Latest news with #JuliusBaerGroupLtd
Mint
22-07-2025
- 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
Mint
17-07-2025
- Business
- Mint
Julius Baer Seeks to Cut Bonuses of Bankers With Risky Books
(Bloomberg) -- Julius Baer Group Ltd. plans to reduce the bonuses of relationship managers who generate revenue from high-risk business, as the bank seeks to introduce a new pay culture, according to people familiar with the matter. The amount that advisers will see their pay docked varies depending on factors such as the type of transaction and the type of market involved, the people said, asking not to be named discussing remuneration. The change is pending regulatory approval, one of the people said. The move comes as the bank's new Chief Executive Officer Stefan Bollinger and Chairman Noel Quinn seek to reset the Swiss bank and put it on a path for growth after a string of missteps, including running up a $700 million exposure to Rene Benko's real estate empire. At an investor event in London last month, Bollinger said the bank was reviewing the compensation model with the aim to better align relationship managers' incentives with the interests of the bank and its shareholders. 'We want to incentivize the RMs to focus predominantly on long-term sustainable growth and therefore we will be very focused on the quality of net new money,' he said. A Julius Baer spokesperson said the changes, which are pending board approval, would 'preserve the essence of our framework, as we pay for performance and want to attract the best talent.' Wealth managers have different compensation models but often incentivize bankers through bonus payments that are tied to new assets they bring in. In June, Baer unveiled fresh targets and reintroduced a goal for net new money, which Bollinger stressed was underpinned by strengthened risk management. 'Risk management is my DNA, and I will be laser-focused on this,' Bollinger said. In its interim earnings update in May, the bank announced that Ivan Ivanic was taking over as Chief Risk Officer from Oliver Bartholet, who was retiring. It also said the executive board would be strengthened by a new compliance officer role, to be announced in due course. (Adds need for board approval in 6th paragraph.) More stories like this are available on
Fashion Network
14-07-2025
- Business
- Fashion Network
Singapore, London are costliest cities for luxury spending
Singapore is the most expensive city in the world for spending on luxury goods for the third year running, while London edged out Hong Kong to take the second spot. See catwalk They were followed by Monaco and Zurich, while Shanghai — which topped the list in 2022 — dropped two spots to sixth, according to an annual report by Swiss wealth manager Julius Baer Group Ltd. For the first time since the survey began in 2020, prices tracked by basket of luxury goods fell 2%, which Julius Baer described as 'quite exceptional' since historically, high-end consumer prices have risen twice as fast as average consumer prices. 'In light of ongoing uncertainty, trade tensions, and tariffs, our findings represent the final moment 'before' the current situation,' said Christian Gattiker, head of research at the Swiss bank. Next year's report 'will likely provide a fascinating 'after' perspective,' he said. With the current 'unpredictable nature' of the world, Singapore is valued for its stability and security, while in Hong Kong, a recent investment-for-residency program generated 'significant interest' from wealthy individuals, Julius Baer said. Hotel suites prices rose 10.3% in Singapore, and fell 26.1% in Hong Kong. The UK capital rose on the back of a 26.6% jump in the price of private education after legislative changes and a 29.7% gain in business class flights, according to the Swiss bank. Still, London's appeal as a center for wealth had a 'rather turbulent ride' over the past year with the abolition of non-domiciled residency status, it said. This has helped cities such as Dubai, Milan, and Zurich, which have courted the global elite considering to move away from the UK, according to the report. Dubai rose five spots to seventh place and is now a 'firm challenger' to the traditional bastions of wealth such as London, Monaco and Zurich, according to Julius Baer. 'The momentum of millionaires relocating to Dubai, which began during the pandemic, is predicted to continue,' the report said. New York, ranked the eighth and is the only city in the Americas to feature in the top 10. Sao Paulo and Mexico City took the greatest tumbles in the survey, with the former falling seven places to 16 and the latter five places to 21. The luxury sector is facing a 'downturn' following an 'endless buying spree' amid higher interest rates, slowing economic growth and a looming trade war, the report said. The biggest driver of price declines was technology. Bucking the trend was business class flights which jumped 18.2%. Julius Baer's Lifestyle Index ranks 25 cities by analyzing residential property, cars, business class flights, school, degustation dinners and other luxuries. The bank surveyed high-net-worth individuals with bankable household assets of $1 million or more from February to March 2025.
