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(Sharecast News) - Shares in Julius Baer surged to a record high on Tuesday after Swiss financial regulator FINMA brought longstanding enforcement proceedings against the private bank to a close.
The shares were up 8.7% at CHF77.86 by 1346 BST, having earlier touched an all-time high of CHF78.20, as investors welcomed the removal of a long-running regulatory overhang.
The proceedings concerned a major credit event in Julius Baer's former private debt business, as well as legacy anti-money laundering issues involving certain client groups. The matters pre-dated the bank's current management team.
Julius Baer said it had taken "comprehensive remedial measures" in consultation with FINMA, including winding down its private debt business, overhauling its risk and compliance framework, strengthening its lines of defence and revamping senior management and governance.
Chief executive Stefan Bollinger said the conclusion represented an "important milestone" and recognition of measures taken over the past 20 months.
FINMA reduced the additional CET1 capital Julius Baer is required to hold to CHF250m from CHF500m, resulting in a minimum CET1 ratio requirement of 9.4%. The bank's CET1 ratio stood at 18.5% at the end of June.
The wealth manager also said it had submitted a request to FINMA for approval to restart its share buyback programme.
Julius Baer reiterated its 2026-28 strategy and medium-term financial targets, saying the changes had left the group simpler and stronger and positioned it for sustainable growth.
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