Julius Baer profit up, to hit new target asset goal

Swiss private banking group Julius Baer reported Monday that its fiscal 2016 net profit attributable to shareholders, on IFRS basis, increased by 411% to 619 million Swiss francs. Earnings rose by 414% to 2.85 franc per share.

The prior-year period's results included provision of $547.25 million or 521 million francs for a settlement with the U.S. Department of Justice or DOJ regarding the legacy U.S. cross-border business.

The Zurich-based bank posted 2016 adjusted net profit of 705.5 million francs, ahead of the average estimate for 679 million in a Reuters poll, while adjusted earnings per share rose by 154% to 3.23 francs per share. Excluding the 2015 provision, adjusted net profit for the latest period rose by 1%.

"We will now go back to a more normalised hiring mode of approximately 80 relationship managers per annum," Chief Executive Boris Collardi said in a call with reporters. "With this number we expect to be well within our target net new money range in the years to come."

“Net new money was strongly supported by inflows from clients domiciled in Asia, the Middle East and Western Europe (especially Monaco), which more than compensated for weakness in flows from Latin America and Central and Eastern Europe", the CEO said.

The bank said it would propose a dividend of 1.20 francs per share, compared to 1.10 francs last year.