Julius Baer: Presentation of the consolidated 2009 half-year results
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Presentation of the consolidated 2009 half-year results* - includingpro forma financial figures for the future Julius Baer Group Ltd. andthe future GAM Holding Ltd. Additional information on strategy,management, financial targets and segment reporting structure ofthese companies will be presented on 24 September 2009.Total client assets at CHF 367 billion - Assets under management upby 9% to CHF 299 billion - Net new money inflows healthy in PrivateBanking, marked improvement in Asset Management - Net profitdecreases to CHF 324 million year on year - Expenses down by 12%, inline with target - BIS Tier 1 ratio at 16.7%With average assets under management 25% lower year on year,operating income declined by 24%. Operating expenses were manageddown by 12%, resulting in adjusted consolidated net profit decreasingby 37% to CHF 324 million in the first half of 2009 compared to ayear ago. All businesses continued to show a positive contribution.Compared to year-end 2008, amid stabilising financial markets and aweaker Swiss franc, consolidated assets under management increased by9% to CHF 299 billion. Including assets under custody of CHF 68billion, total client assets amounted to CHF 367 billion.Continued conservative risk and balance sheet management resulted inthe BIS Tier 1 ratio further improving to 16.7%.The future Julius Baer Group Ltd.** (private banking, excluding thePrivate Label Funds business) attracted net new private client assetsof CHF 4 billion or 6% annualised, positively contributing to the 12%growth in assets under management to CHF 142 billion compared toyear-end 2008.The future GAM Holding Ltd.** (asset management, including thePrivate Label Funds business) significantly improved asset flowscompared to the second half of 2008, with net outflows slowing to CHF0.5 billion while total assets under management rose by 6% in thefirst half of 2009 to CHF 156 billion compared to year-end 2008.Having been approved by the Extraordinary General Meeting on 30 June2009, the separation of the private banking and asset managementbusinesses is on track to be completed by the end of the thirdquarter of 2009 but remains subject to regulatory approvals.Total consolidated client assets amounted to CHF 367 billion at theend of June 2009. Assets under management totalled CHF 299 billion,up by 9% from CHF 275 billion at year-end 2008. This increase of CHF24 billion reflects net new money inflows of CHF 3.4 billion, therecovery of most investment categories in the second quarter, addingCHF 12 billion, a positive currency impact of CHF 7 billion and theacquisition of Augustus Asset Managers Ltd., which contributedCHF 1.9 billion. In addition, assets under custody were up by 7% toCHF 68 billion.Consolidated operating income fell by 24% to CHF 1,224 million yearon year primarily as a result of 25% lower average assets undermanagement year on year. Net fee and commission income declined by34% to CHF 791 million, due to the lower average asset levels, thechanging asset mix and clients' continued strong preference forliquidity and reluctance to engage in market-related activity. Netinterest income rose by 27% to CHF 281 million thanks to higheraverage deposit levels as well as higher interest margins, anddespite a slight decrease in lending to private clients. With foreignexchange trading income rising slightly and on the back of lower netincome from equity trading, net trading income decreased by 7% toCHF 165 million.Consolidated operating expenses declined by 12% to CHF 832 millionyear on year as a result of efforts to actively manage down theGroup's cost base. While the total number of employees declined by 2%to 4,255, personnel expenses fell by 13% to CHF 587 million as aresult of a renewed lowering of performance-related compensationaccruals. General expenses, including valuation adjustments,provisions and losses, were down by 15% to CHF 216 million, primarilyon the back of lower expenses for IT and marketing. Nevertheless, andas a consequence of operating income declining faster than operatingexpenses, the consolidated cost/income ratio increased to 67.0% forthe first half of 2009 from 58.5% a year ago.Consolidated profit before taxes declined by 40% to CHF 391 millionyear on year. Taxes amounted to CHF 68 million, representing a lowereffective tax rate of 17% versus 22% for the first half of 2008.Adjusted consolidated net profit was therefore down by 37% to CHF 324million. EPS showed a smaller decline of 36% to CHF 1.56 due to thelower share count following last year's buyback. The share buybackprogramme was terminated as part of the proposed separation that wasapproved by the Extraordinary General Meeting on 30 June 2009.Balance sheet remains solid - BIS Tier 1 ratio at 16.7%Consolidated total balance sheet assets showed virtually no change atmid-year, amounting to CHF 46.0 billion. Client deposits went up byCHF 2.1 billion to CHF 27.4 billion, again reflecting clients'defensive investment stance as well as positive currency translationeffects. Lombard lending and mortgages granted to clients (as part ofthe line item 'loans to customers') declined slightly year on year,resulting in a continued conservative loan-to-deposit ratio of 0.34versus 0.38 at year-end 2008, underlining the sound liquiditysituation of the Group, a comforting factor much appreciated byclients. Eligible Tier 1 capital grew to CHF 2.4 billion by mid-year2009. With a BIS Tier 1 ratio of 16.7% under Basel II, thecapitalisation remains very strong.Adjusted pro forma financial information for the future Julius BaerGroup Ltd. ** andthe future GAM Holding Ltd.