Basellandschaftliche Kantonalbank (BLKB) has announced value adjustments amounting to CHF 105.5 million on its investment in radicant holding ag.
The impairment follows delays in the integration of the fiduciary business of radicant business services ag and unforeseen operational challenges, including lower customer acquisition, reduced revenues, and higher costs.
Expectations regarding the contribution of the fiduciary business to radicant’s overall growth were not met, and planned synergies between radicant bank ag and radicant business services ag did not materialise as intended.
The cost base of radicant’s entities is assessed as being too high.
In response, BLKB will implement a cost reduction and efficiency programme, revise the business direction of the radicant group, and make governance adjustments.
The focus of radicant bank ag will shift towards services for private individuals and SMEs in banking, investments, and administrative support.
Growth is to be driven through sales partnerships and cooperation with external firms. radicant now expects to reach breakeven in 2029.
The board of directors of radicant holding ag will be expanded to include Matthias Kottmann, a member of BLKB’s executive management and Head of Private Wealth and Financial Advisory.
The current Chair of radicant’s Board, Marco Primavesi, is expected to step down at the end of 2025.
The impairments will be partially offset by the release of BLKB’s general banking risk reserves.
On a consolidated basis, the bank expects interim results for the first half of 2025 to be in line with the previous year. BLKB’s total capital ratio, reported at 19.6% as of 31 December 2024, is expected to remain largely unchanged.
The bank currently anticipates that distributions to certificate holders and the Canton of Basel-Landschaft will be maintained at previous levels.
The state guarantee will continue not to apply to BLKB subsidiaries.
Thomas Schneider, President of the Bank Council, stated:
“BLKB is reassessing its investment in radicant in light of current circumstances. Despite the fact that strategic expectations, particularly concerning the fiduciary business, have not been realised, the financial group continues to pursue its diversification strategy via the digital bank radicant. In the growing retail and affluent client segment, BLKB will use radicant to support the bank’s long-term growth.”
BLKB also announced forthcoming changes to its leadership.
Thomas Schneider, Bank Council President since August 2018, will step down from his position in mid-2026, prior to the end of the current term on 30 June 2027.
Dr Anton Lauber, Head of the Finance and Church Directorate of Basel-Landschaft, commented:
“Under Thomas Schneider’s leadership, the Bank Council has placed strategic emphasis on long-term competitiveness and innovation. BLKB is now among the most solidly capitalised banks in Switzerland. On behalf of the cantonal government and personally, I thank him for his significant contributions to our bank.”
The process to appoint a new Bank Council President will be conducted jointly by the Canton of Basel-Landschaft and BLKB.
Chief Executive Officer John Häfelfinger has also announced his intention to leave BLKB at the end of March 2026 to pursue a career outside the organisation. He explained:
Thomas Schneider added:
“Under John Häfelfinger’s leadership, BLKB has steadily improved its profitability and strengthened its financial position. Considerable progress has been made in digitalisation, customer services have expanded, and the bank’s culture has evolved. On behalf of the Bank Council and personally, I thank him for his dedicated service. His continued leadership until March 2026 ensures sufficient time for the recruitment process.”
The search for a new CEO will begin in summer 2025.
Featured image credit: Edited by Fintech News Switzerland, based on image by Freepik
