Julius Baer has 606 million francs in exposure to a European group

© Reuters. The logo of Swiss private bank Julius Baer is seen at their headquarters in Zurich, Switzerland February 2, 2022. REUTERS/Arnd Wiegmann/File Photo

ZURICH (Reuters) – Julius Baer has nominal exposure totaling 606 million Swiss francs ($684.36 million) made up of three loans to different entities within a European conglomerate, the Swiss private bank said on Monday.

“The aggregate exposure towards this client group is secured by multiple collateral packages related to commercial real estate and luxury retail and is now subject to a longer-term restructuring,” Julius Baer said in a statement.

“We regret that a single exposure has led to the recent uncertainty for our stakeholders,” said CEO Philipp Rickenbacher.

Financing is an inherent part of the wealth management proposition to Baer’s clients, he said, but together with the board of directors, the private debt business and the framework in which it is conducted would be reviewed.

Last week the company’s shares slumped to their lowest this year as the bank dampened profit expectations after loan provisions amounting to 82 million Swiss francs.

Of the 82 million francs, 70 million francs were booked against its credit portfolio after Oct. 31, 2023, without identifying the loans in question.

“The overall quality of the loan book and the balance sheet remains unaffected, with a consistently strong capitalisation and high liquidity providing ample capacity to absorb any risks resulting from the group’s business,” Julius Baer said in an interim update for the first 10 months of 2023.

($1 = 0.8855 Swiss francs)


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