Julius Baer Gruppe Ag · SIX:BAER

Julius Baer Gruppe — Julius Baer Group — Investor Presentation (November 2014)

20 slides from Julius Baer Gruppe's investor presentation, Nov 14, 2014

  1. Slide 1: The Leading Swiss Private Banking Group

    THE LEADING SWISS PRIVATE BANKING GROUP Investor Presentation Updated for 10-Months Interim Management Statement as published on 14 November 2014

  2. Slide 2: Cautionary Statement on Forward-Looking Information

    CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Forward-looking statements Financial information This presentation by Julius Baer Group Ltd. (“the Company”) includes forward- This presentation contains certain pro forma financial information. This looking statements that reflect the company's in

  3. Slide 3: Julius Baer: Pure-Play Private Banking Group

    JULIUS BAER: PURE-PLAY PRIVATE BANKING GROUP Presence in more than 50 locations in over 25 countries1, CHF 285bn AuM2 Europe Switzerland • Rich heritage (established 1890) KREUZLINGEN BASEL • Premium brand in global wealth ZURICH ST. GALLEN ZUG DUBLIN LUCERNE management BERNE • Client-centric approa

  4. Slide 4: Julius Baer Group Strategy

    JULIUS BAER GROUP STRATEGY Consistently executed since launch of new Julius Baer Group in 2009 Pure Private • Focus on pure private banking business Banking • Targeting private clients and family offices as well as EAMs Leverage • Leverage global footprint to source AuM growth and enhance client Int

  5. Slide 5: Strong AuM Growth

    STRONG AUM GROWTH Supported by continued inflows and acquisitions Development of Assets under Management (EOY) CHF bn 285 254 • 2008 – Oct 2014: AuM increased from CHF 129bn to CHF 285bn 189 170 170 > Represents CAGR of 15% 154 129 • On back of continued inflows and acquisitions 2008 2009 2010 2011

  6. Slide 6: Growth Supported by Continued Net Inflows

    GROWTH SUPPORTED BY CONTINUED NET INFLOWS Last five years: 4-6% per annum, in-line with target • Inflows from all growth markets – Asia, Latin America, Middle East, Israel, Russia/CEE Development of Net New Money in CHF bn and %1 • Since 2010 also significantly from 4% 6% 6% 6% 4% 6% domestic busine

  7. Slide 7: Inflows Helped by Ability to Attract Quality RMs

    INFLOWS HELPED BY ABILITY TO ATTRACT QUALITY RMS Attractive destination for top professionals in private banking Attractive platform for top private banking talents: Number of Relationship Managers (RMs) • Independence / pure private banking +365 +31 -12 1,216 +43 +11 +26 • Client-centric approach +

  8. Slide 8: Selective M&A Further Supports Growth

    SELECTIVE M&A FURTHER SUPPORTS GROWTH Strategic partnerships complement stand-alone offering Acquisitions Strategic Partnerships Acquisitions considered on selective basis… • Consolidation strategies, e.g. Global: IB support, research – 2010: ING Bank (Switzerland) Ltd. – 2013: Merrill Lynch Bank (S

  9. Slide 9: IWM Integration Nearing Completion

    IWM INTEGRATION NEARING COMPLETION Transaction in all locations either completed or proceeding according to plan • At 31 October 2014 (from IMS): Applicable local closings of the transaction in 2013: • Feb: Merrill Lynch Bank Switzerland – AuM CHF 58bn1 from IWM o/w CHF 55bn1 • April: Uruguay1, Chil

  10. Slide 10: Gross Margin

    GROSS MARGIN1,2 10 month gross margin almost maintained at H1 level 2012 2013 H1 2014 96bps 96bps 95bps 102 • IMS: 98 94 95 91 – Group gross margin first 10 1 2 2 months: 94bps, maintained almost 2 1 2 at H1 level … 16 13 21 3 15 15 11 14 – … despite seasonal slowdown in 26 26 25 23 22 22 22 August

