Julius Baer FY20 Profit Up, Lifts Dividend; To Buy Back Upto CHF 450 Mln Shares; Backs 2022 Targets

Julius Baer Group Ltd. (JBARF.PK,JBAXY.PK) reported Monday that its fiscal 2020 IFRS net profit attributable to shareholders climbed 50.2 percent to 698 million Swiss francs from 465 million francs last year.

IFRS earnings per share grew 52 percent to 3.25 francs.

Adjusted net profit was 957 million francs, compared to 772 million francs a year ago. Adjusted earnings per share were 4.44 francs.

Gross margin improved by 6 basis points to 88 basis point.

Operating income increased 6 percent to 3.58 billion francs from 3.38 billion francs last year, benefiting from strongly increased client activity on the back of higher market volatility.

Net interest income fell 22 percent to 622 million francs, mainly as a result of the significantly lower US interest rates.

Net commission and fee income grew 5 percent to 2.02 billion francs, driven by a significant increase in brokerage commissions and income from securities underwriting.

Assets under management or AuM was 434 billion francs, an increase of 2 percent, supported by net new money.

Further, the company's Board of Directors will propose an ordinary dividend of 1.75 francs per share for the financial year 2020, up 17 percent from last year.

Subject to shareholder approval at the Annual General Meeting of shareholders on April 14, the dividend will be paid on April 20.

Further, the company announced new share buy-back program of up to 450 million francs purchase value, expected to run until the end of February 2022.

Looking ahead, Philipp Rickenbacher, Chief Executive Officer, said, "We delivered on the first leg of the three-year transformation strategy presented in February 2020. This strategy also gives us a clear roadmap for 2021 and beyond. In light of current industry challenges, from negative interest rates to a weak US dollar, we will stay our course and remain fully focused on achieving the 2022 targets we set a year ago."

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