Julius Baer: New impairments on real estate loans
This time, the amount involved is just under 150 million francs. There is no connection with the Signa bankruptcy.
The private bank Julius Baer once again has to make a value adjustment on real estate loans. According to a company statement, real estate financing positions in the order of CHF 700 million will be reduced, with a write-down of CHF 149 million. These positions are «mainly in the book of yield-generating residential and commercial real estate», the bank announced. According to the statement, there is no connection with the bankruptcy of the real estate company Signa. Transactions with real estate entrepreneur René Benko had led to major turbulence at the bank in the past. In addition, another problematic loan exposure in Germany became known this year (IB reported). Julius Baer CEO Stefan Bolliger announced yesterday that the credit review process has now been completed with the new write-off. The Group has made a «clear commitment» to focus entirely on its core business «Wealth Management», which also includes traditional Lombard lending and the traditional mortgage business for residential real estate.
As the «Neue Zürcher Zeitung» writes, the value adjustments now communicated relate to loans that were concluded before 2023. The properties in question are located in Switzerland and Western Europe. (aw)
