Julius Baer Moves To Raise Capital, Integration Of Merrill Wealth Business Rolls On

Tom Burroughes

23 January 2013

Directors at Julius Baer have given the green light to the Zurich-listed bank to carry out a capital increase of SFr142.05 million ($152.8 million) through a share issue, as it continues to integrate the non-US wealth management business of Bank of America Merrill Lynch that it bought last year.

The bank said it will issue 7,102,407 registered shares and use them exclusively to fund the acquisition. The capital increase is due to happen on 24 January, it said in a statement yesterday.

Julius Baer plans to complete the integration of the acquired business by 2014.

With a total of SFr274 billion ($289.4 billion) of client money and assets under management of SFr 187 billion (as of end-October, according to interim figures published today), the Zurich-listed bank is the largest “stand-alone” wealth manager that operates from the Alpine state.

This firm, like its Swiss cousins such as UBS and Credit Suisse, for example, is adjusting to an environment that is more hostile towards the traditionally secretive, offshore Swiss banking model.

Julius Baer is due to issue fourth-quarter results on 4 February.