Geneva-based banking software developer Temenos has had a new boss since March. If he reaches the targets he has defined, the firm is set to outperform rival Avaloq.
Temenos and its Zurich-rival Avaloq have been fighting over the Swiss banking business for years. Max Chuard, the new chief executive of Temenos, on Tuesday presented the targets he’s set for the company.
The goals set by Chuard reveal the difference between Temenos and its main rival. The Geneva-based company not only has higher sales, but – more importantly – outperforms Avaloq in terms of profitability.
Ambitious Targets
Juerg Hunziker, the CEO of Avaloq, recently told finews.com that he aims to reach a profit margin of 20 percent. Chuard by contrast has set his company a target of 36 percent. In 2018, Temenos had a margin of 31.5 percent, but it isn’t clear whether the two figures are fully comparable.
Chuard (pictured below) hasn’t revamped the firm in the short period of time he's been in charge. But the company clearly has strong growth expectations, according to analysts at Vontobel.
Temenos is highly optimistic and full of self-confidence, aiming for annual sales growth of 10 to 15 percent. Hunziker plans to increase revenues by a high single-digit figure.
