ENP Newswire -
Release date- 14052014 - Assets under management
At the end of
Improved gross margin, net new money well within target range
The increase in Group AuM was supported by the inclusion of
The gross margin improved to 95 bps, up 4 bps from the second half of 2013. Excluding IWM, the extrapolated Julius Baer 'stand-alone' gross margin was approximately 98 bps, up from approximately 96 bps in the second half of 2013, supported by an improvement in client transaction activity in all regions.
The Group's cost/income ratio was slightly above the 73.3% realised in the second half of 2013. Due to the timing of the key IWM restructuring steps throughout the year, the cost/income ratio is expected to improve closer to the 65-70% medium-term target range in the second half of 2014, subject to the development of the gross margin.
Julius Baer remains strongly capitalised. At the end of
IWM productivity advancing towards 2015 target
After the end of
The first four months of 2014 brought significant progress on the productivity of the IWM business. The former IWM relationship managers already started to contribute to net new money, and, at 83 basis points (bps), the extrapolated gross margin on the IWM AuM advanced close to the 2015 target of 85bps.
Integration-related restructuring on track
The previously communicated restructuring following the completion of the majority of the IWM asset transfers is on track. During the first four months of 2014, on a net basis, the integration-related rightsizing resulted in more than 100 employees leaving the Group, thereby enabling the Group to make good progress according to plan towards the realisation of the transaction-related synergy targets.
(1) Based on unaudited management accounts
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