ZURICH (Reuters) -Julius Baer on Monday announced further loan loss allowances of 149 million Swiss francs ($184 million) that will be recognised in the financial accounts in November 2025.
The group has now completed its credit review and decided to manage down a subset of loan book positions, which are not aligned with its refocused strategy and revised risk appetite framework, the Swiss bank said.
The conclusion of the review marks the final phase in addressing legacy credit issues, Julius Baer said.
While the review confirmed the Lombard loan book and the traditional residential mortgage portfolio are resilient, Julius Baer decided to manage down a subset of the loan book, primarily in income-producing residential and commercial real estate, the bank said in a statement.
“With our clear strategic focus, our revised risk appetite framework, and overall strengthened risk function and processes, we are now entirely aligned around our core wealth management proposition,” CEO Stefan Bollinger said.
The group expects that net profit for the full year 2025 will be less than the one achieved in 2024, Julius Baer said.
($1 = 0.8078 Swiss francs)
(Reporting by Ariane Luthi; Editing by Friederike Heine and Mrigank Dhaniwala)
