He apologized “deeply,” he told shareholders.
Some of the shareholders present reacted to this vote with cautious applause. Lacher also spoke of a “business misjudgment that shouldn’t have happened.”
The bank is aware that the “isolated” case has caused uncertainty. “And we know that this also affected trust in Julius Baer,” said Lacher.
Names “Signa” or “Benko” not used
At the beginning of February, Julius Baer had to write off around 600 million francs (612 million euros) in loans to various companies in the collapsing Signa Group, and the annual profit therefore shrank by half. The involvement in René Benko’s real estate empire cost CEO Philipp Rickenbacher his job, and members of the management team had their bonuses cut.
As usual, Lacher did not use the names “Signa” or “Benko”, but instead spoke of “credit incidents” on the largest single exposure in the private debt book. This went to a “real estate and luxury retail conglomerate.”
Lacher emphasized that Julius Baer had completely written off the commitment to this debtor, who was not named at the general meeting. This conservative approach has therefore eliminated any uncertainty with regard to future financial results. Now the focus is on demanding as much as possible from the securities in the individual positions.
