Geneva-based private bank Reyl, also active in Asia and the Middle East, experienced a challenging first half of 2024, ultimately reporting a loss that the newly appointed CEO, in office since July 2024, must now work to reverse.

Reyl, formally know as Reyl Intesa Sanpaolo and with additional branches in the UAE and Singapore, reported a significant loss of 4.9 million Swiss francs ($5.9 million) in the first half of 2024, according to its semi-annual report. The news was first covered by the Geneva financial blog «Finance Corner».

In contrast, the bank posted a profit of 10.5 million francs in the previous year, following a comprehensive reorganization by its parent company, Intesa Sanpaolo.

Numerous Subsidiaries

Controlled by the Italian financial group Intesa Sanpaolo since May 2021, Reyl reported a loss despite increased assets under management (AUM) during the reporting period. AUM rose by 5.6 percent in the first six months of this year, reaching 15.2 billion francs.

When including client assets managed by subsidiaries in Buenos Aires, Dubai, Malta, London, and Singapore, as well as by 1875 Finance (in which Reyl holds a 40 percent stake), total assets amount to  32.8 billion francs.

Significant Increase in Personnel

Despite the growth in AUM, operating income declined by 14.9 percent compared to the first half of 2023, totaling 55.4 million francs. This decline was primarily due to a nearly 30 percent drop in interest income and a 26,2 percent decrease in trading revenues, as detailed in the semi-annual figures.

In contrast, operating expenses increased by 9.3 percent over the same period, leading to an operating loss of 4.2 million francs in the first half of 2024. The bank attributed the rise in expenses mainly to the hiring of additional staff. Consequently, the aforementioned net loss was recorded.

New CEO Faces Challenges

François Reyl und Pasha Bakhtiar (Images: PD, Reyl)

Pasha Bakhtiar, who took over as CEO and Chairman of the Executive Committee from François Reyl in early July 2024, now faces the challenge of steering the bank back to profitability. The recently hired front-office staff should provide the foundation for this effort. As of mid-2024, the bank employed 351 people, up from 327 the previous year (7 percent increase).

Bakhtiar has been a partner at Reyl since 2018 and a member of the Executive Committee since 2023. Before his partnership, he founded the bank’s subsidiary in the United Arab Emirates (UAE), which he led from 2014 to 2018. He also played a key role in founding the online bank Alpian, where he serves as Chairman of the Board.

Diversified Business Model

Bakhtiar brings 25 years of experience in wealth management, asset management, and digital banking strategies to the fore. Moreover, Reyl follows a diversified business model that includes wealth management, corporate finance, asset services, and asset management.