Julius Baer Gruppe AG · SIX:BAER
Julius Baer Gruppe — H1 2000 Earnings Presentation
24 slides from Julius Baer Gruppe's earnings presentation, Aug 18, 2000
Slide 1: 2000 first-half highlights
2000 first-half highlights Assets under management CHF 146 bn (+14% since 12.99) Strongly increased revenues on assets Net operating income CHF 886 mn (+55%) Net profit CHF 249 mn (+80%) Cost/income ratio 56% (64%) ROE 36% (20%) Comparison 2000H1 vs. 1999H1 18.8.00
Slide 2: Assets under management
Assets under management 160 CHF bn 146 +14% 140 128 120 107 100 95 81 80 64 60 Other 40 Investm. Funds 20 Inst. Asset Mgmt 0 Private Banking 96 97 12.98* 6.99 12.99 6.00 * first year with divisional figures 2
Slide 3: Assets growth analysis first-half 2000
Assets growth analysis first-half 2000 150 CHF bn 1 146 1.5 Other 145 1.5 0 IAM 3.5 0 PB INF 140 5.5 IAM Other Other* INF 135 5 130 PB 128 125 Dec 99 PB 12.99 Net new INF money: IAM 13.8 Other Market PB performance: INF 3.9 Jun IAM Other 6 00 PB: Private Banking INF: Investment Funds IAM: Institutio
Slide 4: Increased weight of equities
Increased weight of equities Asset mix Gross fee margin 100% 80 bps 9 11 10 9 10 10 9 63 15 12 12 75% 60 52 48 51 40 36 42 46 43 50% 50 40 25% 45 20 35 41 26 31 0% 0 96 97 98 99 6.00 96 97 98 99 6.00 Third-party products Asset management fees in % of Money market Bonds average assets under managemen
Slide 5: Net operating revenues
Net operating revenues 1400 CHF mn 1207 1200 1040 1000 886 +55% 846 800 598 635 524 572 600 400 200 0 1995 1996 1997 1998 1999 99H1 99H2 00H1 5
Slide 6: Asset mgmt fees and transaction commissions
Asset mgmt fees and transaction commissions 800 CHF mn 759 +76% 700 600 305 +87% 512 500 431 380 377 185 400 297 163 +66% 300 253 158 144 106 434 200 89 314 Sec. underwriting 217 230 261 Transaction comm. 100 160 187 Fees 0 97H1 97H2 98H1 98H2 99H1 99H2 00H1 6
Slide 7: Results from trading operations
Results from trading operations 140 CHF mn 125 120 113 110* +6% 104 100 80 71 82 80 62 52 57 +9% 60 34 50 39 40 51 46 54 51 52 54 +4% 20 43 Securities 0 FX 97H1 97H2 98H1 98H2 99H1 99H2 00H1 * of which only 10-15% proprietary trading 7
Slide 8: Operating expenses
Operating expenses 900 CHF mn 781 800 700 631 600 521 473 +34% 500 429 401 400 349 352 300 200 100 0 1995 1996 1997 1998 1999 99H1 99H2 00H1 8
Slide 9: Personnel and general expenses
Personnel and general expenses Staff expenses +45% 336 General expenses +14%* (CHF mn) (CHF mn) 300 265 300 232 198 204 200 175 200 152 164 137 121 120 109 92 103 Bonuses 100 100 0 0 1 2 1 2 1 2 1 1 2 1 2 1 2 1 H H H H H H H H H H H H H H 97 97 98 98 99 99 00 97 97 98 98 99 99 00 * Excluding effect
Slide 10: Net profit
Net profit 350 CHF mn 302 300 265 257 249 +80% 250 202 200 150 131 139 126 113 100 50 0 1995 1996 1997 1998* 1999 99H1 99H2 00H1 * positive tax effect of CHF 45 mn 10
Slide 11: Business lines (asset management)
Business lines (asset management) Private Banking Inst. Asset Mgmt Mutual Funds Marketing to third- Institutional clients party distributors Private clients and Management of counseling mutual funds External and asset managers administration Private clients with of institutional needs Family Office
Slide 12: Business lines (other)
Business lines (other) Trading/Brokerage Resources Corp. Functions Inst. brokerage Finance/Controlling Securities trading Information Human resources technology Forex trading Legal management Banking operations Swiss capit. market Corporate Services communications & Asset and liability investor rela
Slide 13: Private Banking
Private Banking l Core business of the Julius Assets under m gm t +9% Baer Group (CHF bn) l CHF 5 bn new money (more 80 73 than in entire 1999) 70 66 l Internet application for private 61 60 55 clients in Q4 (access to portfolio 50 and financial information) 40 l New offices in Berne and Basle 30 20
