Reports

Julius Baer International Eyes Further Profits, AuM Growth

Tom Burroughes, Group Editor, London, 16 September 2021

articleimage

The JBI part of the Zurich-listed group has issued its annual report for the year ending 30 December 2020.

Julius Baer International, which covers the UK and Guernsey, is confident that profitability, net new inflows and assets under management will continue to move higher after chalking up a stronger set of figures for the year ending last December.

The business, which has developed a UK regional footprint (see an interview here), has flourished and its results prove that boots on the ground are important, even with the benefits of new digital tech channels, David Durlacher, JBI’s chief executive, told this news service. 

“Normalised” pre-tax earnings in 2020 stood at around £21.4 million ($29.7 million), rising from £8.6 million in 2019; revenues rose 20 per cent year-on-year up by £17.1 million, the value of client assets serviced rose to £16 billion, from £13.9 billion. Net new money represented 8.9 per cent of 2019 client assets.

Asked about the pre-tax earnings results and how the gains will be sustained, Durlacher said: “We are cautiously optimistic for the future.”

“All locations strongly showed that growth [in net new money],” Durlacher said. 

“We saw impressive performance that demonstrated what Julius Baer International believes in, which is that proximity to clients and a client-centred model matters,” he continued. 

The inflows also highlight the value of focusing on higher-value services such as advanced advice and discretionary wealth management, he said. 

The investments in teams and technology, including the firm’s DIAS digital advisory solution, are paying off. During the pandemic, 95 per cent of JBI’s staff were able to work from home and communicate effectively with clients, and with each other. 

“We are seeing benefits and advantages of providing flexibility for our employees and we see this as a long-term trend,” Durlacher said. 

The bank is also keen to stress its work in the realm of sustainability - a theme this news service has seen across the board in private banking. 

“Julius Baer has heavily invested energy, time and resources in sustainability in recent years, both in terms of what we do as a company, and even more in terms of enabling our clients to express their values via the right sustainable investment products and solutions,” Durlacher added. 

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes