Julius Baer confirms targets as AuM develop 8% by means of April By Reuters
© Reuters. FILE PHOTO: The emblem of Swiss personal financial institution Julius Baer is seen at their headquarters in Zurich, Switzerland February 1, 2021. REUTERS/Arnd Wiegmann
(Corrects to replicate day is Wednesday (not Tuesday) in closing paragraph)
ZURICH (Reuters) – Julius Baer mentioned it was on observe to ship on monetary targets because the Swiss wealth supervisor posted an 8% rise in property beneath administration for the primary 4 months of 2021 to 470 billion Swiss francs ($523.9 billion).
“The rise was pushed by continued internet new cash inflows (4% annualised), constructive inventory market efficiency, and the softening of the Swiss franc ‒ significantly in opposition to the US greenback, euro, and British pound,” Switzerland’s third-largest listed lender mentioned in a press release on Wednesday.
Wealth managers noticed a boon from elevated shopper exercise amid the coronavirus pandemic in 2020, benefiting from excessive transactions ranges and amassing fewer mortgage loss dangers than excessive avenue friends.
Baer, in the meantime, has been growing its concentrate on the ultra-wealthy beneath Chief Government Philipp Rickenbacher, who assumed the position in late 2019, and trimming prices.
That helped the group obtain an adjusted price/earnings ratio of round 60% by means of April, an enchancment from 66% within the second half of 2020 and much forward of the goal it had beforehand set for 67% by 2022.
The Zurich-based lender, which didn’t present revenue and income figures in its four-month interim assertion, additionally reported an enchancment in gross margin to 90 foundation factors, up from 84 foundation factors within the closing six months of 2020.
The financial institution in February posted a 50% rise in 2020 internet revenue, as booming markets and powerful shopper buying and selling helped it overshoot its mid-term targets.
However analysts had anticipated low and damaging rates of interest to weigh on the group this yr, whereas in addition they anticipated a slowdown from frenzied exercise ranges.
Baer on Wednesday mentioned shopper exercise ranges had remained elevated all through the primary quarter, however slowed to “extra subdued ranges” in April.
($1 = 0.8971 Swiss francs)
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