ZURICH, Might 23 (Reuters) – Julius Baer (BAER.S) reported modest cash inflows within the first 4 months of this yr, disappointing traders who had anticipated the Swiss wealth supervisor to profit from Credit score Suisse’s troubles and sending its shares down as a lot as 8%.
The financial institution, which competes with each Credit score Suisse (CSGN.S) and UBS (UBSG.S) in managing the investments of the rich and ultra-wealthy, continues to be tipped to draw extra enterprise because of turmoil that led to Credit score Suisse’s takeover in March by larger rival UBS.
Nonetheless, in its buying and selling replace, Julius Baer mentioned that whilst inflows picked up after a sluggish begin to the yr, they totalled 3.5 billion Swiss francs ($3.94 billion) over January-April, with property beneath administration inching up simply 1% to 429 billion francs.
The numbers got here beneath expectations, with some analysts forecasting inflows twice as excessive, whilst some had cautioned it’d take extra time for Julius Baer to draw funds leaving Credit score Suisse.
“All in all, we view the online inflows as disappointing given the turbulence at Credit score Suisse was already important within the fourth quarter,” ZKB analyst Michael Klien mentioned in a notice.
RBC analysts mentioned they’d anticipated internet inflows, adjusted for the impact of shoppers’ lowering danger and borrowing, of 6 billion Swiss francs within the first 4 months of this yr, following robust momentum within the last two months of final yr.
Reporting its 2022 ends in February, a number of weeks earlier than UBS agreed to take over Credit score Suisse as a part of a Swiss government-orchestrated rescue, Julius Baer mentioned Credit score Suisse’s troubles contributed to inflows of recent funds, notably late within the yr.
It made no reference to its Swiss rivals in its January-April replace, however mentioned by hiring extra relationship managers it was nicely positioned to draw extra funds later within the yr.
“Trying forward, precise and forthcoming important progress within the Group’s RM (relationship supervisor) base is predicted to meaningfully profit the era of internet new cash over the medium time period,” Julius Baer mentioned.
UBS has been racing to seal the Credit score Suisse deal, aiming for its authorized shut inside coming weeks, as it’s eager to restrict buyer and employees departures following the months of turmoil at its smaller rival.
($1 = 0.8889 Swiss francs)
Reporting by Tomasz Janowski and Oliver Hirt;
Modifying by Rachel Extra
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