The head of Julius Baer sees advantages for the Swiss financial center in having two strong large banks among its ranks.
At its investor day in London today, Credit Suisse was unable to dispel doubts over how it intends to maneuver its way out of its myriad and serious difficulties. Above all, there was a lack of convincing announcements on new growth areas for Switzerland's second-largest bank, as also reported by finews.com.
With the subdued outlook presented in its Investor Deep Dive, speculation about the independence of the Swiss bank is unlikely to die down. While a recent rumor that made the rounds that Credit Suisse and Statestreet were in merger talks was quickly dispelled as baseless, it would come as no surprise should more such speculation emerge.
No Prophets of Doom
Even its main competitor, UBS, does not welcome the demise of Credit Suisse. In an interview with the «Aargauer Zeitung» (in German) earlier this year, UBS CEO Ralph Hamers said «it's never a good thing when a competitor has problems,» because then the reputation of all banks suffers.
This attitude is shared by the head of Julius Baer, Switzerland's largest private bank. In an interview with the Swiss daily newspaper «NZZ» (in German) Philipp Rickenbacher was quoted as saying that two healthy and strong big banks are important for the Swiss financial center. «Competition stimulates business,» he said.
Focus on Risk
The fact that risks are receiving more attention at Credit Suisse is not an isolated trend, but one that all banks are paying more attention to. As Rickenbacher explains, he can also see this at his institution, where asset management is becoming structurally more expensive and the density of regulation is increasing.
In addition, he says, bank clients have become more cautious about taking on new risks in the face of market uncertainty caused by Covid 19 restrictions in Asia, disrupted supply chains, inflation fears, and the Russia-Ukraine conflict.
