Vishal Shah's questions to Julius Baer Group (JBAXY) leadership • H1 2023
Question
Vishal Shah of Morgan Stanley asked for details on gross margin trends, specifically the exit rates for May and June across NII, advisory, and brokerage fees. He also inquired about current client investment trends and positioning compared to late 2022, and the timeline for potential capital returns given the high CET1 ratio.
Answer
CFO Evie Kostakis provided the May/June exit margins, noting a recurring gross margin of 37 bps and an interest-driven margin of 37 bps. She confirmed that the Board of Directors will decide on capital returns above the 14% CET1 threshold at the end of the year. CEO Philipp Rickenbacher explained that clients are currently favoring deposit and term solutions, with appetite for capital markets muted by market uncertainty.