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

Corporate Center
26
Corporate Center
Income and expenses that are not
directly connected with the operating
businesses are recognized in the Corporate
Center, especially income and
expenses related to Asset & Liability
Management.
Income within the Corporate Center was
up by 29% year-on-year to CHF 77 million
in 2005. The interest surplus from
Asset & Liability Management was negatively
influenced in the first half of 2005
by the significantly flatter yield curves.
But this was offset by higher income
stemming from the sale of financial
investments, the release of provisions
no longer needed and the settlement of
lawsuits.
At the same time, however, operating
expenses increased by 83% to CHF 220
million. Primarily responsible for this
were higher personnel expenses as well
as integration costs of CHF 53 million
incurred in the reporting period. This latter
item included one-time costs totaling
CHF 49 million for the indefinitely postponed
project to replace the existing IT
platform in Switzerland. All in all, the
Corporate Center reported a shortfall of
CHF 142 million before taxes at the end
of 2005.
Our staff
Much of Julius Baer’s success up to
now, and especially that of the new
Group, is attributable to the employees.
Their personality, their competence and
their readiness to accommodate the
diverse needs of our esteemed clients
are the cornerstones of our self-image
and of the image we wish to convey
externally.
The Julius Baer Group, in its new configuration,
employed 3 427 persons on a
full-time basis at the end of 2005. In
view of the broader geographic presence
of the Group in the major international
financial centers, the proportion
of staff in Switzerland declined from
78% for the former Julius Baer Group to
72%. The proportion of staff with more
than five years of service climbed to
44% (2004: 38%). As a result of the
build-up and expansion of various locations
and fields of business, 25% of staff
were in their first year of service. The
age structure is balanced, though the
segment of 31- to 40-year-olds still
dominates at 39% (40%).