Julius Baer Group Ltd. / CH0102484968
23.05.2024 - 07:00:16Interim Management Statement for the first four months of 2024*
| Julius Baer Group Ltd. / Key word(s): Interim Report 23-May-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad hoc announcement pursuant to Art. 53 LR Substantial increase in assets under management – Marked recovery in client activity – Significant improvement in profitability – Ongoing solid capital position. Zurich, 23 May 2024 – In the first four months of 2024, Julius Baer’s operating performance benefitted from substantial growth in assets under management (AuM) as well as from a marked recovery in client activity from the multi-year low levels experienced in the second half of 2023 (H2 2023). After a weaker start in January, net inflows improved significantly in the following three months. The sizeable increase in client assets and improving gross margin drove profitability up meaningfully compared to H2 2023, outpacing further growth investments. The Group’s CET1 capital ratio improved to 15.3% at the end of April 2024, underlining the strong capital-generating nature of the Group’s business model. AuM grew by 10% to CHF 471 billion In the first four months of 2024, AuM rose to CHF 471 billion, a year-to-date increase of 10%. The increase was driven by a significant positive currency impact and by strong stock markets, only partly offset by a decline in bond market valuations. After a negative start in January, net new money** recovered meaningfully to a 3% annualised pace over the subsequent three months, resulting in total net inflows of CHF 1 billion by the end of April. While relationship managers who joined Julius Baer in 2023 again contributed positively to net inflows, the overall result was impacted by ongoing client deleveraging. AuM included CHF 4.8 billion from Kairos, the sale of which was completed after 30 April 2024. Kairos was deconsolidated as per 2 May 2024. Gross margin close to 89 basis points Driven mainly by a clear recovery in the activity-driven revenue components, the gross margin for the first four months of 2024 rose to close to 89 basis points (bp), a significant improvement from the 82 bp underlying*** gross margin in H2 2023. This increase was driven by higher gross margin contributions from net income from financial instruments measured at FVTPL**** (including a small improvement in treasury swap income) as well as from net commission and fee income (including an improvement in the recurring fee margin), partly offset by a lower gross margin contribution from net interest income. There were no net credit losses in the first four months of 2024. Cost/income ratio just over 69%, pre-tax margin 27 bp Despite further investments in growth, including the onboarding of an additional 35 (net) new relationship managers, the strong increase in AuM and the improving gross margin drove the adjusted cost/income ratio down to just over 69%, an improvement from the 73% underlying cost/income ratio in H2 2023. For the same reasons, the adjusted pre-tax margin increased to 27 bp, up from 22 bp (underlying) in H2 2023. Strongly capitalised The Group’s CET1 capital ratio strengthened to 15.3% (end 2023: 14.6%) and the total capital ratio rose to 24.9% (end 2023: 24.0%). The effect of improved profitability was reinforced by the further benefit of the ‘pull-to-par’ reversal of the decline (back in 2022) in the value of bonds held in the Group’s treasury portfolio (financial assets measured at FVOCI*****), as well as a reduction by CHF 0.1 billion in the private debt loan book to CHF 0.7 billion (at 100% credit risk weighting). At these levels, the Group’s CET1 and total capital ratios remain well above the Group’s own floors of 11% and 15% respectively, and significantly in excess of the regulatory requirements of 8.3% and 12.5% respectively. The Group’s tier 1 leverage ratio stood at 4.9% (end 2023: 4.9%), substantially above the regulatory requirement of 3.0%. * Based on unaudited management accounts. This media release contains certain financial measures that are not defined or specified by IFRS, the definitions of which are provided in the Alternative Performance Measures document available at www.juliusbaer.com/APM. ** Net new money does not include interest and dividend income, in accordance with the Guidelines of FINMA governing financial statement reporting. For a full definition please refer to the Alternative Performance Measures document. *** Underlying: Excluding in H2 2023 the CHF 586 million increase in loan loss allowances against the single largest exposure in private debt **** Fair value through profit or loss ***** Fair value through other comprehensive income Contacts Media Relations, tel. +41 (0) 58 888 8888 Investor Relations, tel. +41 (0) 58 888 5256 Important dates 25 July 2024: Publication and presentation of 2024 half-year results, Zurich 21 November 2024: Publication of Interim Management Statement for first ten months of 2024 About Julius Baer Julius Baer is the leading Swiss wealth management group and a premium brand in this global sector, with a focus on servicing and advising sophisticated private clients. At the end of April 2024, assets under management amounted to CHF 471 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating back to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and are included in the Swiss Leader Index (SLI), comprising the 30 largest and most liquid Swiss stocks. Julius Baer is present in 25 countries and 60 locations. Headquartered in Zurich, we have offices in key locations including Bangkok, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Madrid, Mexico City, Milan, Monaco, Mumbai, Santiago de Chile, São Paulo, Shanghai, Singapore, Tel Aviv and Tokyo. Our client-centric approach, our objective advice based on the Julius Baer open product platform, our solid financial base and our entrepreneurial management culture make us the international reference in wealth management. For more information, visit our website at www.juliusbaer.com Cautionary statement regarding forward-looking statements This media release by Julius Baer Group Ltd. (‘the Company’) includes forward-looking statements that reflect the Company’s intentions, beliefs or current expectations and projections about the Company’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. The Company has tried to identify those forward-looking statements by using the words ‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’, ‘continue’ and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. The Company and its subsidiaries, and their directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation. End of Inside Information |
| Language: | English |
| Company: | Julius Baer Group Ltd. |
| Bahnhofstrasse 36 | |
| 8010 Zurich | |
| Switzerland | |
| Phone: | +41 58 888 11 11 |
| E-mail: | info@juliusbaer.com |
| Internet: | www.juliusbaer.com |
| ISIN: | CH0102484968 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1909231 |
| End of Announcement | EQS News Service |
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