Julius Baer increases assets under management in first ten months
Published: Thursday, Nov 21st 2024, 08:40
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Private bank Julius Baer attracted further new money and increased assets under management in the first ten months of 2024. The bank now expects its profit for the year as a whole to be well above the level of the previous year, which was marked by the Signa debacle.
At the end of October, assets under management (AuM) amounted to CHF 480 billion compared to CHF 474 billion at mid-year, as the Zurich-based asset management bank announced on Thursday. A positive net performance on the equity markets provided support, although the currency effect had a dampening effect.
According to the figures, net new money inflows have accelerated significantly since the end of June. At the end of October, the wealth management bank had attracted new money totaling 11 billion Swiss francs, following an inflow of 10.3 billion Swiss francs in the same period last year. This represents an annualized inflow of 4.8 percent.
Group profit expected above 2023
However, the bank also earned slightly less on assets under management than in the first half of the year. The gross margin in the first ten months was now 83 basis points (bp), compared to 85 bp in the first half of the year.
The bank did not report any progress in terms of cost efficiency. The adjusted cost/income ratio was 71%, which was the same as in the first half of 2024.
The Group currently expects IFRS consolidated profit for the full year 2024 to be significantly higher than for the full year 2023, according to the press release.
With the figures presented, Julius Baer exceeded analysts' forecasts for assets under management, who had expected AuM of 476 billion. However, the gross margin and the cost/income ratio were slightly below expectations.
Progress with private debt
Julius Baer has made further progress in winding down the private debt loan book, according to the statement. The nominal value of the loan book still amounted to around CHF 400 million at the end of October compared to CHF 800 million at the end of 2023. According to earlier statements, the wind-up should be largely completed by the end of 2026.
The bank had decided to exit this business with the total write-off of its investment in the Signa Group of Austrian investor René Benko.
The new CEO Stefan Bollinger is joining the private bank somewhat earlier than announced: he will now take up his post on January 9, 2025, according to the press release. Previously, it had been announced that he would take office at the beginning of February. Former CEO Philipp Rickenbacher resigned in February 2024 due to the Signa debacle.
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