Slide 14: Private Banking
Private Banking l Net operating income: Net profit +85% + 43% to CHF 308 mn (CHF mn) 150 140 l Operating expenses: + 28% to CHF 190 mn 110 l Cost/income ratio improved 100 91 from 69% to 62% 62 l Staff up 1% to 493 (since 12.99) 49 50 Improvement of margins: • Gross margin up 20% 0 from 74 to 88 bps
Slide 15: Institutional Asset Management
Institutional Asset Management l Confederation of asset Assets under Mgm t +20% managers following diversified (CHF bn) investment styles 59 l Focus of business activities on 60 Inst. assets JB funds 49 Europe l Asset management centers in 40 37 Zurich, Frankfurt and London 32 l Management of majori
Slide 16: Institutional Asset Management
Institutional Asset Management l Net operating income: Net profit +124% + 59% to CHF 110 mn (CHF mn) 60 l Operating expenses: + 16% to CHF 46 mn 41 l Cost/income ratio improved 39 40 from 57% to 41% 32 l Staff up 8% to 161 (since 12.99) 18 20 20 Improvement of margins: • Gross margin up 23% 0 from 3
Slide 17: Investment Funds
Investment Funds l CHF 5.5 bn new money Assets under Mgm t +19% (CHF bn) l Equity funds represent 54% (49%) of total fund volume 35 33 l Partner business up 23% to clients 30 28 CHF 24 (19) bn JB 25 l Italy up 37% to CHF 8 bn, 19 Germany up 33% to CHF 2.5 20 16 bn Partners’ clients 15 l Increase of
Slide 18: Investment Funds
Investment Funds l Net operating income: Net profit +131% + 113% to CHF 88 mn (CHF mn) l Operating expenses: 40 37 37 + 82% to CHF 30 mn l Cost/income ratio improved 27 from 39% to 34% 21 20 16 l Staff up 32% to 128 (since 12.99) Improvement of margins: 0 • Gross margin up 32% from 43 to 58 bps 9 8
Slide 19: Trading/Brokerage
Trading/Brokerage Revenues Revenues +62% l Institutional brokerage: (CHF mn) CHF 220 mn (+80%) 500 464 l FX trading: 389 CHF 35 mn (+8%) 400 357 l Securities trading: 300 221 244 CHF 54 mn (+20%) 200 l Securities underwriting: 100 CHF 34 mn (CHF 12 mn) due to increased IPO activity (in home 0 market
Slide 20: Trading/Brokerage
Trading/Brokerage l Operating expenses: Net profit +50% + 71% to CHF 182mn (CHF mn) l Cost/income ratio increased 160 150 from 48% to 51% 133 140 l Staff up by 19% to 439 (since 112 120 12.99) 100 75 80 59 60 40 20 Madrid brokerage office opened 0 in spring 2000 Trading and Brokerage will be 9 8 9 9
Slide 21: Julius Baer shares part of Swiss Market Index
Julius Baer shares part of Swiss Market Index Market capitalization Share buy-back program continues: 8 (CHF bn) 7.0 3.00 to 3.01: max. CHF 100 mn (market value) 6 5.2 5.3 Number of shares: (entitled to dividends) 4 3.2 Bearer shares 886,132 Registered shares 1,020,516 1.7 Equivalent bearer shares 1
Slide 22: Outlook
Outlook l " ... Sustained growth of assets under management in all areas is a solid foundation for the Group’s ongoing development. l The Julius Baer Group is therefore very confident about the future course of business... l ... and expects the results for all of 2000 to significantly exceed the pre
Slide 23: Appendix 1: Group P&L first-half 2000
Appendix 1: Group P&L first-half 2000 CHF mn 99H1 00H1 Change Net interest income 71 91 29% Commissions/service fees 390 675 73% Results from trading operations 104 110 6% Other income 7 9 23% Net operating income 572 886 55% Personnel expenses 232 336 45% Other operating expenses 120 137 14% Operat
Slide 24: Appendix 2: Segment reporting first-half 2000
Appendix 2: Segment reporting first-half 2000 CHF mn Priv. Inst. Inv. AM Trad./ Corp. Group Bank Asset Funds total Brok. Cent. total Net operating income 308 110 88 506 357 23 886 Operating expenses 190 46 30 265 182 60 508 Result before taxes 118 65 59 241 175 -38 378 Taxes 27 18 14 60 59 -7 112 Re