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    Andrew Lim

    Research Analyst at Societe Generale

    Andrew Lim's questions to Julius Baer Group (JBAXY) leadership

    Andrew Lim's questions to Julius Baer Group (JBAXY) leadership • H1 2023

    Question

    Andrew Lim from Societe Generale questioned the path to achieving the sub-64% efficiency ratio target by 2025, asking about the underlying assumptions for gross margin and revenue growth. He also sought confirmation that a recent capital gain was a one-off and asked about the expected impact from final Basel III rules.

    Answer

    CFO Evie Kostakis outlined that the efficiency target relies on improving the recurring fee margin to 39-40 bps, stable interest-driven income, and a potential recovery in activity. She confirmed the capital gain was a one-off and that the impact of Basel III is already factored into the bank's 21-23% risk density guidance.

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    Andrew Lim's questions to Julius Baer Group (JBAXY) leadership • Q4 2022

    Question

    Andrew Lim delved into the deposit switch assumptions for rate sensitivity, asked how much of the CET1 ratio the firm would be willing to use for an M&A transaction, and questioned the CEO's seemingly more constructive tone on industry consolidation.

    Answer

    CFO Evie Kostakis explained the deposit switch assumptions are based on how much migration has already occurred by currency. On M&A, she noted the firm has about 3 percentage points of excess CET1 above its 11% floor. CEO Philipp Rickenbacher clarified that while his M&A principles haven't changed, the market environment has, with increasing pressures on smaller players creating a more favorable landscape for consolidation.

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    Andrew Lim's questions to Julius Baer Group (JBAXY) leadership • Q2 2022

    Question

    Andrew Lim of Societe Generale asked about the opportunity to further increase the size of the bond portfolio to lift NII, noting its historically small size. He also requested more geographical detail on the sources of net new money inflows in the latter part of the first half.

    Answer

    CFO Evie Kostakis confirmed the treasury portfolio has grown due to strong deposit inflows and a healthy liquidity position, with future investments dependent on market opportunities like credit spreads. CEO Philipp Rickenbacher specified that the recent net new money recovery was driven mainly by Western Europe and the Middle East, with signs of a broader-based recovery emerging in July.

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    Andrew Lim's questions to Julius Baer Group (JBAXY) leadership • Q4 2015

    Question

    Andrew Lim of Societe Generale expressed confusion over what constitutes 'excess capital' given the phased-in versus fully loaded CET1 ratios and questioned the strategic reversal of creating a separate investment management division after the 2009 split.

    Answer

    CEO Boris Collardi clarified that creating the new division is not a reversal but a structural refocus to emphasize investment performance within the successful but large Investment Solutions Group. CFO Dieter Enkelmann explained that capital targets are on a phase-in basis, and the firm would accept a temporary dip below the 11% target on a fully-applied basis for a major acquisition, noting the phase-in and fully-loaded ratios will converge by 2018.

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