Bank am Bellevue has been struggling with an erosion of revenue in its core businesses of brokerage and corporate finance. The company has now decided to take drastic measures to achieve a turnaround. The chief executive officer will leave the bank with immediate effect.
The board of directors at Bank am Bellevue has concluded that the brokerage and corporate finance activities can no longer be conducted in an economically viable way, the company said in a statement last night. The bank will therefore cease to offer those services.
Job Cuts
The board took the changing framework conditions of ongoing margin pressure as well as increasing regulatory and technological requirements into account. The cessation of the business activities will be completed by mid-2017. The bank will cut about 25 jobs and take a one-off restructuring charge of 3 to 5 million Swiss francs. The restructuring costs will be charged in full to the current financial year.
Group CEO Takes Charge
Serge Monnerat, the bank’s chief executive officer, resigned from his job with immediate effect. André Rueegg, the group CEO, will assume the position of Monnerat on an interim basis.
Bank am Bellevue will continue to provide services, including trading activities, for its other clients. The restructuring has no effect on the group’s other business activities, the company said. The strategic focus of the group going forward will be on asset and wealth management.
