Financial Results

Assets Under Management Rise At Julius Baer

Editorial Staff 21 November 2023

Assets Under Management Rise At Julius Baer

The Swiss bank issued an update on its financial performance, saying it logged "solid" performance in the countries in which it operates around the world.

Julius Baer said yesterday that in the first 10 months of 2023, assets under management rose 3 per cent year-on-year to SFr435 billion ($491.5 billion).

The private bank said that as a result of higher credit provisions in November and a year-to-date increase in the effective tax rate, it did not expect the full-year 2023 net profit level to reach what was achieved in 2022.

The Zurich-listed group, which operates in a number of regions, such as Asia, said it “enjoyed generally solid operating momentum, with net inflows supporting the growth of assets under management.” 

The lender said it brought in an additional 75 (net) relationship managers into the firm in the 10-month period.

Julius Baer said that “fuelled by ongoing resilient profitability,” its Common Equity Tier 1 capital ratio – a bank’s “shock absorber” – was 16.1 per cent by the end of October.

Besides issuing its latest results, late last week, the bank announced that it and Kairos’ co-shareholders have agreed to sell 100 per cent of Kairos (by way of Kairos SGR) to Anima Holding SpA (Anima) – an Italy-based firm – for approximately €20 to €25 million ($21.7 to $27.1 million).

Growth in AuM was mainly driven by continued net new money inflows and a net positive global equity market performance, partly offset by a negative currency impact resulting from the Swiss franc’s year-to-date strengthening against most major currencies.

Excluding the impact of deleveraging, net new money amounted to SFr13.7 billion (4 per cent annualised growth rate), with “solid” contributions from clients domiciled in Europe (especially Switzerland, the UK and Ireland, Luxembourg, Spain, and Germany), Asia (especially Hong Kong and Japan), the Middle East (especially the UAE), and Israel.

The bank’s cost/income ratio stood at 68 per cent at the end of October.

At the end of October, Julius Baer had a total of 75 full-time employees.

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