Julius Baer in a position to make future acquisitions
Julius Baer would be able to buy a bank with assets of up to $15.2bn without tapping the market for additional cash, according to an announcement from CEO Boris Collardi. While he has not ruled out future cost-cutting measures, Collardi expects the bank's new regional structure to keep costs to a minimum. He also stressed that any potential acquisition would be price sensitive and that the bank would only be willing to buy at a price below 1.5% of assets under management. 

ZURICH (Reuters) - Julius Baer (>> Julius Baer Gruppe AG) could afford to buy a bank with assets under management of up to 15 billion Swiss francs ($15.2 billion or 11.58 billion pounds) without tapping the market for additional cash, Chief Executive Boris Collardi said on Monday.

Baer, Switzerland's third-biggest private bank, has in the past used acquisitions to keep pace with much larger rivals UBS (>> UBS Group AG) and Credit Suisse (>> Credit Suisse Group AG).

In an interview with Reuters, Collardi stressed any deal would be very price sensitive.

"We have seen all types of prices in the market," Collardi said. "We have seen 0.5 percent (of assets under management), we have seen 1 percent. Anything we have seen above that we think it's too expensive anyway -- 1.5, 2 percent, that's way off."

Collardi was speaking after Zurich-based Baer posted first-half earnings ahead of analyst expectations.

He also left the door open to further cost-cutting measures later this year.

At a time of increased regulatory costs, negative interest rates and restrained client activity all banks are under pressure to lower budgets.

"The chance is there," Collardi said, when asked whether it was possible Baer could flesh out existing cost cuts.

Collardi also expected the bank's new regional structure, which was announced last week, to help keep a lid on costs.

"I have very high expectations... in synergies that we should be able to achieve in the front office," Collardi said, without specifying what the value of those synergies could be.

(Reporting by Joshua Franklin and Oliver Hirt)