Laurent Gagnebin: «We Acquired a Record Amount of New Assets»
Rothschild & Co Bank in Zurich recently opened an office in Dubai and sees tremendous opportunities there. Nevertheless, Switzerland remains an important location: «If there is a suitable wealth manager for acquisition, we will certainly give it serious consideration,» CEO Laurent Gagnebin reveals in an interview with finews.com.
Laurent Gagnebin, Rothschild & Co Bank increased its assets under management by 17.3 percent to 35.1 billion francs ($39.1 billion) last year. What were the key drivers behind this growth?
Last year, we acquired a record amount of new assets. Additionally, our market performance on managed assets was also very strong.
However, we do not disclose detailed figures per market. That said, Switzerland contributed significantly to the inflow of new assets.
New assets amounted to 1.3 billion francs last year. How would you describe the typical Rothschild client?
With our focus on long-term wealth creation and preservation, we naturally attract a specific type of client. These include families looking to optimally structure and pass on their wealth across generations. Increasingly, individuals with retirement planning needs are also coming to us.
«The higher costs are largely due to new hires»
Another growing client segment consists of entrepreneurial personalities. Thanks to our close collaboration with the Global Advisory division, which advises companies on financing matters, we have been able to further strengthen our positioning among these clients.
However, a downside remains: the bank’s consolidated profit fell by 20 percent last year. Why?
The previous year’s profit was higher due to one-time effects related to the acquisition of Banque Pâris Bertrand. Additionally, the composition of revenue has changed.
We were able to offset the expected decline in interest income almost entirely through a significant increase in commission income.
Yet, revenue also declined (1.8 percent decrease), while costs increased more sharply (2.9 percent increase). How does the bank plan to improve efficiency and profitability this year?
The higher costs are largely due to new hires. Last year, we recruited numerous new client advisors and additional staff for client support, not only in Switzerland but also in Germany, Spain, Israel, and Dubai.
«We can afford to think and act with a long-term perspective»
This underscores our clear growth ambitions across all our core markets. We have already begun to benefit from the additional client advisory capacity this year.
Lastly, the operating margin also dropped from 25.4 percent to 20.4 percent. Do you expect a further decline in 2025?
Over the cycle, we aim for a margin of 20 percent. Fluctuations are normal, as we depend on external factors such as interest rate developments and market volatility.
Personnel costs rose by 3.4 percent in 2025, while profits declined. Does the bank need to cut costs?
No. The main reason for the increase in personnel costs is the various new hires. Growth requires investment. As a family-run business in its seventh generation and no longer a publicly traded company, we can afford to think and act with a long-term perspective.
Your expansion into the Middle East, including the opening of an office in Dubai, is considered a strategically important step for the bank. What opportunities do you see in this region?
The Middle East is an extremely dynamic economic region. We believe we offer a very attractive proposition for local families who are entrepreneurs and benefit from this economic dynamism.
Additionally, with Global Advisory, we have had a strong and established presence in the region for some time, which we will also benefit from.
Despite high growth expectations in the Middle East, Switzerland remains the leading wealth management hub. What is Rothschild & Co Bank doing to stay competitive in this environment?
I am convinced that, as a family-run business with a clear profile, we have a very strong positioning. Especially in uncertain times, clients – including many younger ones – value our stability and long-term investment approach. Over the past years, we have complemented this approach with comprehensive advisory services in pension planning.
«If there is a suitable wealth manager as a potential acquisition target, we will certainly consider it»
This is further enhanced by additional expertise in inheritance, estate planning, and wealth transfers. Finally, our above-average investment performance over multiple years speaks for itself.
The Swiss wealth management industry is experiencing rapid consolidation. Where does your bank stand in this development, and are you considering acquisitions?
Our primary focus is on organic growth, supported by targeted hiring. However, if there is a suitable wealth manager as a potential acquisition target, we will certainly consider it – just as we did three years ago when we acquired Banque Pâris Bertrand.
The number of family offices and independent asset managers in Switzerland continues to grow. How is your bank addressing their needs?
We are very interested in family offices looking for specific investment opportunities. For such sophisticated investors, we have extensive expertise that allows us to develop tailored solutions.
These solutions often go far beyond traditional investments and include private market investments or corporate financing advisory.
How do you see the Swiss banking industry evolving over the next five years, and what role will Rothschild & Co Bank play in this landscape?
We remain highly confident in the attractiveness of the Swiss financial center. Even if other hubs catch up or grow faster, Switzerland still offers highly desirable factors such as political stability, a highly skilled workforce, and excellent service quality.
We must maintain a balanced regulatory approach and allow competition to thrive. Given Switzerland’s strong innovation capabilities, I have no concerns for its future.
At Rothschild & Co, we are committed to our path – remaining a family-run firm focused on providing the best possible advice without conflicts of interest, making us the trusted partner for long-term-oriented wealthy clients.
What role will Switzerland play within the broader Rothschild Group in the coming years?
Wealth management within the Rothschild & Co Group has significantly gained importance in recent years and has grown strongly.
«AI is here to stay, and investment opportunities remain»
We now manage total assets exceeding 1.25 trillion euros. Our strategy for the coming years is clear: the Group intends to continue expanding in Switzerland.
How is the bank positioning itself regarding artificial intelligence (AI)?
We have been investing in AI-driven companies for some time, which has contributed to our market outperformance.
Currently, we are being more selective in this area. However, AI is here to stay, and investment opportunities remain. Within the bank, we are running multiple AI projects to streamline repetitive and manual tasks, allowing our advisors to spend more time with clients.
What are your priorities for this year?
We want to continue growing steadily in all our markets, with a particular focus on Switzerland and our newest location in Dubai.
We are still relatively small in some regions, which means there is significant potential everywhere. Fluctuations in European interest rates could pose a challenge.
Laurent Gagnebin joined Rothschild Wealth Management Equitas, the Geneva branch of Rothschild & Co Bank Zurich, in autumn 2011. Prior to that, he led Investec Bank in the Rhône city. He entered banking through Goldman Sachs Bank in Geneva after graduating from the École hôtelière de Lausanne and working for several years in the hotel industry. Since mid-2016, he has been CEO of Rothschild Bank Switzerland.
