Julius Baer stock jumps nearly 6% to record high
Surge comes after bank said it plans book an initial $350m for US tax probe settlement
The Swiss bank’s stocked soared nearly 6 per cent to an all-time high. Photograph: Steffen Schmidt/EPA
Julius Baer stock jumped nearly 6 per cent to an all-time high on Wednesday after the Swiss private bank said it would book an initial $350 million for an expected settlement in a US tax probe, far less than the market had expected.
The criminal investigation centres on how the Swiss bank helped wealthy Americans avoid taxes.
Zuercher Kantonalbank raised its rating to “overweight” from “market weight”.
“We have always argued that the US case is the sword of Damocles over Baer’s share price. It seems now the sword has been put back in its sheath,” analyst Michael Kunz wrote in a note to clients.