Swiss private bank Julius Baer says it will cut around 130-140 jobs as part of a CHF100 million ($100 million) cost-cutting programme as profit growth slowed in 2018.
The Zurich-based bank reported on Mondayexternal link that pre-tax profits had risen just 1% in 2018 to CHF893.9 million. Assets under management fell by 2% compared with the previous year to CHF382 billion at the end of December.
As a result, the bank said it had launched a “structural cost reduction programme” to reduce expenditure by CHF100 million. Over the course of 2019, Julius Baer aims to reduce its headcount by a net 2% from 6,693 full-time staff but added it would continue hiring in strategic areas.
Chief Executive Officer Bernhard Hodler described a challenging environment “for the entire industry”, pointing to a “sharp decline in global stock markets” in the second half of 2018 and a decline in the euro.
“We continue to make strategic growth investments and have initiated a structural cost reduction programme to absorb revenue fluctuations from potential market headwinds over the short to medium term,” he said.