Higher loan provisions are leaving a clear mark on asset manager Julius Baer. Together with the increase in the tax rate, value adjustments are likely to result in falling profits for the Swiss institute in 2023 as a whole, as Bär announced. In 2022, the financial institution earned a bottom line of 950 million francs; by November 19, 2023, the company had booked value adjustments totaling 82 million francs. Of this, 70 million were attributable to the loan portfolio in the period after October 31st. A report from the news site Business Insider According to Bär, hundreds of millions will go to the Austrian real estate entrepreneur’s ailing Signa Group René Benko have awarded. However, Bär did not want to comment on the question of whether this was the trigger for the provisions.
In the first ten months of the current year, assets under management rose by eleven billion francs to 435 billion francs. The increase is mainly due to continued capital inflows and the positive development of the stock markets. However, the appreciation of the franc against most major currencies since the beginning of the year has caused headwinds.