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    Hubert Lam

    Research Analyst at Bank of America

    Hubert Lam's questions to Julius Baer Group (JBAXY) leadership

    Hubert Lam's questions to Julius Baer Group (JBAXY) leadership • H1 2023

    Question

    Hubert Lam from Bank of America inquired about the drivers of net new money acceleration in May and June, asking for a breakdown between new and legacy relationship managers (RMs) and the sustainability of this growth. He also questioned the RM hiring targets for the year, the competitiveness of the hiring environment, and the outlook for the cost/income ratio given the investment in talent.

    Answer

    CFO Evie Kostakis stated that for the first half, 55% of net new money came from new RMs and 45% from seasoned RMs. She expressed confidence in exceeding the firm's gross hiring targets for the year and reiterated that the cost/income ratio target of under 64% by 2025 remains, though the path will be back-ended. CEO Philipp Rickenbacher added that while the hiring market is competitive, the cost of hiring has not fundamentally changed due to their attractive compensation model.

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    Hubert Lam's questions to Julius Baer Group (JBAXY) leadership • Q4 2022

    Question

    Hubert Lam inquired about the stability of the cash balance, the drivers of negative net new money in Latin America, and the expected progression of the cost-to-income ratio towards the 2025 target of below 64%.

    Answer

    CEO Philipp Rickenbacher explained that the negative net new money in Latin America masks underlying inflows and reflects the final stages of restructuring, with the business being fundamentally healthy. CFO Evie Kostakis noted the cash balance is dynamic and could decrease further. She projected the cost-to-income ratio would remain around current levels in 2023 due to investments before declining in subsequent years.

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    Hubert Lam's questions to Julius Baer Group (JBAXY) leadership • Q2 2022

    Question

    Hubert Lam of Bank of America asked if the new recurring margin of 36 basis points is a new baseline and if the 2025 target of 39-40 bps is still achievable. He also inquired about client deposit behavior and the reasons for a drop in the managed assets penetration rate.

    Answer

    CFO Evie Kostakis affirmed the 39-40 basis point target for the next strategic cycle, calling the current level a "temporary blip." She noted a clear shift from current accounts (90% to 82%) to call/time deposits (7% to 14%). She attributed the slight drop in mandate penetration primarily to the divestment of businesses that were discretionary in nature.

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    Hubert Lam's questions to Julius Baer Group (JBAXY) leadership • Q4 2015

    Question

    Hubert Lam from Bank of America inquired about year-to-date activity levels relative to H2 2015's gross margin, the impact of the Asia slowdown on the business, and the rationale for the new 40% dividend payout target not being higher.

    Answer

    CEO Boris Collardi noted that January transaction volumes followed normal patterns, unlike the extraordinary volumes in January 2015. CFO Dieter Enkelmann explained that the 40% payout ratio balances the need to support internal growth and retain capital for external growth opportunities, such as consolidation in Switzerland and Asia. He added that while there was some de-leveraging in Asia post-Q3, clients moved to cash and are waiting to reinvest.

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