Julius Baer Group: Interim Management Statement for the first ten months of 2010

Friday, 12. November 2010 07:00
Julius Baer Group Ltd. /
Julius Baer Group: Interim Management Statement for the first ten months of 2010
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Assets under management CHF 175 billion, up 14% since year-end 2009 - Net
inflows well into the target range

Zurich, 12 November 2010 --- Julius Baer Group's assets under management (AuM)
rose to CHF 175 billion at the end of October 2010. Including the acquisition of
ING Bank (Switzerland) Ltd, this represents an increase of 14% vs. year-end
2009. Total client assets increased by 12% to CHF 271 billion.

The year-to-date AuM increase was supported by a positive market performance,
whilst the Swiss franc currency translation impact was negative as a result of
the decline of the euro and the US dollar. Net new money inflows accelerated the
momentum that started to build up during the first half of this year and have
grown at an annualised pace well into the Group's 4-6% medium-term target range
in the first ten months. All regions contributed positively, with the strongest
increase coming from the growth markets Asia, Latin America, Middle East and
Russia & Eastern Europe, as well as from the onshore German business.

Whilst the gross margin was year-to-date slightly below the level of the first
half of 2010 (107bps), it was ahead of the level achieved in the second half of
2009 (103 bps). Whereas client transaction and trading volumes continued to be
subdued and volatile, the Group continues to develop and implement initiatives
that are expected to support and strengthen the gross margin over the medium

Relative to the 63.4% reported in the first half of 2010, and calculated on the
same basis, the cost/income ratio for the first ten months of 2010 was slightly
more elevated. This increase was attributable to the gross margin development
and due to selective further investments related to ongoing business

The Julius Baer Group continued to manage its balance sheet conservatively and
maintains a solid capital base. The BIS tier 1 ratio stood at 23.6% at the end
of September 2010. The enhancement of the Basel II framework, which will be
implemented by 1 January 2011, will mainly impact the market risk weightings.
Pro forma for this change, the BIS tier 1 ratio was approximately 22%.

The Swiss Federal Department of Finance recently announced it will open official
negotiations with Germany and the UK on tax matters. A successful conclusion of
these negotiations would provide German- and UK-resident clients of Swiss banks
the opportunity to regularise any undeclared assets whilst maintaining their
financial privacy. Julius Baer has accomplished a very strong international
diversification of its client base since 2005, particularly into emerging
markets. As a consequence, based on the assumptions that can realistically be
made today, Julius Baer strongly believes that any potential future negative
impact on AuM will be more than offset by continued strong inflows, even if
other EU countries were to enter into similar negotiations with Switzerland.
Julius Baer therefore sees no reason to adjust its medium-term net new money
target range.

Julius Baer Group's detailed financial results for the full year 2010 are
scheduled for release on 7 February 2011.


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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 271 billion at the end of October 2010, with
assets under management accounting for CHF 175 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, 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;

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Source: Julius Baer Group Ltd. via Thomson Reuters ONE
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