AUM at the company has grown 8%, or CHF20bn ($22bn, €16bn), to CHF 274bn since the end of 2013. Julius Baer said this was led significantly by net new money of CHF7.5bn (a 6% annualised increase) which was “in essence as much as in all of 2013” and CHF6bn from the consolidation of Brazilian wealth management business GPS.
Net profit, reflecting the underlying operating performance, improved by 10% to CHF288m and adjusted earnings per share increased by 8% to CHF1.32.
Meanwhile, the integration of the International Wealth Management (IWM) business of Merril Lynch is nearing completion, meaning that as of 30 June, the firm’s group AUM included CHF56bn from IWM, of which it said CHF48bn was booked on to its platforms. A further CHF2bn was transferred “from various locations” to the Julius Baer platforms.
Julius Baer Group chief executive Boris Collardi said: “The substantial further asset growth of the group and the excellent net new money result led to an all-time high in assets under management.
“Together with the initial and accelerating materialisation of the IWM-related efficiency gains this helped deliver a substantial increase in profit. The IWM integration has entered the final phase, and it was impressive to see how the combined businesses contributed to the strength of the group’s performance.”
The company added that productivity of the IWM AUM is “very close to the 2015 target and the former IWM advisers contributed significantly to net inflows earlier than expected”. It added further that the related restructuring “is well on track” with more than half of the required redundancies effected or communicated at the end of June.
Julius Baer also announced it had entered into a “strategic cooperation and referral agreement” with Bank Leumi. The deal will see Leumi transfer its Swiss-based private banking business, with AUM of CHF6bn, to Julius Baer and Julius Baer acquire Leumi’s private banking subsidiary in Luxembourg, which has an AUM of CHF1bn.
