Interim Management Statement for the first ten months of 2012
Assets under management CHF 187 billion, an increase of 10% from the end of 2011 – Continued solid net inflows
Julius Baer Group’s assets under management (AuM) amounted to CHF 187 billion at the end of October 2012, an increase of 10% from the end of 2011. Total client assets grew by 9% to CHF 274 billion. The increase in AuM resulted from continued net new money inflows close to the top end of the Group’s medium-term target range as well as a positive market performance impact supported by sustained gains in the global equity and bond markets. The year-to-date currency impact on AuM was negligible.
Since the end of June 2012, client transaction and trading activity initially contracted but recovered again in September and October 2012, albeit not fully to the levels seen on average in the first half of 2012. As a result, the gross margin in the first ten months of the year was slightly lower than the 98 basis points reported for the first six months of 2012 and, as a consequence, the cost-income ratio was slightly higher than the cost-income ratio reported for the first six months of 2012.
As at the end of September 2012, the Group’s BIS total capital ratio was 26.3% and its BIS tier 1 ratio 24.0%, with both ratios benefitting from the successful placement in September 2012 of CHF 250 million in additional non-core tier 1 capital.
Principal Closing of IWM acquisition expected to occur at end of January 2013
In October 2012, Julius Baer completed the financing for the acquisition of Merrill Lynch’s International Wealth Management business outside the US and Japan (IWM) by successfully issuing 20,316,285 new registered shares by way of a rights offering at an issue price of CHF 24.20 per share, resulting in gross proceeds of CHF 492 million. Based on the good progress made to date in terms of financing, obtaining regulatory approvals, as well as planning in detail for the transfer and separation of the acquired business, Principal Closing of the IWM transaction is expected to occur at the end of January 2013.
Julius Baer Group’s detailed financial results for the full year 2012 will be published on 4 February 2013.
Disclaimer regarding forward-looking statements
This media release by Julius Baer Group Ltd. (“the Company”) includes forward-looking statements that reflect the Company’s intentions, beliefs or current expectations and projections about the Company’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. The Company has tried to identify those forward-looking statements by using the words “may”, “will”, “would”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “believe”, “seek”, “plan”, ”predict”, “continue” and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous.
These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. The Company and its subsidiaries, its directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.