ZURICH, Could 23 (Reuters) – Julius Baer (BAER.S) reported modest cash inflows within the first 4 months of this yr, disappointing buyers who had anticipated the Swiss wealth supervisor to profit from Credit score Suisse’s troubles and sending its shares down as a lot as 8%.
The financial institution, which competes with each Credit score Suisse (CSGN.S) and UBS (UBSG.S) in managing the investments of the rich and ultra-wealthy, remains to be tipped to draw extra enterprise on account of turmoil that led to Credit score Suisse’s takeover in March by greater rival UBS.
Nonetheless, in its buying and selling replace, Julius Baer mentioned that whilst inflows picked up after a sluggish begin to the yr, they totalled 3.5 billion Swiss francs ($3.94 billion) over January-April, with property underneath administration inching up simply 1% to 429 billion francs.
The numbers got here under expectations, with some analysts forecasting inflows twice as excessive, whilst some had cautioned it would take extra time for Julius Baer to draw funds leaving Credit score Suisse.
“All in all, we view the web inflows as disappointing given the turbulence at Credit score Suisse was already vital within the fourth quarter,” ZKB analyst Michael Klien mentioned in a observe.
RBC analysts mentioned that they had anticipated internet inflows, adjusted for the impact of purchasers’ lowering danger and borrowing, of 6 billion Swiss francs within the first 4 months of this yr, following robust momentum within the last two months of final yr.
Reporting its 2022 ends in February, a number of weeks earlier than UBS agreed to take over Credit score Suisse as a part of a Swiss government-orchestrated rescue, Julius Baer mentioned Credit score Suisse’s troubles contributed to inflows of recent funds, notably late within the yr.
It made no reference to its Swiss rivals in its January-April replace, however mentioned by hiring extra relationship managers it was properly positioned to draw extra funds later within the yr.
“Wanting forward, precise and forthcoming vital development within the Group’s RM (relationship supervisor) base is predicted to meaningfully profit the technology of internet new cash over the medium time period,” Julius Baer mentioned.
UBS has been racing to seal the Credit score Suisse deal, aiming for its authorized shut inside coming weeks, as it’s eager to restrict buyer and employees departures following the months of turmoil at its smaller rival.
($1 = 0.8889 Swiss francs)
Reporting by Tomasz Janowski and Oliver Hirt;
Modifying by Rachel Extra
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