Signa loans: Julius Bär to write off around CHF400 million

Julius Bär will present its results for the 2023 financial year on Thursday. © Keystone / Ennio Leanza

Zurich-based private bank Julius Bär will reportedly announce a major write-down totalling several hundred million francs on Thursday.

The SonntagsZeitung newspaper cites insiders as saying that the write-down will amount to around CHF400 million ($464 million), possibly even more, due to the loans to Signa.

The bank had accepted collateral that turned out to be practically worthless, said the paper, whose research showed how “adventurous” this alleged collateral was.

The order of magnitude is also circulating in financial circles. For context: Julius Bär made a net profit of CHF950 million in 2022.

+ Julius Bär probed by Swiss regulator over Signa risk lapses

At the end of November, it became known that Austrian property entrepreneur René Benko and his faltering Signa holding company were owed CHF606 million by the Swiss asset manager. The private bank did not rule out further write-downs on these loans.

After the end of October, Julius Bär’s loan portfolio was impaired to the tune of CHF70 million. According to earlier information, the amount is primarily attributable to the loans to Benko.

Meanwhile, the huge loss on the three Signa loans will not have any immediate consequences for top management, the SonntagsZeitung wrote, citing sources close to Julius Bär. However, an adjustment to the organisation is apparently planned.

According to the report, there will also be cuts to the remuneration of those on the executive floors. The financial market supervisory authority FINMA is also said to have exerted pressure in this regard.

+ Swiss financial regulator wants more power after Credit Suisse collapse

Julius Bär will present its results for the 2023 financial year on Thursday. The bank did not want to comment on the media report when asked by the news agency AWP.

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