[ad_1]
ZURICH (Reuters) – Private Bank Julius Baer, the third-largest listed lender in Switzerland, reported a 4% rise in published net profit and announced the launch of a cost-cutting program of 100 million francs.
Under IFRS accounting standards, net profit for the full year was 735 million Swiss francs (563.86 million pounds). Analysts polled by Reuters on average expected a net profit of 772 million Swiss francs.
The bank for affluent wealthy clients generated net new money of CHF 17 billion in 2018, a growth rate of 4.5% at the low end of its target range of 4 to 6% on a medium-term basis. term.
The bank maintained this target on Monday, but lowered its profitability and pre-tax margin targets.
"The group will reduce its spending by 100 million francs by further strengthening market concentration and prioritization of resource allocation, taking advantage of automation and digitization and applying more management. strict performance, "said Baer in a statement. "This will result in a net reduction of 2% of the group's workforce by the end of 2019 compared to the end of 2018."
Julius Baer said his goal was to achieve a cost / income ratio of less than 68% by 2020, baduming there was no significant deterioration compared to market conditions. in 2018, compared with 64% to 68% previously. An increase in the ratio marks a reduction in profitability compared to costs. In 2018, he missed his target with an adjusted ratio of 70.6%.
The bank announced that it would propose a dividend of 1.50 francs per share, against 1.40 francs for 2017.
(Report by Brenna Hughes Neghaiwi)
Source link
