Julius Baer sees asset management as key to stronger profits

Asset management business is key to success at Baer Keystone Archive

Julius Baer, the Zurich-based private bank and asset management group, aims to boost net profit by an average of 15 per cent every year.

The company said in a statement that it intends to achieve this goal through expanding its key asset management business.

The bank saw net profits rise by 63 per cent to SFr433 million ($262.2 million) last year, despite a slowdown in earnings growth in the second half of the year.

Assets under management, a key indicator for earnings from private banking, rose by 11 per cent to SFr142 billion last year.

“We are convinced that the asset gathering business will continue to exhibit double-digit annual growth rates,” said chief executive Walter Knabenhans at a press conference held Tuesday in Zurich.

Given the sustained inflow of new money, Knabenhans was also confident that results for 2001 would also be in line with long-term targets.

Juleus Baer also announced the launch of an independent online bank, Juleus Baer Net, which will begin operating this summer.

The bank said in a statement that the new online service is geared to “self-directed investors” who knowingly choose to forgo traditional counselling services when making investment decisions.

swissinfo with agencies