{"id":1569727,"date":"2022-07-25T11:22:27","date_gmt":"2022-07-25T15:22:27","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1569727"},"modified":"2022-07-25T11:22:36","modified_gmt":"2022-07-25T15:22:36","slug":"swiss-bank-julius-baer-freezes-hiring-after-market-downturn-hits-earnings","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/swiss-bank-julius-baer-freezes-hiring-after-market-downturn-hits-earnings\/","title":{"rendered":"Swiss bank Julius Baer freezes hiring after market downturn hits earnings"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fswiss-bank-julius-baer-freezes-hiring-after-market-downturn-hits-earnings%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1569727&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By John Revill<\/p>\n<p>ZURICH (Reuters) -Swiss wealth manager Julius Baer will freeze hiring for non relationship manager positions after higher costs and lower client activity triggered a 26% drop in first half earnings.<\/p>\n<p>The bank, which competes with UBS and Credit Suisse in managing the investments of ultra wealthy clients, said on Monday it would accelerate \u201ccost discipline\u201d in the second half of the year after its cost\/income ratio rose to 67% from 61% a year earlier.<\/p>\n<p>Chief Executive Philipp Rickenbacher said there were no immediate plans for lay-offs at the bank which has seen its headcount rise by 71 people this year, to 6,798 staff by the end of June.<\/p>\n<p>\u201cWe have taken a very cautious stance throughout this year and will continue to do so even more in the second half,\u201d Rickenbacher told reporters.<\/p>\n<p>\u201cThe measures such as slowing down discretionary spending plus a hiring freeze of non RM positions will clearly help us there.\u201d<\/p>\n<p>Plans for structural cost savings were now being developed, he said, while the bank would continue to hire relationship managers.<\/p>\n<p>Kicking off a week of reporting by Switzerland\u2019s big banks, Julius Baer said costs rose as it spent more on settling legal cases, provisions and IT.<\/p>\n<p>Earlier this month the bank settled a case in relation to a Lithuanian corporation for 105 million euros, with roughly half of the amount charged against its 2022 first-half results.<\/p>\n<p>Meanwhile income declined, with revenue from commission and fees down by 10% as nervous clients cut back on activities. <\/p>\n<p>Rickenbacher said the period \u2013 during which global stockmarkets plunged \u2013 included \u201cunprecedented geopolitical events that had a deep impact on asset valuations and client sentiment\u201d.<\/p>\n<p>Net profit attributable to shareholders fell to 451 million Swiss francs ($468 million), missing analyst forecasts for 477 million francs according to Refinitiv.<\/p>\n<p>The company\u2019s shares fell 3.4% in early trading.<\/p>\n<p>The market downturn shrank assets under management by 11% to 428 billion Swiss francs. Net new money also fell 1.1 billion francs as clients, particularly in Asia, de-risked their investment portfolios and reduced leverage. <\/p>\n<p>The bank, however, said the situation had improved, with net new money of 1.5 billion francs since the end of April.<\/p>\n<p>\u201cGiven that JB introduces a hiring freeze for non-relationship manager positions in 2H22, it does not seem to expect a quick recovery in activity,\u201d Bank Vontobel analyst Andreas Venditti said.<\/p>\n<p>($1 = 0.9631 Swiss francs)<\/p>\n<p> (Reporting by John Revill, Editing by Miranda Murray, Kirsten Donovan)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2730143\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/tagreuters.com2022binary_LYNXMPEI6O065-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI6O065-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By John Revill ZURICH (Reuters) -Swiss wealth manager Julius Baer will freeze hiring for non relationship manager positions after higher costs and lower client activity triggered a 26% drop in<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1569727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1569727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1569727"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1569727\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1569727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1569727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1569727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}