Is Julius Baer on the Brink of an Anglo-Saxon Revolution?
First the CEO, who worked for a major Wall Street bank in London, and now a British banking veteran as the new Chairman of the Board of Directors: Julius Baer is repositioning itself. The strategic direction that the Zurich-based wealth management bank will take should become clear in detail in June.
Noel Quinn has already scored points with analysts: his nomination as Chairman of the Board of Directors and designated successor to Romeo Lacher was well received. The move provided clarity in an important upcoming personnel decision. However, the bank had to make the announcement earlier than planned. The news agency «Bloomberg» announced the nomination on Friday evening, putting Julius Baer under pressure.
«In our view, this removes an uncertainty that could potentially weigh on the share price,» writes ZKB analyst Michael Klien in a commentary on the Bär appointment. The election of a chairman with such extensive expertise is likely to be received positively, also with regard to the internationally oriented shareholders. And Quinn's experience in the Asian region will certainly be seen as one of his strengths.
Share Price Higher
The news provided a tailwind on the market. Julius Baer shares closed 1.7 percent higher at 61.64 Swiss francs ($69.19) on Monday in a very friendly overall market. The share price had already seen some ups and downs in recent months, fluctuating between a low of 43.75 francs in September and a high of 65 francs at the end of January.
Former Goldman Sachs manager Stefan Bollinger, a Swiss national with many years of international banking experience, is now in charge of operational decision-making at Julius Baer. The bank has worked hard to put behind the Signa issue and its costly involvement with Austrian real estate investor René Benko.
And a look at the 2024 balance sheet actually speaks for success. The bank earned more than 1 billion francs on the bottom line and kept the dividend stable. The intensified job cuts, which could affect around 5 percent of employees, are intended to reduce costs even more than previously planned. The carpet floor has also been decimated: The management team is shrinking from 15 to 5 members.
Big Appearance in London
Julius Baer intends to present the new fundamental strategy update under the new management, with corresponding updated medium-term targets, in London on June 3, 2025. This will be a home game, so to speak, for the newly appointed new Chairman and his first major appearance.
Restructuring is not new territory for Quinn either. During his time as HSBC CEO, he also realigned the bank and steered it through troubled waters. This included, for example, fending off the demands of activist investor Ping An to spin off the Asian business and overcoming the Covid-19 pandemic. Last year under his leadership, the bank benefited greatly from the higher interest margin.
Deadline Clash Ledo to Decision
Noel Quinn unexpectedly stepped down from his position as CEO of the British-Asian bank at the end of April 2024 and left the post in September. After just five years at the helm of the largest European bank based in London, it was time to call it a day. In the opinion of industry observers, this was somewhat premature. At the time, Quinn cited the burden of the many business trips as a particular reason.
«After five intensive years, now is the right time for me to achieve a better balance between my private and business life. I intend to pursue a portfolio career,» said Quinn, referring to mandate roles in various companies. Since February, for example, he has been on the board of the Australian mining and iron ore group Fortescue. He is also a non-executive director of the Sustainable Markets Initiative.
However, according to media reports, the surprising move was more likely due to a clash in the term limits for him and the Chairman of HSBC, Mark Tucker. Quinn's retirement age would have coincided with Tucker's term limits around three years later. The decision was taken to avoid having to fill both top positions in the bank at around the same time. At the time, it was said that Tucker did not want to miss the opportunity to appoint a new CEO and manage the transition.
And this new appointment of Georges Elhedery has also made waves since then. He had already launched a fundamental reorganization of the bank and a billion-euro savings program in October.
37 Years in the Service of HSBC
Quinn's banking career to date has been long and straightforward. He started in 1987 at a subsidiary of Midland Bank, which was taken over by HSBC five years later. Before taking on the role of CEO in 2019, initially on an interim basis and then permanently, he held key management positions at HSBC in the Commercial Banking division for many years, for example as its Global Head, Head of Asia and Head of the UK.
At the end of 2024, the manager received a special honor. He was awarded a Knighthood in King Charles III's annual honors list. The reason given was not only his achievements in the financial industry but also the pursuit of net zero targets, an issue that is known to be close to the British king's heart.
In 2020, Quinn formulated the goal at HSBC of achieving net zero CO2 emissions by 2050. He was also one of the key players in the Glasgow Financial Alliance for Net Zero, which commits financial institutions to aligning their lending and investment portfolios with environmental goals.
Illustrious Fellow Knights
Knighthood is one of the highest honors in the UK and, unlike other titles, can only be awarded to men and British citizens. Last year, the 22 new «Sirs» included London Mayor Sadiq Khan, actor Stephen Fry and England national football coach Gareth Southgate.
Julius Baer does not provide any information on the succession search process. Nor does it say from where the new Chairman will lead the Supervisory Board.
Remo Lacher's final decision not to stand for re-election at the upcoming AGM on 10 April was only made in January, as the bank announced at the time. However, Lacher had already informed the Board of Directors in 2024 of his intention not to stand for re-election at the 2025 AGM.
That was Quinn's moment, and this time the timing was right. Julius Baer had been in contact with him from an early stage.
