Swiss private bank Notenstein La Roche is in the midst of a radical restructuring, the outcome of which seems uncertain. CEO Adrian Kuenzi speaks to finews.ch-TV.
«I'm happy with how Notenstein La Roche is set up at the moment,» Adrian Kuenzi, head of von Notenstein La Roche, tells finews.ch-TV in an interview (below, in German). Kuenzi's confidence comes in fifth year of existence for the cooperative-owned Swiss private bank, which emerged from the now-defunct Wegelin & Cie.
Notenstein has struggled in recent years with organic growth: the St. Gallen-based private bank manages roughly 20 billion Swiss francs in client assets, and last year embarked on a wide-ranging restructuring and cost-cutting effort.
Owned by retail lender Raiffeisen, which is organized as a cooperative of Swiss banks, Notenstein has also lost a series of key executives and private bankers, including longtime finance chief Basil Heeb three months ago.
More recently, Notenstein has surprised observers by offloading asset books to rivals, as finews.com reported exclusively, running counter to its growth intention.
Bank Transformed
The 44-year-old Kuenzi emphasizes that the bank's inner workings are different from when it was split from Wegelin in 2012 when the bank was felled under the weight of a U.S. indictment. While assets levels haven't changed, «the bank is a different one than five years ago,» Kuenzi said.
He notes the bank's restructuring of client portfolios as a key achievement, as well as last month's sale a Russian and Eastern European book to Vontobel. «Reculer pour mieux sauter,» says Kuenzi – a strategic withdrawal in order to better jump forward.
«Notenstein La Roche's Role»
«We have the support of the board,» assures Kuenzi, denying speculation that Raiffeisen has put the small private bank on the block. «The focus on Raiffeisen Group's interest is the private client and how to provide solutions to them. Notenstein La Roche has its a role to play in that,» said Kuenzi, who is keen to show that a bank of Notenstein's size can flourish in the competitive Swiss market.
Raiffeisen has sealed its commitment to Notenstein by investing in a major technology upgrade with an Avaloq core banking system. The project is scheduled to be concluded in September or October, according to Kuenzi.
Eyes Growth by Deals
With the tech revamp, Kuenzi said the bank will upgrade its e-banking, portfolio management systems, and advisory solutions. «It's basically open-heart surgery,» he notes.
The newly-refurbished bank will be able to absorb far more client money, and Kuenzi says his goal is to grow organically, while looking out for acquisitions. A deal such as the 2015 purchase of Basel-based La Roche private bank is «what I would look for,» Kuenzi says.
Video Interview with Adrian Kuenzi (in German)
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