After reporting a drop in its gross margin on Tuesday, Julius Baer has said that it will accelerate its efforts to ‘reduce complexity’. Any Julius Baer cost cuts will only effect non-core markets the bank noted.
A decline in Julius Baer’s gross margin has led to the cost/income ratio for the first ten months of 2018 to rise to 69%.
The gross margin dropped to 87 basis points from 91 basis points in the first six months of 2018. The figure also marked a fall from the full year 2017, when the margin was 90 basis points.
Julius Baer has already made some cost-cutting initiatives, notably closing its offices in both Panama and Peru.
Any further cuts are likely to affect ‘non-core’ markets, the bank said. This does not include the UK and Germany where the bank has recently expanded with offices in Manchester, Leeds, Edinburgh, Hanover, and Berlin.
The Swiss bank has also recently acquired Reliance Group in Brazil, formed partnerships with Siam Commercial Bank in Thailand, Nomura in Japan and opened an advisory office in Johannesburg.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataVolatile markets to blame
Q3 led to lower client activity, due to the fact most clients adopted a cautious stance on the back of a challenging, volatile market environment.
However, the group’s assets under management (AuM) stood at CHF 395 bn (£310.7 bn), a year-to-year increase of CHF 6bn (£4.7bn). The negative impact on AuM was seen in October when stock markets suffered “significant corrections”.
