Julius Baer to cut staff by 17% after Merrill acquisition
Swiss private banking firm Julius Baer Group is aiming to reduce its combined staff base by up to 17% in more than 50 locations, following the acquisition of Merrill Lynch’s international wealth management business outside the United States.
Julius Baer’s decision reflects profitability improvement measures. The Swiss group said the measures are expected to lead to a stand-alone implied cost-income ratio of nearly 70% and a stand-alone implied pre-tax profit margin on an adjusted profit basis of around 25 basis points for the international wealth management business on Julius Baer’s platform in 2015.
Press reports said about 80% of the total assets under management expected to be acquired are estimated to be reported at Julius Baer by the end of 2013.
The acquisition of Merrill Lynch’s business was announced in August and in September the firm raised 250m francs to finance the deal.
At the end of August, Julius Baer’s had 184bn francs under management, an increase of 8% since the end of 2011.