Assets under management (Aum) at Julius Baer increased by 31% in the third quarter of 2013, but gross margin dropped dramatically after Merrill Lynch’s transfer.
Julius Baer’s margin fell to 97 basis points at the end of October from 102 basis points in the first half of the year.
However, assets under management (Aum) at Julius Baer climbed to CHF249 billion (US$ $271.91 billion) as of the end of October from CHF 189 billion at the end of 2012.
AuM included approximately CHF 48 billion (US$ 52 billion) from Merrill Lynch’s International Wealth Management (IWM) business outside the US, which Julius Baer is in the process of acquiring. Total client assets grew by 23% to CHF 341 billion, Julius Baer reported.
The group’s integration continues to be ‘on track’, the bank said, with the next local closings in Bahrain, Lebanon and the UAE expected to occur within the next two months. The bank has started the transfer of Merrill Lynch’s IWM business in Panama early in November.
Apart from the acquisition impact, the bank said the increase in AuM was driven by net new money especially from the local business in Germany, and a positive market performance. This was partly offset by a negative currency impact due to the strengthening of the Swiss franc against most leading currencies.