ZURICH, Nov 21 (Reuters) – Julius Baer (BAER.S) on Monday stated it was on observe to succeed in its 2022 profitability targets, regardless that “difficult market” situations have shrunk its property.
Belongings below administration fell by 11% to 429 billion Swiss francs ($449.07 billion) within the 10 months to Oct. 31, Switzerland’s third-largest listed financial institution stated, because it was hit by declines in international inventory and bond markets.
The 52 billion franc downturn was mitigated by optimistic forex exchanges, primarily the stronger greenback, in addition to web new cash inflows of three billion francs, it stated.
“Supported additional by the diligent execution of the income and price measures within the first two years of the present strategic cycle, the price/earnings ratio, pre-tax margin and return on CET1 capital (RoCET1) targets set for 2022 stay effectively inside attain,” the wealth supervisor stated in an announcement.
Julius Baer additionally stated it might meet its aim to purchase again as much as 400 million Swiss francs value of shares by the tip of February 2023.
The financial institution stated it had additionally reclassified 1 billion francs of property below administration to property below custody following asset freezes ensuing from Western sanctions imposed on shoppers following Russia’s invasion of Ukraine.
“The 10M22 assertion could be very strong, regardless of decrease AuM than estimated,” Vontobel analyst Andreas Venditti stated. “JB strongly benefited from rising rates of interest, greater than offsetting muted consumer exercise.”
($1 = 0.9553 Swiss francs)
Reporting by Noele Illien, modifying by John Revill and Barbara Lewis
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