Julius Baer Ups Share Buyback, Cuts Margin Targets

Julius Baer announced a share buyback of up to 500 million Swiss francs as the pure play Swiss private bank cut profit margin goals and hiked its cost-income ratio target.

Clients added 10 billion francs in net new money, ahead of expectations, while assets under management remained steady at 170 billion Swiss francs.

Net profit fell to 258 million Swiss francs, down 27 percent from a year earlier as restructuring and other expenses weighed.

"We see no signs of slowing down in terms of our momentum even in the last few weeks," Boris Collardi, CEO of Julius Baer told CNBC on Monday.

The group maintained its ordinary dividend and will run a special dividend past its shareholders for approval.

Turning to an ongoing U.S. tax probe, Collardi said he was confident the group could find a resolution.

"We can't really assess the penalty or the situation," he said, adding however that the group was "confident and committed to finding a solution".

Collardi expects the market to be volatile in the coming months, but believes the European Central Bank will do all it can to stabilize markets and rebuild investors' confidence.

"I think the ECB is trying to do whatever they can to support the markets," Collardi said.

"They will do whatever it takes," he said, referring to the ECB's upcoming long-term refinancing operation which will offer banks loans at a discount.