Swiss private bank Julius Baer has reached a resolution in principle with the US Attorney’s Office for the Southern District of New York to settle allegations into how it helped Americans evade taxes.
The bank in a statement said that it has kept aside another $197.25m beyond the $350m it initially provisioned in June 2015 to resolve the probe regarding its legacy US cross-border business.
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The new provision brings the total amount set aside to cover penalties in the case to $547.25m, which the bank said will be charged to its 2015 full-year results.
Despite the adjustment, Julius Baer still expects to post a net profit for the current financial year.
"The Group will remain adequately capitalized with a BIS total capital ratio of 18.6% as per 31 October 2015, well above the 15% target," it added.
The bank added that it expects a final settlement with the DOJ in the first quarter of 2016. The settlement is subject to approval by the US Department of Justice (DOJ).
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By GlobalData"Julius Baer remains committed to cooperating proactively with the DOJ’s investigation," the bank said.
