Julius Bär Gruppe (BAER) investor relations material

Executive summary

• Underlying net profit rose 11% year-over-year to CHF 511 million, driven by improved core business performance and cost efficiency, while IFRS net profit fell 35% to CHF 295 million due to credit losses and the Brazil sale.

• Net new money inflows more than doubled year-over-year to CHF 7.9 billion, with strong contributions from Asia, Western Europe, and the Middle East.

• Assets under management decreased 3% year-to-date to CHF 483 billion, mainly due to the Brazil business sale and currency effects.

• The company is executing its strategic agenda for 2026–2028, focusing on growth, efficiency, risk management, technology, and culture.

• The group remains solidly capitalised, with CET1 capital ratio at 15.6% and liquidity coverage ratio at 303%.

Financial highlights

• Underlying operating income rose 5% year-over-year to CHF 2,040 million, while adjusted operating income excluding credit losses was up 5%.

• Adjusted profit before taxes up 11% to CHF 614 million; adjusted EPS up 11% to CHF 2.49.

• IFRS net profit impacted by CHF 130 million net credit losses and CHF 99 million loss from Brazil sale.

• Net interest income dropped 68% year-over-year to CHF 72 million, offset by a 27% rise in net income from financial instruments at FVTPL.

• Underlying cost/income ratio improved to 68.2%, down 3 percentage points year-over-year.

Outlook and guidance

• Financial targets for 2026–2028: net new money growth of 4–5% per annum, adjusted cost/income ratio below 67%, and return on CET1 above 30% by 2028.

• On track to achieve CHF 130 million in additional cost savings on a run rate basis by end of 2025.

• Management expects to restore positive operating leverage and deliver long-term shareholder value.

• Tax rate guidance for 2025–2027 remains at 18–20%.

• Credit penetration expected to remain stable; no major market deterioration assumed.