Swiss private bank Julius Baer’s assets under management (AuM) grew to CHF 327bn in the ten months to the end of October 2016, an increase since the end of 2015 of CHF27bn, or 9%.
The bank attributed the growth in AuM to continued net new money, positive market performance, the first-time consolidation of Kairos Investment Management with about CHF9bn AuM, and the acquisition of Commerzbank International S.A. Luxembourg (CISAL) with nearly CHF3bn AuM.
Net new money in the year to date stood at about 4%, on an annualised basis, with all regions recording net inflows till now in 2016, except Latin America.
“Based on the relationship manager (RM) hirings and the current net inflows outlook, net new money is expected to improve well into the 4-6% target range in 2017,” the Swiss private bank said in its earnings statement.
The cost/income ratio during the period stood at below the top end of the 64-68% range that the banking group aims to reach in the medium term.
“The year-to-date impact on the cost/income ratio of both the recent gross margin development and this year's accelerated investments in growth was largely balanced by the implementation of a number of cost saving measures throughout the Group and the positive effect of the pension fund plan amendment in Switzerland in the first half of the year,” the bank said.
The bank’s phase-in BIS total capital ratio was 18.2% and the phase-in BIS CET1 capital ratio was 16.2%, an increase from 17.3% and 15.9% respectively at the end of June 2016.
The number of RMs at the end of October 2016 increased to 1,376, a year-to-date net rise of 159 RMs including 115 RMs through recruitment and 44 RMs through acquisitions of Kairos and CISAL.