Julius Baer Group: Presentation of the 2010 half-year results *

Wednesday, 21. July 2010 07:00
Julius Baer Group Ltd. / Julius Baer Group: Presentation of the 2010 half-year results * processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

Net profit increased by 8% to CHF 261 million - Assets under management CHF 166
billion, up by 8% since year-end 2009 - Net new money CHF 3.3 billion or 4.3%
annualised - Gross margin improving from second half 2009 levels - Cost/income
ratio stable at 63% - BIS tier 1 ratio at 22.8%

 ·     Operating income increased by 13%, on the back of higher average assets
under management. The gross margin increased to 107 basis points, improving from
the level achieved in the second half of 2009. Operating expenses went up by
12%, resulting in profit before taxes improving by 14%. The cost/income ratio
was stable at 63%. Net profit increased by 8% to CHF 261 million.

 ·     Total client assets increased to CHF 255 billion, an increase of 6% since
the end of 2009. In the same period, assets under management increased by 8%, or
CHF 12 billion, to CHF 166 billion, on the back of the acquisition of ING Bank
(Switzerland) Ltd (´ING Bank´) and continued net inflows, and despite a negative
currency impact. Assets under custody rose to CHF 89 billion, up by 2% since the
end of 2009.

 ·     Net new money inflows were CHF 3.3 billion or 4.3% annualised.

 ·     The Julius Baer Group continued to manage its balance sheet
conservatively and maintains a very solid capital base. The BIS tier 1 ratio
stood at 22.8% as per 30 June 2010.

Boris F.J. Collardi, Chief Executive Officer of Julius Baer Group Ltd., said:
"We achieved a strong financial performance in the first six months of 2010,
despite a continued difficult market environment. We completed the integration
of ING Bank successfully and ahead of schedule. Our sound financial position
allows us to further pursue or even accelerate our growth initiatives. We
continue to aim at positioning Julius Baer and its offering at the leading edge
of global wealth management."

Total client assets grew to CHF 255 billion at the end of June 2010. Assets
under management increased by 8%, or CHF 12 billion, to CHF 166 billion compared
with CHF 154 billion at the end of 2009. The increase in assets under management
was the result of the completion of the acquisition of ING Bank which added
CHF 14 billion, net new money of CHF 3.3 billion, and a negative currency impact
of CHF 4 billion due to the significant decline in the value of the euro
especially towards the end of the reporting period. Net new money development
was the result of the continued solid contribution from growth markets, which
was partly offset by outflows due to certain changes in the regulatory
environment and a slight impact from attrition in the former ING Bank client
base during the integration, which was successfully completed at the end of May.
Assets under custody amounted to CHF 89 billion, after CHF 87 billion at the end
of 2009, an increase of 2%, mainly driven by CHF 1 billion in net new custody

Operating income rose by 13% year on year to CHF 916 million, on the back of
26% higher average assets under management partly offset by a lower gross margin
of 107 basis points. Whilst 12 basis points lower than in the first half of
2009, the gross margin continued to improve from the second half 2009 level of
103 basis points. Net fee and commission income grew by 25% to CHF 492 million,
in line with the increase in average assets under management, with investor
confidence improving somewhat, albeit overall still conservative. Net interest
income declined by 13% to CHF 245 million, as the impact of the decline in net
interest margins more than offset the increase in deposit and loan volumes. Net
trading income increased by 8% to CHF 163 million driven mainly by higher
client-driven foreign exchange trading volumes. Other ordinary results improved
to CHF 16 million.

Operating expenses went up by 12% year on year to CHF 594 million, mainly as a
consequence of the acquisition of ING Bank. The total number of employees
increased by 17% to 3,534, which includes 732 relationship managers, a net
increase of 65 since the end of 2009. As a result of the expanded staff base,
personnel expenses increased by 12% to CHF 400 million. General expenses,
including valuation adjustments, provisions and losses, rose by 11% to CHF 167
million. As a consequence, the cost/income ratio was essentially unchanged at
63.4%, compared to 63.3% in the first half of 2009.

Accordingly, profit before taxes improved by 14% year on year to CHF 323
million, representing a pre-tax margin of 38 basis points. Income taxes
increased to CHF 62 million, representing a tax rate of 19%. As a result, the
net profit improved by CHF 19 million, or 8%, to CHF 261 million, and earnings
per share came to CHF 1.27.

BIS tier 1 ratio at 22.8% - Balance sheet remains conservatively managed

The Group continued to manage its balance sheet conservatively and maintains a
very solid capital base. Total assets have increased by 11% since the end of
2009 to CHF 47.4 billion, mainly as a result of the acquisition of ING Bank.
Over the same period, client deposits went up by CHF 2.8 billion to CHF 30.1
billion, and lombard lending and mortgages increased by CHF 2.5 billion to
CHF 12.9 billion, thus resulting in a continued conservative loan-to-deposit
ratio of 0.43, underlining the sound liquidity situation of the Group. Total
equity was up by 3% to CHF 4.3 billion, and BIS tier 1 capital grew by CHF 39
million to CHF 2.7 billion. With a strong BIS tier 1 ratio of 22.8% the Julius
Baer Group continues to enjoy a very solid capital base.

The results conference will be webcast at 9:30 a.m. (CET). All documents
(presentation, Business Review First Half 2010, Half-year Report 2010, and press
release) will be available as of 7:15 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
12 November 2010:      Interim Management Statement
7 February 2011:         Release of 2010 Full-Year Results
7 April 2011:             Annual General Meeting

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 255 billion at the end of June 2010, with assets
under management accounting for CHF 166 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 3 500 in more than 20 countries and some 40
locations, including Zurich (head office), Dubai, Frankfurt, Geneva, Hong Kong,
London, Lugano, Milan, Monaco, Montevideo, Moscow and Singapore.
For more information visit our website at www.juliusbaer.com

* Excluding integration and restructuring expenses of CHF 43 million (CHF 33
million net of tax) and the amortisation of intangible assets. Unadjusted for
these items, the net profit attributable to shareholders decreased by 9% from
CHF 203 million in the first half of 2009 to CHF 185 million in the first half
of 2010.


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

ISIN: CH0102484968;

Presentation (Handout): http://hugin.info/100120/R/1433014/378970.pdf
Media Release & Key Figures: http://hugin.info/100120/R/1433014/378938.pdf
Business Review: http://hugin.info/100120/R/1433014/378971.pdf

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Source: Julius Baer Group Ltd. via Thomson Reuters ONE
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