Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on JULIUS BAER GROUP LTD. We currently have 4 research reports from 1 professional analysts.
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JULIUS BAER GROUP LTD
JULIUS BAER GROUP LTD
Expected strong profit increase
25 Jul 16
The reported net profit jumped from CHF40m for H1 15 to CHF362m for H1 16. Interest and dividend income rose by 33% to CHF510m in H1 16. Net commission and fee income declined by 14% to CHF739m for H1 16 compared to H1 15. Trading income was down by 46% to CHF118m in the same period. Operating income increased slightly by 1% to CHF1.42bn for H1 16 compared to H1 15. Personnel expenses were flat at CHF632m for H1 16. General expenses declined by 53% to CHF288m in H1 16 compared to H1 15 which was burdened by US tax evasion provisions of CHF326m. Operating expenses were down by 27% to CHF985m for H1 16. Pre-tax profit increased from CHF54m for H1 15 to CHF440m for H1 16. Assets under management (AuM) rose by 4% to CHF311bn compared to year-end 2015. Net new money inflows were CHF5.5bn (+3.7% annualised) in H1 16. The Basel 3 CET1 ratio stood at 15.9% and 14.8% on a Basel 3 (2019) fully applied basis as at 30 June 2016.
FY15 net profit burdened by litigation provisions but increased targets and dividend
01 Feb 16
Reported net profit was down by 67% to CHF121m for 2015 compared to 2014. However, underlying net profit increased (which excludes a CHF521m US litigation provision) by 20% to CHF701m for 2015 compared to 2014 according to Julius Baer. Interest and dividend income rose by 9% to CHF847m in 2015. Net commission and fee income was flat at CHF1.52bn for 2015. Trading income was up by 33% to CHF436m in the same period. Operating income rose by 6% to CHF2.7bn for 2015 compared to 2014. Personnel expenses were down by 2% to CHF1.24bn for 2015 compared to 2014. General expenses jumped by 81% to CHF1.1bn in 2015 mainly due to the US tax evasion provisions of CHF521m. Operating expenses were up by 23% to CHF2.56bn for 2015. Assets under management (AuM) increased by 3% to CHF300bn compared to year-end 2014. Net new money inflows were CHF12bn (+4.2%) in 2015. The Basel 3 CET1 ratio (phase in) stood at 18.3% at the end of 2015. The dividend proposal increased from CHF1.00 for FY2014 to CHF1.10 per share for FY2015. Julius Baer also upgraded its cost/income ratio target from 65%-70% to 64%-68% (67% for FY2015). It downgraded its BIS CET 1 target ratio from 15% to 11%. Julius Baer also intends to grow the ordinary dividend pay-out ratio to 40% of adjusted net profit. The bank will release the 2015 annual report on 21 March.
No loss for H1 15 despite US tax evasion provision
20 Jul 15
The reported net profit was down by 78% to CHF40m for H1 15 compared to H1 14. However, underlying net profit increased (which excludes a CHF326m US litigation provision) by 34% to CHF384m for H1 15 compared to the same period last year according to Julius Baer. Interest and dividend income rose by 11% to CHF384m in H1 15. Net commission and fee income increased by 6% to CHF792m for H1 15. Trading income was up by 89% to CHF217m in the same period. Operating income rose by 14% to CHF1.41bn for H1 15 compared to H1 14. Personnel expenses were flat at CHF631m for H1 15 compared to H1 14. General expenses jumped by 126% to CHF613m in H1 15 mainly due to the US tax evasion provisions. Operating expenses were up by 36% to CHF1.35bn for H1 15. Assets under management (AuM) decreased by 2% to CHF284bn compared to year-end 2014. Net new money inflows were CHF6.5bn (+6% annualised) in H1 15. The Basel 3 CET1 ratio stood at 19.1% and 13.4% on a Basel 3 (2019) fully applied basis as at 30 June 2015. Today, Julius Baer has announced it has agreed to acquire a 40% participation in a leading independent financial advisory firm in Mexico, NSC Asesores, for an undisclosed amount. The transaction would mark the entry into the second largest wealth management market in Latin America regarding Julius Baer.
$350m litigation provision in H1 15
24 Jun 15
Julius Baer announced it is to make a preliminary provision of $350m for its eventual settlement with the US Department of Justice (DOJ) regarding its US tax evasion case. The litigation provision will be charged to the 2015 half-year results. The bank said, if the amount had been provisioned at the end of April 2015, the group’s BIS total capital ratio would have been 20.9% and its BIS tier 1 capital ratio 19.6%.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
N+1 Singer - Best Ideas 2017 - Top picks
04 Jan 17
Today we publish our Best Ideas for 2017 - 12 stocks that we believe have excellent prospects in the current year together with a detailed discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.
What a year it was!
16 Jan 17
2016 got off to a rocky start. Not long into January, after just a few trading days, global equity markets lost more than US$4tn of value due to investor sentiment towards China’s economic slowdown and depreciating currency. This was immediately followed by a slump in the oil price. By the third week of January, Brent Crude hit its year low at $27.10 a barrel causing an immediate sell off in the energy sector. Once the Q1 dust had settled, attention turned to the UK’s vote on whether to remain a member of the EU. The Brexit vote result proved to be a genuine shock for markets, with many investors having believed that the UK would stay within the European Union. Attention soon turned to the equally ill-tempered US Presidential elections and all the political and economic unknowns that Trump’s victory has spawned. As a result, AIM, has seen a roller-coaster of a year in 2016.