  11. Slide 11: Operating Expenses

    OPERATING EXPENSES1 Reflecting further transfer of IWM businesses CHF m vs. H1 13 854 882 +16% • IMS: 39 -11% 758 47 – Despite modest pressure on gross 44 251 margin over summer months… +11% 310 – … 10 month cost/income ratio3 226 inside 65-70% medium-term target range – Earlier than expected: range

  12. Slide 12: Capital Ratios

    CAPITAL RATIOS Capital targets: total capital ratio > 15%; tier 1 capital ratio > 12% 30.06.2013 31.12.2013 30.06.2014 30.06.2014 BIS approach / CHF m Basel III 3 Basel III 3 Basel III 3 Basel III fully applied Total risk-weighted positions 15,218 15,908 16,247 16,462 1 CET1 capital 3,488 3,328 3,63

  13. Slide 13: Confirming Medium-Term Targets

    CONFIRMING MEDIUM-TERM TARGETS Current Medium-Term Targets Julius Baer Combined entity stand-alone IWM, integrated Combined entity (H1 2014) (former medium- (2015) (from 2015 onwards) term targets1) Cost/Income 70.8% 62-66% ~70% 65-70% Ratio2 Pre-Tax Profit 27.1bps >35bps ~25bps 30-35bps Margin3 Net

  14. Slide 14: Appendix: Selected slides from H1 2014 results presentation

    APPENDIX Selected slides from H1 2014 results presentation1 1 As published on 21 July 2014 – the full presentation is available from www.juliusbaer.com 14

  15. Slide 15: Scope of Presentation of Financials

    SCOPE OF PRESENTATION OF FINANCIALS Financial results are presented as usual on the adjusted basis • Excluding integration and restructuring expenses and amortisation of intangible assets related to previous acquisitions or divestitures as well as, in 2013, a provision in relation to the withholding

  16. Slide 16: Adjusted Consolidated Income Statement

    ADJUSTED* CONSOLIDATED INCOME STATEMENT Half-yearly CHF m H1 2013 H2 2013 H1 2014 Change Change H1 2014 H1 14/H1 13 H1 14/H2 13 in % Net interest and dividend income 1 275 277 347 +26% +25% 28% Net commission and fee income 599 678 746 +25% +10% 60% 1 Net trading income 185 130 115 -38% -12% 9% Othe

  17. Slide 17: Reconciliation Consolidated Financial Statement H1 2014 to Adjusted Net Profit

    RECONCILIATION CONSOLIDATED FINANCIAL STATEMENT H1 20141 TO ADJUSTED NET PROFIT CHF m H1 2013 H2 2013 H1 2014 Change Change H1 14/H1 13 H1 14/H2 13 Profit after tax per consolidated Financial Statements (IFRS) 114.3 73.5 178.9 +56% +143% Amortisation of intangible assets related to the UBS transacti

  18. Slide 18: Solid Balance Sheet – Low Risk Profile

    SOLID BALANCE SHEET – LOW RISK PROFILE Loan-deposit ratio 0.56 Assets Liabilities CHF bn & Equity CHF 73.8bn 5.1 (8.0) Due from banks 8.2 (11.5) (CHF 72.5bn) Due to banks (Open trading positions; (Incl. open trading volumes repo) and Group debt) Loan-deposit ratio 0.56 Loans (0.53) (Incl. lombard le

  19. Slide 19: Breakdown of Julius Baer Group AuM

    BREAKDOWN OF JULIUS BAER GROUP AUM Including the AuM of the transferred IWM businesses Asset mix 30.06.2013 31.12.2013 30.06.2014 Equities 25% 27% 27% Bonds (including Convertible Bonds) 21% 20% 19% Investment Funds 1 22% 22% 24% Money Market Instruments 5% 5% 5% Client Deposits 20% 20% 18% Structur

  20. Slide 20: Julius Baer

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