Julius Baer approves a share buyback of up to 600 million Swiss francs
Julius Baer approved a share buyback of up to 600 million Swiss francs after receiving regulatory consent. The Swiss bank expects purchases to start in the coming weeks and finish within a year, subject to market conditions. Its revised capital distribution policy retains a dividend payout target of 40–60 per cent of net profit and a core capital ratio target of 15 per cent.
Economics & Markets··Morning
Julius Baer receives consent for a new buyback
Swiss private banking group Julius Baer announced a new share buyback programme on 2 October. Its board approved the programme after receiving regulatory consent.[1], [2], [3]
The authorisation covers up to 600 million Swiss francs. The group expects repurchases to begin in the coming weeks and finish within one year, subject to prevailing market conditions, which may affect the timetable. The announced amount is the programme’s maximum authorised value. Shares will be acquired through a second trading line on the SIX Swiss Exchange, the Swiss stock exchange.[1]
The dividend payout target remains 40–60 per cent
The group revised its capital distribution policy covering dividends and buybacks. It retained a dividend payout target of 40–60 per cent of consolidated net profit attributable to shareholders, calculated under international financial reporting standards. It aims to increase the dividend per share over time, except in exceptional circumstances. Julius Baer also kept its core equity capital ratio target at 15 per cent, a measure of capital held against risk-weighted assets.[1]
Management ties distributions to its existing financial targets
Chairman Noel Quinn said management had made progress in addressing legacy issues and maintained open dialogue with the regulator. He said the revised policy aims to return excess capital while preserving the strength and flexibility needed for the group’s confirmed three-year financial targets. Julius Baer managed 547 billion Swiss francs of assets at the end of June and operates from Zurich.[1]
