Julius Baer shares up on CS private bank results

ZURICH, Oct 22 (BestGrowthStock) – Shares in Swiss private bank
Julius Baer (BAER.VX: ) rose on Friday as investors took heart
from rival Credit Suisse’s (CSGN.VX: ) wealth management
performance in the third quarter.

Shares in Julius Baer, Switzerland’s biggest dedicated
wealth manager, were up 3.2 percent by 1215 GMT, outperforming a
near-flat STOXX 600 European Bank index (.SX7P: ).

Traders said Credit Suisse’s results on Thursday highlighted
that private banking looked more appealing than investment
banking at the moment. “Relative stable earnings with low risk,”
one trader said.

Earnings at Credit Suisse’s private bank outstripped the
normally more lucrative investment banking segment for a second
quarter running. [ID:nLDE69K03R]

CS gained client money from emerging markets and from the
super rich in its Swiss onshore business, making up for
shrinking private banking in mature European markets.

“There were some concerns about the impact of the weak U.S.
dollar on assets under management, but at CS these were offset
100 percent by market gains, so sentiment is more positive,”
Cheuvreux analyst Christian Stark said.

“Most private banks have seen margins fall 10 percent from
their peak, but from the CS numbers this seems to be bottoming
out,” he said.

In addition, pure-play private banks were less affected than
CS or UBS by new global bank rules or the tougher Swiss
regulation for the two large banks, he said.

Julius Baer will give a trading update on Nov. 12.
(Reporting by Martin de Sa’Pinto and Rupert Pretterklieber)
(Zurich Newsroom, [email protected], +41 58 306 7336))

Julius Baer shares up on CS private bank results