Swiss private bank Julius Baer is no longer accepting new clients domiciled in Russia due to the sanctions. It is also closing its Moscow subsidiary.
Since Russia invaded Ukraine, Julius Baer has applied national and international sanctions and is not accepting new clients domiciled in Russia, the bank announced Monday as part of its results for the first half of the year.
In terms of its Russian exposure, the bank said it had only a single-digit number of clients subject to these sanctions. These include mortgage loans at conservative loan-to-value for residential properties in prime Western Europe locations, and a marginal Lombard exposure fully collateralized by pledged liquid assets, the institution said. To date, Julius Baer said it has not recorded any credit losses directly related to Ukraine.
Moscow Closure
Julius Baer's market risk positions related to Russia are «not significant» and are «tightly managed,» and has also initiated the closure of its advisory subsidiary in Moscow, in compliance with local regulations and contractual agreements. The net asset value of this unit was about 1.2 million Swiss francs ($1.25 million) at the end of June.
During the first six months of the year, 900 million francs of Russian client assets were reclassified as a result of sanctions imposed on clients in connection with the invasion.
Maximum Amount
At the end of June 2022, approximately 1.6 percent of Julius Baer's assets under management (AuM) were attributable to Russian individuals who are not residents of either the European Economic Area or Switzerland.
Under the sanctions imposed by the EU and Switzerland, the acceptance of deposits above 100,000 euros ($102,100) from such clients is prohibited.
