Shares of Swiss bank Julius Baer react to H1 financial results

 Swiss bank Julius Baer (BAER.CH) started today's trading session with a sizable downward gap, triggered by weak results for the first half of 2022. Nevertheless, the bulls managed to negate today's discount and the stock is currently gaining more than 1.5%. 

• Higher costs and a decline in customer activity led to a 26% drop in first-half earnings. Net income attributable to shareholders was 451 million francs (Refinitiv had forecast 477 million francs). 

• Operating income fell to 1.87 billion francs against a forecast of 1.9 billion francs

• Turmoil in global financial markets led to an 11% drop in assets under management to 428 billion francs. 

• As a result of the poor performance, the Bank will suspend recruitment of new employees.

Nevertheless, the Bank communicated that the peri-market situation has begun to improve, and Julius Baer is well positioned for a possible market rebound. 

• Julius Baer is expected to continue its cost discipline in the second half of the year. 

The bank is seeing a significant improvement in terms of customer activity through May and June 2022. Source: Julius Baer 

The shares of Julius Baer Bank (BAER.CH) have negated the downward gap from earlier in the day and are currently trading up more than 1.5%. Source: xStation 5