Pure Play Swiss Private Bank (Julius Baer – Vontobel)

In the H1 report Julius Baer is described as a pure play private bank. That’s why I thought it may be useful for discussions to know what this business model entails. Where do the profits in a pure play private bank come from?

According to my calculations **

22% from interest income (8% at Vontobel)

38% from management and fund fees (55% at Vontobel)

16% from commission (~client trading) (12% at Vontobel)

18% from trading (mainly FX trading) (25% at Vontobel ***)

4% from structured products (guesstimate)  * ( ***probably 5% from trading at Vontobel belong here…)

  • * 4% of the AuM at Vontobel are in structured products; 5% at Julius Baer

If we split the Vontobel business modell we see that

18% is Private Banking

57% is Asset Management

20% is Investment Banking

5% is External Asset Managers

 

**

1 Interest income 393.90
2 Interest expense -86.40
3 LOANS       307.5 22.94% 22.50%
4 Advisory and management commissions 433.10  
5 Investment fund fees 87.00  
6 MGMT FEES & FUND FEES     520.1 520.1 38.80% 38.05%
7 Brokerage commissions 251.00  
8 Other commissions 60.60  
9 311.6  
10 Commission expense -96.5  
11 COMMISSIONS       215.1 16.05% 15.74%
12 Trading income FX 229.80 229.8 17.14% 16.81%
13 Trading income Debt Instruments 14.20 14.2 1.06% 1.04%
14  
15 Trading income Equity instruments -126.40  
16 Dividend income on trading portfolios 180.20  
17 STRUCTURED PRODUCTS (partially)       53.8 4.01% 3.94%
18 Total of all the selected above 1340.5
19 Total according to H1 Report 1366.9

julius-baer-net-commission-and-fee-income julius-baer-net-interest-and-dividend-income julius-baer-net-trading-income

Leave a Reply

Your email address will not be published. Required fields are marked *