There is little latitude for any mistakes and it will be hard to generate high returns this year given geopolitical tensions, the CEO of Rothschild Bank in Zurich says in an interview with finews.com.

Laurent Gagnebin, what impact do western sanctions against Russia have on Rothschild Bank?

It is very hard to see at the moment. The big question is how long the conflict lasts.  The longer it does the bigger the economic impact will be on western economies - and certain clients of ours entrepreneurially active in the region itself.

How high is the percentage of Russian clients in your business?

We do not communicate numbers related to individual client segments. In any case, Russia is not a market that Rothschild & Co Wealth Management targets.

What were the most important drivers of success in 2021 - apart from the takeover of Pâris Bertrand?

The main driver is our continuity. We worked superbly over the past few years and our investment performance is excellent. That has been widely talked about and we were able to benefit from numerous recommendations.

«Our client advisors manage about 30 clients on average»

We kept in close contact with our clients even though we were not able to travel much in the last two years. Our client advisors manage about 30 clients on average, giving us the time to provide support in difficult situations. That was highly appreciated.

Why does Pâris Bertrand fit with Rothschild Bank?

We said from the outset that we had similar client structures and philosophies. That has only strengthened during the integration, which itself has been much quicker than expected.

How did the business with Swiss citizens and clients residents in Switzerland develop in 2021?

We are very satisfied with it. The onshore business has expanded at the same rate as our overall growth.

Do you have concrete plans to expand in Switzerland?

The acquisition of Bank Pâris Bertrand last year helped us strengthen our position in the western part of the country. We just appointed Andreas Feller to drive growth in the German part. We also want to get our Global Advisory business in Switzerland to work even more closely with Wealth Management.

What are your priorities for this year?

As indicated, we are expanding our presence in Zurich and we also want to profit from the synergies resulting from the takeover of Bank Pâris Bertrand. Another focus is our new office in Madrid.

«It will become harder in any case»

We also want to continue growing in Germany and n Luxembourg. We are doing everything we can do help our support our clients through the expected market volatility we are seeing while keeping our investment performance high.

Do clients have to prepare themselves for lower returns in 2022?

It will become harder in any case. For as long as anyone can remember, our investment strategy has been a long-term one focused on maintaining and expanding client wealth. We will remain true to that. But it certainly looks like it will be harder to deliver high returns in 2022.

Are we seeing some kind of new world order in finance?

It is too early to be absolute about that. I still have the hope that the situation calms down. And there have to be ways to reintegrate all participants economically afterward.

«But we can't make the same kinds of mistakes anymore»

Digitalization is more important for the long-term development of the international financial system, as well as the many new fintech developments. This includes Blockchain, and China's project to build its own international payment solution - as well as attempts by central banks to develop their own digital currencies.

«Suisse Secrets» has negatively impacted the image of Swiss finance. Will it be able to keep its position in the future?

I am convinced about the strength of our financial sector. We have many trumps in our hands, particularly in uncertain times. But we can't make the same kinds of mistakes anymore.

All actors in the financial sector have to be conscious of that and act prudently and sustainably.

Laurent Gagnebin joined Rothschild Wealth Management Equitas, the Geneva affiliate of Zurich-based Rothschild & Co Bank in autumn 2011. Before that, he headed Investec Bank in Geneva. He entered the banking profession by joining Goldman Sachs in Geneva after graduating from the École hôtelière de Lausanne. He also was employed for several years in the hotel industry. He has led Rothschild Bank as CEO since the middle of 2016.