The CHF 105,5 million write-down on Radicant Holding AG is likely to mark a turning point for BLKB. Chairman of the Bank Council Thomas Schneider and CEO John Häfelfinger have announced they will step down next year. It is not yet clear who will succeed them. However, the new leadership is expected to be involved early in shaping a new strategic direction, according to a media call held by the cantonal bank on Thursday.

Chairman Schneider emphasized during the call that his departure by mid-2026 is intended to ensure an orderly transition. «BLKB is on a good path,» he added with confidence.

CEO Häfelfinger, who will leave BLKB in March 2026, echoed a similar motivation: «My successor will be able to accompany the new strategy period from the very beginning and make the necessary strategic decisions early in the bank's planning process.»

Reserves to Absorb the Impact

The write-down is not expected to have a negative impact on certificate holders or the canton of Basel-Landschaft. Dividend payouts are planned to remain at the same high level as last year.

The impairment on Radicant’s value will be partially offset by the release of reserves for general banking risks, the bank stated. BLKB’s consolidated half-year results are expected to be in line with last year’s figures, and the total capital ratio (19,6 percent as of the end of 2024) is expected to remain nearly unchanged. The bank will publish its first-half results on July 17.

When it came to analyzing what went wrong, the bank's executives were tight-lipped. This stood in stark contrast to last December, when the acquisition and integration of Numarics was touted as ushering in «a new era of innovation and growth» for Radicant.

Trust Clients Not On Board

The expectations for revenue and earnings contributions from the acquisition were likely far too optimistic. However, CEO Häfelfinger stressed that this wasn’t due to shortcomings in due diligence or integration. Rather, during the integration process, it became clear that many trust clients were either unable or unwilling to adopt the digitalized offerings. This had not been foreseeable beforehand. As a result, the anticipated revenue volumes were not achieved.

Breakeven Target Postponed

The future of the Radicant subsidiary is not in question. «Radicant will achieve its revenue base in the long term,» Häfelfinger insisted. The new breakeven target is now set for 2029—about one and a half years later than previously planned.

Currently, the bank serves around 18,000 clients. It was clear from the outset that partnerships would be necessary to drive growth.

Plans are in place to simplify and expand the offering for SMEs. No detailed information was provided about the planned cost and efficiency measures. The cost base is too high, and as a shareholder, BLKB is evaluating what synergies can be realized between itself and Radicant. «We will provide services to Radicant,» said the CEO. However, Radicant's independence will be maintained.

Radicant itself did not comment on the write-down announced by its parent company.