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Basellandschaftliche Kantonalbank (BLKB), one of Switzerland's largest cantonal banks, has announced a CHF 105.5 million impairment on its investment in Radicant Holding AG due to operational challenges. The bank is now reassessing its stake and planning "drastic" operational measures to address the excessively high cost structure and improve the overall viability of Radicant.
The impairment is due to delays in the integration of Radicant Business Services, lower client numbers and income, higher costs in the fiduciary segment, failure to meet expectations regarding growth contributions from the physical trust business, and unrealized planned synergies between Radicant Bank and Radicant Business Services.
Despite these setbacks, BLKB remains committed to its strategic investment in Radicant and continues to support the diversification strategy via the digital bank. The bank is implementing a cost reduction and efficiency program to address the high costs and improve the overall viability of Radicant.
In parallel with these developments, BLKB is undergoing leadership changes. CEO John Häfelfinger, Bank Council Chairman Thomas Schneider, and Radicant CEO Marco Primavesi have announced their departures. Häfelfinger and Schneider are planning to leave by mid-2026, and the replacement process for the CEO is already underway.
Dr Anton Lauber, Head of the Finance and Church Directorate of Basel-Landschaft, thanked Thomas Schneider for his significant contributions to BLKB. Under Schneider's leadership, BLKB has improved its profitability and strengthened its financial position.
Growth for Radicant will be driven through sales partnerships and cooperation with external firms, and the bank now expects to reach breakeven in 2029. The focus of Radicant Bank AG will shift towards services for private individuals and SMEs in banking, investments, and administrative support.
The search for a new CEO at BLKB will begin in summer 2025. It is important to note that the state guarantee does not apply to BLKB subsidiaries. The total capital ratio, reported at 19.6% as of 31 December 2024, is expected to remain largely unchanged.
The financial group continues to pursue its diversification strategy via the digital bank Radicant. Significant progress has been made in digitalization, customer services have expanded, and the bank's culture has evolved under Häfelfinger's leadership.
In a positive note, the interim results for the first half of 2025 are expected to be in line with the previous year on a consolidated basis. The bank also anticipates that distributions to certificate holders and the Canton of Basel-Landschaft will be maintained at previous levels.
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. These changes reflect BLKB’s approach to stabilize the investment while adjusting operational and leadership aspects to address the challenges faced by Radicant.
[1] "Basellandschaftliche Kantonalbank (BLKB) macht 105,5 Millionen Franken Provision auf Radicant Holding AG." Swissinfo.ch. 2025. [Link] [2] "BLKB's Radicant Investment Faces 105.5 Million CHF Impairment." Finews.ch. 2025. [Link] [3] "BLKB's Radicant Investment: Unrealized Strategic Expectations and Operational Challenges." Fintechnews.ch. 2025. [Link] [4] "BLKB's Radicant Investment: A Comprehensive Review of the Impairment and Future Plans." Bankingtech.com. 2025. [Link]
The financial struggles of Radicant Holding AG, a digital bank investment by Basellandschaftliche Kantonalbank (BLKB), have led to a CHF 105.5 million impairment due to operational challenges. To address these issues, the bank is implementing a cost reduction and efficiency program in the fintech industry, focusing on business streamlining and operational measures.
In an attempt to diversify and improve the overall viability of Radicant, BLKB will be shifting its focus towards services for private individuals and SMEs in banking, investments, and administrative support. Matthias Kottmann, a member of BLKB's executive management, has been added to the board of directors of Radicant Holding AG to help stabilize the investment.
