As consolidation in the Swiss wealth management sector continues, Rothschild & Co Bank primarily focuses on organic growth while remaining open to acquisitions. New hires are expected to drive revenue growth in the current year.
Rothschild & Co Bank recorded robust growth in 2024. Assets under management (AUM) increased by 17.3 percent to 35.1 billion francs, reaching a new all-time high, according to the annual report published on Friday.
This growth was supported by strong net inflows of 1.3 billion francs in new assets. The Swiss business unit played a key role in this success, further boosted by positive market performance, contributing an additional 3.9 billion francs to total AUM, as stated in the report.
Temporary Impact from Banque Pâris Bertrand
While commission income rose by 13.6 percent to 134.5 million francs, reflecting strong business development, total revenue declined by 1.8 percent to 238.6 million francs. This was mainly due to a 24.6 percent drop in net interest income, caused by central bank rate cuts.
Despite a 20 percent decline in net profit to 37.4 million francs – largely attributed to one-off gains in the previous year related to the acquisition of Geneva-based Banque Pâris Bertrand – Rothschild & Co remains confident in its long-term strategy.
Growth Strategy in Switzerland
In 2024, Rothschild & Co Bank continued to invest in personnel, increasing its Swiss workforce from 364 to 371 employees. These new hires are intended to strengthen the bank’s front-office capabilities and customer support functions. The report highlights that the positive impact of these investments on revenue is already becoming apparent.
Switzerland remains at the heart of the bank’s wealth management operations, particularly for clients seeking long-term stability, estate planning, and retirement solutions.
Investment in Human Capital
New hires were also made outside Switzerland, particularly in Germany, Spain, Israel, and Dubai. This investment in human capital underscores Rothschild & Co’s commitment to organic growth rather than aggressive expansion through acquisitions.
Nevertheless, CEO Laurent Gagnebin stated in an interview with finews.com that the bank would consider an acquisition if a suitable opportunity arose.
Expansion in the Middle East
A key strategic move for Rothschild & Co Bank last year was the opening of an office in Dubai, strengthening the bank’s presence in the Middle East. The region’s dynamic economy and growing demand for sophisticated wealth management services present significant growth opportunities, according to the bank.
Rothschild & Co positions itself as a family-run institution with a strong tradition, emphasizing stability and a long-term investment approach.
Targeting Younger Clients
CEO Gagnebin emphasized that clients, including many younger investors, appreciate the bank’s stability, advisory expertise, and solid investment performance.
In recent years, the bank has expanded its advisory services in estate and inheritance planning to meet the growing demand for wealth preservation across generations.
