Julius Baer, a prominent Swiss wealth manager, announced the departure of CEO Philipp Rickenbacher on Thursday, accompanied by a report revealing net credit losses amounting to 586 million Swiss francs ($679 million). The losses were attributed to the bank’s exposure to Signa Holding, a property and retail giant, surpassing earlier estimates of 400 million Swiss francs.
In response to the significant setback, Julius Baer disclosed its decision to exit the private debt business. The bank is set to refocus its lending activities on mortgage and lombard lending, emphasizing a shift towards more traditional areas.
Rickenbacher, who has been at the helm since 2019, steps down in mutual agreement with the Board of Directors. Nic Dreckmann, the current chief operations officer and deputy CEO, will assume leadership temporarily while an external search for a successor is initiated.
Julius Baer’s Chairman, Romeo Lacher, expressed regret over the impact of the substantial loss on the net profit for 2023. He stated, “We are refocusing our lending activity on more traditional areas, which are an important part of our wealth management offering.”
The bank reported a 52% decline in net profit attributable to shareholders for the full year, totaling 454 million francs, compared to 950 million francs in 2022.
