Julius Baer Group: Presentation of the 2010 full-year results

Monday, 07. February 2011 07:00
Julius Baer Group Ltd. /
Julius Baer Group: Presentation of the 2010 full-year results
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The issuer is solely responsible for the content of this announcement.

Net profit increased by 6% to CHF 504 million - Assets under management up by
10% to CHF 170 billion - Net new money CHF 9 billion or 6% - Significant excess
capital position - 50% increase in dividend proposed - Share buyback programme
planned

·         Julius Baer Group delivered a solid financial performance in 2010,
despite the significant strengthening of the Swiss franc against key currencies.

·         Operating income grew by 13% as the result of a 19% increase in
average assets under management and a decline in the gross margin from 111 to
105 basis points. Operating expenses increased by 16%, including the first-time
consolidation of ING Bank (Switzerland) Ltd (ING Bank) in 2010. Due to the
decline in the gross margin and partly as a result of the Swiss franc, the
cost/income ratio increased to 65%. Net profit increased by 6% to CHF 504
million.

·         Total client assets increased by 11% to CHF 267 billion. Assets under
management (AuM) grew by 10% to CHF 170 billion, on the back of the acquisition
of ING Bank, improving net inflows, and a positive market performance, partly
offset by a very significant negative currency impact. Assets under custody rose
by 12% to CHF 98 billion.

·         Net new money strongly improved to CHF 9 billion or 6% of the start-
of-year AuM, mostly as a result of strong inflows in the growth markets and from
the Group's domestic German business.

·         The Julius Baer Group continued to enjoy a position of significant
excess capital as expressed by its BIS tier 1 ratio of 23.8% at year-end.

·         Based on this, the Board of Directors will propose to the Ordinary
Annual General Meeting (AGM) on 7 April 2011 a dividend of CHF 0.60 per share,
up 50% from a year ago. Julius Baer also plans to launch a share buyback
programme of up to 5% of the outstanding share capital and with a maximum value
of CHF 500 million, to run until the AGM in 2012.


Boris F.J. Collardi, Chief Executive Officer of Julius Baer Group Ltd., said:
"The year 2010 turned out to be another eventful year for financial markets and
for our industry. I am proud that we made significant strategic progress, for
example through the successful integration of ING Bank and the upgrade of our
Hong Kong office to a regional booking centre. Whilst our results were impacted
by the Swiss franc appreciation, our Group nevertheless showed a pleasing
financial performance, allowing an increased proposed dividend and the launch of
a buyback programme in due course. Our pure private banking-focused business
model and sound financial position will enable us to continue to improve the
range and quality of services to our growing international base of discerning
clients, to strengthen our position as an employer of choice for highly-
qualified and ambitious financial specialists, and to create further value for
our shareholders."

Total client assets amounted to CHF 267 billion at the end of 2010. Assets under
management increased by 10% to CHF 170 billion compared with CHF 154 billion at
the end of 2009. This rise consisted of CHF 14 billion in AuM from the
acquisition of ING Bank, net new money of CHF 9 billion, a positive market
performance impact of CHF 8 billion and a very significant negative currency
impact of CHF 14 billion that principally resulted from the strong decline in
the value of the euro and the US dollar relative to the Swiss franc. Net new
money totalled 6% of the start-of-year AuM, compared to 4% in 2009 and was thus
at the top end of the targeted range. It especially benefited from strong
inflows in the growth markets, particularly in Asia, Russia, Central & Eastern
Europe, and Latin America, as well as from the Group's domestic German business.
Assets under custody ended the year at CHF 98 billion after CHF 87 billion at
the end of 2009, an increase of 12%, supported by CHF 7 billion in net new
custody money.

Operating income grew by 13% to CHF 1,794 million, the result of a 19% increase
in average AuM and a decline in the gross margin from 111 to 105 basis points.
Net fee and commission income increased by 20% to CHF 980 million, in line with
the rise in average AuM. Even though the overall investment and risk appetite
improved, the equity transaction volumes did not change much in 2010. Net
interest income fell by 2% to CHF 455 million, with the year-on-year decrease in
the net interest margin and a more conservative asset allocation in the treasury
portfolio offsetting the increase in average deposit levels and average lending
to private clients. Net trading income improved by 11% to CHF 332 million,
mainly due to the increased volatility in the foreign exchange markets. Other
ordinary results rose to CHF 26 million.

Operating expenses increased by 16% to CHF 1,192 million, partly as a
consequence of the first-time consolidation of ING Bank in 2010, which
contributed to the increase in the total number of employees by 16% to 3,578 -
including 752 relationship managers. As a result of the larger staff base,
personnel expenses grew by 16% to CHF 791 million. General expenses, including
valuation adjustments, provisions and losses, went up by 17% to CHF 345 million.

The large majority of expenses are in Swiss francs, whereas operating income -
similar to AuM - has a strong foreign currency exposure, especially to the euro
and the US dollar. Partly as a result of the strong Swiss franc and due to the
decline in the gross margin, the cost/income ratio increased from 63.1% to
65.4%.

