The Signa hit is also affecting the private bank’s board of directors. Among other things, this includes new appointments to the risk management department at Julius Baer.
The Julius Baer Group intends to nominate Bruce Fletcher and Andrea Sambo for election as independent board members at the annual general meeting on April 11, it was revealed in a press release issued by the long-established Zurich-based company on Monday.
The two designated board members replace Gilbert Achermann, who has reached the maximum term of office for Julius Baer board members, and David Nicol, chair of the governance and risk committee.
Exit in February
Nicol, who only joined the board in 2021 and was responsible for risks at the group, and drew the consequences of the Signa hit in early February when the bank wrote off more than 600 million Swiss francs of outstanding loans to companies owned by Austrian investor René Benko.
Previous CEO Philipp Rickenbacher also left at the time.
Long Career in Risk Management
Fletcher now brings the experience to fill the gap. The British and American citizen has 40 years’ experience in the financial sector, specializing in risk management. From 2018 to 2023, he was chief risk officer of NatWest Bank. Before that, he held senior risk positions at major Anglo-Chinese bank HSBC and its U.S. competitor Citigroup.
It is planned that Fletcher will take over as chair of the governance and risk committee following his election, the press release also states.
Experience with Complex Products
Sambo, the other new addition, is an Italian citizen with 25 years’ experience in the financial sector. From 2005 to 2021, he worked at UBS in London, where he held several leadership and management positions and was head of financial resources. As an investment banker, he also has experience of structuring complex customer solutions.
Julius Baer had difficulty with structured loans to Signa companies. According to press reports, the bank intends to exit this business.
