Analyst Note| Johann Scholtz, CFA |
Wide-moat Julius Baer reported net attributable profit of CHF 699 million for its 2020 fiscal year, 50% higher than the CHF 465 million it reported a year ago and ahead of the CHF 659 million we expected. Julius Baer also discloses an adjusted net profit number that excludes certain items it deems non-recurring or of a non-cashflow nature. The reported net adjusted attributable profit of CHF 955 million for 2020 was 24% ahead of the number Julius Baer reported a year earlier. Julius Baer also announced an increase in its dividend to CHF 1.75 per share--compared with the CHF 1.50 per share it paid during 2019. It also indicated that it will resume share buybacks with a new CHF 450 million buyback program that will commence in March 2021. We maintain our CHF 57 per share fair value estimate.