Zurich - Julius Baer, Switzerland’s third-largest wealth manager, said first-half profit dropped 78 percent after taking a provision to settle a tax dispute with the US.
Net income declined to 39 million Swiss francs ($40.5 million) from 178.3 million francs a year earlier, the Zurich- based bank said in a statement on Monday.
Profit excluding the US provision increased by 34 percent to 384 million francs.
Julius Baer announced last month it set aside $350 million in the first half for an eventual settlement with the US Justice Department to resolve a four-year probe of offshore accounts for Americans.
CEO Boris Collardi said he’s “very hopeful” the tax dispute will be closed this year.
The shares dropped 1.5 percent to 53.3 francs at 9.07 AM in Zurich trading. The Bloomberg Europe 500 Banks & Financial Services Index rose 0.4 percent.
Client assets under management totaled 284 billion francs at the end of June, compared with 289 billion francs reported for the end of April, the company said.
Julius Baer is seeking acquisitions to tap new wealth in emerging markets and diversify from Swiss franc-denominated business, Collardi said in a Bloomberg Television interview.
The firm also wants to continue to grow organically without “interference” from firms seeking to buy the bank, he said.
Julius Baer also said it acquired a 40 percent stake in NSC Asesores, the largest independent financial advisory firm in Mexico. It didn’t disclose a value for the transaction.
Bloomberg