Julius Baer: shares down on lower profit, higher provisions
(CercleFinance.com) - Switzerland's Julius Baer disappointed investors on Monday with a fall in its 2019 net profit, hit by an increase in provisions and losses relating to legal cases.
Net profit adjusted for acquisition-related items decreased 5% to 772 million Swiss francs, the private bank said in a statement.
Assets under management (AuM) increased by 12% to 426 billion Swiss francs, boosted by the strong recovery of global markets.
UBS analysts pointed out, however, that the figure was a touch below consensus.
"Revenues were broadly in-line and costs a touch higher," they noted.
While operating income remained broadly unchanged last year, operating expenses rose by 14%, due to a rise in amortisation and impairment of intangible assets and the depreciation of property and equipment.
Also, net new money fell by 2.8%, impacted by "significant" outflows at Italian unit Kairos, the group added.
Julius Baer shares were having a rough ride this morning - down 4.5% in Zurich after the presentation.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Net profit adjusted for acquisition-related items decreased 5% to 772 million Swiss francs, the private bank said in a statement.
Assets under management (AuM) increased by 12% to 426 billion Swiss francs, boosted by the strong recovery of global markets.
UBS analysts pointed out, however, that the figure was a touch below consensus.
"Revenues were broadly in-line and costs a touch higher," they noted.
While operating income remained broadly unchanged last year, operating expenses rose by 14%, due to a rise in amortisation and impairment of intangible assets and the depreciation of property and equipment.
Also, net new money fell by 2.8%, impacted by "significant" outflows at Italian unit Kairos, the group added.
Julius Baer shares were having a rough ride this morning - down 4.5% in Zurich after the presentation.
Copyright (c) 2020 CercleFinance.com. All rights reserved.