Total assets under management grew by 14% to CHF291bn (£209bn, €277bn, $313bn), a record high for the private banking group, which was supported by a CHF13bn increase in new money coming into the business.
Adjusted net profits – which reflects underlying operating performance – improved by 22% to CHF586m.
The firm said the integration of the IWM business has “substantially improved” Julius Baer’s revenue, adding an extra CHF60bn in assets under management to the business.
However, it said measures need to be put in place to alleviate the impact of the recently strengthened Swiss franc on the profitability of the business.
These measures include an “efficiency programme” which has already been implemented in an effort to cut costs by around CHF100m, shedding 200 jobs, curbing general expenses, and reducing spending on marketing.
“Julius Baer will be able to confront the effects of the recent Swiss franc appreciation from a position of great strength,” said the company’s chief executive officer, Boris Collardi.
“Mitigating factors are already being implemented, and I am convinced that thanks to these and further measures the group will succeed in protecting its profitability to a very significant extent from these effects.”
Collardi said this “confidence” is underpinned by a proposal to increase the ordinary dividend from CHF0.60 to CHF1.00 per share. Shareholders will be consulted about this proposal in a meeting which will take place on 15 April this year.
Starting in Asia, the company is also about to renew its IT platforms around the world to improve the experience for clients, and increase flexibility and efficiency through the coordination of platforms.
The integration with Julius Baer and IWM was nearly completed at the end of last year; the IWM’s business in India is the last one outstanding out of 17 units left to undergo the transfer process.
Collardi said: “In 2014 the group successfully realised the considerable synergies offered by the IWM transaction and in so doing significantly strengthened the basis for further long-term growth in the profitability of its business.”
