Julius Baer Group: Presentation of the 2009 full-year results

Friday, 05. February 2010 07:01
Julius Baer Group Ltd. / Julius Baer Group: Presentation of the 2009 full-year results processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

Zurich, 5 February 2010

Presentation of the 2009 full-year results for the Julius Baer Group

Net profit increased by 7% to CHF 473 million - Assets under management of
private clients up by 19% to CHF 154 billion - Net new money CHF 5 billion or
4% - BIS tier 1 ratio at 24.2%*

·         Operating income declined by 5%, driven by 3% lower average assets
under management and gross margins contracting slightly to 111 basis points.
Operating expenses were reduced by a further 8%, resulting in the adjusted net
profit increasing by 7% to CHF 473 million.

·         Total client assets increased by 25% to CHF 241 billion. Assets under
management of private clients grew by 19% to CHF 154 billion, on the back of
recovering markets and net inflows. Assets under custody rose by 37% to CHF 87
billion.

·         Net new money inflows from private clients were CHF 5 billion or 4%.
Overall continued healthy inflows - especially from emerging markets and in
particular Asia - were partly offset by outflows due to the Italian tax amnesty
and the phased exit from the US business.

·         The Julius Baer Group continues to enjoy a very strong capital base as
expressed by its BIS tier 1 ratio of 24.2% at year-end and is well positioned to
be a driving force in the industry consolidation.

·         Based on this result and in adhering to the payout policy of the
former Julius Baer Holding Ltd., the Board of Directors will propose to the
Ordinary Annual General Meeting on 8 April 2010 a dividend of CHF 0.40 per
registered share.


With the separation of the private banking and asset management businesses of
the former Julius Baer Holding Ltd., 2009 was a transformational year for Julius
Baer. Thus by refocusing on its core strengths - providing private banking and
investment advisory services for private clients, family offices and external
asset managers based on a truly open product platform - Julius Baer was
established as the leading Swiss private banking group. This move, in
anticipation of some of the regulatory trends currently being discussed
publicly, was very well received by the Group's clients. It reinforces Julius
Baer's commitment to private banking excellence in keeping with its rich Swiss
heritage dating back to 1890.

Boris F.J. Collardi, Chief Executive Officer of Julius Baer Group Ltd., said: "I
am very pleased with our Group's performance in a year of significant strategic
repositioning and given the demanding financial markets. Thanks to Julius Baer's
very sound financial base, clear strategic direction and comprehensive footprint
in Switzerland and abroad, we are well positioned to cope with what we perceive
is a fundamentally changing business environment facing our industry. Our
priorities therefore remain unchanged: to capture further growth and to
capitalise on potential market opportunities."

Total client assets amounted to CHF 241 billion at the end of 2009. Assets under
management increased by 19% to CHF 154 billion compared with the CHF 129 billion
at the end of 2008. This increase was the result of a positive market
performance impact of CHF 20 billion driven by positive returns for most asset
classes during 2009, net new money of CHF 5 billion, the acquisition of Alpha
SIM in Milan, which added CHF 0.6 billion, and a minor negative currency impact
of CHF 0.7 billion. Net new money development, within the targeted 4-6% range,
was the result of continued strong inflows from emerging markets and in
particular Asia, being partly offset by outflows due to the Italian tax amnesty
and the announced phased exit from the US business. Of total assets that were
declared by clients taking advantage of the Italian tax amnesty, some 60%
remained with Julius Baer. The reported assets under management do not include
the CHF 14 billion year-end assets under management resulting from the
acquisition of ING Bank (Switzerland) Ltd, which closed in January 2010. Assets
under custody ended the year at CHF 87 billion after CHF 64 billion at the end
of 2008, an increase of 37%, reflecting positive market performance as well as
CHF 13 billion in net new custody assets.

Operating income declined by 5% to CHF 1,586 million, driven by 3% lower average
assets under management and a slightly lower gross margin of 111 basis points.
Net fee and commission income declined by 15% to CHF 819 million on the back of
decreased average asset levels, a lower level of actively managed assets, and a
changed asset mix based on private clients' more conservative investment stance.
Net interest income rose by 3% to CHF 467 million, the result of higher average
deposit levels, decreased average lending to private clients, and net interest
margins which were relatively high in the first half of 2009 but, as expected,
contracted in the second half of the year to more normal levels. While average
lending to private clients decreased year on year, the second half of 2009 saw a
turnaround in loan volumes compared with the first half. Net trading income
declined by 13% to CHF 299 million as the decrease in client-driven foreign
exchange trading volumes was only partly offset by an increase in client-driven
fixed income trading. Other ordinary results, in 2008 negatively impacted by
market-related position squaring in the investment portfolio, turned positive
again.

