Julius Baer Appoints Stefan Bollinger as New CEO Amidst Recovery from Signa Scandal

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On Tuesday, Swiss private bank Julius Baer (BAER.S) announced the appointment of Stefan Bollinger, a partner at Goldman Sachs (GS.N), as its new CEO. This decision marks a significant step for the bank as it seeks to recover from the financial fallout of the multi-million dollar Signa debacle.

Bollinger, who currently co-heads private wealth management for Europe, the Middle East, and Africa at Goldman Sachs in London, is set to join Julius Baer by February 1, 2025. His appointment follows the ousting of former CEO Philipp Rickenbacher in February. Rickenbacher was dismissed after the bank was forced to write down 586 million Swiss francs on loans to Signa, a failed property group led by Austrian businessman Rene Benko.

The selection of Bollinger is likely to influence the fate of ongoing merger talks between Julius Baer and its smaller rival EFG International (EFGN.S). Analysts suggest that Bollinger’s arrival could stall any immediate prospects of a 15 billion Swiss franc ($16.85 billion) merger, which had been under consideration. Andreas Venditti, an analyst at Bank Vontobel, indicated that while Bollinger’s appointment is a positive development, no further merger negotiations are expected until he settles into his role.

Reuters reported last month that Julius Baer and EFG International had halted discussions on a potential merger due to regulatory concerns, which had considered appointing EFG’s CEO to lead the combined entity.

Julius Baer’s shares saw a modest increase of up to 1.6% in early trading following the announcement. Industry insiders have expressed confidence in Bollinger’s ability to succeed, highlighting his extensive experience with high-net-worth individuals, a crucial demographic for the bank, where about one-third of clients possess investible assets exceeding 30 million francs.

Bollinger’s track record at Goldman Sachs is noted for its strength. “He has a deep understanding of the wealth management sector and a solid network within the high-net-worth community,” said a source familiar with his work. Despite this, some caution remains regarding his lack of experience in managing a large, publicly traded company and his limited exposure to the Asian market, a key growth area for Julius Baer.

Julius Baer Chairman Romeo Lacher praised Bollinger’s achievements, particularly his role in expanding Goldman Sachs’ private wealth management business across Asia, Europe, the Middle East, and Africa. Under Bollinger’s leadership, Goldman’s assets under management in these regions more than doubled over the past five years. “Stefan’s experience at the intersection of wealth management and capital markets, combined with his comprehensive understanding of risk, is crucial for guiding Julius Baer through this transition,” Lacher said.

Bollinger, a Swiss citizen, began his career at Zuercher Kantonalbank and has also worked at JP Morgan before his tenure at Goldman Sachs, where he has been a partner for 14 years. “I am excited to be joining Julius Baer,” Bollinger stated.

He will be tasked with steering Julius Baer toward stability following the Signa write-downs and the bank’s recent decision to exit the private debt sector. Over the past year, the bank, which manages assets totaling 417 billion francs, has seen its share price decline by 8%