Swiss private banking group Julius Baer has reported attributable net profit of CHF362m, for the first half of 2016, a surge of 812% compared to the year ago period.
The group’s adjusted net profit jumped 270% to CHF402m from CHF108.8m in the prior year. Excluding the US provision a year earlier, adjusted net profit increased by 5% year-on-year.
The group’s assets under management (AuM) at the end of the first half stood at CHF311bn, up 4% from the end of 2015.
The rise in AuM was due to a net positive acquisition impact of CHF8.6bn following the first-time consolidation of Kairos Investment Management, net new money of CHF5.5bn and positive market performance of CHF1.6bn, partly offset by a negative currency impact of CHF4bn, Julius Baer said in its earnings statement.
Operating income during the period was CHF1.42bn, a rise of 1% from 1.41bn in the prior corresponding period. The rise was driven by a positive fair value adjustment of CHF39m resulting from the purchase of an additional 60.1% stake in Kairos in April 2016, the bank said.
Adjusted operating expenses plummeted 27% to CHF940m, including the US provision of CHF326m in the first half of 2015. Excluding the US provision, the adjusted operating expenses fell by 1%.
Compared to the last year, net commission and fee income decreased 7% to CHF739m, net trading income slumped by 46% to CHF118m, and net interest and dividend income surged 33% to CHF510m.
Julius Baer Group CEO Boris Collardi said: “Our business momentum has improved since the first quarter of 2016, leading to increased inflows and record assets under management of 311 billion Swiss francs. The refocusing on organic growth, without disregarding acquisition opportunities, is starting to pay off.
“The strengthened client-facing organisation and the significant relationship manager hiring successes will bolster the Group’s ability to grow its client asset base and achieve the medium-term targets in line with Julius Baer’s focus on long-term and sustainable value creation.”