The private bank said its assets rose thanks to fresh money from clients as well as favorable market performance. It re-affirmed cost-cutting and revenue targets.
Swiss-based Julius Baer's assets under management through April rose to 470 billion Swiss francs ($523 billion), from 434 billion francs at year-end, it said in a statement on Wednesday. This was underpinned by a softer Swiss currency compared with the U.S. dollar, euro, and sterling. Market swings also helped, as did new funds from clients at a rate of four percent on its existing assets, Julius Baer said.
The wealth manager is benefiting from 200 million francs in spending cuts it embarked on last winter. Its cost-income ratio – on an adjusted basis – fell to roughly 60 percent, from 66 percent in the last six months of 2020. Julius Baer discloses four- and ten-month results to investors for regulatory reasons but reveals few specifics such as profit or revenue.
Ebbing Activity
Julius Baer is benefiting from a fillip in trading, which it said had ebbed somewhat in April after a healthy first quarter. The same effect boosted its fortunes last year, lending confidence to a 450 million franc share buyback disclosed in February.
Nearly two years into his tenure, CEO Philipp Rickenbacher is harvesting the fruits both of his restructuring and strategic overhaul, including how it pays for performance as well as putting aside past scandals.
In March, ex-private banker Matthias Krull won a dramatically reduced jail sentence for helping U.S. prosecutors with a Venezuelan graft probe that had ensnared Julius Baer as well as other private banks.
