2005 Annual Report Julius Baer Holding Ltd. - GAM Holding AG

Foreword
6
Annual financial results reflect the new Julius Baer Group. The Julius Baer
Group managed CHF 304.3 billion of assets at the end of 2005. The former Julius
Baer Group was responsible for CHF 173.6 billion of this amount, representing
a year-on-year increase of 28%, whereas the three private banks and GAM
contributed CHF 130.8 billion. Broken down according to the business divisions,
Private Banking accounted for CHF 121.7 billion and Asset Management for
CHF 181.8 billion (CHF 118.5 billion of which related to investment funds). The
new Julius Baer Group employed 3 427 persons on a full-time basis at the end of
the year.
Operating income totaled CHF 1 504 million, with 88% of this amount coming
from commission and service fee activities, which underscores the stable quality
of our core business. The remaining 12% represents transaction-based income.
Operating expenses came to CHF 1 316 million. Owing to good progress in the
integration of the various business entities, restructuring costs of CHF 138 million
were already incurred during the reporting period. After also taking into account
one-time write-offs and provisions of CHF 49 million due to the decision to suspend
the project to replace the IT platform of Julius Baer, a net profit of CHF 146
million resulted for the shareholders of Julius Baer Holding Ltd.
Changes in the Board of Directors. At the Annual General Meeting on 12 April
2005, Rolf P. Jetzer was elected to the Board of Directors for the first time. At the
next Annual General Meeting, scheduled for 12 April 2006, Georges Gagnebin and
Charles Stonehill will be proposed for election to the Board of Directors. Georges
Gagnebin can look back on a career of more than 35 years at the former Swiss
Bank Corporation and subsequently with the UBS Group. Thanks to his in-depth
knowledge of the international private banking business, he will be able to provide
the Julius Baer Group with valuable insights as to how we can successfully push
forward with our strategic growth initiatives in private banking. Charles Stonehill
has vast experience in international banking and investing, which he has acquired
during nearly three decades in various positions with prominent banks and brokerage
firms. This wealth of knowledge will directly benefit our Group in view of
its expanded geographic focus.