, costs, and risk management.
Three factors that should lead to more profit (Image: JB)
Back Into Balance
Bollinger outlined several actions to bring those pillars back into balance:
- Sharper client segmentation. Julius Baer already serves high-net-worth (HNWI) and ultra-high-net-worth (UHNWI) clients, but product penetration remains too low. A dedicated UHNWI Competence Centre and new digital tools are planned.
- Digital Business Transformation. A new unit will drive technology projects, starting with a scalable, harmonised Swiss infrastructure.
- Tighter geographic focus. The regional footprint is «attractive,» yet the group is pruning non-core markets—it has exited Brazil and expanded in Italy.
Management wants 150 additional relationship managers (RMs) on top of today’s 1,225. While hiring external talent has gone well, existing advisers’ contribution to net new money is «insufficient.» Bollinger’s marching order: «activate» the seasoned RMs.
Culture and Incentives
Bollinger aims to embed «ownership» alongside performance. A more balanced pay system will incorporate follow-on risks: «Relationship managers must bring in good business, not just any business,» he said.
Risk as First Line of Defence
Risk and compliance are central. Processes and responsibilities will be tightened under incoming Chief Risk Officer Ivan Ivanic (from July). Employees are to serve as the frontline defence.
Bollinger declined to elaborate on the ongoing FINMA investigation: «We maintain a constructive dialogue and are cooperating fully.»
Rediscovering the Swiss brand
«Being a Swiss bank is once again a competitive advantage, which was not always true in recent years,» Bollinger noted. The bank wants to inspire staff pride under the motto «Proud to be Baer.»
