Julius Baer 4-month Margins Down; On Track To Meet FY22 Targets

Swiss private lender Julius Baer Group Ltd. (JBARF.PK,JBAXY.PK) reported Thursday lower gross margin and adjusted pre-tax margin in the first four months of fiscal 2022. For the full year, the company said it is firmly on track to achieve its financial targets.

Gross margin in the first four months of 2022 was close to 85 basis points, down 5 basis points from the nearly 90 basis points realised in the same period last year. Gross margin improved more than 7 basis points from the more than 77 basis points achieved in the second half of fiscal 2021.

Adjusted pre-tax margin was 30 basis points, lower than prior year's 36 basis points, but higher than the 24 basis points recorded in the second half of 2021.

Due mainly to the changes in the gross margin, the adjusted cost/income ratio was 63 percent, up from around 60 percent last year.

The company recorded 2.7 billion Swiss francs net outflows in the first four months of 2022.

At the end of April 2022, assets under management or AuM amounted to 457 billion francs, a year-to-date decrease of 5 percent. The decline was driven by negative market performance, corporate divestments and client deleveraging.

At the end of April 2022, approximately 1.6 percent of Julius Baer's AuM were related to Russian persons neither entitled to residency in the European Economic Area nor in Switzerland.

Julius Baer said its market risk exposure to Russia is not significant and is tightly managed.

For 2022, the final year of the current strategic cycle, Julius Baer is targeting an adjusted cost/income ratio of less than 67 percent and an adjusted pre-tax margin range of 25-28 bp.

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