Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,611.38 95.11 0.66%
TOPIX 1,179.32 5.95 0.51%
HANG SENG 22,760.24 64.23 0.28%

Julius Baer: Interim Management Statement for the first four mon



Interim Management Statement for the first four months of 2013

Assets under management CHF 220 billion, an increase of 16% from the end of
2012 - Gross margin recovery on the back of increased client activity -
Improvement in cost/income ratio - IWM integration on track, results included
in consolidated figures for the first time

Zurich, 15 May 2013 --- At the end of April 2013, Julius Baer Group's assets
under management (AuM) amounted to CHF 220 billion, an increase of 16% from
the CHF 189 billion at the end of 2012. This includes approximately CHF 24
billion from Merrill Lynch's International Wealth Management (IWM) business
outside the US, which Julius Baer is in the process of acquiring. Total client
assets grew by 12% to CHF 309 billion.

Julius Baer is targeting to acquire between CHF 57 billion and CHF 72 billion
of AuM from IWM over the next two years. The approximately CHF 24 billion AuM
from IWM reported at the end of April 2013 comprise CHF 11 billion AuM of
Merrill Lynch Bank (Suisse) S.A. in Geneva which was acquired on 1 February
2013 as well as approximately CHF 13 billion AuM from the IWM businesses in
Uruguay, Chile, Luxembourg and Monaco, which were transferred to Julius Baer
on 1 April 2013. In relation to the latter four locations, the client custody
relationships are at this point still on the platform of Bank of America
Merrill Lynch (BAML). In line with the transfer mechanism communicated last
year, the revenues related to these client assets are allocated to Julius
Baer, and Julius Baer is charged platform allocation costs by BAML. Starting
in July 2013, the client custody relationships of these legal entities will
also be transferred (in stages) to Julius Baer and booked on the Julius Baer
platforms. At those points in time Julius Baer will pay BAML the agreed
acquisition value (1.2% of transferred AuM), and the BAML platform allocation
charges will cease.

Outside the acquisition impact, the increase in AuM in the first four months
of 2013 was driven by a positive market performance, a positive currency
impact, as well as net new money. Net inflows in the first four months 2013
were volatile and, on an annualised basis, somewhat below the Group's
medium-term target range. Julius Baer continues to have a positive view on the
potential for inflows from the growth markets. However, total group net new
money in 2013 will be impacted by the implementation of Switzerland's final
withholding tax agreements with the UK and Austria as well as the ongoing
self-declarations by clients in other European countries (as continued to be
recommended by Julius Baer); as a consequence, net new money for the full year
2013 could be close to the lower end of the 4-6% medium-term target.

Including the IWM businesses transferred in February and April 2013, the gross
margin in the first four months of 2013 was 98 basis points (bps) and the
cost/income ratio* improved to below 70%, compared to 71.6% achieved by Julius
Baer in the second half of 2012 (when no IWM businesses had been transferred
yet). The improvement in the cost/income ratio resulted despite the fact that
the transferred IWM businesses currently operate at a higher cost/income ratio
than the Group average and despite the fact that cost synergies are only
expected to be realised at a later stage in the integration process. Between
the principal closing of the IWM transaction on 1 February 2013 and the end of
April 2013, on a net basis more than a hundred IWM financial advisers have
been transferred to Julius Baer. Excluding the transferred IWM businesses,
Julius Baer achieved in the first four months of 2013 a gross margin of 99
bps, an increase of 5 bps from the 94 bps level achieved in the second half of
2012. This recovery was driven by an improvement in client activity.

Julius Baer remains very well capitalised. At the end of March 2013, the
Group's BIS total capital ratio (under Basel III) stood at 27.5% and the BIS
tier 1 ratio at 25.6%, well above the targeted floors of 15% and 12%,
respectively.

Julius Baer Group's detailed financial results for the first half of 2013 will
be published on 22 July 2013.

* Excluding integration and restructuring expenses, the amortisation of
intangible assets related to acquisitions or divestitures, as well as
valuation allowances, provisions and losses

Contacts

Media Relations, tel. +41 (0)58 888 8888

Investor Relations, tel. +41 (0)58 888 5256

Provider                  Channel         Contact
Tensid Ltd., Switzerland  newsbox.ch      Provider/Channel related enquiries
www.tensid.ch             www.newsbox.ch  marco@tensid.ch
                                          +41 41 763 00 50
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement