Swiss bank Julius Baer Group has announced today the sale of its Brazilian wealth business.
The South American domestic wealth business went to Banco BTG Pactual S.A. for US$101 million (A$161.40 million), but Julius Baer will continue to service Brazilian clients out of other locations and the Brazil International business remains unaffected.
The transaction is expected to be approximately 30 bps accretive to the bank's CET1 capital ratio at close.
This is based on a total cash consideration of BRL 615 million.
Julius Baer Brazil is a leading independent wealth manager in Brazil, with offices in São Paulo, Belo Horizonte, and Rio de Janeiro and a focus for “high and ultra-high-net-worth segments”.
“Following a thorough review of our domestic business in Brazil over the past 12 months, it was concluded that for the benefit of our clients it is important to preserve the multi-family office approach, while further enhancing investment capabilities and upgrading technology," Head of Americas & Iberia for the bank, Carlos Recoder said.
Closing of the deal is expected in the first quarter of 2025, Julius Baer said.