UPDATE 1-Julius Baer says assets rise, inflows on target

Wed Nov 14, 2012 1:35am EST

* Julius Baer assets 187 bln Sfr at end-Oct vs 184 bln at end-Aug

* Net new money at top of 4-6 pct target range

* Bank flags lower gross margin, higher costs

ZURICH, Nov 14 (Reuters) - Julius Baer said on Wednesday overall client assets rose and fresh funds won from wealthy clients stayed on track with the bank's targets.

The Zurich-based private bank's assets under management rose to 187 billion Swiss francs at the end of October.

That compared with 184 billion francs at the end of August, which Baer disclosed last month in a trading statement alongside cuts of around 1,000 jobs following its purchase of Bank of America Merrill Lynch's international wealth management business.

Baer said net new funds won from clients was at the top end of its target, which is 4 to 6 percent growth annually.

But the bank also said its gross margin so far in the second half had slipped from 98 basis points in the first six months, and its cost-income ratio had edged higher.

"Since the end of June 2012, client transaction and trading activity initially contracted but recovered again in September and October 2012, albeit not fully to the levels seen on average in the first half of 2012," Julius Baer said in a statement.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video