Julius Baer will cut 300 jobs this year, its chief executive said on Monday, as the Swiss wealth manager looks to boost profitability after a double-digit percentage earnings fall during 2019.
The private bank wants to boost profitability with a new three-year strategy to deal with continued margin pressures, Chief Executive Philipp Rickenbacher told journalists on a call.
The Zurich-based lender aims to improve its adjusted cost-income ratio to 67% by 2022, better than its previous 68% target and the 71% level achieved in 2019, by cutting costs by 200 million Swiss francs ($206.72 million) and growing income.
"We will accelerate our investments in human advice and technology," Rickenbacher said. "And we will shift our leadership focus from an asset-gathering strategy to one of sustainable profit growth."
Speaking to CNBC in Zurich Monday, Rickenbacher said it was probable that in 2020, private banking clients would have to prepare as best as they can for the impact of the U.S. election and other political events.
"Five years ago, political factors had little influence on portfolios, (but) today they may have quite a large influence," he said, adding that it would be "very, very hard" to predict how ongoing trade talks and the U.S. election might combine to affect assets.
Despite announcing 300 job losses, the Swiss bank chief said that the firm was currently enjoying "very robust growth" in Europe, particularly in Germany and the United Kingdom.
Rickenbacher told CNBC's Geoff Cutmore he couldn't rule out further job cuts beyond those announced Monday but claimed "cost was not the strategy" for the bank but rather an important discipline to follow while employees hunt for fresh revenue.
Since becoming CEO in September, Rickenbacher has reduced the size of the Baer's executive board to boost efficiency and client focus, particularly on ultra-wealthy clientele.
Baer said on Monday it expected to improve revenues by more than 150 million Swiss francs over the three-year period by broadening its offerings for wealthy and ultra-wealthy clients and increasing technology investments to enhance its client advice.
On an unadjusted basis, net profit attributable to shareholders fell 37% to 465 million Swiss francs in 2019, after a 250 million franc impact from legal provisions and a goodwill impairment on its underperforming Italian asset manager Kairos hit earnings.
Shares moved 5% lower on Monday morning to become the biggest loser on the Stoxx 600 index by midday London time.
—CNBC's David Reid contributed to this report.