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Investing.com -- Julius Baer Group (OTC:JBAXY) has unveiled a new three-year strategy and financial targets through 2028, following a review of its operations under new leadership.
The Swiss wealth management firm announced the changes Tuesday, outlining steps it has taken since January to address structural and risk-related issues.
Stefan Bollinger took over as chief executive officer in January, and Noel Quinn was elected as chair of the board of directors in May.
Julius Baer (SIX:BAER) said it had implemented changes to governance, reduced the size of its executive board, formed a Global Wealth Management Committee, and restructured regional operations. It also introduced a new Global Products and Solutions unit.
The company exited its Brazil onshore business and entered the Italian onshore market.
The company said it will target 4–5% net new money growth by 2028, an adjusted cost/income ratio of less than 67%, and an adjusted return on common equity Tier 1 capital of at least 30% during the 2026–2028 period.
These targets assume no major changes in market conditions or foreign exchange rates.
To help meet those goals, Julius Baer plans to implement additional efficiency measures totaling CHF 130 million by 2028, with an expected cost-to-achieve of about 50%.
This is in addition to a previously announced cost-saving program of CHF 110 million, which the company now expects to exceed by approximately CHF 20 million.
The new savings will focus on optimizing processes, simplifying information technology, and reducing non-personnel expenses.
In risk management, Julius Baer said it had made changes to internal structures and accountability, and will align its risk profile more closely with its core wealth management business.
The group established a new risk organization and appointed Ivan Ivanic as chief risk officer, effective July 1. Ivanic currently serves as chief credit officer.
The company said it had created a Digital Business Transformation unit and launched a technology infrastructure project in Switzerland.
It plans to develop digital tools to support both clients and employees, while continuing to offer in-person services.
Julius Baer said it will maintain its current capital distribution policy. A potential share buyback will not be considered until it receives clarity from the Swiss Financial Market Supervisory Authority, FINMA.