Three years after swallowing Merrill Lynch's foreign private bank, Julius Baer will weigh up «meaningful» deals again, Jimmy Lee, the Swiss bank's Asia head, tells finews.asia.
By Shruti Advani, Guest Contributor finews.asia
Previously, Julius Baer's Asia boss Jimmy Lee told finews.asia why he believes the Swiss bank can insulate itself to poaching from ex-CEO Boris Collardi. What does Lee think of returning to the path of major dealmaking?
Unfailingly well-mannered though he may be, Lee is aware of the speculation surrounding the bank: that it’s aggressive expansion in Asia has prevented profitability, and that its strength stems solely from its 2012 acquisition of Merrill Lynch’s international wealth management business.
«In Asia we are very profitable», Lee says and reiterates that costs are being managed. «Private banks have to keep cost/income ratios below 70 percent to be able to survive in Asia.» Julius Baer doesn’t strip out profits or spending on a regional basis.
Numbers Tell the Real Story
He has more to say on Merrill Lynch, hitting back at the speculation. «The numbers tell the real story. The Merrill Lynch acquisition added $55 billion to $60 billion in assets to the business», Lee says. «However over the same time period, Julius Baer added $55 billion in assets organically.»
The ambitious, Collardi-led deal means that now Julius Baer tops the list of prospective buyers every time a private bank is known to be on the market. The bank has said it is looking at acquisitions, and is known to trawl in Asia, Europe, and even Latin America.
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