The Swiss private bank, which operates in a number of regions, such as Asia, has been reviewing operations. It has offloaded a Brazilian business and seen a number of high-level management changes.

Julius Baer yesterday reported that it had “continued client momentum” with net new money inflows of SFr4.2 billion ($5.09 billion) in the first four months of this year. 

In a statement update, the Zurich-listed bank also announced several senior management changes, taking force from 1 July. 

Shares in Julius Baer were down 4.85 per cent yesterday; the Swiss Market Index (SMI) of blue-chip stocks was down 0.22 per cent.

Assets under management stood at SFr467 billion and were down 6 per cent from the end of 2024. This reflected a stronger Swiss franc exchange rate, and its sale of Julius Baer Brazil. 

Julius Baer said it is on track to achieve SFr110 million in added cost savings, as announced in February.

Progress
The lender said it has made “significant progress” on the wind-down of private debt book to below SFr200 million (0.4 per cent of total loan book). In February 2024, Julius Baer announced a hit to its full-year 2023 financial results from credit losses of SFr606 million ($701 million). The losses stem from loans to a European conglomerate, as previously disclosed.

CEO
“The business has performed steadily in the first four months of the year despite macroeconomic and market turbulences, with solid net inflows, an increase in the underlying gross margin, and continued delivery on cost savings,” Stefan Bollinger (pictured), CEO of Julius Baer, said. “Since January, we have implemented several measures aimed at simplifying governance and the operating model, reinforcing our client focus, and disciplined risk management. The changes announced today represent a further step in this direction.”

Review
The bank has reviewed its credit portfolio; there has been a subsequent rise in loan loss allowances associated with remaining private debt book and selected positions in the mortgage book. This created a net charge of SFr130 million.

Senior moves
Oliver Bartholet is retiring, Ivan Ivanic will replace him as chief risk officer. All legal, and pro tem compliance functions, will be consolidated under the leadership of Christoph Hiestand, group general counsel. A chief compliance officer will be recruited. (In February, Julius Baer shrunk its board to just five members.)

Julius Baer said its capital position is robust, with a Common Equity Tier 1 ratio – a standard measure of a bank’s capital shock absorber – rising to 15.2 per cent, more than regulatory requirements of 8.3 per cent.

The bank will give a further update on strategy, including new medium-term targets, on 3 June.