Mr. Gagnebin, in the first half of 2024, Rothschild & Co Bank's profit fell by one third to 17.2 million Swiss francs. In the previous year, it was nearly 26 million Swiss francs. What happened?

A comparison is relatively difficult because last year there were special conditions due to the acquisition of Banque Pâris Bertrand. However, we are very satisfied with the results achieved in the first half of 2024, especially when looking at the operating result. In general, the changed interest rate environment has impacted banks' results, and we are no exception.

A particularly positive development has been the 14 percent growth in commission and advisory income. Moreover, we have continued to invest strategically, with expansions in Germany, Israel, and Spain.

Compared to the previous year, you acquired less net new money (791 million Swiss francs) in the first half of 2024. Last year, it was 870 million Swiss francs. This happened despite hiring more staff in 2024. What do you attribute this growth weakness to?

Again, I believe we are performing well compared to the market. However, it has become significantly more challenging for all players to acquire new client assets in recent months.

«It is true that some former employees from CS have joined us.»

Furthermore, due to the prevailing interest rate environment, we experienced loan repayments, which are considered outflows. On a positive note, the new client advisors we onboarded last year have met our expectations.

This year, you also hired several senior staff from Credit Suisse (CS). So far, this hasn’t yet reflected positively in the numbers. Why is that?

While it's true that some former Credit Suisse employees have joined our team, it was never our intention to capitalize on a particular situation. In fact, we’ve recruited more new hires from other banks than from CS. Our primary goal has always been to bolster our presence in key focus markets.

Are you looking for more staff? If so, what profiles are you seeking?

We always keep a close eye on the market and selectively hire new advisors. However, they must primarily fit well with our culture and advisory approach, which is focused on the long-term preservation of our clients' wealth.

«Advisors need to understand client situations as a whole»

We seek advisors who bring not only a lot of investment expertise but also other qualities. They need to understand client situations holistically and work together with our specialists to develop comprehensive solutions for wealth structuring.

With the announced integration of Credit Suisse into UBS, will there be another large wave of job-seeking bankers in Switzerland in the coming months?

That could be the case, but it is difficult to predict.

Are you already noticing a shift of CS assets to other banks, particularly to yours?

I cannot say in detail whether this is the case for us. This process of great uncertainty surrounding Credit Suisse has been ongoing for some time. However, it has certainly led to shifts, particularly in the SME sector.

You have expanded your range of services both in terms of content and geography over the past twelve months. Where do you stand today?

We expanded our presence in Germany with the opening of a new office in Hamburg, made substantial investments in Spain, and increased our workforce. In Israel, where we've been active for roughly 1.5 years, we're seeing solid performance despite the challenging security situation. Additionally, we've recently established an office in Dubai, further extending our global reach.

Many Swiss private banks are currently up for sale. Are you receiving offers as well? If so, under what conditions would a (further) acquisition be an option for you?

There does seem to be some movement in the banking sector. We have seen some proposals in recent months. However, we are very selective.

«IT security is threatened by increasing cybercrime.»

Such an acquisition target would need to be a perfect fit for us, as was the case with Banque Pâris Bertrand at the time. Important criteria include corporate culture, an understanding of our investment advisory approach, and, of course, a customer base that is as congruent as possible.

What are your plans for the rest of the year—where are your priorities?

We want to further increase net new client assets while keeping costs under control. Additionally, we are still on the lookout for good client advisors to continue our growth, with a particular focus on the Swiss market. Finally, we want to further develop our pension offerings, which have been extremely well received by our clients.

What risks should banks be most wary of by the end of the year?

Aside from major, sometimes unpredictable political risks, interest rate developments and the Swiss franc should be closely monitored. We also expect higher market volatility. Another important issue in the industry is IT security, which is threatened by increasing cybercrime.

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.