From CNBC:

Swiss bank Julius Baer reported hefty net credit losses linked to its exposure to real estate group Signa Holding. CEO Philipp Rickenbacher will step down, and the company plans to cut 250 jobs. These losses led to a 16% decline in operating income, prompting the bank to exit its private debt businesses and refocus its credit business on specific lending loans. Despite this, shares rose 10%.

The bank’s net profit for the full-year 2023 was 454 million Swiss francs, down 52% with earnings per share of 2.21 francs. Assets under management grew by 1% to 3 billion francs. Rickenbacher will be replaced on an interim basis by deputy CEO Nic Dreckmann. Investors seemed unfazed, with shares opening 2.8% higher.

The bank reported net credit losses of 606 million Swiss francs, well above consensus expectations, due to an exposed loan loss allowance of 586 million francs. This overshadowed the benefit it saw from higher rates, causing a reduction in operating income. It announced it will cut 250 jobs, affecting around 3% of its employees.

Rickenbacher became chief executive in 2019 following a money laundering scandal that resulted in the bank agreeing to pay more than $79 million. He will be replaced on an interim basis by Nic Dreckmann, previously deputy CEO. Investors seemed unfazed, with shares opening 2.8% higher.

The bank reported a net profit of 454 million Swiss francs for the full-year 2023, a 52% decrease from the previous year. Assets under management grew 1%, reaching 3 billion francs. Rickenbacher and the board jointly agreed it was in the “best interest of the company” for him to step down.

The bank will exit its private debt businesses and refocus its credit business on specific lending loans. Shares rose 10% on the news. Rickenbacher’s departure and the bank’s actions have been seen as positive steps, with shares opening 2.8% higher, as reported by RBC analyst Anke Reingen.



Read more: Julius Baer hit by Signa exposure, announces CEO exit and job cuts