The private bank Julius Baer granted more than 600 million euros in loans to the Signa Group. After its bankruptcy, the institute writes it off completely. Bank boss Philipp Rickenbacher has to vacate his post because of this.
The Swiss private bank Julius Baer is separating from its previous managing director Philipp Rickenbacher. The Swiss institute announced today that he is resigning with immediate effect. Nic Dreckmann will take over the position on an interim basis until his successor is found. Rickenbacher has led Julius Baer since 2019.
In addition to CEO Rickenbacher, board member David Nicol also has to vacate his post. The Brit was head of the risk committee on the board of directors. Chairman of the Board of Directors Romeo Lacher, who came under criticism in connection with the private bank’s involvement with the insolvent real estate and trading group Signa, remains in office.
Profits fell by 52 percent
Julius Baer has to write off Signa loans amounting to 586 million Swiss francs (around 628 million euros). “On behalf of the entire Board of Directors, I express my deep regret that the full impairment of the largest exposure in our private debt business has significantly impacted our consolidated profit for 2023,” explained Lacher.
This impairment led to a drop in profits of 52 percent below the previous year’s level to 454 million francs. Analysts had expected a profit of around 800 million francs.
“With this extremely conservative step, we remove all uncertainties for our shareholders and stakeholders as well as concerns about possible further effects on Julius Baer’s financial position in the future,” Lacher continued.
Job cuts planned for this year
250 jobs are to be cut this year. The reduction is taking place worldwide and is part of a previously announced savings program, said a spokesman for the Swiss institute. The savings are intended, among other things, to finance investments in IT.
At the end of last year, Julius Baer had 7,425 full-time positions.