Julius Baer bullish on 2022 targets after interest rates boost 10-month margin

By Joshua Kirby

Julius Baer Gruppe AG is confident of meeting its full-year profitability targets after gross margin growth in the first 10 months of the year, boosted by rising interest rates.

Margin for the 10-month period increased 3 basis points to 85 basis points from 82 basis points for all of 2021, helped by a strong contribution in the four months from July, it said on Monday. the Swiss private banking group.

The contribution from net interest income and net income from financial instruments increased significantly due to higher interest rates, Julius Baer said.

Assets under management fell 11% from the end of 2021 to 429 billion Swiss francs ($449.26 billion) due to falling equity and bond markets around the world, Julius Baer said. Despite the drop, the group said it remains on track to meet its 2022 targets of up to 67% adjusted cost/income ratio and an adjusted pretax margin of 25-28 basis points. Year-to-date, the ratio was just over 66%, while the margin was just under 26 basis points.

The BIS CET1 capitalization ratio meanwhile fell to 13.9% at the end of October from 16.4% at the end of last year, Julius Baer said. The lender has put forward a dividend policy and a share buyback program of up to 400 million francs, defined in March, and which should end in February as planned.

Write to Joshua Kirby at [email protected]; @joshualeokirby

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