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Switzerland’s second-biggest bank, Julius Baer, said it pulled in more than SFr9.2bn ($10.6bn) in new money from clients following the near-collapse of rival Credit Suisse and its takeover by UBS in March — a trend it expects to continue in the coming months.

Despite turbulent markets and clients cutting back on borrowing in their portfolios, inflows helped propel the bank’s total assets under management higher by SFr17bn to SFr441bn at the end of June.

“There’s no reason that should slow down, [notwithstanding] unexpected adverse market events,” said chief executive Philipp Rickenbacher. “On the contrary.”

The knock-on effects of the Credit Suisse crisis have only just begun to be felt, he said, pointing to new hires Julius Baer has made — many from its rivals — that had produced some “early wins” but would only really translate into more substantial gains in client mandates later this year and next.

The bank has hired 57 relationship managers in the past few months.

“It’s very important to keep in mind the time-lag,” Rickenbacher said. “Yes, we are seeing new colleagues come onboard but how that translates into performance will play out over the next three years.”

Many new hires at the bank have jumped ship from Credit Suisse and UBS, where executives are preparing to instigate swingeing staff cuts following the merger of the two banks, even as they try to cling on to nervous clients.

Credit Suisse has so far seen at least 120 senior investment bankers depart.

Rickenbacher said Julius Baer was focused on organic growth, downplaying the chances of the bank making acquisitions in the near future despite its strong financial position. “Things would have to be the relevant size and quality and I just don’t see anything on the horizon moving our way,” he added.

The bank’s first-half net profit rose 18 per cent to SFr532mn, powered by rising assets and higher interest rates. Income from interest on loans to clients surged more than 146 per cent over the past six months to SFr841mn.

Julius Baer reported a core equity tier one capital ratio — a key measure of balance sheet strength — of 15.5 per cent, up from 14 per cent at the end of 2022.

The 133-year-old lender is Switzerland’s largest “pure-play” private bank: it caters only to the account and investment needs of wealthy individuals and does not speculate with its own capital or run its own in-house asset management business — a conservative model that has helped it during recent market nervousness.

Analysts welcomed the results as a sign that the bank was well-positioned compared with rivals.

“We expect hiring of relationship managers to rise, driving net new money above the historical average from [the second half] onwards,” said Deutsche Bank analyst Benjamin Goy in a note to clients.

Analysts at Jefferies said the results were a “positive portent” for the months ahead.

Rickenbacher said he welcomed a forthcoming Swiss political probe into the crisis at Credit Suisse and the government-backed takeover of the bank by UBS.

A thorough government inquiry and review would provide the “right basis” to tweak banking regulations. “I am very happy that a lot of energy is going into getting the facts together,” he said.

“There were early calls to rein in compensation and increase capital and I can say with some confidence that neither issue was at the heart of the problems with Credit Suisse.”

He added: “Changes in regulation should be done to be effective, rather than make us feel good.”