Julius Baer Announces CHF 130 Million Cost Cuts by 2028 as New CEO Charts Recovery Path
Swiss private banking giant Julius Baer announced fresh cost-saving measures worth CHF 130 million ($159 million) by 2028 as part of a multi-year strategy to rebuild investor trust, restore profitability, and enhance operational discipline.
The plan comes on the heels of significant financial setbacks, including a CHF 130 million writedown in April and earlier losses of CHF 586 million in 2023. The turbulence prompted a leadership overhaul, with Stefan Bollinger assuming the CEO role in January and Noel Quinn, the former HSBC chief, stepping in as chairman in May.
Key Strategic Goals Through 2028
As outlined in Tuesday’s strategy update, Julius Baer now aims to:
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Achieve an adjusted cost-to-income ratio below 67%
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Deliver net new money growth of 4–5% annually
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Implement CHF 130 million in additional cost cuts
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Reinforce risk and compliance frameworks following regulatory scrutiny
The bank also confirmed it is on track to exceed its previously announced CHF 110 million savings by end-2025, projecting an extra CHF 20 million in gains beyond that milestone.
“Julius Baer is committed to upgrading its risk and compliance management processes and accountability throughout the organisation,” the bank said.
Market Response and Analyst Take
Shares of Julius Baer fell by 2% in early trading following the announcement. While the strategy was seen as pragmatic, market reactions were muted due to subdued growth targets.
“The new strategy is based on fairly conservative assumptions, which should make targets achievable—but they remain well below market expectations,” said analysts at Citi in a note.
The cautious tone reflects a desire to stabilize the institution before pursuing aggressive expansion. Julius Baer is still managing the fallout from recent regulatory penalties, including a $5 million fine related to money laundering control failures.
A Conservative Rebuild, or a Missed Opportunity?
The bank’s strategic pivot under Bollinger appears focused on internal cleanup and restoring fundamentals, as opposed to pursuing rapid growth or risky acquisitions. While that could appeal to long-term investors seeking stability, it may disappoint markets looking for a bold recovery play.
The success of this plan will largely depend on restoring client confidence, reestablishing Julius Baer’s credibility with regulators, and delivering tangible improvements in operational performance.
