The Swiss private bank opens up about its exposure to Russia, while reducing its local activities in the country.
Julius Baer’s business in Russia is limited to mostly mortgages loans made to a handful of sanctioned Russian clients, it said in a statement Monday.
While complying with all applicable laws and regulations, last month the wealth manager was able to adjust credit positions and reduce the collateral value of Russian assets to zero without incurring credit losses. Since then it has also stopped onboarding clients, it said.
Julius Baer’s market risk exposure to Russia is not significant. But it is monitoring settlement risks related to open transactions with Russian financial institutions linked to Russian securities, potentially delaying or impairing counterparties’ ability to settle these transactions, it said.
Moscow Office
Julius Baer's Moscow office, which will continue to operate, had a net asset value of 0.4 million Swiss francs as December 31, it said.
The private bank aims to make a two million Swiss franc donation to support the Swiss Red Cross in Moldova and Poland, as well as Swiss Refugee Aid.
