BAER CEO: Hamers Reported As Target, Positive Influence For The Bank

Ralph Hamers reported in the running for Julius Baer CEO (BAER SW) which we’d view as a minor credit positive.

• Julius Baer has been caught in the Rene Benko/Signa situation and surprised markets with a USD700m exposure to this single name, culminating in the exit of CEO Philipp Rickenbacher on 1-Feb.
• Ralph Hamers was a widely respected CEO who ran ING for nearly 7yrs, being credited with turning it into one of Europe’s most technologically enabled banks. He was subsequently tapped to run UBS, largely due to this perceived digital expertise. When UBS ended up rescuing CS last year, he was replaced with Sergio Ermotti, who was seen as better able to stabilise, merge rebuild franchises.
• BAER is a limited EUR credit name but its two lines have underperformed Eurobank peers YTD. Other candidates from EFG and HSBC’s private bank are also rumoured to be on this list. We’d view Hamers’ appointment as a (minor) credit positive.