As recently as February this year, there was cautious optimism. Radicant was expected to reach profitability by 2027/2028 at the latest. But now, «unforeseen challenges» are derailing BLKB’s strategic plan.

«BLKB is making value adjustments of 105,5 million francs on its stake in Radicant Holding AG,» the bank stated in a press release on Thursday.

«Unforeseen Challenges»

The reasons cited for these adjustments include «unforeseen challenges in integrating the fiduciary business of Radicant Business Services and an excessively high cost base within the Radicant companies.»

These issues have manifested in lower customer numbers, reduced revenues, and higher costs in the fiduciary business. Expectations for the contribution of the physical fiduciary operations to Radicant’s growth have not been met.

Profitability Delayed to 2029

BLKB announced plans to implement a comprehensive cost reduction and efficiency program at its subsidiary, along with changes in governance and business strategy. As part of this restructuring, Matthias Kottmann—member of the BLKB executive board and head of the private wealth and financial advisory division—will join Radicant’s board of directors.

Radicant board chairman Marco Primavesi is expected to step down by the end of 2025.

Despite these setbacks, the bank is reaffirming its commitment to the strategic investment. Radicant is now projecting a breakeven point in 2029.

Radicant had launched in August 2023 after several delays. Already in its first year of operations, BLKB had to take a 22-million-franc impairment. Another 9 million francs in value was written off in the first half of 2024.

Resignations Announced for 2026

Chairman of the Board of Directors of BLKB Thomas Schneider (Image: BLKB)

There will also be changes at the top of BLKB itself. Bank Council President Thomas Schneider (photo above) and CEO John Häfelfinger have announced their plans to leave the bank in 2026. Schneider, who has been president since 2018, will step down in mid-2026.

Häfelfinger, who has led the bank operationally for nine years, has decided to leave at the end of March 2026 to pursue his career outside of the bank, the statement said.