Information  X 
Enter a valid email address

Julius Baer Hldg Ltd (JUB)

  Print      Mail a friend

Wednesday 23 July, 2008

Julius Baer Hldg Ltd

Presentation of 2008 Half-Year Results for the ...

With net profit of CHF 510 million*, Julius Baer managed to achieve the same
result as in the first half of 2007 despite weak markets and a strong Swiss
franc

- Achieved net new money of CHF 10 billion
                  Julius Baer Holding Ltd
                  

    --  Despite the challenging market environment, the Julius Baer Group
        achieved a net profit of CHF 510 million* in the first half of 2008,
        just 2% below the CHF 518 million of the first half of 2007. Earnings
        per share (EPS) rose by 5% to CHF 2.45.

    --  Due to the appreciation of the Swiss franc and the weak equity and debt
        markets, assets under management declined to CHF 364 billion, 10% lower
        than at the end of 2007. Net new money contributed CHF 10 billion
        overall, with Private Banking attracting CHF 8 billion.

    --  The investment in future growth continued successfully, as reflected in
        further key hirings and the opening of new locations.

    --  As a result of its exclusive focus on the wealth management business,
        Julius Baer did not experience any losses related to the credit and
        liquidity crisis.

'The Julius Baer Group has managed to strike the right balance between stepping
up its investment in the future, given the extraordinarily favourable
circumstances for growing Bank Julius Baer's global franchise, and protecting
the Group's profitability. Whilst the weak equity and debt markets as well as
the strong Swiss franc have reduced our asset base, with an impact on our
profits, Bank Julius Baer has benefited from our pure-play wealth management
strategy, as evidenced by the significant net new money inflows the Bank has
achieved,' sums up Johannes A. de Gier, Group CEO.

Balancing growth and profitability in a challenging market environment

Assets under management of the Julius Baer Group amounted to CHF 364 billion on
30 June 2008, down 10% from CHF 405 billion at the end of 2007. Net new money
totalling CHF 10 billion was more than offset by the negative market performance
of CHF 32 billion and a negative currency impact of CHF 19 billion. In addition,
assets under custody increased by 9% to CHF 75 billion.

Operating income was 2% lower at CHF 1,602 million compared to the first half of
2007. As a result of the decreased asset levels and subdued client activity, net
fee and commission income declined by 9% to CHF 1,195 million. Net interest
income rose by CHF 53 million or 32% to CHF 221 million following the increased
lending to private clients, higher deposits as well as higher margins. Net
trading income increased by 28% to CHF 178 million, primarily driven by foreign
exchange trading.

Operating expenses at CHF 949 million were slightly lower than last year (CHF
960 million), aided by a positive currency impact and despite continued
investments in growth. Personnel expenses were down 2% at CHF 673 million as the
impact of the 10% year-on-year staff increase, from 3,869 to 4,272, was offset
by lower performance-related compensation accruals and a positive currency
impact. General expenses, including valuation adjustments, provisions and
losses, remained unchanged at CHF 254 million, even with the continued business
expansion of Bank Julius Baer. All in all, the cost/income ratio increased
slightly to 58.5% after 57.5% in the first half of 2007.

Profit before taxes declined by 3% to CHF 653 million. After deduction of taxes
amounting to CHF 143 million, representing a tax rate of 22%, net profit reached
CHF 510 million*, just 2% down from H1 2007. Following share buyback programmes,
EPS increased by 5% to CHF 2.45. As part of the current share buyback programme
(2008-2010) of up to CHF 2 billion, 1,565,000 shares in the total amount of CHF
112.4 million had been repurchased as of 22 July 2008.

Total assets were down by CHF 3.3 billion at CHF 43.6 billion at the end of June
2008, mainly driven by the lower level of client deposits and structured
products volume as compared to the end of 2007. Total equity rose by CHF 160
million to CHF 6.6 billion, and the BIS Tier 1 capital by CHF 313 million to CHF
2.3 billion. With a BIS Tier 1 ratio of 13.8% under Basel II (year-end 2007:
12.9% under Basel I), the Julius Baer Group continues to enjoy a very solid
financial base. Return on equity was at 28.8% compared to 27.9% in the first
half of 2007.

Bank Julius Baer continues to attract significant net new money

Assets under management in the segment Bank Julius Baer (Private Banking and
Investment Products) declined by CHF 12 billion or 5% to CHF 222 billion in the
first half of 2008. Net new money contributed a healthy CHF 12 billion,
representing an annualised growth rate of 10%, while market and currency
performance had a negative impact of CHF 24 billion. Operating income increased
by 3% to CHF 977 million year on year, and operating expenses rose by 9% to CHF
587 million as a result of continued investments in front-related areas. As a
consequence, profit before taxes for Bank Julius Baer declined by 4% to CHF 390
million. Assets under management of the Private Banking division were 5% lower
at CHF 148 billion despite significant net new money of CHF 8 billion to which
all regions contributed, again with a major share from growth markets, Asia in
particular. Assets under management in the Investment Products division fell by
5% to CHF 74 billion, with net new money amounting to CHF 3 billion.

Assets under management in the segment Asset Management (GAM and Artio Global)
declined by CHF 29 billion or 17% to CHF 142 billion in the first half of 2008,
mainly as a result of negative market performance and the currency impact on
assets under management as reported in Swiss francs, which had a combined
negative impact of CHF 28 billion. At the end of June 2008, GAM had CHF 68
billion of assets under management, and Artio Global, the US asset management
business to be IPO-ed when market conditions allow, CHF 74 billion, with the
latter continuing to attract substantial net new money. During this highly
challenging period for leveraged hedge fund style investments, GAM experienced
net outflows but was able to improve its margins from H1 2007 levels. The
segment's operating income fell by 8% to CHF 594 million, and operating expenses
dropped by 13% to CHF 316 million. As a consequence, profit before taxes was
down 3% to CHF 278 million.

The documents accompanying the results conference (presentation, Business Review
First Half 2008, Half-year Report 2008 and press release) are available at
www.juliusbaer.com.

-0-
*T
Contact
Media:                      Tel. +41 (0) 58 888 5777
Investors:                  Tel. +41 (0) 58 888 5256

Julius Baer Holding Ltd.
Group Communications
Bahnhofstrasse 36
P.O. Box
CH-8010 Zurich
Switzerland
Telephone +41 58 888 5777
Fax +41 58 888 5144
www.juliusbaer.com
group.comm@juliusbaer.com
*T

The periodic Interim Management Statement will be released on 11 November 2008,
and the 2008 annual results of the Julius Baer Group on 6 February 2009.

*Excluding integration and restructuring expenses as well as amortisation of
intangible assets. Including these positions, the net profit for the first half
of 2008 amounted to CHF 412 million, after CHF 424 million for the first half of
2007.

About Julius Baer

Julius Baer is the leading dedicated wealth manager in Switzerland. The Group,
which has roots dating to the nineteenth century, concentrates exclusively on
private banking and asset management for sophisticated private and institutional
clients. With more than 4,200 employees worldwide, the Group managed assets in
excess of CHF 360 billion at the end of June 2008. The Julius Baer Group's
global presence comprises more than 30 locations in Europe, North America, Latin
America and Asia, including Zurich (head office), Buenos Aires, Dubai,
Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Moscow, New York, Singapore
and Tokyo. Bank Julius Baer and GAM, a global asset manager focused on active
and alternative wealth management, are the key companies of the Group. The
registered shares of Julius Baer Holding Ltd. are listed on the SWX Swiss
Exchange and form part of the Swiss Market Index (SMI) which comprises the 20
largest and most liquid stocks.

For more information: www.juliusbaer.com