Wealthy onshore Germans help boost Julius Baer Group assets

Julius Baer Group highlighted appetite from its onshore German private banking as one reason it grew assets by 4% to CHF 268bn by May this year, but it is the world’s ‘growth markets’ that will help it most over the long term.

In sentiment reflected at many of its Swiss rivals, the Zurich-based private bank said, if current regional trends continue, more than half of its total assets by 2015 would come from clients resident in such ‘growth markets’ – a term loosely linked with emerging markets.

At present about one third of its assets come from people in such markets.

Growing assets this year, however, has been due largely to wealthy Germans.

The bank noted particularly strong net new flows came from its “local private banking business in Germany”, thus differentiating this from any Germans putting their wealth in Swiss accounts, which has become significantly less attractive since Berlin signed a tax repatriation agreement with Bern.

Investment gains plus business inflows from emerging markets and Germany outweighed negative movements in currencies versus the Swiss franc, in which Julius Baer reports results.

Net new business for the first four months of 2012 was “on an annualised basis just above the Group’s 4% to 6% medium-term target range”, the bank said.

This year Julius Baer has strengthened teams in the Middle East and opened an office in Israel.

By 31 March the group’s BIS total capital ratio was 24.1%, and its BIS tier 1 ratio was 21.8%, safely above the targeted floors of 16% and 12% respectively.

Julius Baer Group will release its detailed financial results for the first half of 2012 on 23 July.

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