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Julius Baer increased assets under management

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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.

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The restructuring program launched in 2020 improved the bank’s profitability.

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.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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