Julius Bär Gruppe (BAER) H1 2025 earnings summary

Executive summary

• Underlying net profit rose 11% year-on-year to CHF 511 million, driven by higher operating income and improved 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-on-year to CHF 7.9 billion, with strong contributions from Asia, Western Europe (notably UK and Germany), and the Middle East.

• Assets under management ended at CHF 483 billion, down 3% year-to-date, mainly due to FX effects and the sale of the Brazilian business.

• Strategic priorities for 2026-2028 target 4-5% net new money growth, cost/income ratio below 67%, and return on CET1 capital above 30%.

• Major organisational simplification, risk management enhancements, and digital transformation initiatives were implemented.

Financial highlights

• Adjusted operating income down 2% year-on-year to CHF 1.91 billion; underlying operating income up 5% to CHF 2.04 billion, with net commission and fee income up 5% to CHF 1.143 billion.

• Net interest income fell to CHF 72 million, offset by a 27% rise in trading income to CHF 807 million, mainly from treasury swaps.

• Adjusted EPS rose 11% year-on-year to CHF 2.49.

• Personnel costs increased 3% to CHF 937 million; general expenses up 1% to CHF 371 million, with legal provisions and losses rising to CHF 36 million.

• Assets under management ended at CHF 483 billion, down 3% year-to-date.

Outlook and guidance

• Net new money guidance for 2025 remains at 3%, with targets of 4-5% by 2028 and cost/income ratio below 67%.

• Return on CET1 targeted above 30% in the medium term.

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

• Interest-driven income margin expected to stabilize around 24 basis points for the year.