Julius Baer: stock down as AuM disappoint

(CercleFinance.com) - Julius Baer shares were down over 3% on the Zurich stock exchange on Monday morning after the Swiss private bank reported a lower-than-expected net new money in the first ten months of the year.


As of 31 October, the wealth management group had assets under management totalling 484 billion Swiss francs, up 12% year-on-year.

However, UBS analysts point out that this figure is 2% below the consensus expectations, a performance they suspect is linked to disappointing inflows in emerging markets.

The bank's gross margin also fell to around 82 basis points from 88 basis points at the end of last year.

Julius Baer said that the slowdown in client activity since the spring continued into October, but that November's levels point to a recovery over the last two months of the year.

In a reaction note, analysts at UBS were quick to question this mixed performance.

At around 11am, Julius Baer shares were down over 3.4%, bringing the year-to-date gain to around 18.8%, compared with 34% for the European banking index over the same period.



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