Swiss private bank Julius Bӓr’s H1 2022 net profit sunk 26% to CHF 450mn ($467mn), mainly due to lower client activity. Operating income posted a 6% decrease to CHF 1.87bn ($1.94bn), while net interest income increased 11% to CHF 342mn ($355mn). Net fee income and net income from assets measured at FVTPL declined 10% and 6%. Notably, assets under management (AuM) dropped 11% due to market corrections in global capital markets and there was an outflow of CHF1.1bn in H1 2022, driven by Asia-based clients deleveraging amid heightened volatility. In the quarter, Julius Bӓr also launched a CHF 400mn ($415mn) share buyback programme, of which CHF 122mn ($127mn) worth of repurchases have already been made. In light of the dampened earnings, the bank will institute a hiring freeze and seek to cut costs. CEO Philipp Rickenbacher said, “We have taken a very cautious stance throughout this year and will continue to do so even more in the second half.” Julius Bӓr’s CET 1 ratio fell from 16.7% in H1 2021 to 15% in H1 2022. However, it still sits comfortably above minimum regulatory requirements of 7.9%.

Julius Bӓr’s 6.875% perps callable in 2027 are currently trading at 99.17, up by 1.19 points, yielding 7.08%.

Show Buttons
Hide Buttons