Julius Baer 4 months Margins down; On track to achieve FY22 objectives

(RTTNews) – Swiss private lender Julius Baer Group Ltd. (JBARF.PK, JBAXY.PK) on Thursday reported lower gross profit and adjusted pre-tax margin in the first four months of fiscal 2022. For the full year, the company said that she is firmly on track to achieve her financial goals.

Gross margin in the first four months of 2022 was close to 85 basis points, down 5 basis points from the nearly 90 basis points achieved in the same period last year. Gross margin improved by more than 7 basis points from the more than 77 basis points achieved in the second half of fiscal 2021.

The adjusted pre-tax margin was 30 basis points, lower than the 36 basis points in the prior year, but higher than the 24 basis points recorded in the second half of 2021.

Mainly due to the evolution of the gross margin, the adjusted cost/income ratio was 63%, compared to approximately 60% last year.

The company recorded net outflows of 2.7 billion Swiss francs in the first four months of 2022.

At the end of April 2022, assets under management or AuM amounted to 457 billion francs, a decrease of 5% since the beginning of the year. The decline was driven by negative market performance, business divestitures and customer deleveraging.

At the end of April 2022, approximately 1.6% of Julius Baer’s assets under management were related to Russian persons who do not have the right to reside in the European Economic Area or in Switzerland.

Julius Baer said his market risk exposure to Russia is not material and is tightly managed.

For 2022, the last year of the current strategy cycle, Julius Baer is targeting an adjusted cost/income ratio below 67% and an adjusted pre-tax margin range of 25 to 28 basis points.

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