06/02/2012
Profits down at Julius Baer in 2011
Adjusted net profits for the Julius Baer group contracted by 21% last year, to CHF401m, while underlying net profits, excluding a taxation agreement with Germany that resulted in a CHF65m charge, fell 10% to CHF452m. Net profits by IFRS accounting standards fell 27%, to CHF258m.The cost/income ratio has deteriorated to 68% from 65.4%, largely due to the appreciation of the Swiss franc. Assets under management as of the end of December totalled CHF170bn, generally the same level as twelve months previously. Julius Baer has posted net inflows of CHF10bn, but these subscriptions have been nearly entirely offset by negative market and currency effects.The Board of Directors will propose an unchanged ordinary dividend at the general shareholders’ meeting on 11 April 2012 of CHF0.60 per share, for a total of CHF118m. In addition, there will be a special dividend of CHF0.40 per share, totalling CHF79m, “in order to directly refund some excess shareholder capital and to take advantage of current Swiss tax legislation,” according to a press release.Julius Baer is also planning to announce a new share repurchase program totalling CHF500m, to be completed in the next two years.
