The Swiss private banks managed CHF17.1 billion and CHF5.1 billion worth of assets linked to structured products, respectively, in H1 2022.

Julius Baer Group saw its assets under management (AuM) fall to CHF428 billion (US$453 billion) in the first half of 2022, a decrease of 11% year-on-year (YoY).

The drop in AuM was driven by the significant corrections in global equity and bond markets in ‘one of the worst six-month periods for capital markets in decades', according to the bank’s interim presentation.

The benefit from a rise in treasury swap income was more than offset by a decline in structured products-related income

Structured products accounted for four percent of the AuM, or CHF17.1 billion, after equities, investment funds, client deposits and bonds/convertibles. The proportion remained unchanged from previous semesters, but the amount translated to a decline from CHF19.3 billion a year ago as well as six months ago.

As of 30 June 2022, and including assets under custody (AuC) of CHF68 billion, total client assets declined 12% to CHF496 billion.

CHF1.1 billion of net outflows was recorded in H1 2022, a contrast from net inflows of CHF10 billion in the prior-year period, despite net new money of CHF1.5 billion generated from May and June.

Pre-tax profit dropped 27% to CHF513m while net profit declined 26% to CHF450m YoY.

By segment, operating income and net commission & fee income were down six percent and 10% to CHF1.87 billion and CHF1 billion in H1 2022 YoY, respectively. 

Net income from financial instruments measured at fair value through profit or loss (FVTPL) fell six percent to CHF474m YoY. 'The benefit from a rise in treasury swap income was more than offset by a decline in structured products-related income,' the bank stated.

The bank’s markets unit, which is headed by Luigi Vignola (pictured) following a spinoff, is a manufacturer and risk manager of structured products and derivative solutions issued from JB's balance sheet.

'Our structured products business provides both equity-related as well as debt-related structures and trading services for our clients and performed well in H1 2022,' stated the interim report, attributing the performance to 'a scalable trading and execution platform and the further expansion of our product offering across all asset classes'. 

The bank cited the Markets Toolbox, a real-time structuring, pricing and trading platform for equities, currencies and precious metals. As of Q2 22, the toolbox allows for the execution of currently 14 crypto coins.

SRP registers 537 SIX Swiss Exchange-listed structured products launched by JB in Switzerland during H1 22. They're wrapped as investment certificates with a typical tenor of one to three years. 

Last month, the Swiss bank hired Rajarshi Mitra as Apac head solutions and sales, cross asset within the markets division from HSBC Global Markets based in Singapore, as SRP reported.

Groupwide, JB posted CHF115.8 billion assets and CHF109.8 billion liabilities as at 30 June, representing a stable level compared with a year ago. Structured product issued accounted for CHF11 billion of the liabilities, a decrease from CHF14.5 billion six months ago. 

Click the link to read the Julius Baer 2022 half-year results and presentation.

EFG International

As of 30 June, AuM dropped 9.4% to CHF155.8 billion YoY at EFG ' driven by market correction, partially offset by net new asset inflows and positive foreign exchange impacts', according to the bank.

Structured notes accounted for CHF5.1 billion of the AuM, or 3.3%, which represented an increase from CHF4.8 billion a year ago and a decline from CHF5.6 billion six months ago.

Including assets under administration (AuA) of CHF32.3 billion, total client assets declined 5.6% to CHF188.1 billion at end-June. Net new assets totalled CHF1.7 billion in H1 22, which was less than CHF4.2 billion in the prior-year period.

Meanwhile, the company delivered a net profit of CHF100.3m, translating to a 5.8% decrease YoY, despite a 40% increase of underlying net profit. Groupwide, total assets and liabilities measured at fair value reached CHF10.3 billion and CHF8 billion, respectively, at the end of the semester.

Structured products contributed to CHF242.9m of the liabilities, or 55.5% of the financial liabilities designated at fair value at EFG – the amount was a decrease from CHF271.7m compared with a year ago.

EFG issued 173 EuroTLX-listed investment certificates in H1 2022, according to SRP data.

Click the link to read the EFG International half-year 2022 report.