julius baer fund is reporting its missed its expectations. the swiss bank posted a net profit of 121 francks. after setting aside shares. off by 1.7%. let's get to julia chatterley. julia, there was some sign of strength. but investors on the stock report, what's your read. >> reporter: well, as you quite rightly said, if you look at the underlying business, as they were saying to me, or agency the ceo as saying to me, actually, better than expected, tough comparison for the first half of the year, because trading was boosted by the abandoned swiss peg. what we did see say 10% rise in dividend. when i spoke to the ceo, i asked him what else can i do for investors, what about the opportunity for buybacks, listen in. >> when we look at it, we're favored and also some power. we're looking for additional opportunities, i think we've looked at what we trust or not. i think specifically, we've seen guided people early on to see we're not interested. i think whether we'll be interested or not, we'll tie the market. >> reporter: the interesting thing

guy: we need to talk about julius baer. ceo of switzerland's wealth management company spoke to manus cranny in the last hour, his outlook for the company in the future of private banking. >> we believe that the market will continue to consolidate, our industry will be producing m&a opportunities, working with some reserve. at the same time, we are seeing investors are continuing to like dividends. we're increasing dividends, and ,e think we have a new guidance given the payout ratio guidance, which i think is something that the market wanted to hear. that's taking into account the opportunities that may surface in the m&a space. manus: let's talk about the opportunities -- here domestically, give me a sense of what kind of deal you would like to do. union, what is the kind of institution? >> ideally, in the perfect world, we would look at the portfolio that is diversified, that comes from different areas which are compatible with hours. asia, middle east, europe, switzerland. ideally, something of large-size. i think if we

anna: for more on the julius baer story, manus cranny is standing by in zÜrich with the bank's ceo.g. manus: yes, we have boris with us. you just had the numbers. the dividend is up by 10%. welcome to the show. you have made provisions for your issues with the u.s. you said that would be sorted out in a timely basis. the dividend is up and you have gone for a payout ratio of 40%. the balance now between dividends and capital for deals, walk me through it. way we are looking at it is quite simple. we believe the market will continue to consolidate, so our industry will be producing m&a opportunities. we are keeping some reserves for that. at the same time, investors are continuing to like dividends. so was the second time in a row, we are increasing the dividend. we have now given, for the first ,ime, payout ratio guidance which is something that i think the market wanted to hear. and that takes into account the opportunities that may surface in the m&a space. manus: let's talk about the opportunities you are not interested in. give me a sense of what kind of deal you would like to d

cranny spokeanus to the ceo julius baer.hat he had to say. >> the way that the negative interest rate is charged to the -- we have the other side of the balance sheet, so the impact is not that great. weay, if you are asking me, could still absorb another increase, which i don't think will happen. francine: i really like the fact that when you look at negative rates, you were thinking about what this means for the person on the street. for the first time, it basically means that savers are paying borrowers. that seems crazy. tom: it seems crazy, but i love what he said there. the great new wants of this debate is will the institutional reality of negative rates rollover to the retail investor and the retail saver? that is a raging debate right now. no one really knows. francine: it is a raging debate and central banks have to figure it out -- not forgetting the little person. tom: it is the rumor. at least the policymakers will try not to forget the little person. the little person is voting in iowa. later today, a special t