The financial problems of the king of online bicycles affect Julius Baer

Julius Baer captures all eyes on the Swiss market. The second largest bank in Switzerland after the fall of Credit Suisse has admitted this Monday an exposure of 606 million francs (628 million euros) derived from three loans to a European conglomerate that according to economic media is linked to the Austrian investor René Benko, who is in financial trouble. In a statement, the Swiss bank, classically dedicated to the management of large fortunes, recognizes that this is “the largest single exposure in its private debt account” and assures that it is in the process of long-term restructuring, with legal guarantees. adas To real estate, commercial and luxury businesses.

Julius Baer makes these clarifications a week after an interim report of its 2023 accounts revealed a provision of 81 million Swiss francs (83 million euros) to cover possible financial losses, an announcement that caused the bank to fall 13% In a Single Day, Its Biggest Collapse Since 2020. Although the Bank Has Not Uncovered the Origin of These Problems, the Swiss Media Points Out the Problematic Loans -Pert PRESENTS BENKO, ONE of Austria’s Richest Magnates, Whose Real Estate and Commercial Conglomerate Signa going through serious difficulties.

On Friday, Signa’s real estate division in Germany declared itself insolvent, and according to the Swiss newspaper ‘Blick’ the group has a total debt of 13 billion euros. The newspaper adds that Julius Baer, ​​who financed the purchase of the Swiss chain of shops Globus by Benko, associated with a Thai group, would have approved three loans of around 200 million francs each for the Austrian tycoon, something that According to analysts, the risk is enormous. The sports division, for its part, Signa Sports, has also found itself due to the frontal rejection of its parent company to a financial support portal.

“We regret that a single exposure has created uncertainty for our shareholders,” admitted in the statement the CEO of Julius Baer, ​​Philipp Rickenbacher, who assured that despite these problems the bank “has very good capitalization and has generated consistent element benefits in all circumstances.” The data revealed this Monday by the bank seems to have had less impact on its stock price, which registered a fall of 1.6% in the mid-session, to 45.98 Swiss francs.