Latest news with #JuliusBaer
Reuters
a day ago
- Business
- Reuters
Julius Baer first-half results clouded by legacy charges
ZURICH, July 22 (Reuters) - Julius Baer's (BAER.S), opens new tab profit fell 35% year-on-year to 295 million Swiss francs ($370 million) in the first half, pressured by loan loss provisions and a charge from the sale of its Brazilian wealth management arm, the Swiss bank said on Tuesday. The Zurich-based wealth manager said it was making good progress in recovering from legacy problems, after heavy losses last year mainly linked to the collapse of property group Signa led to a management shake-up. But it declined to say when it might resume share buybacks, which hinge on an ongoing assessment of the bank by the Swiss regulator following the Signa losses. "Unfortunately, I cannot give you a clear timeline because I don't have one," CEO Stefan Bollinger said when asked on an investor call whether an update on capital plans could be expected with year-end results. Bollinger later told journalists that the bank was committed to doing share buybacks over time. Its shares erased early gains to trade down 0.8% at 0910 GMT. Julius Baer announced in May a 130 million franc writedown on its credit book. "Once the credit review has been completed, we'll be in a position to decide whether or not additional loan loss allowances are required," Bollinger said. The bank said net new money more than doubled year-on-year to 7.9 billion francs, bringing assets under management to 483 billion francs, as of end-June. However, the inflows, plus rising global equity markets, were more than offset by the impact of the weaker U.S. dollar and the sale of Julius Baer Brazil in March, it said. The bank said it was on track to hit its target for 130 million francs in additional gross cost savings by the end of 2025. "Some of our cost-saving efforts are starting to pay off," Bollinger said, adding that Julius Baer's underlying cost-income ratio improved by 3 percentage points to 68.2%. ($1 = 0.7975 Swiss francs)
Mint
a day ago
- Business
- Mint
Julius Baer Inflows Beat as CEO Bollinger Revamps Swiss Firm
(Bloomberg) -- Julius Baer Group Ltd. reported better-than-expected inflows in the first half as new Chief Executive Officer Stefan Bollinger seeks to move on from a string of missteps. Clients added a net 7.9 billion Swiss francs ($9.9 billion) in the six months through June, exceeding the 6.5 billion francs estimated by analysts. Net income fell 35% to 295 million francs, reflecting the impact of a previously disclosed loan loss allowance and a divestment in Brazil. 'We have good momentum and we are moving in the right direction,' Bollinger said in an interview. The CEO and Chairman Noel Quinn are seeking to put the bank on a path for growth again after losses linked to the collapse of Rene Benko's real estate empire prompted the wealth manager to shake up its management. Yet a drip feed of bad news has complicated their mission. In May, the bank booked another large loss from property developments it helped finance, resulting in a 130 million-franc charge related to its private debt business and selected positions in its mortgage operation. Julius Baer said it hasn't found a need so far for more loan loss allowances as it continues the review of its credit book, which is expected to be completed 'in the next few months.' Shares of Julius Baer rose 2.3% at 9:O2 a.m. in Zurich, paring losses this year to around 1%. 'While it is early days in the execution of the strategy, net new money trends and operating performance especially on costs were encouraging,' Anke Reingen, an analyst at RBC Capital Markets, wrote in a note. As part of his turnaround plan, the new CEO has slashed the top management ranks and announced hundreds of job cuts. He has cautioned that his restructuring efforts will push up expenses at first, before bearing fruit from next year. Julius Baer said on Tuesday that 78 relationship managers have left so far this year, most of them for performance reasons. (Updates with CEO comment in third paragraph, shares in seventh.) More stories like this are available on
Yahoo
a day ago
- Business
- Yahoo
Julius Baer's first-half profit falls 35% on loan provisions, Brazil unit sale
