Along with its results for the first four months of the year, Julius Baer outlines its Russia business.
At the end of April, Swiss bank Julius Baer said about 1.6 percent of its 457 billion Swiss francs ($460 billion) of assets under management were attributable to Russian individuals not residents of the European Economic Area, nor Switzerland, amounting to 7.5 billion francs
The bank's market risk positions as they relate to Russia are «not significant and are tightly managed», it said in a statement.
No New Clients
Julius Baer said that it does not accept new Russia-domiciled clients since it invaded Ukraine and applies all relevant sanctions. Overall, the group has credit exposure to clients numbering in the single digits who are subject to the sanctions. In any event, the sanctions imposed allow only for the acceptance of deposits under €100,000 for such individuals.
The exposure that it does have consists of mortgage loans at conservative loan-to-value (LTV) ratios for residential properties in prime locations in Western Europe and a marginal Lombard exposure fully collateralized by pledged liquid assets.
In addition, Julius Baer has commenced with the closure of an advisory subsidiary in Moscow in accordance with local regulations and contractual agreements. It said that the value of the business was 400 million francs as of the end of last year.
