Julius Bär bank reports sharp rise in profits

The private bank and asset manager Julius Bär has reported healthy results for 1999. Pretax profits rose to SFr396 million, a gain of seven per cent from SFr370 million the previous year.

The private bank and asset manager Julius Bär has reported healthy results for 1999. Pretax profits rose to SFr396 million, a gain of seven per cent from SFr370 million the previous year.

Profit after tax fell 11 per cent to SFr268 million but the drop reflected changes in taxation law that saw an exceptional boost to profits in 1998.

Julius Bär – one of the largest private banks in Switzerland – also saw assets under management rise sharply to SFr128 billion, while investment fund assets also showed a sharp increase.

In a statement, the bank said the above-average growth of assets formed a good basis for increased earnings in 2000. The strong performance has led Julius Bär to propose a four franc dividend increase.

Analysts say the gain in assets is being seen as particularly positive in the face of fierce competition from competitors.

Costs also saw a sharp increase in 1999, up by 24 per cent, but that was explained by an expansion across Europe, with offices recently opened in Italy and the Netherlands.

From staff and wire reports