We had the privilege of hosting Jacques Piasko, the former Global Head of Treasury of Julius Bär, for an insightful guest talk on the topic of Balance Sheet Management. During the informal session, Jacques shared key principles underlying the functioning of banks and offered invaluable insights from his experience as a trader. He explained how owning a position fosters sharper decision-making, particularly in his former role as a Treasurer, where decisions span multiple dimensions such as liquidity, asset-liability management, capital management and others.

A part of the discussion focused on the relationship between risk and performance in banking. Jacques highlighted how banks often struggle with P&L volatility, as periods of strong performance in favorable cycles are frequently followed by more challenging times. This cyclical nature of P&L underscores the importance of looking through business cycles when making management decisions. The ability to maintain a long-term view while addressing short-term pressures is vital for sustained success.

It was a thought-provoking and highly engaging talk, and we hope to continue with these informal discussions also in the future.