Julius Baer Group has posted net profit attributable to shareholders of CHF950m ($1.05bn) for 2022, a decline 12% from CHF1.08bn a year ago.

The dip in profits was triggered by challenging market environment, the Swiss wealth manger said in its press statement.

The group’s asset under management (AuM) slipped 12% to CHF424bn from CHF481bn due to substantial corrections in stock and bond markets across the globe.

Net new money inflows for the year reached CHF9bn following rebound from deleveraging in the beginning of the year and notable expedition by the end of 2022.

This has helped the firm to meet its financial cycle targets.

Operating income fell by CHF5m to CHF3.8bn due to CHF16m of credit provisions that was earmarked as net credit losses on financial assets.

Operating expenses jumped 7% to CHF2.7bn, while personnel expenses surged by 1% to CHF1.6bn and general expenses rose by 14% to CHF775m.

Meanwhile, BIS CET1 capital ratio at the end of 2022 was 14%, compared to 16.4% a year ago.

The group’s BIS total capital ratio fell 21.7% from the previous year’s 24%.

It also proposed ordinary dividend of CHF2.60 a share in 2022, similar to the prior year’s figure.

Julius Baer Group CEO Philipp Rickenbacher said: “We are closing the 2020–2022 strategic cycle with the second-best result ever.

“Across the period we have fundamentally transformed our business, mastered various challenges in the operating environment, and achieved all the financial targets we had set ourselves three years ago.

“We have accomplished the shift to sustainable profit growth across market cycles, sharpened the value proposition for our targeted high net worth and ultra-high net worth clients, and accelerated the modernisation of Julius Baer.”