Notenstein La Roche private bank will cut costs by a fifth and eliminate at least 100 jobs to meet the challenges posed by difficult conditions on the Swiss financial market. The company also aims to improve profitability by tweaking its business approach within Raiffeisen Group.

Notenstein La Roche will cut costs by at least 20 percent, with half of the savings being achieved ingeneral and administrative expenses and the remaining half in personnel expenses, the private bank said in a statement today.

The management plans to eliminate about 100 of the bank's current 500 jobs as it adopts digital banking solutions and introduces automated banking processes.

Earnings Boost

At the same time as it reduces costs, Notenstein La Roche also aims to boost profitability by increasing earnings (generated by its core business) by 15 percent: «This increase will be based on the further development of the current offering structure, the streamlining of processes and reduced complexity, a more efficient advisory approach geared even more intensively to clients, and ensuring a more rigorous complement to the Raiffeisen offering,» the bank said.

Notenstein La Roche for instance will take over responsibility for all wealth management mandates within Raiffeisen Group from the end of 2017.

The private bank will renew its entire IT platform next summer, introducing more automation and digital banking solutions.

Cost-Income Ratio Below 70 Percent

In all, the measures on the cost side and those intended to improve earnings are planned for conclusion by the beginning of 2019. By that time, Notenstein La Roche aims to have a cost-income ratio of less than 70 percent.

«With these measures, Notenstein La Roche is laying the foundations for continued growth and for strategic further development within the Raiffeisen Group,» said Raiffeisen CEO Patrik Gisel according to the statement. «As part of our diversification strategy, the services of the private bank will mesh more intensively and more effectively in the future with those of Raiffeisen Switzerland, so that we can offer our clients ideal advisory services for their assets and investments, at every stage in their lives.»