Swiss private bank Julius Baer reported a 19 per cent slide in adjusted net profit in the first half of the year as weak trading from wealthy clients continued.
The bank posted a net profit of SFr 391m in the first six months of 2019, a 19 per cent drop year-on-year but an 18 per cent increase compared to the second half of last year.
Assets under management were SFr 412bn, an increase of eight per cent on the end of 2018, driven by a recovery in global stock markets.
The lender, which is Switzerland’s third largest listed bank, said its SFr 100m cost-reduction plan is on track, with savings expected in the second half of this year and in 2020.
Julius Baer recorded SFr 17m in redundancy costs in the first half of 2019.
Bernhard Hodler, outgoing chief executive of Julius Baer Group, said: “Profitability has markedly improved compared to the second half of 2018, as we saw client activity and asset valuations recover substantially.”
“The cost-reduction programme we initiated earlier this year is on track, and we will see its effects materialise in the coming months and throughout 2020, as targeted.
Read more: Julius Baer targets £77m in cuts
“At the same time, we have made targeted investments in the future of our business. Julius Baer is in excellent shape, thanks to the dedication and relentless work of our staff.”
Hodler is set to be replaced by Philipp Rickenbacher, the bank’s head of intermediaries and global custody.