All in all, profit before taxes increased by 8% to CHF 603 million, representing
a pre-tax margin of 35 basis points of average AuM. Income taxes went up by 13%
to CHF 99 million, representing a tax rate of 16.4%, up from 15.5% in 2009. As a
result, the net profit improved by CHF 31 million or 6% to CHF 504 million, and
earnings per share came to CHF 2.45 compared to CHF 2.29 in 2009.

As in previous years, in the analysis and discussion of the results in the Media
Release, operating expenses exclude integration and restructuring expenses as
well as amortisation of intangible assets related to acquisitions. Including
these items, as presented in the unadjusted IFRS results in the Annual Report,
the net profit was CHF 353 million in 2010, after CHF 389 million in 2009, a
decrease of 9%. This decrease is mainly related to integration and restructuring
costs in relation to the ING Bank transaction which closed in January 2010.

BIS tier 1 ratio at 23.8% - Significant excess capital position - Balance sheet
remains strong

The first-time consolidation of ING Bank in 2010 increased total assets by 8% to
CHF 46.3 billion and client deposits by CHF 1.6 billion to CHF 28.8 billion. Due
to the ING Bank consolidation as well as the expansion of Julius Baer's lending
activities, the loan book (lombard lending and mortgages) rose by CHF 4.1
billion to CHF 14.6 billion. Total equity was up by 7% to CHF 4.5 billion, and
BIS tier 1 capital grew by CHF 0.2 billion to CHF 2.9 billion. Risk-weighted
assets increased by 10% to CHF 12.1 billion, resulting in a continued strong BIS
tier 1 ratio of 23.8% under Basel II. The enhancement of the Basel II framework,
which was implemented as of 1 January 2011, will mainly impact the market risk
weightings. Pro forma for this change, the BIS tier 1 ratio was approximately
22.6% at the end of 2010. Under both BIS tier 1 ratio measurements, Julius Baer
is in a position of significant excess capital.

Increased dividend proposed, buyback programme planned

Based on the further improvement in net profit and the significant excess
capital position, the Board of Directors will propose to the Ordinary Annual
General Meeting on 7 April 2011 a dividend of CHF 0.60 per share, an increase of
CHF 0.20 or 50% from a year ago. Julius Baer also plans to launch a share
buyback programme of up to 5% of the outstanding share capital and with a
maximum value of CHF 500 million, to run until the AGM in 2012.



The results conference will be webcast at 9:30 a.m. (CET). All documents
(presentation, Business Review 2010, IFRS Annual Report 2010 and press release)
are available as of 7:00 a.m. (CET) at www.juliusbaer.com.

Contacts:

Media Relations     Tel. +41 (0)58 888 8888

Investor Relations     Tel. +41 (0)58 888 5256


Important dates:
7 April 2011:         Ordinary Annual General Meeting, Zurich
11 April 2011:      Ex-dividend date
13 April 2011:      Record date
14 April 2011:      Payment date
12 May 2011:       Release of Interim Management Statement
22 July 2011:       Release of 2011 first half-year results, Zurich



About Julius Baer

The Julius Baer Group is the leading Swiss private banking group, with an
exclusive focus on servicing and advising private clients. Julius Baer's total
client assets amounted to CHF 267 billion at the end of 2010, with assets under
management accounting for CHF 170 billion. Bank Julius Baer & Co. Ltd., the
renowned Swiss private bank with origins dating back to 1890, is the principal
operating company of Julius Baer Group Ltd., whose shares are listed on the SIX
Swiss Exchange (ticker symbol: BAER) and form part of the Swiss Market Index
(SMI) of the 20 largest and most liquid Swiss stocks.

Julius Baer employs a staff of over 3 500 in more than 20 countries and some 40
locations, including Zurich (head office), Dubai, Frankfurt, Geneva, Guernsey,
Hong Kong, London, Lugano, Milan, Monaco, Montevideo, Moscow and Singapore.
For more information visit our website at www.juliusbaer.com

Disclaimer Regarding Forward-looking Statements and Financial Information

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.

Financial Information
This media release contains certain pro forma financial information. This
information is presented for illustrative purposes only and, because of its
nature, may not give a true picture of the financial position or results of
operations of the Company. Furthermore, it is not indicative of the financial
position or results of operations of the Company for any future date or period.

--- End of Message ---

Julius Baer Group Ltd.
Bahnhofstrasse 36; P.O. Box Zurich Switzerland

ISIN: CH0102484968;

Presentation:
http://hugin.info/100120/R/1485793/420945.pdf

Business Review:
http://hugin.info/100120/R/1485793/420946.pdf

Annual Report:
http://hugin.info/100120/R/1485793/420947.pdf

Press Release (with Key Figures):
http://hugin.info/100120/R/1485793/420944.pdf




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Source: Julius Baer Group Ltd. via Thomson Reuters ONE

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Related Links: Julius Baer Gruppe AG
Author:
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