Reports
Half-Year Profits, AuM Rise At Julius Baer

Overall the Zurich-listed bank reported a robust set of results. Its growth in assets under management benefited from rising net new inflows.
Julius Baer
today reported a pre-tax profit on an IFRS basis of SFr707
million ($767 million) for the six months to the end of June,
rising by 22 per cent from the same period a year ago.
Once taxes were taken out, net profit attributable to
shareholders rose by 23 per cent to SFr606 million, it said in a
statement.
On an adjusted basis, pre-tax profit rose by 20 per cent to
SFr742 million.
Assets under management rose by SFr52 billion to a record high of
SFr486 billion, an increase of 12 per cent since the end of 2020,
on the back of positive market performance, a weaker Swiss franc
(particularly against the US dollar) and continued positive net
new money inflows. Net new money doubled to SFr10 billion
(annualised net new money growth rate 4.6 per cent), with
particularly strong contributions from clients domiciled in Asia
and Western Europe, as well as solid growth in the Middle
East.
Including assets under custody of SFr79 billion (+10 per cent),
total client assets grew to SFr565 billion, an increase of 12 per
cent from year-end 2020.
“The achievements of the first half of 2021 demonstrate how
Julius Baer creates value: we have successfully shifted our focus
to sustainable profit growth and continuously strengthened the
attractiveness of our value proposition for existing and new
clients alike. The quality of our business model is supported by
the passionate dedication of our staff, and by efficient and
scalable operations,” Philipp Rickenbacher, chief executive,
Julius Baer, said.
Operating income rose by 8 per cent to SFr1.993 billion,
reflecting the combined benefit of strongly increased net
commission and fee income and the virtual disappearance of net
credit losses, the bank said. These positive developments were
partly offset by a fall in net interest income, following the
year-on-year decline in US interest rates, as well as by somewhat
lower net income from financial instruments as market volatility
eased from the extraordinarily high levels seen in the first half
of 2020.
Net commission and fee income rose by 12 per cent to SFr1.155
billion. This increase was driven mainly by a 19 per cent
improvement in advisory and management fees on the back of the
growth in client assets and higher-value mandate penetration.
Adjusted personnel costs fell by SFr1 million to SFr849 million,
supported by the 1 per cent year-on-year decline in the monthly
average number of employees as well as a decrease in the
severance costs related to the restructuring programme initiated
in 2020 to SFr14 million (H1 2020: SFr19 million).
At the end of June the bank had a Common Equity Tier 1 capital
ratio – a common measure of a bank’s capital buffer – of 16.7 per
cent, up from 14.9 per cent at the end of 2020.