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23.05.2024 07:00:58 - dpa-AFX: EQS-Adhoc: Interim Management Statement for the first four months of 2024* (english)
Interim Management Statement for the first four months of 2024*
Julius Baer Group Ltd. / Key word(s): Interim Report
Interim Management Statement for the first four months of 2024*
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.
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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.
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End of Inside Information
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End of Announcement EQS News Service
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1909231 23-May-2024 CET/CEST
Julius Baer Group Ltd. / Key word(s): Interim Report
Interim Management Statement for the first four months of 2024*
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.
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End of Inside Information
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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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1909231 23-May-2024 CET/CEST
