Financial Results

Julius Baer Sees AuM Rise In First Ten Months

Stephen Little, Reporter, London, 17 November 2014

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Julius Baer said assets under management for the first ten month of 2013 were up 12 per cent from the end of 2013 to SFr285 billion.

Julius Baer said assets under management for the first ten months of 2014 were up 12 per cent from the end of 2013 to SFr285 billion ($292.4 billion).

In an interim management statement, the Swiss bank said this AuM growth included SFr58 billion from Merrill Lynch’s international wealth management business outside the US, which Julius Baer is in the final phase of transferring. Total client assets increased by 11 per cent to SFr385 billion.

This growth was driven by net new money, a positive currency impact, a positive market performance, and SFR6 billion from Brazilian subsidiary GPS.

The bank said gross margin fell one basis point to 94 from the first six months of 2014 despite a seasonal slowdown in August affecting client securities transactional activity.

The group’s adjusted cost/income ratio in the first ten months was also inside the 65-70 per cent target range.

The transfer of the business of Leumi Private Bank in Switzerland remains on track and is expected to start in the first half of 2015. Regarding Bank Leumi (Luxembourg) SA, rather than acquiring the legal entity, Julius Baer and Bank Leumi are discussing alternative cooperation arrangements.

At the end of September 2014, the group’s BIS total capital ratio stood was 24.0 per cent and the BIS tier 1 ratio was 22.6 per cent, well above the targeted floors of 15 per cent and 12 per cent, respectively.

In the first ten months of 2014, 318 employees left the group, compared to 265 at the half-year stage.

The group said it has completed 17 of 18 local transaction closings of Merrill Lynch’s international wealth management business outside the US and expects to finalise the main acquisition of its Indian unit in the first six months of 2015.

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