SWISS private bank Julius Baer expects to pay a fine to escape a growing US crackdown on offshore accounts.
Boris Collardi, chief executive, said he did not expect the bank to be indicted, as smaller rival Wegelin was last week, and that Baer had taken an “early, proactive” approach with the US authorities.
“We expect we will probably have to pay a fine, but have the resources to satisfy a solution,” Collardi said.
Baer said 2011 net profit fell 27 per cent on the year to SwF258m (£177m), hurt by lacklustre client trading, restructuring costs and other expenses including a one-off payment to resolve a tax dispute with Germany.
Baer cut its profit margin target and raised its cost income ratio forecast as a soaring Swiss franc kept the bank’s mainly franc-based costs high but capped foreign-currency revenues.
