Julius Baer posts record 2021 profits; restructuring plan bears fruit

A PIVOTAL strategy to “dynamically modernise’’ Julius Baer Group has borne fruit well ahead of its three-year target: The group chalked up record net profits in 2021, despite Covid-19 restrictions and a reduction in the number of client relationship managers (RMs).

Net profits rose by 55 per cent to 1.08 billion Swiss franc, marking the first time the 130-year old bank crossed the 1 billion Swiss franc threshold in profitability. Globally the number of relationship managers dropped by 7 per cent to 1274.

Pre-tax margins improved to 28.2 basis points, from 27.2 basis points in 2020. Cost-to-income ratio also improved from 66.4 per cent to 63.8 per cent. The group’s 3-year restructuring plan, announced early 2020, had set targets of pre-tax margins of 25 to 28 basis points, and cost-to-income ratio of 67 per cent or lower by 2022.