07/02/2011
Increase in net assets at Julius Baer, despite strong Swiss franc
p { margin-bottom: 0.08in; } Due to costs related to the integration and restructuring after the purchase of ING Bank in January 2010, as well as depreicaiton on goodwill, net profits at the Julius Baer group by IFRS accounting standards in 2010 fell 9% to CHF353m. Excluding these elements, net profits increased 6% to CHF504m. Due to a reduction in gross margins, and partly due to the appreciation of the Swiss franc, the cost-income ratio deteriorated to 65.4% from 63.1%.As of the end of December, assets under management had increased to CFH170bn, up from CFH154bn one year earlier. This increase of CHF16bn is due to CHF14bn in assets from the acquisition of ING Bank, CHF9bn in net inflows, CHF8bn in positive market effects, and a currency loss of CHF14bn due to the devaluation of the euro and the US dollar against the Swiss franc.Net subscriptions represented 6% of AUM as of the beginning of the year, compared with 4% in 2009, largely due to strong inflows from growth markets, particularly Asia, Russia, Central and Eastern Europe, and Latin America, as well as to domestic activities of the German bank.As of the end of 2010, total client assets came to CHF267bn, while savings assets as of the end of December totalled CHF98bn, compared with CHF87bn one year earlier, largely due to CHF7bn in net inflows.
