ZURICH (Reuters) -Swiss bank Julius Baer said on Tuesday that a review of its credit portfolio had saddled it with a net charge of 130 million Swiss francs ($156.36 million), and that it was replacing its chief risk officer.

The financial hit to the Zurich-based lender follows losses of 586 million Swiss francs ($705.43 million) announced early last year, which led to a management shake-up.

The bank revealed the credit charge as part of an interim management statement for the first four months of 2025.

Julius Baer recorded net new money inflows of 4.2 billion francs and said assets under management fell by 6% from the end of 2024 to 467 billion francs, reflecting a stronger franc and the sale of its Brazilian wealth management business.

CEO Stefan Bollinger said in a statement that business had been steady despite macro-economic and market turbulence, with an increase in the underlying gross margin and more cost savings.

"Since January, we have implemented several measures aimed at simplifying governance and the operating model, reinforcing our client focus, and disciplined risk management," he said.

"The changes announced today represent a further step in this direction. As we are swiftly addressing legacy issues, we are also paving the way forward to unleash the full potential of our unique franchise," he added.

Ivan Ivanic will become the new chief risk officer, replacing Oliver Bartholet, who is retiring, said the bank, adding that a chief compliance officer would be recruited and join the group's executive board in due course.

Julius Baer said it was on track to achieve 110 million francs in additional cost savings as announced in February.

($1 = 0.8314 Swiss francs)

(Reporting by Oliver Hirt; Writing by Dave Graham; Editing by David Goodman and Sandra Maler)