Swiss-based bank Julius Baer increased its assets under management above the mark of 400 billion francs for the first time ever – despite a market performance that was essentially flat.
At the end of April 2018, Julius Baer Group’s assets under management (AuM) had grown to 401 billion francs, a year-to-date increase of 13 billion francs, or 3 percent, crossing above the 400 billion mark for the first time, the bank said in a media release on Wednesday.
The rise in AuM came on the back of continued net inflows as well as a positive currency impact, the latter mainly following the strengthening of the dollar in April. Market performance was essentially flat.
Inflows Above Five Percent
Net inflow momentum was robust, resulting in an annualised net new money pace above 5 percent, inside the 4 to 6 percent target range. Particularly strong inflows were recorded from clients domiciled in Europe, Switzerland and Asia, with continued substantial contributions through relationship managers who joined in 2016 and 2017.
Compared to the second half of 2017, the gross margin improved by 5 basis points to 93 basis points. This increase was driven mainly by a step-up in client activity, especially in January and to a lesser extent in March, bolstering both net commission and fee income and net trading income.
Inside Target Range
The cost/income ratio improved further and, at just below 67 percent, it was comfortably inside the 64 to 68 percent medium-term target range. This positive trend reflects continued growth in client assets at a stronger gross margin, with revenue growth substantially outpacing the cost impact from ongoing investments in technology and the successful recruitment of senior relationship managers.
Despite the impact from the acquisition of the residual 20 perceent stake in Kairos in January 2018, the Group’s BIS CET1 capital ratio remained stable at 13.3 percent (compared to a fully-applied BIS CET1 capital ratio of 13.5 percent at the end of 2017).
