Julius Baer says exposure to Russia is ‘not significant’
The Swiss bank joins rivals such as UBS and Credit Suisse, as well as a number of other groups, in detailing its exposures to Russia.
Julius Baer became the latest bank to outline potential exposures to Russia, saying yesterday that its business with the country and associated clients is negligible.
The Zurich-listed private bank, which does not have an investment banking arm, released its Russia exposures the same day it released its annual report to shareholders.
“The collateral value of Russian assets, including those traded in markets outside of Russia, was reduced to zero in February 2022. Julius Baer has worked closely with affected clients to adjust credit positions accordingly, without this does not result in any credit losses to date,” the bank said in a statement.
“The group is exposed to the credit of less than one number of customers subject to the sanctions recently introduced. Exposure takes the form of mortgages at conservative lending values against residential properties in prime locations in Western Europe, as well as marginal Lombard credit exposure fully backed by pledged liquid asset collateral,” he continued.
A series of banks, including fellow Swiss banks UBS and Credit Suisse, exposed their exposures to Russia.
“Julius Baer’s market risk exposure to Russia is not material and is tightly managed. The group also monitors settlement risks related to certain open transactions with Russian financial institutions linked to Russian securities, such as market closures, the imposition of exchange controls, sanctions or other measures that may delay or impair the ability of counterparties to honor such receivables. , It said. The net asset value of consulting subsidiary Julius Baer CIS Ltd in Moscow amounted to 400,000 Swiss francs as of December 31, 2021. The group is reducing its local activities in accordance with contractual agreements, while ensuring the safety of its small number of employees.
Julius Baer said he was donating 2 million Swiss francs ($2.14 million) to support the activities of the Swiss Red Cross in Moldova and Poland and the Swiss Refugee Council. His employee organization “JB Cares Switzerland” raised funds from staff which, after being matched by the Julius Baer Foundation, resulted in an additional donation of 450,000 Swiss francs to the Swiss Red Cross.
“I believe I speak for all my colleagues at Julius Baer when I express my sadness and concern for those affected by this deplorable act of aggression. This sentiment is reflected in the generous contributions of our employees to a recent fundraising initiative to support relief efforts for the most vulnerable civilians of this war.In addition to contributing financially to humanitarian aid, Julius Baer is fully focused on managing all risks to the group and its customers with utmost discipline,” said the bank’s chief executive, Philipp Rickenbacher.
This publication recently commented on how banks, law firms and other organizations should approach Russian customers.