Hans G. Syz, the chairman of Maerki Baumann private bank, bemoans a fundamental lack of trust by politicians and the civil service in the industry. He wants this has to change quickly.
Maerki Baumann today published the 2016 result. In his letter to shareholders, Hans G. Syz-Witmer is taking issue with the fundamental change that affects the industry.
The famed Swiss banking secrecy has ceased to encompass foreign clients and remains only in place for domestic clients, the entrepreneurial spirit is being stifled by an avalanche of regulation, and the call for total transparency is getting louder. Syz-Witmer, the chairman of Maerki Baumann, concludes that the banking industry isn’t what it used to be.
«Let's Rebuild That Trust»
Syz-Witmer bemoans the disappearance of the traditional, at times perhaps excessive trust by politicians and civil service in Swiss banking, having been replaced by an almost fundamental distrust.
«In my discussions with politicians, I sometimes get the feeling that only bad things are expected from us, and that the key economic contribution that we as banks make – and will continue to make – is undervalued,» Syz-Witmer stated in his foreword. «One of the most pressing tasks for us right now is to rebuild that trust.»
Increase in Profit, AuM
Maerki Baumann had a profit of 2.08 million Swiss francs in 2016, almost double the amount generated in the year-earlier period.
The increase in profit was mainly a result of measures to control operating expenses, given the ongoing structural change in private banking and the challenging market environment. The number of employees declined to 73 from 91, with personnel costs falling to 21.5 million francs. Further savings from these cuts will become effective in 2017.
The fee and commission income, Maerki Baumann’s core business, declined slightly to 27.5 million francs and trading income also dropped. Interest income increased 1 million francs to 4.13 million.
Assets under management rose 400 million to 7.3 billion francs. The performance increase contributed 345 million francs to the rise, with net new money adding another 60 million. The bank in 2015 had net new money of 40 million.
Maerki Baumann’s core capital ratio was 17.4 percent, substantially above the required ratio of 10.5 percent.
