Swiss private bank Julius Bär sells its Brazil unit to Banco BTG Pactual for 615 million reais, a strategic move in the financial landscape.
Swiss banking institution Julius Bär has recently formalized an agreement to divest its Brazilian operations, specifically Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários, to Banco BTG Pactual for a sum of 615 million reais, which translates to approximately CHF91 million or $100.7 million.
In a press release disseminated on Tuesday, the Swiss bank articulated its commitment to continue servicing its Brazilian clientele through its other regional offices, which span Mexico, Chile, Uruguay, Colombia, and Spain. Presently, Julius Bär maintains branches in the affluent urban centers of São Paulo, Belo Horizonte, and Rio de Janeiro, catering to a discerning clientele of high-net-worth individuals. As of the end of November 2024, the institution reported managing assets totaling 61 billion reais (CHF9 billion) within Brazil.
The transaction, anticipated to finalize by the close of March, is projected to enhance the bank’s Common Equity Tier 1 (CET1) ratio by an additional 30 basis points. Notably, this ratio was recorded at 16.7% at the conclusion of the first ten months of 2024. Brazilian media outlet O Globo had previously leaked information regarding this transaction on Monday evening, albeit with an inflated valuation of approximately 1 billion reais, or CHF150 million.
This strategic maneuver is emblematic of a broader overhaul of banking operations at Julius Bär, a response to the tumultuous Signa affair. In July 2024, the bank escalated its gross savings target for the ongoing strategic cycle to CHF145 million, a notable increase from the prior target of CHF120 million. This ambitious savings initiative entails the reduction of 250 positions and is slated for full implementation by the conclusion of 2025.
In essence, Julius Bär is navigating a complex landscape of financial recalibration, all while endeavoring to maintain its esteemed reputation in the global banking arena.
