Globally, the bank’s Assets under Management (AuM) increased by 11% to a new record high of CHF189bn. The increase was the result of a significant positive market performance and net inflows of CHF9.7bn (5.7%).
Total client assets grew by 7% to CHF277bn. Assets under management increased by 11%, or CHF19bn, to CHF189bn. The increase in AuM was the result of a) a positive market performance of almost CHF11bn on the back of significant improvements across many investment categories, especially equities, b) net new money of CHF9.7bn and c) a negative currency impact of CHF1bn, mainly due to the decline in the value of the US dollar towards the end of the year. As in previous years, while all market regions contributed positively, the majority of inflows originated from the growth markets – Asia, Latin America, the Middle East, Russia and Central & Eastern Europe.
Operating income decreased by 1% to CHF1,737m, which was a direct consequence of a further reduction in client activity, while the adjusted net profit increased by 8% to CHF433m and adjusted earnings per share (EPS) by 11% to CHF2.14.
The principal closing of the IWM acquisition took place on 1 February 2013. As a first step of the integration, Julius Baer acquired the Geneva-based Merrill Lynch Bank (Suisse) S.A. with AuM of around CHF11bn, taking Julius Baer’s AuM above the CHF200bn mark for the first time.
Boris F.J. Collardi, Chief Executive Officer of Julius Baer Group Ltd., said, “We remained well in favour with clients in all our markets in 2012. The resulting substantial net new money inflow near the top end of our target range underlines the fundamental strength of Julius Baer’s product and service offering, further leveraged by our strong brand name. This translated into solid financial results for the year. In addition to these ongoing business activities, we initiated the transition into Julius Baer’s next strategic phase of growth by acquiring Merrill Lynch’s International Wealth Management business outside the US, the integration of which is well on track.”
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