**On 20 May 2009, Julius Baer announced its intention to separate itsprivate banking and asset management businesses into two fullyindependent groups of companies, both individually listed on the SIXSwiss Exchange. The separation was approved by shareholders on 30June 2009. The transaction is expected to be completed by the end ofthe third quarter 2009, subject to regulatory approvals. Thedevelopment of the private banking and asset management businessesduring the first six months of 2009 is already reported pro formaunder the future structure, i.e. for the future Julius Baer GroupLtd. and the future GAM Holding Ltd. as if the proposed transactionoccurred on 1 January 2008. The same principle applies to the tablesadjoining this press release. For reference purposes, financialfigures are also included for the two main operating unitsconstituting the segment reporting prior to the separation, BankJulius Baer and Asset Management.The future Julius Baer Group Ltd.** continues to attract healthy netnew money of 6% annualisedLeading pure-play Swiss private banking group Julius Baer Group Ltd.,consisting of Julius Baer's entire private banking activities andwith Bank Julius Baer & Co. Ltd. as its main operating unit,weathered the still demanding market environment well. Total clientassets rose by 10% to CHF 211 billion in the six months ended 30 June2009. Assets under management totalled CHF 142 billion, an increaseof 12% or CHF 15 billion compared to year-end 2008. Net new moneyinflows both from established and growth markets remained healthy andcontributed CHF 4 billion or 6% annualised, yet fell short of lastyear's record levels. As a result of a more favourable financialmarket environment and the weakening of the Swiss franc against majorcurrencies, market and currency performance added CHF 8 billion andCHF 3 billion respectively. In addition, assets under custody were upby 7% to CHF 68 billion compared to year-end 2008.Operating income of Julius Baer Group Ltd. fell by 9% to CHF 817million year on year. Net fee and commission income declined by 22%to CHF 393 million as a result of 10% lower average assets undermanagement year on year, the changed asset mix and lowerclient-driven transaction volume, partly compensated by higher netinterest income, which rose by 31% to CHF 285 million thanks tohigher average deposit levels and higher interest margins. Followingan exceptionally strong contribution in the first half of 2008, nettrading income decreased by 12% to CHF 151 million.Operating expenses of Julius Baer Group Ltd. were actively reduced by5% to CHF 530 million. The headcount was slightly lower at 3,025(-1%) compared to year-end 2008, but higher on average year on year.Selective broadening of the relationship manager base caused the nettotal number to increase by 17 to 636 while mid- and back-officestaffing was reduced. Mainly driven by lower performance-relatedcompensation accruals, personnel expenses decreased by 10% to CHF 357million. General expenses, including valuation adjustments,provisions and losses, remained broadly stable at CHF 151 million(+2%).As a consequence, profit before taxes declined by 16% to CHF 287million year on year. After deducting taxes of CHF 42 million,representing a lower tax rate of 15% compared to 20% for the year2008, the adjusted pro forma net profit of Julius Baer Group Ltd.amounted to CHF 246 million, down by 13% year on year. Thecost/income ratio increased to 63.0% for the first half of 2009 from61.2% a year ago, and the pre-tax margin was down to 42.8 basispoints from 45.5 basis points a year ago.On a pro forma basis, total balance sheet assets remained essentiallystable at CHF 42.4 billion at the end of June 2009. With a BIS Tier 1ratio of 16.4% under Basel II, Julius Baer Group Ltd. continues toenjoy a very solid financial base.The future GAM Holding Ltd.