Zurich wealth manager Julius Bär saw his assets under management increase at the end of the first ten months of the year, supported in particular by positive market developments, he announced on Thursday. The new boss will take office at the beginning of January.
At the end of October, the assets under management stood at 480 billion francs, after 474 billion at the end of June, the establishment said in a press release.
Net inflows of new money reached 11 billion at the end of October, compared to 3.7 billion at the end of June.
The gross margin, on the other hand, fell to 83 basis points (bp), after having recorded 85 bp at the end of June. The adjusted cost-to-revenue ratio remained stable at 71%.
These key figures are mixed compared to the forecasts of analysts consulted by the AWP agency. While the assets under management exceed market expectations, the gross margin was expected at 85 bps and the cost-income ratio at 70.4%.
Until now, the bank forecast in the medium term – for the period 2023-2025 – an adjusted pre-tax margin of between 28 and 31 basis points and an adjusted cost-income ratio below 64%. For adjusted pre-tax profit, the bank is targeting annual growth of 10%. The adjusted return on common equity (CET1) is expected to be above 30% for the period.
For this year, the group expects to generate an IFRS net profit “significantly exceeding” that of 2023, without further details.
In July, Julius Bär raised its gross savings target for the current strategic cycle to 145 million francs, compared to 120 million previously. The savings plan, which results in the elimination of 250 jobs and should be fully effective by the end of 2025, should save 140 million this year.
Stefan Bollinger, appointed CEO of the bank last July, will take up his position on January 9, 2025.
This article was automatically published. Sources: ats/awp
