Swiss bank Julius Baer has set aside $547 million after reaching a deal with U.S. authorities to settle accusations it helped U.S. clients avoid taxes.
Baer said it has reached the preliminary agreement with the U.S. Attorney’s Office for the Southern District of New York. The bank expects “a comprehensive resolution” to be finalized with the Department of Justice in the first quarter of 2016.
Representatives from the U.S. Attorney’s office were not immediately available to comment.
While there had been speculation Julius Baer (JBARF) could face penalties of up to $1 billion, the settlement is nearly $200 million more than the bank originally set aside in June.
A number of Swiss banks have been investigated by U.S. authorities over allegations they helped rich Americans avoid taxes. Credit Suisse agreed to pay $2.6 billion in penalties, while UBS paid $780 million in fines and restitution in 2009.
Baer said it “remains committed to cooperating proactively with the DOJ’s investigation.” Despite the half billion dollar charge, the bank said it still expects to produce a full year net profit for financial year 2015.