(Reuters) -Swiss bank Julius Baer posted a first-half profit of 295 million francs ($370 million) on Tuesday, down 35% year-on-year, pressured by loan loss provisions and a charge related to the sale of its Brazilian wealth management unit. The decline reflected earlier-flagged writedown of 130 million Swiss francs, the bank said, adding that it made strong progress on legacy issues. "We are now in full execution mode of our strategic agenda, focused on our core wealth management lane, balancing sustainable growth and cost discipline with strengthened risk management," CEO Stefan Bollinger told journalists. To date, the bank had no additional loan loss allowances to report, Bollinger added. "Once the credit review has been completed, we'll be in a position to decide whether or not additional loan loss allowances are required," he said. Net new money more than doubled year-on-year to 7.9 billion Swiss francs, bringing assets under management to 483 billion francs, as of end-June, Julius Baer said in its half-year results presentation. Positive effects of solid net new money and rising global equity market valuations were more than offset by the impact of the weaker U.S. dollar and the sale of Julius Baer Brazil in March 2025, the bank said. The bank is on track to achieve 130 million Swiss francs in additional gross cost savings by the end of 2025, according to the statement. ($1 = 0.7975 Swiss francs)
Business Times
a day ago
- Business
- Business Times
Julius Baer's first-half profit falls 35% on loan provisions, Brazil unit sale
[BERN] Swiss bank Julius Baer posted a first-half profit of 295 million francs (S$473.5 million) on Tuesday (Jul 22), down 35 per cent year-on-year, pressured by loan loss provisions and a charge related to the sale of its Brazilian wealth management unit. The decline reflected earlier-flagged writedown of 130 million Swiss francs, the bank said, adding that it made strong progress on legacy issues. 'We are now in full execution mode of our strategic agenda, focused on our core wealth management lane, balancing sustainable growth and cost discipline with strengthened risk management,' CEO Stefan Bollinger told journalists. To date, the bank had no additional loan loss allowances to report, Bollinger added. 'Once the credit review has been completed, we'll be in a position to decide whether or not additional loan loss allowances are required,' he said. Net new money more than doubled year-on-year to 7.9 billion Swiss francs, bringing assets under management to 483 billion francs, as of end-June, Julius Baer said in its half-year results presentation. Positive effects of solid net new money and rising global equity market valuations were more than offset by the impact of the weaker US dollar and the sale of Julius Baer Brazil in March 2025, the bank said. The bank is on track to achieve 130 million Swiss francs in additional gross cost savings by the end of 2025, according to the statement. REUTERS
Mint
a day ago
- Business
- Mint
MORNING BID EUROPE-Europe Inc braces for pain from a sturdy euro
A look at the day ahead in European and global markets from Ankur Banerjee The incredible rise of the euro this year is sure to play a part in Europe Inc's performance as a steady but unspectacular start to the earnings season kicks up a notch with results due from the region's largest software maker SAP. While tariff uncertainties linger ahead of an August 1 deadline, investors are pinning their hopes on resilient corporate earnings from Wall Street and European bellwethers to keep stocks and sentiment aloft. Investors will parse through quarterly results for any clues on the impact trade uncertainty has had on profitability and consumer demand, with the earnings so far described by RBC Capital Markets as "fine but not fabulous". SAP, which has been riding a boom in demand for its cloud-based offerings spurred by artificial intelligence, will report later on Tuesday as will UniCredit and Julius Baer. Focus will be on just how much the euro's rise has eaten into profits of the firms in the bloc's export-reliant economy after the single currency surged 9% in the April-June quarter. The euro is up 13% so far in the year as investors looked for alternatives to U.S. assets and to lower their dollar exposure in the wake of U.S. President Donald Trump's erratic trade policies. SAP had predicted back in April that for every 1 cent rise in the euro, its annual revenue could decline by around 30 million euros. The euro was last at $1.1688 compared to $1.1329 at the end of April. Earnings from luxury behemoth LVMH and drugmaker Roche this week will also be of interest. Tariffs and where they are headed remain on the agenda after diplomats said the EU is exploring wide-ranging "anti-coercion" measures which would let the bloc target U.S. services or curb access to public tenders in the absence of a deal. Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline. Meanwhile, the 'will-he-won't-he' saga over Trump possibly firing Federal Reserve Chair Jerome Powell rumbles on. U.S. Treasury Secretary Scott Bessent said on Monday the entire Federal Reserve needed to be examined as an institution and whether it had been successful, further exacerbating worries about the independence of the U.S. central bank. Key developments that could influence markets on Tuesday: Earnings: SAP, UniCredit, Julius Baer Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (Editing by Muralikumar Anantharaman)
