© Reuters. FILE PHOTO: The emblem of Swiss personal financial institution Julius Baer is seen at their headquarters in Zurich, Switzerland February 2, 2022. REUTERS/Arnd Wiegmann
ZURICH (Reuters) – Julius Baer on Monday mentioned it was on observe to achieve its 2022 profitability targets, regardless of “difficult market” situations taking a giant chew out of its property beneath administration.
Belongings beneath administration decreased by 11% to 429 billion Swiss francs ($449.07 billion) within the 10 months to Oct. 31, Switzerland’s third-largest listed financial institution mentioned, because it was hit by slumps in world inventory and bond markets.
The 52 billion franc downturn was partly compensated by constructive forex exchanges, primarily the stronger greenback, in addition to internet new cash inflows of three billion francs, it mentioned.
“Supported additional by the diligent execution of the income and value measures within the first two years of the present strategic cycle, the associated fee/revenue ratio, pre-tax margin and return on CET1 capital (RoCET1) targets set for 2022 stay properly inside attain,” the wealth supervisor mentioned in an announcement.
Julius Baer additionally mentioned it’s on observe to purchase again as much as 400 million Swiss francs value of shares by the tip of February 2023 as deliberate.
The financial institution mentioned it had additionally reclassified 1 billion francs of property beneath administration to property beneath custody following asset freezes ensuing from sanctions imposed on purchasers in reference to Russia’s invasion of Ukraine.
($1 = 0.9553 Swiss francs)