Julius Baer reaches agreement to settle US tax probe

Julius Baer has reached an agreement in principle with the US Attorney’s Office for the Southern District of New York to settle a criminal investigation that it helped wealthy American clients evade tax.

The Swiss bank said on Wednesday that it has set aside an additional $197.25m (£133m) to supplement its preliminary provision of $350m to resolve the matter.

The comprehensive resolution is subject to final approval within the US Department of Justice.

Julius Baer said the provision will be charged to the group’s 2015 full-year results.

It said that despite the overall $547.25m provision, based on management’s current information and assessment, it expects to report a net profit for the financial year 2015, adding that it will remain adequately capitalised.

“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.”

The bank expects that it will execute a resolution with the DOJ in the first quarter of 2016.

At 1026 GMT, shares were up 2% to CHF47.70.