Swiss private banking group Julius Baer has reported attributable net profit of CHF353.2m for the first half of 2017, a fall 2% from CHF361.8m a year ago.
The group’s adjusted net profit for the half year ended 30 June 2017 was CHF404m, up 0.4% from the year ago half. Excluding the Kairos- and pension fund-related items in the first half of 2016, adjusted net profit jumped 28% year-on-year.
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Operating income stood at CHF1.59bn, up 12% compared to CHF1.42bn in the same period last year.
Net commission and fee income surged 25% to CHF921.8m from CHF739.3m a year ago, while net interest and dividend income rose 11% year-on-year to CHF566.3m. Adjusted operating expenses increased 17% to CHF1.09bn from a year earlier.
Assets under management (AuM) at the end of June 2017 totalled CHF354.7bn, a 6% rise from the end of 2016. The bank attributed the increase in AuM to market performance of CHF16.8bn, net new money of CHF10.2bn and a net positive acquisition impact of CHF0.3bn.
Julius Baer Group CEO Boris Collardi said: “We are extremely pleased to see the initial returns on last year’s significant investments already being reflected in a record half-year adjusted net profit. Net inflows exceeded our own expectations, the gross margin was resilient, the cost/income ratio improved towards the target range, and our capitalisation strengthened to well above our floors.”
