Julius Baer Boosts Net Profit by 35% to CHF 868 Million (USD $699 Million)*.Assets under Management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. Rise to CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 361 Billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $291 Billion) ZURICH, Switzerland -- The Julius Baer Group Julius Bär Group or Julius Baer Group is a Swiss banking firm which is the parent company of Bank Julius Bär, a traditional private bank based in Zurich, Switzerland, which dates back to the year 1890 when it was founded by the famous banker Julius Bär. (BAER.VX) increased its profit before taxes on a comparable basis* by 34% from CHF 845 million (USD $680 million) to CHF 1,131 million (USD $910.79 million) in 2006 and its net profit by 35% from CHF 641 million (USD $516 million) to CHF 868 million (USD $699 million). Assets under management went up strongly by 19% to CHF 361 billion (USD $291 billion) at the end of 2006. Net new money was CHF 27 billion (USD $22 billion) with Private Banking contributing CHF 6 billion (USD $5 billion) and Asset Management CHF 21 billion (USD $17 billion). Up to CHF 612 million (USD $493 million) are envisaged to be distributed to shareholders both in form of dividends (CHF 112 million/USD $90 million) and share buy-backs (up to CHF 500 million/USD $403 million). The Board of Directors proposes to the Annual General Meeting an unchanged dividend of CHF 1.00 (USD $0.80) per registered share. In addition, it proposes a share split of 1:2. "2006 proved to be a very successful year and has fully confirmed the strong strategic rationale behind building the new Julius Baer Group. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was up 12% while costs remained flat as investments in the growth markets were partly offset by cost synergies. We managed successfully to finalize the integration, while simultaneously repositioning the Group as the leading dedicated wealth manager in Switzerland. We feel we can continue to grow both in the traditional as well as in the growth markets assuming reasonable market conditions," sums up Johannes A. de Gier, Group CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Solid financial performance confirms business model Assets under management of the Julius Baer Group reached CHF 361 billion (USD $291 billion) at the end of 2006, up 19% from CHF 304 billion (USD $245 billion) in 2005. This increase is both attributable to net new money inflows totaling CHF 27 billion (USD $22 billion) and market performance of CHF 30 billion (USD $24 billion). In addition, global custody assets which are not included in the assets under management amounted to CHF 44 billion (USD $35 billion). Operating income increased by 12% to CHF 2,823 million (USD $2.27 billion) during the financial year. Both Private Banking and Asset Management have strongly contributed to this increase. Predominantly as a result of the increased asset levels, the contribution from commission and service fee activities rose by 12% to CHF 2,349 million (USD $1.89 billion). Trading revenues improved by 15% to CHF 251 million (USD $202 million), resulting from a notable increase in the level of trading activity and the successful launch of new financial products, while net interest income was up by 2% to CHF 199 million (USD $160 million). Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. rose by only 1% to CHF 1,692 million (USD $1.36 billion). Overall costs in Private Banking were up 7%, flat in Asset Management and down 18% in the Corporate Center. Personnel expenses grew by 4% to CHF 1,187 million (USD $955.89 million), mainly because of the overall staff increase by 5% from 3,512 to 3,684 as we continue to invest for growth, but also given the shift from back-office to client-facing staff. General expenses decreased by 1% to CHF 461 million (USD $371 million), mainly due to lower valuation adjustments, provisions and losses. Depreciation costs were down from CHF 62 million (USD $50 million) to CHF 44 million (USD $35 million). The cost/income ratio declined from 64% in 2005 to 59%. Profit before taxes increased by 34% to CHF 1,131 million (USD $910.79 million). Taxes amounted to CHF 263 million (USD $212 million), representing a tax rate of 23% compared to 24% in the previous year. As a consequence, net profit increased year-on-year by 35% to CHF 868 million (USD $699 million)(*). The consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. total grew by 26% to CHF 36.0 billion (USD $29 billion) at the end of 2006. At CHF 6.9 billion (USD $5.6 billion), equity was 11% higher than at the end of 2005. With a BIS Tier 1 ratio of 17.1% (year-end 2005: 12.7%) the Julius Baer Group (rated Aa3 by Moody's) continues to enjoy a very solid financial base. Return on equity rose to 24.3% (2005: 21.1%). Turnaround in Private Banking net new money Assets under management in the Private Banking division rose by 13% to CHF 138 billion (USD $111 billion) in 2006. Net new money was CHF 6 billion (USD $5 billion) or 5%. Growth markets, Asia in particular, showed strong inflows while the core markets altogether positively contributed for the first time in a number of years. The Private Banking division increased its profit before taxes by 19% to CHF 422 million (USD $340 million). Assets under management in the Asset Management division grew by 22% to CHF 223 billion (USD $180 billion) by the end of the year. 52% of this increase was attributable to the net new money inflows of CHF 21 billion (USD $17 billion). GAM managed CHF 83 billion (USD $67 billion), the U.S. asset management business CHF 66 billion (USD $53 billion) and the European business CHF 74 billion (USD $60 billion). The Asset Management division's profit before taxes rose by 31% to CHF 764 million (USD $615 million). Unchanged dividend - New share buy-back program - Stock split 1:2 Up to CHF 612 million (USD $493 million) are envisaged to be distributed to shareholders both in form of an unchanged dividend (CHF 112 million/USD $90 million) and buy-backs (up to CHF 500 million/USD $403 million). The Board of Directors will therefore propose to the Annual General Meeting of 17 April 2007 an unchanged dividend of CHF 1.00 (USD $0.80) per registered share and, in addition, a share split of 1:2. About Julius Baer The Julius Baer Group is the leading dedicated wealth manager in Switzerland. The Group, whose roots date back to the early nineteenth century, concentrates exclusively on the fields of private banking and asset management for private and institutional clients. With more than 3,600 employees worldwide, the Group managed clients' assets in excess of CHF 360 billion (USD $290 billion) at the end of December 2006. The Julius Baer Group's global presence comprises over 30 locations in Europe, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia, including Zurich (head office), Buenos Aires Buenos Aires (bwā`nəs ī`rēz, âr`ēz, Span. bwā`nōs ī`rās), city and federal district (1991 pop. , Dubai, Frankfurt, Geneva Geneva, canton and city, Switzerland Geneva (jənē`və), Fr. Genève, canton (1990 pop. 373,019), 109 sq mi (282 sq km), SW Switzerland, surrounding the southwest tip of the Lake of Geneva. , Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , London, Lugano, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Singapore and Tokyo. Bank Julius Baer, the key company of the Group, has a long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. rating of Aa3 from Moody's. The shares of Julius Baer Holding Ltd. are listed on the SWX Swiss Exchange SWX Swiss Exchange An all-electronic securities exchange formed from the 1995 merger of exchanges in Geneva, Basel, and Zurich. The exchange offers trading in equity securities, investment funds, exchange-traded funds, bonds, Eurobonds, and options. . The documents accompanying the results conference (results presentation, Business Review 2006, extracts of financial details of the 2006 Annual Report and press releases in multiple languages) will be available as of 07:00AM (CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr ) at www.juliusbaer.com. The 2007 half-year results of the Julius Baer Group will be released on 27 July 2007. * The year-on-year comparison is based on 2005 pro-forma figures, calculated as if the acquisition of the three private banks and GAM had occurred on 1 January 2005. In both years, integration and restructuring expenses, amortization of intangible assets and significant financial events are excluded from the data. Including these positions, the net profit for 2006 amounted to CHF 672 million (USD $541 million). |
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