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Julius Baer 2022 profits fall as it hits business cycle targets
Global Banking & Finance Review®
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ZURICH (Reuters) – Julius Baer on Thursday said net profit fell 12% in 2022 in a tough market environment, as the Swiss bank said it closed its 2020-22
ZURICH (Reuters) – Julius Baer on Thursday said net profit fell 12% in 2022 in a tough market environment, as the Swiss bank said it closed its 2020-22 business cycle by hitting all its financial targets.
Net profit dropped to 950 million Swiss francs ($1.05 billion) from 1.08 billion francs. The bank, which competes with UBS and Credit Suisse in managing the investments of the ultra-wealthy, saw assets under management fall by 12% as global stock and bond markets underwent corrections.
It said the decline in managed assets was somewhat compensated for by a significant acceleration in new money flowing into the bank towards the end of 2022. Net new money totalled 9 billion Swiss francs over the year.
“We are closing the 2020–2022 strategic cycle with the second-best result ever,” Chief Executive Philipp Rickenbacher said in a statement.
“…This puts us on a strong footing from which we have already started the work for the upcoming three-year cycle.”
The bank also said it had nominated Juerg Hunziker for election to its board of directors.
($1 = 0.9071 Swiss francs)
(Reporting by Noele Illien, editing by Rachel More and John Stonestreet)
Net profit is the amount of money a company has left after all expenses, taxes, and costs have been subtracted from total revenue. It is an important indicator of a company's profitability.
Assets under management (AUM) refers to the total market value of assets that a financial institution manages on behalf of clients. It indicates the size and success of the firm.
A business cycle is the fluctuation in economic activity that an economy experiences over time, typically measured by changes in real GDP and other economic indicators.
A financial target is a specific goal set by a company regarding its financial performance, such as revenue, profit margins, or return on investment, to guide its strategic planning.
New money flow refers to the net amount of new investments or deposits made into a financial institution or fund over a specific period, indicating investor confidence and growth.
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