Julius Baer, the asset management firm, has reported a marked rise in profits during the first half of the year. IFRS profit increased by 23% to $657 million due to higher assets under management and lower costs.
The assets under management (AuM) increased by 12% to $527 billion, thanks to net inflows of $10.8 billion, as well as positive market developments. The new funds came mostly from clients in Asia, Western Europe, and the Middle East.
According to the bank, operating income rose by 8% to $1.99 billion, thanks to commissions and services (+12% to $1.16 billion). Financial instruments decreased by 2% to 503 million. Interest operations brought in 308 million, down 8%.
Gross margin was 87 basis points, while cost-to-income rose to 61.2% from 66.6% a year earlier.
Provisions for credit losses totaled 1 million, compared to 49 million a year earlier.
Expenses according to IFRS standards rose by 1% to 1.29 billion, due to higher administrative expenses, the bank said.
On the other hand, personnel costs fell as a result of lower redundancy costs initiated in 2020 and a lower average monthly headcount. In June, Julius Baer employed 6667 full-time equivalents, 63 fewer than a year earlier.
A share buyback program launched in March for a targeted amount of $488 million continues until the end of February 2022. As of the end of June, 2.4 million shares had been repurchased for $158 million.