Julius Baer has reached an agreement in principle with the U.S. Attorney’s Office for the Southern District of New York with respect to a comprehensive resolution regarding its legacy U.S. cross-border business. Based on the terms of the agreement in principle, Julius Baer has taken an additional provision of USD 197.25 million to supplement its preliminary provision of USD 350 million in June 2015. With the overall provision of USD 547.25 million charged in 2015, the Group will remain adequately capitalised with a BIS total capital ratio of 18.6% as per 31 October 2015.

Zurich, 30 December 2015 – Julius Baer has announced today that it has taken an additional provision of USD 197.25 million to supplement its preliminary provision of USD 350 million based on the terms of an agreement in principle with the U.S. Attorney’s Office for the Southern District of New York (‘Southern District’) regarding a comprehensive resolution regarding its legacy U.S. cross-border business. 

Specifically, Julius Baer has reached an agreement in principle with the Southern District regarding the financial component of the resolution and related resolution documents, which it anticipates will be filed with the U.S. District Court for the Southern District of New York. The comprehensive resolution is subject to final approval within the U.S. Department of Justice (‘DOJ’).

The provision will be charged to Julius Baer’s 2015 full-year results. Despite the overall USD 547.25 million provision, based on management’s current information and assessment, the Group is expected to report a net profit for the financial year 2015 (adjusted and under IFRS). The Group will remain adequately capitalised with a BIS total capital ratio of 18.6% as per 31 October 2015, well above the 15% target.

Julius Baer remains committed to cooperating proactively with the DOJ’s investigation. Julius Baer has carried out its cooperation in full compliance with applicable Swiss laws and regulations. 

Julius Baer anticipates that it will execute a resolution with the DOJ in the first quarter of 2016.