Julius Baer Groups’s assets under management (AuM) amounted to CHF 285 billion ($399bn) at the end of October 2014, an increase of CHF 31bn, or 12% since the end of 2013, according to the bank’s latest interim management statement.

Total Group AuM included CHF 58bn from Merrill Lynch’s International Wealth Management (IWM) business integration, currently in the final phase of transferring. Through the deal, total client assets increased by 11% to CHF 385bn, Julius Baer reported.

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The increase in Group AuM for the first ten month of 2014 was driven by net new money, a positive currency and market performance, as well as the first-time inclusion earlier this year of CHF 6bn from Brazilian 80% subsidiary GPS, the bank said.

With the IWM transaction, the bank’s adjusted cost/income ratio in the first ten months improved to a level just inside the 65-70% range reaching the 2015 target earlier than expected.

IWM AuM stood at CHF 58 billion at the end of October 2014, of which CHF 55 billion were booked on the Julius Baer platforms.

Since the start of the IWM integration in February 2013, CHF 49bn was booked on the Julius Baer platforms and paid for. Further asset transfers will take place before year-end, including from the IWM business in Paris. The 18th and final transaction closing will be the IWM Indian business expected to be integrated in the first half of 2015.

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According to the bank, during the first ten months of 2014, the integration-related rightsizing also resulted in 318 (net) employees leaving the Group, up from 265 at the half-year stage and close to the full-year target of 400.

Year-to-date net inflows were, on an annualised basis, in the middle of the 4-6% medium-term target range, the banks also reported.

Despite the latter development, the gross margin in the first ten months were almost maintained at 94 basis points (bps), just 1 bp below the 95 bps in the first six months of 2014.

At the end of September 2014, the Julius Baer’s BIS total capital ratio stood at 24.0% and the BIS tier 1 ratio at 22.6%, well above the targeted floors of 15% and 12%, respectively.

Julius Baer said the preparations for the transfer of the business of Leumi Private Bank AG in Switzerland are in progress. The deal cost the Swiss bank up to $78 million. The transfer is expected to start in the first half of 2015.