Reports
Julius Baer Reports Significant Profits Jump

The bank gave a broadly upbeat report on financial results for the first four months of this year, with wider margins and an improved cost/income ratio, among other metrics of performance.
Julius Baer
today said that its profitability “rose significantly” in the
first four months of 2021 on the back of strong growth in client
assets and a solid gross margin development.
While the Zurich-listed bank did not give hard profit figures
today in an update about its financial position, it did say that
assets under management rose to SFr470 billion ($523.7 million)
at the end of April, a year-to-date increase of 8 per cent. The
increase was driven by continued net new money inflows (4 per
cent annualised), positive stock market performance, and the
softening of the Swiss franc, particularly against the US
dollar, euro, and UK pound.
Switzerland’s third-largest bank said the positive effects were
complemented by the absence of credit losses and a further
improvement in cost efficiency.
The group remains on track to deliver its targets of the
three-year revenue and cost-improvement plan started last year,
it said.
Julius Baer said it had a gross margin of almost 90 basis points
on its business by the end of April, rising from 84 bps in the
second half of last year.
While client activity remained elevated throughout the first
quarter, it slowed down to “more subdued levels” in April, the
bank said.
Cost control measures benefited from the effects of the measures
taken last year under the SFr200 million gross cost-reduction
programme announced in February 2020. Together with the
concurrent robust revenue development, this resulted in an
adjusted cost/income ratio of around 60 per cent (down from 66
per cent in the second half of 2020) and an adjusted pre-tax
margin of 36 bps (up from 24 bps in the second half of 2020).
At the end of April, Julius Baer’s Common Equity Tier 1 capital
ratio had risen to 16.6 per cent (end 2020: 14.9 per cent,
comfortably above regulatory requirements in terms of a bank’s
capital buffer).