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February 2, 2022

Julius Baer annual net profit soars 55%

Julius Baer has reported IFRS attributable net profit of $1.18bn (CHF1.08bn) in 2021, a 55% surge from the previous year and exceeding the CHF1bn mark for the first time. 

Assets under management (AuM) grew 11%, benefitting from strong net inflows.

Highlights

The Swiss private bank’s IFRS profit before taxes soared 49% year-on-year to CHF1.26bn.

Higher advisory and management fees led to a 14% rise in net commission and fee income to CHF2.3bn.

Operating income increased 8% to CHF3.86bn, driven by rise in net commission and fee income.  Net interest income grew 1% to CHF627m.

Operating expenses as per IFRS fell 5% to CHF2.6bn, with personnel expenses increasing 4% and general expenses falling 4%.

AuM as of 31 December 2021 was CHF482bn, up by CHF48bn from the previous year.

Net new money increased 30% to CHF20bn, driven by clients domiciled in the UK, Ireland, Germany, Switzerland, Luxembourg, Singapore, Japan, India, the UAE, and Brazil.

The group’s BIS CET1 capital ratio at the end of last year was 16.4%, compared to 14.9% a year ago. The BIS total capital ratio increased to 24% from 21% over this period.

Both the CET1 and total capital ratios remained above the regulatory minimums of 7.9% and 12.1%, respectively.

The Tier 1 leverage ratio of 4% was also above the regulatory minimum.

The bank proposed an increased dividend of CHF 2.60 a share in 2021, up from CHF for 2020. 

Julius Baer Group CEO Philipp Rickenbacher said: “We are pleased to report the highest profit in our history: our performance is reflective of the value we create with and for clients, with strong recurring revenues and greater efficiency underscoring the quality of our earnings.

“The quality of our financial performance is the result of the strategic agenda we initiated in 2020, with a shift to smart and profitable asset growth, a sharpening of our value proposition, and an acceleration of our investments in technology. Capital generation remains strong, and our business is using this capital efficiently to the benefit of our clients and shareholders.”

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