Swiss private bank Julius Baer, which provides wealth management services to high-net-worth individuals and families, is undertaking a further significant change in its top management, announcing the replacement of Chief Financial Officer Evie Kostakis. This move finalises an extensive shake-up within the bank’s leadership ranks, initiated after the institution incurred substantial losses tied to risky lending practices. Ms Kostakis is expected to step down from her position during the second half of the year to pursue an international leadership opportunity, following an orderly transition period, the bank confirmed in a statement after news reports surfaced.
Ms Kostakis, who assumed the CFO role in 2022, was the highest-ranking executive to remain from the prior management team, which has seen considerable upheaval over the past two years. During her tenure, Julius Baer’s annual reports for 2022 and 2023 indicated her oversight of credit risk, a period that ultimately proved challenging for the bank. Troubles began escalating in late 2023, when Julius Baer was impacted by the collapse of Austrian property magnate Rene Benko’s Signa group, leading to the bank reporting loan losses of 586 million Swiss francs ($742 million) in early 2024. The Swiss financial market regulator FINMA is currently conducting an enforcement assessment over the Signa losses, which includes a prohibition on new share buybacks.
The executive restructuring began with the ousting of CEO Philipp Rickenbacher, who was replaced by former Goldman Sachs banker Stefan Bollinger in January 2025. This was followed by the departure of longstanding chairman Romeo Lacher, with former HSBC boss Noel Quinn appointed as his successor. In May 2025, the bank announced the retirement of chief risk officer Oliver Bartholet, coinciding with a 130 million franc credit charge following a review of its credit portfolio. Furthermore, in November, Julius Baer disclosed additional losses of 149 million francs, stemming from the writedown of real estate loan positions deemed no longer aligned with its strategy.
