Julius Baer announced on Monday that it is on track to meet its 2022 profitability goals, despite “challenging market” conditions that have significantly reduced its assets under management.
As a result of declines in global stock and bond markets, the assets under management of Switzerland’s third-largest publicly traded bank fell 11% to 429 billion Swiss francs ($449.07 billion) in the ten months preceding October 31.
The 52 billion franc decline was partially offset by favorable currency exchanges, primarily the stronger dollar, and net new money inflows of 3 billion francs, according to the report.
“The cost/income ratio, pre-tax margin, and return on CET1 capital (RoCET1) targets set for 2022 remain well within reach,” the wealth manager said in a statement.
Julius Baer also stated that it is on schedule to repurchase up to 400 million Swiss francs worth of shares by the end of February 2023.
The bank also reclassified 1 billion Swiss francs of assets under management as assets under custody in response to asset freezes caused by sanctions imposed on clients in response to Russia’s invasion of Ukraine.