Julius Baer: Interim Management Statement for the first ten mont

Interim Management Statement for the first ten months of 2013

Assets under management CHF 249 billion, an increase of 31% from the end of
2012 - Gross margin declined since end of June on lower client trading
activity and IWM integration impact - IWM integration on track - IWM
restructuring and rightsizing process will start before year-end

Zurich, 15 November 2013 --- At the end of October 2013, Julius Baer Group's
assets under management (AuM) amounted to CHF 249 billion, an increase of 31%
from the CHF 189 billion at the end of 2012. This includes approximately CHF
48 billion from Merrill Lynch's International Wealth Management (IWM) business
outside the US, which Julius Baer is in the process of acquiring, of which CHF
29 billion were booked on the Julius Baer platforms and paid for. Total client
assets grew by 23% to CHF 341 billion.

After the end of October 2013, following the local closing of the IWM
transaction in Panama and on the back of further client asset transfers from
various locations totalling more than CHF 5 billion, IWM AuM reported
increased to approximately CHF 54 billion, of which CHF 34 billion are booked
on the Julius Baer platforms and paid for. The IWM integration continues to be
on track, with the next local closings in Bahrain, Lebanon and the UAE
expected to occur before the end of 2013.

Outside the acquisition impact, the increase in AuM in the first ten months of
2013 was driven by net new money and a positive market performance, partly
offset by a negative currency impact due to the strengthening of the Swiss
franc against most leading currencies, not including the euro. Since the end
of June 2013 the net new money rate improved modestly from the level reached
in the first half of 2013, taking the annualised pace of net inflows in the
first ten months 2013 up to the lower end of the 4-6% medium-term target
range. Net new money continued to be driven by net inflows from the growth
markets and from the local business in Germany, while the inflows from the
cross-border European business were balanced by outflows from tax
regularisations of legacy assets.

Since the end of June 2013, client activity moderated significantly,
especially in foreign exchange trading. Moreover, as expected, following the
strong increase in IWM reported assets in this period, the weight in the
overall gross margin calculation of the lower-yielding IWM business increased
considerably. Compared to the rest of the Group, the revenues from the IWM
business are at present more sensitive to changes in client activity and
furthermore were to some extent impacted by temporary disruptions given the
intensity of the asset transfer process over the last four months. As a result
of these factors, the Group's gross margin in the first ten months of 2013
declined to 97 basis points (bps), compared to 102 bps in the first half year
of 2013. Excluding IWM, the gross margin in the first ten months of 2013 was
100 bps, while the gross margin on the reported IWM AuM was 76 bps.

Partly as a consequence of the lower gross margin, the transferred IWM
businesses currently operate at a higher cost/income ratio than the Group
average, whereas the targeted cost synergies are on schedule to be realised at
a later stage in the process, starting in 2014, in line with the integration
and restructuring plans. The successful continuation of the IWM integration
process increased the number of IWM staff transferred to well over 1,000,
almost double the 553 at the end of June 2013, including 317 relationship
managers (RMs), up from 157 at the end of June. For the entire Group, total
staff levels amounted to 5,178 FTEs (including 1,135 RMs) at the end of
October 2013, up from 4,505 (including 966 RMs) at the end of June 2013. As a
consequence of the resulting increased cost base and the aforementioned gross
margin developments, the Group's cost/income ratio for the first ten months of
2013 was just above the 71.7% achieved for the full year 2012, up from 69.3%
in the first half of 2013. Based on the timing of the various onboarding,
integration and restructuring steps, the contribution from the IWM business to
adjusted net profit* is expected to be slightly negative in the second half of
2013. Before the end of 2013, the Group will start the sequential
implementation of the required restructuring and rightsizing measures with an
objective to reach the earlier communicated profitability improvement targets
in 2014 and 2015.

Julius Baer remains very well capitalised. At the end of October 2013, the
Group's BIS total capital ratio stood at 22.7% and the BIS tier 1 ratio at
21.2%, well above the targeted floors of 15% and 12%, respectively.

Julius Baer Group's detailed financial results for the full year 2013 will be
published on 3 February 2014.

* Excluding integration and restructuring expenses and the amortisation of
intangible assets related to acquisitions or divestments


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

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

Important dates

3 February 2014: Publication and presentation of 2013 full-year results,

9 April 2014: Annual General Meeting 2014, Zurich

About Julius Baer

Julius Baer is the leading Swiss private banking group with a focus on
servicing and advising sophisticated private clients and a premium brand in
global wealth management. Julius Baer's total client assets amounted to CHF
341 billion at the end of October 2013, with assets under management
accounting for CHF 249 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 is currently integrating Merrill Lynch's International Wealth
Management business outside the US. This will increase the Group's presence to
more than 25 countries and 50 locations. Headquartered in Zurich, we have
offices from Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Madrid,
Monaco, Montevideo, Moscow, Shanghai to Singapore.

For more information visit our website at www.juliusbaer.com

Disclaimer 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, its 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.

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