Operating expenses were managed down a further 8% to CHF 1,026 million.
Notwithstanding the continued investments in growth, in particular through the
further expansion of the base of relationship managers by net 48 to 667, the
increase in the overall number of employees remained limited to 1%, taking the
total staff level to 3,078. Despite this increase, personnel expenses were
reduced by 8% to CHF 683 million, mainly on the back of lowered
performance-related compensation and a decrease in share-based payments. General
expenses, including valuation adjustments, provisions and losses, were down by
13% at CHF 296 million. As a consequence, the cost/income ratio for 2009
improved from 65.3% to 63.1%.

Accordingly, profit before taxes increased by 3% to CHF 560 million,
representing a pre-tax margin of 39 basis points. Income taxes declined to
CHF 87 million, representing an effective tax rate of 16%, which compares to
18% in 2008. As a result, the adjusted net profit improved by 7% to CHF 473
million, and earnings per share came to CHF 2.29.

BIS tier 1 ratio at 24.2% - Balance sheet remains solid

Total assets were unchanged at CHF 42.7 billion. Client deposits went up by
CHF 1.7 billion to CHF 27.3 billion, and lombard lending and mortgages increased
by CHF 0.6 billion to CHF 10.4 billion, thus resulting in a continued
conservative loan-to-deposit ratio of 0.38, underlining the sound liquidity
situation of the Group. Total equity was up by 20% to CHF 4.2 billion, and BIS
tier 1 capital grew to CHF 2.7 billion. With a strong BIS tier 1 ratio of 24.2%
the Julius Baer Group continues to enjoy a very solid capital base and is well
positioned to be a driving force in the industry consolidation.

Proposed dividend

Based on the pleasing result and in adhering to the payout policy of the former
Julius Baer Holding Ltd., the Board of Directors will propose to the Ordinary
Annual General Meeting on 8 April 2010 a dividend of CHF 0.40 per registered
share.



* Financial figures representing Julius Baer Group Ltd. as if it had already
existed on 1 January 2008. Excluding integration and restructuring expenses and
the amortisation of intangible assets in relation to the 2005 UBS transaction,
as well as mainly one-off charges related to the separation and the ING
transaction in 2009. Including these positions, the net profit attributable to
shareholders was CHF 389 million in 2009, after CHF 357 million in 2008, an
increase of 9%. These results do not include the acquisition of ING Bank
(Switzerland) Ltd, which closed after the 2009 year-end.



The results conference will be webcast at 9:30 a.m. (CET). All documents
(presentation, Business Review 2009, 2009 IFRS Annual Report and press release)
will be available as of 7:15 a.m. (CET) at www.juliusbaer.com.



Contacts: Media Relations: Tel. +41 58 888 8888, Investor Relations: Tel. +41
58 888 5256

Important dates
8 April 2010:         Ordinary Annual General Meeting, Zurich
12 April 2010:      Ex-dividend date
15 April 2010:      Record date
16 April 2010:      Payment date
11 May 2010:       Interim Management Statement
21 July 2010:       Release of 2010 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 241 billion at the end of 2009, with assets under
management accounting for CHF 154 billion. Bank Julius Baer & Co. Ltd., the
renowned Swiss private bank with origins dating bank 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 3 000 in more than 20 countries and some 40
locations, including Zurich (head office), Buenos Aires, Dubai, Frankfurt,
Geneva, Hong Kong, London, Lugano, Milan, Moscow and Singapore.
For more information visit our website at www.juliusbaer.com



[HUG#1380579]



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

ISIN: CH0102484968;

Business Review: http://hugin.info/100120/R/1380579/340399.pdf
Press Release with Key Figures: http://hugin.info/100120/R/1380579/340397.pdf
Presentation (Handout): http://hugin.info/100120/R/1380579/340398.pdf


Related Links: Julius Baer Gruppe AG
Author:
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