Less than three months after the death of patriarch Joseph Safra, the family's Swiss private bank is in rude health. Chairman Juerg Haller talks mergers and acquisitions and recruiting with finews.asia.
Juerg Haller, J. Safra Sarasin’s owner Joseph Safra died not quite 12 weeks ago. What has changed and how has it affected the bank’s business or clients?
It has had no impact. I'm impressed with how Joseph Safra prepared the ground for such an event. And the key, besides structure and ownership where the family sits at one table and takes all their strategic decisions, is preparation of the next generation. The international business is led by Jacob Safra who is also the chairman of the J. Safra Sarasin group.
J. Safra Sarasin is even more secretive than most already intensely private Swiss wealth managers. Will the generational handover change that?
We are the largest family-owned business of its kind. I think we actively engage with our clients, and with our staff, and clearly with our shareholders. It's a non-public conversation.
Is it difficult at the moment to hire people due to the pandemic – are talented advisers and teams staying put for now?
When you talk about relationship managers, the question of 'can I transfer my clients if I go to another institution' is certainly bigger than it would have been pre-pandemic. But it's wrong to say there is no movement.
Can you elaborate on the entrepreneurial type of private banker Safra Sarasin is trying to hire?
We expect people to take ownership of what they're trying to do. There's a certain amount of flexibility within the clear parameters. Entrepreneurial clearly doesn’t mean taking on more risk. It also means to be held more accountable.
What’s in it for a private banker to work here?
One thing which impressed me when I came here is the care taken in terms of interviewing potential hires.
«Some institutes got a longer lease on life»
It would be wrong to say that everybody succeeds who joins us, but there's a very consistent approach in taking a significant amount of care and diligence to make sure people understand the bank's culture, the values and principles, and how we guide them.
Is the pandemic helping you in terms of M&A prospects – do some of your smaller peers want out?
We’re seeing the opposite. First, everybody is absorbed just dealing with the daily challenges. Secondly, when you look at the profitability of the industry, some people even got a slightly longer lease on life.
What about your legacy issues – Lava Jato in Brazil?
There is a legal case. I cannot comment on it.
Has the U.S.-led investigation into PDVSA graft affected J. Safra Sarasin at all?
The bank is not subject to this investigation.
How much of your $441 million annual profit will go to the family as a dividend?
As in the previous year, we will not be paying a dividend.
You’re reinvesting profits to expand?
To be fair, we already had enough capital to expand considerably because the group has a significant amount of excess capital from a regulatory perspective.
«Limitations to using our money effectively»
Clearly, some has been absorbed through past acquisitions. And it really gives us a very solid basis that if an opportunity would arise, to put it to use. It's ultimately the family's decision.
Is it smart to be holding that much cash, with negative interest rates in Switzerland?
As you know we have more than 8 billion Swiss francs [$8.8 billion] with the central bank. So, we will try to use the money as effectively as possible in the present context, but there are certain limitations.
I know you can’t predict acquisitions, but what are your priorities for J. Safra Sarasin this year?
We have made some additional commitments last year in terms of sustainability, which is the core of our activity. Execution of those commitments will take time. The same thing is true in terms of investing in technology: we will continue to focus on areas that either make a tangible difference from a client's perspective, or they help us to become more productive and more efficient.
Juerg Haller is the chairman of J. Safra Sarasin, a Swiss-based private bank controlled by Brazil's wealthy Safra family which manages 192.4 billion Swiss francs ($211 billion). He spent 35 years at UBS, most recently as a vice-chairman for key family clients at the Swiss wealth giant. From 2006 to 2008, Haller was chairman of UBS in Latin America and operating chief of UBS Pactual, which the Swiss bank was later forced to sell following the financial crisis of 2008/09. The 63-year-old, who began his career as a banking apprentice in 1973, joined J. Safra Sarasin as chairman 18 months ago.
