In recent years, the Zurich-based private bank Julius Baer has been feeling the consequences of the impetuous growth of the Boris Collardi era. But chairman Romeo Lacher does not see the bank on the defensive.

While parliamentarians in Bern are wracking their brains over what to do about the size of the emerging UBS/CS giant, Julius Baer chairman Romeo Lacher sees virtue for his bank in precisely this characteristic.

Targeted Acquisitions

Speaking at Julius Baer's annual general meeting today, Lacher said that by 2030 the institution could «absolutely» manage a volume of one trillion Swiss francs ($1.13 trillion) in client assets, more than double its current level.

According to the former Credit Suisse banker, the private bank should be able to achieve this growth both organically and through targeted acquisitions. That suggests after years of enforced abstinence from major transactions, the bank is once again on the acquisition path. Indeed. The «Bears» will have to come up with something to avoid disappearing in the shadow of the new five trillion dollar asset management giant in the form of the combined UBS and Credit Suisse behemoth.

Talks with Credit Suisse

In his speech to the shareholders, Lacher admitted the one billion assets under management target was not one with a clearly defined deadline. Nor is size good in and of itself, although it does go hand in hand with positive economies of scale, an important driver on the traditional bank's path to profitable growth.

Unlike many others in the Swiss banking industry who have been inconspicuous in the wake of the Credit Suisse rescue, Julius Baer's management is deliberately seeking Credit Suisse talent. CEO Philipp Rickenbacher, recently said the firm was holding «constructive discussions» with Credit Suisse employees who want to leave their bank after the UBS takeover.

Lacher's comments underscore the private bank by no means wants to be content with a subsidiary role in wealth management.

Internal Talent Search

When it comes to expanding its front-office staff Lacher doesn't intend to rely solely on the external recruitment of client advisors. The bank will place a stronger focus on internal talent development in the future, with plans for more than half of the important positions in customer service internally.