Furthermore, adjusted net profit in H1 2023 for Julius Baer was CHF541m, a rise of 14% year-on-year.
In addition, assets under management (AuM) totalled CHF441bn, a year-to-date increase of 4% or CHF17bn. This was supported by net new money of CHF7.1bn.
However, the increase was mainly attributed to net positive developments in global equity and bond markets, as well as the net new money inflows. This was partially offset but a net negative currency impact resulting mainly from the strengthening of the Swiss franc against the US dollar and the euro.
Operating income also grew, by 9%, year-on-year with the positive impact of higher interest rates more than offsetting a decline in net commission and fee income.
Relationship manager numbers rose by net 57 full-time equivalents, taking the total to 1,305.
Philipp Rickenbacher, chief executive of Julius Baer Group, said: “In the first half of 2023, with many uncertainties affecting client and market sentiment, Julius Baer has again demonstrated its attractiveness to clients and as an employer. This reflects the proven resilience of our business model, with its unrivalled focus on wealth management, the foresighted management of our financial resources, and our strategic consistency. A complex environment has not hindered us from achieving a strong start to the current strategy cycle – on the contrary, it has even allowed for a tactical acceleration of our push for scale in our key markets.”
Julius Baer wealth plans after H1 2023
According to the results announcement: “Europe is where Julius Baer has its roots. With a network spanning around 30 locations and 5,000 employees, our presence in this region is now stronger than ever. Assets under management (AuM) of clients domiciled in Europe (including the non-EU countries we serve) amount to more than CHF 200 billion, representing about 50% of the Group’s total AuM.
“The wealth management market in Europe is fiercely competitive. However, given the high levels of household savings and future intergenerational asset transfers, it continues to offer significant growth potential.
“In the coming years, Julius Baer will place a particular emphasis on scaling its business in the areas that offer the most opportunities to drive critical mass and accelerate growth in profits. In doing so, we will leverage our unrivalled brand strength and capabilities in wealth management, building on our existing network to create an even more compelling value proposition and increasing our proximity to our clients.”