Julius Baer posts 'significant' rise in profitability

Zurich

JULIUS Baer on Monday (Nov 22) said its profitability rose "significantly" in the first 10 months of 2021, as buoyant markets and new money inflows into Switzerland's third-largest listed bank increased assets under management to 484 billion Swiss francs (S$710 billion).

"Julius Baer's profitability rose significantly in the first 10 months of 2021 on the back of strong growth in client assets and substantial improvements in cost efficiency, complemented by a near absence of credit losses," the bank said in a statement.

Assets under management rose 12 per cent higher in the year to date, driven by a 4.4 per cent increase in net new money, as well as positive stock market performance and currency movements, the bank said.

The Zurich-based wealth manager in July posted a 23.4 per cent rise in half-year net profit to a record 606.0 million Swiss francs, helped by the soaring stock markets and active client trading that have benefited wealth and asset managers since the outset of the Covid-19 pandemic.

It does not provide profit figures for the 10-month period.

Julius Baer said the slowdown in client activity relative to the strong first quarter of 2021 continued from the second to the third quarter and well into October.

"Initial results for November, however, indicate a potential recovery for the final two months of the year," it added. REUTERS