Julius Baer sets new targets for 2025

Julius Baer presents new goals

Wealth manager Julius Baer adjusts its goals.

Arnd Wiegmann / Reuters

no. Julius Baer has set new targets for the period 2023 to 2025. The asset manager wants to further focus the business and further reduce the cost base.

As the banking group announced on Thursday, it is aiming for an adjusted pre-tax margin of 28 to 31 basis points by 2025. The target for the previous period was 25 to 28 basis points. For the adjusted cost/income ratio, a value of less than 64 percent is now being aimed for, after a value of “67 percent or lower” had previously been targeted.

An annual growth rate of 10 percent is still targeted for the adjusted profit before taxes, and the adjusted return on core capital should also remain unchanged at 30 percent. With “strategic and dynamic cost management”, Julius Baer also wants to achieve gross savings of CHF 120 million by 2025. This is to be done by streamlining the geographic presence and market coverage as well as through increased efficiency.

The asset manager is also updating its policy on distributions. One expressly undertakes to return excess capital to the shareholders. As announced when the annual results were presented in February 2022, 50 percent of the adjusted group profit is to be distributed as an ordinary dividend.

Cisco lowers annual targets – stock plummets

Cisco boss Chuck Robbins at the Mobile World Congress in Barcelona, ​​Spain in 2018. His company is suffering significant losses these days.

Cisco boss Chuck Robbins at the Mobile World Congress in Barcelona, ​​Spain in 2018. His company is suffering significant losses these days.

Yves Herman / Reuters

(dpa) The American network equipment supplier Cisco is significantly lowering its annual targets after a weak quarter due to ongoing supply chain problems in view of corona lockdowns in China and the Ukraine war. The group only expects sales growth of between 2 and 3 percent for the current fiscal year, as it announced on Wednesday after the US stock market closed. Previously, the forecast was 5.5 to 6.5 percent.

Investors dropped the stock by around 13 percent after the market closed. Cisco CEO Chuck Robbins said that results over the next few quarters depended more on the availability of components like computer chips than demand.

In the past third fiscal quarter (until the end of April), Cisco’s sales stagnated at $12.8 billion compared to the same period last year, well below market expectations. CEO Robbins assured, however, that Cisco will remain in a good position in the long term.

According to Cisco, the business freeze in Russia and Belarus, which was decided in the course of the war of aggression against Ukraine, reduced revenues by around 200 million dollars in the past three months. Thanks to lower operating costs, the major manufacturer of computer network equipment nevertheless increased its net profit by six percent to $3.0 billion (2.96 billion Swiss francs).

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