Profits grow at Swiss private bank Julius Baer

 
City A.M. Reporter
JULIUS Baer’s adjusted net profit rose more than 25 per cent in the first half, beating analyst estimates as increased client activity lifted operating income and gross margins.

The company said yesterday its adjusted net profit stood at SFr261m (£181m), ahead of estimates for SFr238m in a poll of analysts.

The Swiss private bank, which is being investigated by US authorities cracking down on tax evasion, described as “helpful” measures announced by the Swiss government earlier this month to help Swiss banks including Baer to cooperate with US authorities.

It did not elaborate on the status of negotiations with US officials.

Stripping out acquisition and other costs, net profit for the first six months dropped to SFr152.1m, from SFr212.8m a year ago.

Baer said it would spend more than initially budgeted to integrate last year's acquisition of Bank of America Merrill Lynch’s overseas private bank.

The bank raised its target for deal, restructuring and integration costs to roughly SFr455m, from SFr400m previously.

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