Julius Baer reports low money inflow in early 2024

Julius Baer reports low money inflow in early 2024
Julius Baer reports low money inflow in early 2024

Julius Baer on Thursday reported a net new money inflow of 1 billion Swiss francs ($1.09 billion) in the first four months of 2024, below forecasts, as the Swiss bank strives to ridding itself of the fallout from its links with the collapsed Signa property group.

Baer’s assets under management increased by 10% to 471 billion francs during the same period, thanks to a positive currency impact and strong stock markets.

Vontobel analyst Andreas Venditti expected the lender to report 5.7 billion francs in new money for the period as newly hired relationship managers hit their stride, while Anke Reingen, analyst at RBC, expected inflows to be more moderate, at 2.5 billion francs, due to a slow start to the year.

In a statement, the bank said that after “a negative start to January”, the net inflow of new money recovered at an annualized rate of 3% over the following three months.

In 2023, Baer increased the number of its relationship managers by 95 and reported a net capital inflow of 12.5 billion francs for the whole year.

The Swiss lender had been expected to benefit from the fall of Credit Suisse, but it announced a depreciation of 586 million Swiss francs.

586 million Swiss francs

of its exposure to the bankrupt real estate group Signa, which also cost former CEO Philipp Rickenbacher his job.

The bank has not yet announced who will replace him, but it said it was looking for an external candidate and hoped to make an announcement by the summer.

The wealth manager has already announced that it will

will eliminate 250 jobs

in 2024, which represents around 3% of the bank’s workforce. ($1 = 0.9144 Swiss franc) (Reporting by Noele Illien)

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