Julius Baer presents additional information on the acquisition of the International Wealth Management business of Bank of America Merrill Lynch outside the United States and Japan *Following the announcement on 13 August 2012, Julius Baer management will today present additional information to analysts and investors regarding the acquisition of the International Wealth Management business (IWM) of Bank of America Merrill Lynch outside the United States and Japan. *The presentation will include further details on IWM's financials, a discussion on the transaction mechanics, the expected timing, and the economics related to the transfer of IWM's financial advisers (FAs) and assets under management (AuM) onto the Julius Baer platforms, as well as targeted profitability improvement measures. *Today, Julius Baer also publishes a trading update covering the first eight months of 2012. *The presentation to the financial community, which will take place in London and will commence at 12:00 local time (13:00 CET), will be available via live webcast on the Julius Baer website, www.juliusbaer.com/webcast. *The slides for the presentation are available from our website on the same web page. Today, Boris F.J. Collardi, CEO of the Julius Baer Group, and Dieter A. Enkelmann, CFO, will present to equity analysts and investors in London additional information on the acquisition of the International Wealth Management business (IWM) of Bank of America Merrill Lynch outside the United States and Japan. The presentation describes in further detail the transfer of financial advisers (FAs) and assets under management (AuM) from IWM to Julius Baer as part of the acquisition and distinguishes between the various types of sales, including the bank sale in Switzerland, transfers as part of (non-bank) legal entity sales (e.g. Uruguay, UK, Spain, India), and business transfers (e.g. Hong Kong, Singapore). The presentation will be webcast live on the internet via www.juliusbaer.com/webcast. The slides for the presentation are available from our website on the same web page. Of total AuM expected to be acquired, approx. 80% is estimated to be reported by end 2013 Additional details on Julius Baer's expectations for the timing of FA and AuM transfers along with the associated financial impact for Julius Baer over the integration period will also be presented. These transfers will start following the principal closing which is now expected to take place in the first quarter of 2013. Based on Julius Baer's current integration targets, approximately 80% of the total AuM expected to be acquired are estimated to be reported at Julius Baer by the end of 2013. Finally, Julius Baer will set out targeted profitability improvement measures relative to the historical cost base of IWM, which will include a significant reduction of former Bank of America corporate overhead and other allocations not required going forward in the Julius Baer structure, rightsizing measures for the middle and back office functions of the combined group, as well as further benefits stemming from leveraging further scalability effects. As a result, Julius Baer is targeting to reduce the pro forma combined staff base of approximately 5,700 in over 50 locations by 15% to 18%. This is expected to lead to a stand-alone implied cost-income ratio of approximately 70% and a stand-alone implied pre-tax profit margin on an adjusted profit basis of approximately 25 basis points for the IWM business on Julius Baer's platform in 2015. At that time, the effective tax rate for the combined Julius Baer Group is currently expected to be below 16% (on an adjusted profit basis). Julius Baer expects that the transaction will be at least EPS neutral in 2014 and is targeting EPS accretion of 15% in 2015. This accretion target is on the basis of adjusted profit, i.e. excluding transaction, integration and restructuring expenses and amortisation of intangible assets related to acquisitions or divestitures; based on the closing share price prior to the announcement of the transaction on 13 August 2012; taking targeted capital ratios into account for the calculation; and relative to a scenario in which the acquisition does not take place and the Julius Baer Group does not undertake any share buybacks until the end of 2015. The presentation also includes information derived from the audited combined financial statements for IWM as at and for the years ended 31 December 2011 and 2010, prepared in accordance with IFRS. It also includes the reviewed interim combined financial statements for IWM as at and for the six months ended 30 June 2012, prepared in accordance with IAS 34. Trading update of Julius Baer Group as of end of August 2012 As at the end of August 2012, Julius Baer Group's AuM increased to a new record high of CHF 184 billion, an increase of CHF 14 billion, or 8%, since the end of 2011. Total client assets grew to CHF 276 billion, an increase of CHF 18 billion, or 7%. The increase in AuM resulted from continued net new money inflows close to the top end of the Group's medium-term target range, a positive market performance impact supported by sustained gains in the global equity and bond markets, as well as a positive currency impact, mainly from the strengthening of the US dollar. Partly impacted by a small contraction in client activity over the summer period, the gross margin in the first eight months was slightly lower than the 98 basis points reported for the first six months of 2012 and as a result the cost-income ratio was slightly higher than the cost-income ratio reported for the first six months of 2012. As at the end of August, the Group's BIS total capital ratio was 24.8% and its BIS tier 1 ratio 22.4%. In September, Julius Baer successfully raised CHF 250 million in additional non-core tier 1 capital, as part of its financing of the IWM acquisition. Contacts Media Relations, Tel. +41 (0)58 888 8888 Investor Relations, Tel. +41 (0)58 888 5256 About Julius Baer Julius Baer is the leading Swiss private banking group, with an exclusive focus on servicing and advising private clients. Julius Baer's total client assets amounted to CHF 276 billion at the end of August 2012, with assets under management accounting for CHF 184 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 form part of the Swiss Market Index (SMI) of the 20 largest and most liquid Swiss stocks. Julius Baer employs a staff of over 3 600 in more than 20 countries and over 40 locations, including Zurich (head office), Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Monaco, Montevideo, Moscow, Shanghai and Singapore. For more information visit our website at www.juliusbaer.com Presentation (Handout) Provider Channel Contact Tensid Ltd., Switzerland newsbox.ch Provider/Channel related enquiries www.tensid.ch www.newsbox.ch firstname.lastname@example.org +41 41 763 00 50
Julius Baer presents additional information on the acquisition o
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