Julius Baer earmarks extra $200 million provisions to resolve U.S. tax case

Swiss private bank Julius Baer (>> Julius Baer Gruppe AG) said it has set aside nearly $200 million in additional provisions to settle a U.S. criminal investigation that it helped wealthy American clients dodge taxes.

Baer said it had reached an agreement in principle with the U.S. Attorney’s Office for the Southern District of New York regarding the financial component of the case, drawing a line under one of the biggest uncertainties facing Switzerland’s third-largest listed bank.

The new provision brings the total amount earmarked to cover potential penalties in the case to $547.25 million which the bank said will be charged to its 2015 full-year results.

Baer said in a statement that it still expects to post a net profit for the current financial year.

Read on.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s