Julius Baer said on Friday it would buy back up to 600 million Swiss francs of its own shares, as the Swiss wealth manager seeks to move past regulatory scrutiny and legacy issues that have weighed on the business. The board approved the buyback following regulatory approval and in light of the group's strong capital position, with the programme expected to start in the coming weeks and be completed within a year, subject to market conditions. The shares will be repurchased through a second trading line on the SIX Swiss Exchange. The bank also revised its capital distribution policy, keeping its dividend payout target at 40% to 60% of IFRS net profit attributable to shareholders and aiming for a progressive dividend per share barring exceptional circumstances, while maintaining its target common equity tier 1 capital ratio at 15%. The buyback follows Swiss regulator FINMA's conclusion earlier this week of a long-running enforcement case into the bank's risk management and anti-money-laundering controls, which found serious breaches linked to a private-debt exposure and relationships with two Russian politically exposed persons. Chairman Noel Quinn said management had made progress in addressing the legacy issues and maintained dialogue with regulators.
Julius Baer Gruppe AGJulius Baer approved a buyback of up to CHF600 million of its own shares following regulatory approval and its strong capital position.
