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

Consolidated financial results
16
Excluding the acquisition effects, the
major change on the liabilities side of
the balance sheet was an increase in the
volume of structured products issued,
which rose by around CHF 1.2 billion or
164% year-on-year. The refinancing
measures by Asset & Liability Management
caused the item Due to banks to
fall by about CHF 0.6 billion, which was
offset by a corresponding growth of
client deposits. The CHF 149 million
increase in provisions was primarily
attributable to the CHF 131 million of
expenses recognized for restructuring
measures as a result of the rapidly progressing
integration of the three private
banks and GAM.
Julius Baer’s share capital is now divided
into 111 628 239 registered shares with
a par value of CHF 0.10 each. Treasury
shares amounted to CHF 81 million on
the balance sheet date. This position
contains all own shares and derivative
instruments linked to own shares that
are held in the trading portfolio. The new
share repurchase program launched in
March 2005, allowing for repurchases of
up to CHF 90 million, was suspended as
of 5 September 2005.
The acquisition entailed a targeted
reduction of the equity ratio in exchange
for expansion of the core business. The
financial strength of the new Julius Baer
Group remains robust, as reflected by
the BIS ratio Tier 1 of 12.7% as well as
by the long-term debt rating of Aa3
recently assigned to Julius Baer for the
first time by Moody’s.