Julius Baer, a Swiss bank, has reported an increase in net new money from July to October, indicating positive progress as it prepares for a change in leadership.
The bank's new CEO, Stefan Bollinger, will take over in January following the departure of former CEO Philipp Rickenbacher. Rickenbacher left after a significant write-down related to loans to the failed property group Signa.
Despite these challenges, Julius Baer has seen a 12% increase in assets under management (AUM) in the first ten months of 2024. Net inflows during the July-October period reached 7.5 billion francs, with strong contributions from key markets in Europe, Asia, and the Middle East. The bank has also observed a reduction in client deleveraging and an increase in the number of relationship managers.
However, analysts have noted that Baer's gross margin remains below consensus estimates, highlighting ongoing challenges in optimizing financial performance. As the new CEO takes charge, addressing these challenges while capitalizing on recent momentum will be crucial for the bank's future success.