The combination of a strengthened gross margin driven by clients in Asia and contained expense growth has improved the bank's cost/income ratio.
Julius Baer increased its assets under management to a record CHF 427 billion ($426 billion), a year-to-date increase of 12 percent, according to interim financial results published by the bank on Friday that cover the first four months of 2019.
The bank said this was driven by «solid inflows» of net new money from clients, particularly in Asia and Europe, as well as an improved market environment during this period, which helped raise client transaction activity and brokerage commissions – particularly in Asia.
The bank's cost/income ratio, at 73 percent, is an improvement over 74.3 percent recorded for the second half of 2018. According to the bank, this improvement does not take into account the 2019 cost reduction program, which has started and is on track. This includes a reduction in the Group’s headcount by net 2 percent by the end of 2019.
Investing in Long-Term Growth
The bank noted the investments it has made into growth and strengthening its franchise globally in recent months. In Latin America, it increased its ownership of NSC Asesores in Mexico from 40 percent to 70 percent, and its Brazilian subsidiary GPS signed a partnership agreement with leading digital financial adviser Magnetis.
It opened new offices in two core markets in Europe: Ireland and Spain, and entered into a partnership with SEBA Crypto for the management of digital assets, which will begin once SEBA has received a banking and securities dealer licence from the Swiss financial regulator.
In April, the bank started operations in Thailand under SCB Julius Baer, its joint venture with Siam Commercial Bank, which finews.asia reported.
