05. December 2022
Olivier Aeschlimann, Senior Financial Analyst
Julius Baer is a wealth management pure play. For years it has grown through an aggressive acquisition and relation ship manger hiring policy which has often been carried out to the detriment of cost efficiency. Under the leadership of CEO Rickenbacher, the bank has shifted its focus from net new money growth to sustainable profit growth with a greater emphasis on efficiency and costs. The interim management statement confirms the success of this new strategy. The net new money inflows have been sustained and in addition, higher interest rates are strongly helping the gross margin. This should translate into an improvement in the cost/income ratio. However, a share buyback is highly unlikely as the CET1 ratio is under the 14% threshold. That said, with a total payout ratio of more than 80%, Julius Baer is already quite generous with its shareholders.