ZURICH (Reuters) -Julius Baer <BAER.S> said on Monday it has taken an additional loan loss allowances of 149 million Swiss francs ($184 million), concluding a credit review that the Swiss bank says will help it resolve legacy issues and “turn the page”.
The review prompted the banking group to wind down a portion of its loan book that no longer fits with its sharpened strategy and updated risk appetite.
Julius Baer said the conclusion of the review marks the final phase in addressing legacy credit issues that previously led to a series of losses, write-downs, and a management overhaul.
The review confirmed that the Lombard loan book and the traditional residential mortgage portfolio are resilient, the Swiss company said.
“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.
Bollinger added that the bank is “not quite there yet” in terms of resuming share buybacks, as it remains under an ongoing enforcement procedure by Swiss regulator FINMA.
The group expects full-year 2025 net profit to come in below 2024 levels, Julius Baer added.
Assets under management reached 520 billion Swiss francs by the end of October, Julius Baer said, driven by net new money of 11.7 billion francs year-to-date and rising stock markets, which more than offset the drag from a stronger Swiss franc.
The bank also announced that Victoria McLean, formerly of Goldman Sachs, will join as chief compliance officer and become a member of the executive board at the end of February, pending regulatory approval.
Separately, the bank said it had received in-principle approval to open a new advisory office in Abu Dhabi.
Scheduled to open in December 2025, the new office will cater to ultra-high-net-worth individuals, family offices, and entrepreneurs.
($1 = 0.8078 Swiss francs)
(Reporting by Ariane Luthi; Editing by Friederike Heine, Mrigank Dhaniwala and Sherry Jacob-Phillips)
