In a year when private banks either clung to familiar playbooks or blinked under volatility, one Swiss player leaned into change with an unambiguous mandate to simplify, reduce risk, and get closer to clients who generate wealth across cycles and borders while expecting institutional-grade discipline from their advisers. The thrust was clear: confront legacy credit issues, codify stronger guardrails, and channel resources into markets where ultra-high-net-worth families and entrepreneurs are scaling complex capital needs. That sequence culminated in assets under management reaching 520 billion Swiss francs as of October 31, propelled by 11.7 billion francs in net new money, rising equity markets, and early benefits from tighter execution. Management pointed to improved operational leverage, a highly liquid balance sheet, and a CET1 ratio of 16.3% as evidence that simplification can coexist with growth.
Stronger and Simpler: Strategy and Risk
Pruning Legacy Credit and Simplifying the Balance Sheet
A full-spectrum credit review set the tone, replacing piecemeal fixes with a deliberate recalibration of risk appetite that zeroed in on exposures outside a pure wealth management proposition. The most visible step was the exit of 700 million Swiss francs of income-generating residential and commercial real estate positions that no longer fit the franchise’s strategic perimeter. The decision was described not as a retreat but as a final sweep of legacy credit issues, shifting attention and capital toward advisory-led mandates. Liquidity remained ample during the transition, enabling orderly unwinds and minimizing client disruption. With the loan book cleaner, the bank sharpened lending toward collateralized, relationship-centric credit that supports core client needs.
The operational cadence mattered as much as the outcomes. Processes were tightened to ensure that product, credit, and coverage teams now align earlier on client suitability and concentration thresholds, reducing time-to-approval without loosening controls. Portfolio de-risking inevitably muted some revenue streams, yet the impact was offset by stronger flows into discretionary mandates and investment solutions favored by clients seeking transparent risk-return profiles. Moreover, the balance sheet’s simpler shape made market and currency swings easier to hedge, supporting consistency in capital generation. The message to stakeholders was straightforward: disciplined pruning reinforced stability and freed capacity for growth consistent with a focused private banking model.
Institutionalizing Risk and Compliance
Parallel to balance sheet cleanup, governance architecture moved from incremental enhancements to a top-to-bottom reset designed to be preventive and enabling at once. The appointment of Victoria McLean as Chief Compliance Officer anchored a redesigned risk organization, clarifying roles between the first and second lines and installing escalation paths that are both faster and more transparent. Executive accountability was reinforced, with risk ownership explicitly embedded in leadership objectives and compensation frameworks. That hardwiring was presented as a catalyst for sustainable growth rather than a drag on commercial momentum, bringing sharper discipline to complex cross-border and lending situations.
The capital and liquidity stance provided a durable backdrop. With a CET1 ratio at 16.3% and buffers comfortably above regulatory floors, the firm signaled that it can absorb shocks while maintaining investment in talent, technology, and client platforms. Surveillance and monitoring tools were upgraded to flag emerging risks earlier, particularly in concentrations across sectors and geographies. Compliance processes were also streamlined, aiming to reduce client onboarding friction while maintaining rigorous standards. The net effect was a sturdier control environment calibrated to support expansion in markets where diligence and regulatory nuance are decisive differentiators, turning risk oversight into a competitive asset rather than a cost center.
Market Expansion and Client Proximity
Doubling Down in the Middle East and Asia
Client proximity guided the geographic lens, and nowhere was that clearer than in the Middle East, where the bank secured preliminary approval to open an advisory office in the Abu Dhabi Global Market. Operating under Julius Baer (Abu Dhabi) Ltd. and led by Amir Iskander, the office was targeted for December, extending a two-decade footprint in Dubai’s DIFC and complementing the presence in Manama. The rationale centered on serving family enterprises and entrepreneurs who increasingly combine regional operations with global investments, succession planning, and institutional-grade governance needs. Advisory-first positioning—rather than balance-sheet-heavy plays—aligned with the bank’s simplified model.
Asia remained a parallel pillar, where wealth creation continues to compound and client needs span liquidity, structured solutions, and multi-jurisdictional custody. The regional approach emphasized senior banker hires and partnerships that enable on-the-ground access while maintaining consistent standards in booking centers. The Abu Dhabi move also created a triangle of Gulf connectivity, linking clients to both regional and international markets through a unified platform. By deepening coverage in hubs where new wealth emerges alongside established family offices, the firm pursued growth that reflects long-term demographic and policy tailwinds while maintaining prudent exposure profiles.
Building Out Western Europe
In Western Europe, expansion followed a measured path that balanced local presence with cross-border capabilities, starting with a new Milan office earlier in the year. That addition targeted Italy’s vibrant mid-market entrepreneurs and family-backed companies that require holistic advice across liquidity events, philanthropy, and generational transitions. Approvals to establish a Bank Julius Baer Europe Ltd. presence in Lisbon, planned for the fourth quarter, extended the advisory footprint into a market where returning talent, tech investment, and international capital have accelerated wealth formation. The European build-out favored advisory and investment solutions over heavy lending, matching the reshaped risk appetite.
Crucially, the European strategy leaned on cultural fluency and continuity. Senior advisers with long-standing client relationships anchored the model, supported by centralized risk and product platforms that ensure consistency. Milan offered proximity to private capital networks and corporate deal flow, while Lisbon opened doors to expatriate segments and cross-border families with multi-domicile structures. The combined network allowed clients to navigate complex tax and regulatory environments without sacrificing speed or creativity. By integrating local insight with a streamlined product shelf, the firm translated the “stronger and simpler” ethos into a client experience defined by clarity, agility, and accountability.
Leadership and Domestic Focus in Switzerland
At home, leadership moves underscored untapped potential in an underpenetrated domestic market. The appointments of Marc Blunier and Alain Krüger as co-heads of the Swiss market, effective January 1, 2026, framed Switzerland as a growth engine rather than a mature plateau. The shift emphasized advisory-led engagement with business owners, next-generation leaders, and family offices seeking institutional-quality solutions without institutional bureaucracy. The model emphasized continuity, proximity, and coordinated coverage across lending, investments, and wealth planning—all calibrated to a tightened risk framework and a more focused product set. The domestic franchise, strengthened by brand equity, stood to benefit from the clarity of purpose forged this year.
The Swiss emphasis also set the stage for execution beyond headlines. With governance sharpened and legacy credit issues addressed, teams were positioned to deepen share of wallet through discretionary mandates, alternatives access, and tailored credit for entrepreneurs navigating liquidity events. Cross-functional squads aimed to shorten cycle times from prospecting to mandate, and digital tools were slated to streamline onboarding and reporting without diluting the human advisory core. As capital strength and liquidity provided room to maneuver, next steps included selective banker hires in priority cantons, targeted product enhancements for family offices, and continued vigilance on risk metrics. The transition had validated a disciplined blueprint and pointed to sustained, practical delivery.
