Thu, Feb 8th 2024
Bank Vontobel embarks on a CHF 100 million cost reduction strategy, including job cuts, in response to a 2023 profit downturn. The bank’s new efficiency measures aim for significant savings by 2026 without being impacted by the Signa Group’s collapse.
Bank Vontobel is intensifying its cost-cutting measures due to a profit fall in 2023. The Zurich-based institution has initiated a CHF 100 million cost-reduction program, resulting in job reductions. Despite the market turmoil, the bank remains unaffected by the Signa Group’s downfall.
Details on the job cuts remain under wraps as the bank finalizes its efficiency plan, according to CFO Thomas Heinzl. The bank anticipates many reductions will occur naturally, avoiding forced layoffs. With 2,275 employees at 2023’s end, Vontobel aims to slash annual expenses by 10% by 2026 through this initiative.
Regarding the Signa Group’s collapse, Vontobel confirmed no financial hit, with no value adjustments or provisions made. As reported by TA media, the bank stayed mum on any alleged ties with Benko’s firms.
The bank’s profits dipped by 7% to CHF 214.7 million in 2023, mainly due to a slump in asset management. Institutional investors’ cautious stance amid geopolitical and interest rate uncertainties led to cash outflows. Conversely, wealth management for private clients saw growth, with an increase in client advisors and new capital inflows, particularly during the CS turmoil.
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