NDTV
14-07-2025
- Business
- NDTV
Singapore And London Are The Costliest Cities for Luxury Spending
Singapore is the most expensive city in the world for spending on luxury goods for the third year running, while London edged out Hong Kong to take the second spot. They were followed by Monaco and Zurich, while Shanghai - which topped the list in 2022 - dropped two spots to sixth, according to an annual report by Swiss wealth manager Julius Baer Group Ltd. For the first time since the survey began in 2020, prices tracked by basket of luxury goods fell 2%, which Julius Baer described as "quite exceptional" since historically, high-end consumer prices have risen twice as fast as average consumer prices. "In light of ongoing uncertainty, trade tensions, and tariffs, our findings represent the final moment 'before' the current situation," said Christian Gattiker, head of research at the Swiss bank. Next year's report "will likely provide a fascinating 'after' perspective," he said. With the current "unpredictable nature" of the world, Singapore is valued for its stability and security, while in Hong Kong, a recent investment-for-residency program generated "significant interest" from wealthy individuals, Julius Baer said. Hotel suites prices rose 10.3% in Singapore, and fell 26.1% in Hong Kong. The UK capital rose on the back of a 26.6% jump in the price of private education after legislative changes and a 29.7% gain in business class flights, according to the Swiss bank. Still, London's appeal as a center for wealth had a "rather turbulent ride" over the past year with the abolition of non-domiciled residency status, it said. This has helped cities such as Dubai, Milan, and Zurich, which have courted the global elite considering to move away from the UK, according to the report. Dubai rose five spots to seventh place and is now a "firm challenger" to the traditional bastions of wealth such as London, Monaco and Zurich, according to Julius Baer. "The momentum of millionaires relocating to Dubai, which began during the pandemic, is predicted to continue," the report said. New York, ranked the eighth and is the only city in the Americas to feature in the top 10. Sao Paulo and Mexico City took the greatest tumbles in the survey, with the former falling seven places to 16 and the latter five places to 21. The luxury sector is facing a "downturn" following an "endless buying spree" amid higher interest rates, slowing economic growth and a looming trade war, the report said. The biggest driver of price declines was technology. Bucking the trend was business class flights which jumped 18.2%. Julius Baer's Lifestyle Index ranks 25 cities by analyzing residential property, cars, business class flights, school, degustation dinners and other luxuries. The bank surveyed high-net-worth individuals with bankable household assets of $1 million or more from February to March 2025.
Business Recorder
14-07-2025
- Business
- Business Recorder
Singapore, London ranked most expensive cities, Dubai in 7th place
Singapore and London are the top cities globally for wealthy individuals, according to The 2025 Global Wealth & Lifestyle Report published by Swiss wealth manager Julius Baer Group Ltd. on Monday. Dubai was named the 7th most-expensive city, ahead of New York, Paris and Milan. The Julius Baer Lifestyle Index analyses the cost of a basket of goods and services representative of 'living well' in 25 cities around the world. This provides an overview of the relative cost of maintaining a high-net-worth lifestyle in these various major urban centres. Hong Kong came in third place, followed by Monaco and Zurich. Bangkok and Tokyo made the biggest jumps, climbing six positions to become the 11th and 17th most expensive cities respectively. Singapore retains title as the world's most expensive city for second year in a row The luxury sector faced a downturn in 2024/25 due to various economic challenges, including high interest rates and geopolitical tensions, with notable shift in consumer spending patterns among high-net-worth individuals (HNWIs) amidst these challenges. Middle East The only Gulf city in the top ten, Dubai climbed up from 12th place last year, and is noted as a firm challenger to more traditional cities, particularly given its competitive efforts to appeal to the mobile elite through residency schemes and low personal taxation. Dubai has been consistently marked as a premier destination for global wealth migration, noting a staggering 102% growth in millionaire residents over the past decade – placing it among the world's most dynamic and elite wealth hubs. Dubai is also set to more than double its centi-millionaire population by 2035, according to the recent 'World's Wealthiest Cities Report 2025', compiled by Henley & Partners and New World Wealth earlier this year. Its appeal with HNWIs lies being a wealth stronghold where policies are designed to attract, not restrict, enabling individuals to safeguard their wealth, plan their legacies and influence global markets from a secure base. The report outline how wealthy individuals are increasingly focused on 'financial ' longevity due to longer life expectancies. The Middle East saw 37% of respondents report a significant increase in asset value. Real estate is now the top asset for European and Middle Eastern HNWIs. For the first time in years, the overall price of luxury goods and services has decreased, indicating a shift in consumer priorities. The report details specific price changes across various categories. The average price of an HNW lifestyle fell by 2% in USD, with goods dropping by 3.4% and services decreasing by 0.2%. Decline in prices of luxury goods and services For the first time in years, the overall price of luxury goods and services has decreased, indicating a shift in consumer priorities. The report details specific price changes across various categories. The average price of an HNW lifestyle fell by 2% in USD, with goods dropping by 3.4% and services decreasing by 0.2%. Business class flights saw the largest increase at 18.2%, driven by changing travel dynamics and supply shortages. Notable decreases were observed in technology packages (down 22.6%), handbags (down 3.5%), and champagne (down 4.2%). HNWIs are are increasingly prioritizing experiences over material goods, reflecting a broader trend in luxury consumption.
