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In February, Rueegg had expressed frustration over Bellevue’s lack of inroads in wealth management. Last year, the bank recorded a far worse-than-expected loss of nearly 8 million Swiss francs ($8.2 million), and also reported client outflows.

Foundered Wealth Strategy

The setback followed the shuttering two years ago of Bellevue’s brokerage and corporate finance business, where the bank could no longer compete due to lack of scale. As part of the move, Bellevue dismissed 25 people – effectively, the bulk of staff – but stopped short of shutting the bank entirely. Instead, Rueegg hired Thomas Pixner to shift strategy into wealth management.

For Zeltner, Bellevue's reversal means KBL gets a bank with 2 billion francs in assets as well as a new technology platform catered to private client business. The move is a start towards Zeltner’s target to vault KBL’s 72 billion euros ($82 billion) in assets to more than 100 billion euros – mainly by acquisition.

KBL's Swiss Disposal

Zeltner, who ran UBS' private bank until the end of 2017, is poised to take over the top spot at KBL as soon as the European Central Bank gives the go-ahead. Qatar's ruling al-Thani family bought the wealth management group as a private investment in 2011.

Founded in 1949, KBL encompasses a network of private banks in Europe and the U.K., including Germany's Merck Finck, Brown Shipley in the U.K., which last week snapped up an acquisition of its own. Under CEO Yves Stein (who joined Edmond de Rothschild in April), KBL sold its Swiss bank four years ago to Banque Internationale a Luxembourg. That bank has since been sold to Chinese conglomerate Legend, best known as Lenovo’s owner.