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Julius Baer H1 Profit Rises

Julius Baer Group (JBARF.PK,JBAXY.PK) reported that its net profit attributable to shareholders for the first-half of 2018 increased by 26% to 444 million Swiss francs from last year, while IFRS earnings per share improved by 25% to 2.04 francs last year.

Bernhard Hodler, Chief Executive Officer of Julius Baer Group Ltd., said, "....Based on the current outlook, I remain confident that we will reach our net inflow and cost efficiency targets this year."

After considering adjusted non-controlling interests in first-half 2017 of 4 million francs, the rise in adjusted net profit attributable to shareholders of Julius Baer Group Ltd. was 20% in the first-half 2018, and adjusted earnings per share grew, also by 20%, to 2.20 francs.

Assets under management ended the first six months at 400 billion francs, an increase of over 11 billion francs, or 3%, since the end of 2017. The growth in AuM was driven by net new money of 10 billion francs, complemented by 4.5 billionfrancs from the acquisition of 95% of Reliance Group in Brazil, and a positive currency impact of 1 billion francs.

Operating income rose to 1.789 billion francs. The increase of 12% compared to H1 2017 was in line with the growth in monthly average AuM, resulting in a largely unchanged gross margin of 91.5 bp.

Net commission and fee income rose by 10% to 1.015 billion francs, driven by an 11% increase in asset-based fee income and an 8% rise in brokerage commissions. Despite increased AuM, the contribution from Kairos was modestly lower.

Net interest and dividend income declined by 2% to 554 million francs. It included 159 million francs of dividend income on trading portfolios, down 12% year-on-year. Excluding this item, underlying net interest and dividend income was up 2% at CHF 395 million, as the benefit of higher loan volumes and rates was largely offset by a reduction in the portfolio of financial assets as well as an increase in US dollar interest rates payable on client deposits.

Net trading income went up by 129% to 206 million francs. Including the dividend income related to trading portfolios, underlying net trading income increased by 35% to 365 million francs. The improvement follows a rise in overall FX and structured products-related trading income.

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