ZURICH (Reuters) – Julius Baer on Monday said its profitability rose “significantly” in the first 10 months of 2021, as buoyant markets and new money inflows into Switzerland’s third-largest listed bank increased assets under management to 484 billion Swiss francs ($520.93 billion).
“Julius Baer’s profitability rose significantly in the first ten months of 2021 on the back of strong growth in client assets and substantial improvements in cost efficiency, complemented by a near absence of credit losses,” the bank said in a statement.
Assets under management rose 12% higher in the year to date, driven by a 4.4% increase in net new money, as well as positive stock market performance and currency movements, the bank said.
The Zurich-based wealth manager in July posted a 23.4% rise in half-year net profit to a record 606.0 million Swiss francs, helped by the soaring stock markets and active client trading that have benefited wealth and asset managers since the outset of the COVID-19 pandemic.
It does not provide profit figures for the 10-month period.
Julius Baer said the slowdown in client activity relative to the strong first quarter of 2021 continued from the second to the third quarter and well into October.
“Initial results for November, however, indicate a potential recovery for the final two months of the year,” it added.
($1 = 0.9291 Swiss francs)
(Reporting by John Revill; Editing by Riham Alkousaa and Paul Carrel)
