After a slight dip in profits during 2020—at the height of the COVID-19 pandemic—2021 saw the Mirabaud group enjoy increases in operating profit, consolidated net income and revenue. At the same time, the private bank expanded its assets under management by 11.4% that year, proving its 200-plus year history of putting clients’ interests ahead of revenue once again allowed it to survive and thrive in the face of adversity.
Now, as one of four managing partners and as board chairman, Yves Mirabaud is poised to pivot the bank to a new technology platform. Yet, as he weighs options, he also reflects on Mirabaud’s client-forward growth strategy.
He recently told FinNews that clients can feel confident in their investments, even during periods of turbulence. As the managing partner notes, even at the height of the COVID-19 shutdowns, “Portfolios saw less volatility, clients didn’t lose much sleep as a result, and performance was favorable in nearly all cases.”
Building on Strengths
That favorable performance was on display when the group recently announced its 2021 performance. Of particular interest to investors was the 652 million Swiss francs of net new money, which built on 2020’s new net inflow of 810 million francs. Yves Mirabaud attributed the opportunities to “many new wealth management clients who were looking for haven in Switzerland.” Given the bank’s ability to weather many previous periods of financial turbulence, these clients were likely heartened by the thought of Mirabaud’s stability and proven history of expansion.
Growth and Pivots
Even as the group remained steadfast in its client-first investment strategies, Yves Mirabaud led with policies of responsibility, explaining, “We were cautious in our spending.” At the same time, he said that the pandemic period led to certain natural cost-cutting opportunities, thanks to “direct savings in areas like sponsoring events, and of course travel and entertainment.”
Still, the group did not hold back on expanding its reach through new hires. In fact, Yves Mirabaud says, “We won several private bankers to strengthen our business in the seven markets we’re active in…We built up staff in Paris and in Zurich for corporate finance,” growing those offices without reducing numbers in Canada, the U.K., Spain, Dubai and/or Latin America. He explained that, in those offices, “We’ll continue with our strategy of reinforcing local offices”
Moving forward, Yves Mirabaud says the plan is to get active “in a real estate private equity fund. We’ve gathered $1 billion already and plan further transactions in the U.S.” Additionally, he explains, “Our investment focus is more technology-this year.” And that brings the group to its search for a new platform that can carry Mirabaud through the next century of delivering a broad range of financial services.
The Quest for Continued Expansion
Yves Mirabaud explains that, “We’ve reached the limits of a propriety technology platform we’ve spent nearly three decades developing. We’re evaluating a new core banking system,” admitting that Avaloq and Temenos are top contenders for the bank’s pivot.
Yet, even as the group seeks new technological direction, the managing partner asserts it will remain strongly committed to Environmental, Social, and Governance (ESG) involvements. When it comes to global concerns such as climate change, he believes that “Banks are part of the solution. It is up to us to steer investor money towards new technology which can mitigate the effect of climate change. We are perfectly placed to do so and can play an important role here.” And so, as Mirabaud Group grows and positions itself to continue technological expansions through the 21st century, the private bank will place its focus on trust and responsibility: both to its diverse client base, and to a more sustainable financial and global future.
