Julius Baer Profits Rise on Asset Growth and Improved Costs

Profitability in the first ten months of 2021 at Julius Baer «rose significantly», according to the Swiss bank, on the back of client asset growth and improved cost efficiency.

Julius Baer’s profitability rose significantly in the first ten months of 2021 on the back of strong growth in client assets and substantial improvements in cost efficiency, complemented by a near absence of credit losses, according to a statement from the Swiss lender.

Assets under management climbed 12 percent year-on-year to 484 billion Swiss francs with net new money inflows growing 4.4 percent.  Gross margin during the first ten months of the year was around 82 basis points, down from 88 basis points from the full year of 2020.

According to the bank, this is due to «softening in client activity from the exceptionally high levels witnessed last year». It also noted that initial results this month indicate a potential recovery for the final months of the year.

Meanwhile, Julius Baer’s 200 million Swiss francs gross cost reduction program announced in 2020 is underway with cost-income ratio inching lower to 63 percent during the period, compared to 66 percent for the full year of 2020.