Julius Baer Group AG (BAER.EB) will shed 300 jobs as the bank tries to cut costs after net profit fell 37% last year.
Chief Executive Philipp Rickenbacher, who has been at the helm of the Swiss private bank since September, said on a call that the bank will cut 300 jobs this year.
The move come as the CEO and his management team want to cut the Swiss bank's cost base by 200 million Swiss francs ($207.5 million) "through productivity and efficiency measures," it said. The plan includes reviewing the group's geographic footprint and simplifying the organization. The bank will close its booking centre in the Bahamas, it said Monday.
"We will accelerate our investments in human advice and technology," Mr. Rickenbacher said.
"And we will shift our leadership focus from an asset-gathering strategy to one of sustainable profit growth."
Julius Baer's new targets through 2022 include an adjusted cost/income ratio of 67% or lower, compared with 71.1% at the end of 2019.
The bank also targets adjusted pretax margin of 25 to 28 basis points, an annual growth in adjusted pretax profit of more than 10% and adjusted return on CET1 capital of at least 30% by 2022.
Julius Baer aims to improve revenue by more than CHF150 million over the plan, it said.
The new targets are ambitious and "imply mid-to-high single digit consensus upgrades," Citi said.
"However we do not expect the market to give full credit to targets, especially given Mr Rickenbacher is still relatively unknown to the market," it said.
The move comes as the bank reported a 37% decline in net profit for 2019, hit by one-offs and higher costs.
Profit for the year fell to CHF465 million from CHF735.3 million a year earlier.
The results include CHF153 million provisions related to a suit launched by a German government agency over alleged unauthorized withdrawals of East German assets after the fall of the Berlin Wall. A goodwill impairment charge of CHF99 million related to the acquisition of Italian wealth manager Kairos also weighed on the performance.
Adjusted operating expenses rose 3.1%. Assets under management rose about 12% to CHF426 billion. Net new money was CHF10.6 billion, or 2.8%, hit by significant outflows at Kairos.
The bank declared a dividend of CHF1.50 per share for 2019, unchanged from a year earlier.
Julius Baer shares fell 3.7% at 0838 GMT.
"jobs" - Google News
February 03, 2020 at 04:15PM
https://ift.tt/2OoiIkP
Julius Baer to cut 300 jobs as profit slumps 37% - MarketWatch
"jobs" - Google News
https://ift.tt/36m99ub
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
No comments:
Post a Comment