** with marked improvement in asset flowsGAM Holding Ltd., a leading active asset manager, including GAM,Artio Global, and Julius Baer's portfolio of investment funds,institutional mandate and Private Label Fund businesses (JBAM),managed assets of CHF 156 billion at the end of June 2009, anincrease of 6% compared to the end of 2008. A breakdown of the assetsunder management showed that CHF 49 billion was managed by GAM,CHF 51 billion by Artio Global and CHF 63 billion by JBAM (includingAugustus-advised fund assets distributed by JBAM). The total increaseof 6% or CHF 9 billion compared to year-end 2008 was attributable tonet outflows slowing to CHF 0.5 billion, positive market performanceof CHF 4 billion and favourable currency translation effectsresulting from the weakening of the Swiss franc, of CHF 4 billion. Inaddition, the acquisition of Augustus Asset Managers Ltd. at the endof May 2009 added CHF 1.9 billion to total net assets undermanagement. It is still intended to launch an IPO of Artio Global in2009, subject to market conditions.Operating income of GAM Holding Ltd. fell by 39% to CHF 448 millionyear on year as a result of significantly (-34%) lower average assetsunder management year on year and declining gross margins driven by achanged asset mix. Active management of its cost base has seenoperating expenses of GAM Holding Ltd. decline by 19% to CHF 344million year on year. Despite the addition of 50 staff joining as aresult of the acquisition of Augustus Asset Managers Ltd. by GAM,overall the number of employees declined by 4% to 1,230 year on year,which together with lower performance-related compensation accruals,has resulted in personnel expenses declining by 17% to CHF 230million. Reduced levels of marketing- and IT-related expenses havecontributed to general expenses (including valuation adjustments,provisions and losses) declining by 24% to CHF 106 million.As a consequence, profit before taxes declined by 67% to CHF 104million year on year. After deducting taxes of CHF 26 million,representing a tax rate of 25%, consistent with the year 2008, theadjusted pro forma net profit of GAM Holding Ltd. amounted to CHF 78million, down 66% year on year. The cost/income ratio increased to77.2% for the first half of 2009 from 57.0% a year ago, and thepre-tax margin reduced to 14.0 basis points from 27.6 basis points ayear ago.On a pro forma basis, total balance sheet assets amounted to CHF 3.9billion at the end of June 2009, 8% or CHF 0.3 billion lower than atthe end of 2008.The results conference will be webcast at 9:30 am (CET). Alldocuments (presentation, Business Review First Half 2009, Half-yearReport 2009 and press release) will be available as of 7:00 am (CET)at www.juliusbaer.com.ContactsMedia Relations: Tel. +41 58 888 5777Investor Relations: Tel. +41 58 888 5256Important datesThe Listing Prospectus for Julius Baer Group Ltd. will be releasedmid-September 2009. Both companies will give a strategy presentationon 24 September 2009.About Julius BaerThe Julius Baer Group, founded in 1890, is the leading dedicatedwealth manager in Switzerland. It concentrates exclusively on privatebanking and asset management for private and institutional clients.Julius Baer's total client assets amounted to CHF 367 billion at theend of June 2009, with assets under management accounting for CHF 299billion. Bank Julius Baer, GAM, Julius Baer Asset Management (JBAM)and Artio Global Investors are the key businesses of Julius BaerHolding Ltd., whose shares are listed on the SIX Swiss Exchange andform part of the Swiss Market Index (SMI), which comprises the 20largest and most liquid Swiss stocks.Julius Baer employs a staff of over 4 000 in more than 20 countriesand 40 locations, including Zurich (head office), Buenos Aires,Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Moscow,New York, Singapore and Tokyo.On 20 May 2009, Julius Baer announced its intention to separate itsPrivate Banking and Asset Management businesses into twoindependently listed groups of companies in order to enhance bothbusinesses' ability to deliver their full strategic potential.For more information visit our website at www.juliusbaer.com* Excluding integration and restructuring expenses, the amortisationof intangible assets as well as a CHF 17.4 million one-off charge(net of taxes) related to the separation of the private banking andasset management businesses. Including these positions, theshareholders' net profit for the first half of 2009 amounted toCHF 219 million versus a net profit of CHF 412 million in the firsthalf of 2008.**Based on pro forma information showing all financial figurescalculated as if the transaction had occurred on 1 January 2008.http://hugin.info/100120/R/1330894/314736.pdfhttp://hugin.info/100120/R/1330894/314737.pdfhttp://hugin.info/100120/R/1330894/314738.pdf --- End of Message ---Julius Baer HoldingBahnhofstrasse 36, P.O. Box Zurich SwitzerlandISIN: CH0029758650; Index: SLCI, SMI, SMIEXP, SPI;Listed: Main Market in SIX Swiss Exchange;
Datum: 27.07.2009 - 07:00 Uhr
Sprache: Deutsch
News-ID 3975
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 311 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Julius Baer: Presentation of the consolidated 2009 half-year results"
steht unter der journalistisch-redaktionellen Verantwortung von
Julius Baer Holding (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
