Julius Baer CEO departs after private credit write-down contributes to 52% profit slump

Wealth manager exits private credit business

Julius Baer chief executive Philipp Rickenbacher is set to exit the business after a write-down of the firm’s largest private debt exposure contributed to the wipe-out of more than half of its annual profits.

In its annual results published today (1 February), the Swiss wealth manager reported CHF 454m (£416.1m) net profit in 2023, a 52% fall year-on-year, and earnings per share of CHF 2.21 (£2.02), also down 52% over 12 months. The results reflect a net credit loss of CHF 606m (£555.7m), which includes a full specific loan loss allowance of CHF 586 million (£536.6m) for its largest private debt exposure, Signa property group, which went bankrupt last year. Julius Baer said it was taking a CHF 70m (£64.1m) provision against potential losses on 27 November 2023. Julius Baer to review pri...