One year after its annual profit halved, Swiss private bank Julius Baer has staged a rebound by doubling its bottom line in 2024.
In 2024, Zurich-based Julius Baer’s net profit surged 125 percent to approximately 1 billion francs ($1.1 billion), according to the bank’s financial results.
Operating income increased 19 percent to 3.9 billion francs as a 55 percent drop in net interest income to 377 million francs was more than offset by a 14 percent growth in net commission and fee income to 2.2 billion francs and another 21 percent boost in net income from financial instruments to 1.3 billion francs.
Operating expenses were up 3 percent to 2.8 billion francs, reflecting higher investment in hiring (personnel expenses increased 5 percent to 1.8 billion francs) and technology.
Record AUM
Assets under management grew 16 percent to a record 70 billion francs, driven by rising global equity market valuations and positive currency impact, mainly from the weakening of the Swiss franc against the dollar, alongside a 3.3 percent expansion in net new money inflows of 14.2 billion francs.
Net inflows included contributions from clients domiciled in strategic key markets in Europe (especially the UK, Germany, and Switzerland), Asia (particularly Singapore, Hong Kong, and India) and the Middle East (especially the UAE).
One Year Since Signa Collapse
The rebound occurred one year after Julius Baer's profit more than halved in 2023, primarily because of a sharp increase in provisions believed to be linked to the collapse of Austrian entrepreneur Rene Benko's property empire Signa.
«My first few weeks at Julius Baer have confirmed all the reasons why I took up the CEO role and further strengthened my conviction in its distinctive positioning,» said Stefan Bollinger, the Swiss bank’s new CEO who joined in January. «This is reaffirmed by the results we are communicating today – an outcome that could not have been taken for granted a year ago.»
