Julius Baer Gruppe Reports Increased Earnings in First Half of 2023

Julius Baer Gruppe Reports Increased Earnings in First Half of 2023

Julius Baer Gruppe has announced higher earnings for the first half of 2023, thanks to rising interest rates.

The Swiss private banking group revealed that net profit for the period grew by 18% compared to the previous year, reaching 531 million Swiss francs ($614.2 million).

Operating income stood at CHF2.03 billion, representing an 8.8% increase from the previous year. This growth was primarily driven by higher interest rates, resulting in a 36% increase in net interest income. However, there was an 8% decline in net commission and fee income.

As of June, the bank’s assets under management reached CHF440.7 billion, compared to CHF427.9 billion reported a year earlier. By April 2023, assets under management were at CHF429 billion.

Although Julius Baer acknowledged that the first four months of the year presented challenges for wealth managers, the group experienced net new money inflows of CHF7.1 billion in the first half of the year. This figure surpassed the earlier reported CHF3.5 billion in net new money by the end of April.

During the second quarter, Julius Baer observed an acceleration in net new money intake, although continued client deleveraging affected overall inflows.