Published Finews Asia – 22nd May 2017
Assets under management at Julius Baer reached at record in the first four months of the year, a result partly of its hiring of new relationship managers, particularly in Asia.
Julius Baer Group, the Zurich-based private bank, had assets under management of 356 billion Swiss francs at the end of April, a record. Assets rose 6 percent, or about 20 billion, from the beginning of the year, the company said in a statement today.
The increase in assets under management came on the back of significant net inflows and a positive market performance, which partly were offset by the weakening of the U.S. dollar relative to the Swiss franc, Julius Baer said.
Net Inflow Boost
Julius Baer last year made a major investment in attracting senior relationship managers. The hiring of new bankers boosted net inflows, reaching the middle of the 4 to 6 percent target range set by the company’s executive.
The bank’s gross margin rose 2 basis points to almost 90 basis points, driven by an improvement in client activity and asset-based components of net commission and fee income, the company said.
Improvement in Cost Income Ratio
The cost income ratio reached 71 percent, falling slightly short of the 69 percent expected by analysts. Julius Baer expects the cost-income ratio to reach a level close to the upper end of the 64 to 68 percent target range in 2017.
The total capital ratio (according to the Bank for International Settlements BIS) was 17.8 percent at the end of April. The CET1 ratio was 14.2 percent.
The ratios were both above the company’s own floor rates of 15 and 11 percent respectively and above the regulatory minimum requirements of 12.2 and 8 percent.
Julius Baer Group will publish first-half results on July 24, 2017.
