Julius Baer, the distinguished Swiss private bank, is facing new challenges as it grapples with additional loan losses and the departure of its Chief Risk Officer.
Just as it seemed the wealth manager was on a recovery path, Julius Baer encountered another setback. The firm had originally scheduled to report its business performance for the first four months this Thursday, but it opted for an earlier announcement that went out Tuesday evening instead.
The bank recently took a significant hit from the fallout of René Benko’s Austrian property group, Signa, resulting in a staggering write-off of 586 million francs. This financial turbulence has compelled Julius Baer to announce it will exit private debt lending. However, in Tuesday’s disclosure, the bank noted it has made “significant progress,” with only 200 million francs left in such loans, representing a mere 0.4 percent of its total loan portfolio.
As a direct consequence of the recent turmoil, Chief Risk Officer Oliver Bartholet has been relieved of his duties. He will retire effective July 1, 2025, paving the way for Ivan Ivanic, who just joined the bank in February 2025 as Chief Credit Officer, to step into the role. Meanwhile, Christoph Hiestand, Group General Counsel, will temporarily oversee all legal and compliance functions as the bank searches for a new Chief Compliance Officer.
Amidst these changes, Julius Baer did manage to attract net new money of 4.2 billion francs during the first four months of the year, achieving an annualized growth rate of 2.5 percent. This influx primarily came from clients in Asia, especially Hong Kong and Singapore, as well as Western Europe, including the UK and Germany.
However, the strong Swiss franc has cast a shadow over the bank’s performance, causing assets under management (AuM) to dip to 467 billion francs—a decline of 6 percent. Julius Baer cited a negative currency effect against the dollar amounting to 28 million francs, underscoring the precarious balance of operating in a volatile foreign exchange market. Who knew currencies could be such fickle friends?
What led to Julius Baer’s recent financial struggles?
The bank faced significant losses due to the collapse of René Benko’s Signa property group, which resulted in a 586 million-franc write-off.
Who will replace Oliver Bartholet as Chief Risk Officer?
Ivan Ivanic, who joined Julius Baer as Chief Credit Officer in February 2025, will take over as Chief Risk Officer starting July 1, 2025.
How did the strong Swiss franc impact Julius Baer’s assets?
The strength of the Swiss franc contributed to a 6 percent decline in assets under management, with a negative currency effect against the dollar of 28 million francs reported.
