Julius Baer profit jumps as new money flows from Credit Suisse

Julius Baer Group’s profit jumped in the first half of 2023, aided by better-than-expected inflows of client funds amid the crisis surrounding local rival Credit Suisse. 

Net income in the period rose 18 per cent to 532 million Swiss francs (S$817.3 million), the bank said in a statement on Monday (Jul 24). Clients added 7.1 billion francs in new money, more than the 6.2 billion francs analysts had estimated.

Julius Baer is among Swiss wealth managers that stand to benefit from Credit Suisse’s demise, though early indications of money inflows had disappointed investors. The bank said in May that it is stepping up efforts in hiring, which should lift net new money over the medium term.

Under chief executive officer Philipp Rickenbacher, Julius Baer has been moving past a difficult period that saw an investigation into its Latin American business and impairments at its Italian fund unit Kairos. The bank wrote down the remaining goodwill of that business last year, and has been in talks with potential suitors to sell it. 

To attract new clients, Julius Baer has been ramping up its offerings outside public markets. It plans to raise US$250 million for the largest fund yet under its flagship private equity program, according to marketing documents seen by Bloomberg, part of a push into alternative assets.

Julius Baer has also been offering crypto services, including so-called Lombard lending that allows some customers to borrow against digital assets held with the bank. It is now expanding its crypto wealth management services in Dubai, marking the firm’s first major digital-assets push beyond the borders of its native Switzerland. BLOOMBERG