Julius Baer dampens profit expectations

Julius Baer delivered a cautious outlook on Monday, stating that it anticipates its net profit for the full year 2023 to fall short of the 2022 level. 

The bank attributed this projection to an increase in credit provisions and a rise in the tax rate. 

Despite recording net new money inflows of 10.3 billion Swiss francs ($11.63 billion) for the first 10 months of the year, below the 15 billion Swiss francs forecasted by analysts at Zuercher Kantonalbank, the bank reported a 3 per cent increase in assets under management to 435 billion Swiss francs. 

This growth was primarily fuelled by inflows and the robust performance of the global equity market. Julius Baer also provided a credit update, revealing valuation adjustments totalling CHF 82 million as of November 19, 2023, with CHF 70 million allocated against the Group's credit portfolio after October 31, 2023.

(With Reuters Inputs)