Julius Bär Gruppe (BAER) H2 2024 earnings summary

Executive summary

• Achieved record assets under management (AUM) of CHF 497 billion, up 16% year-over-year, with total client assets reaching CHF 590 billion, up 15%.

• Net new money generation accelerated to CHF 14.2 billion, supported by strong relationship manager hiring and inflows from key markets.

• New CEO outlined five immediate priorities: client focus, technology, disciplined entrepreneurship, performance culture, and talent, with a comprehensive strategy review planned before summer.

• Executive Board downsized from 15 to 5 members to streamline decision-making and increase accountability.

• Adjusted net profit rose 11% to CHF 1,047 million, driven by a substantial tax provision release; IFRS net profit increased 125% to CHF 1,022 million.

Financial highlights

• Adjusted profit before tax reached CHF 1.1 billion; adjusted net profit CHF 1 billion, aided by a favorable tax impact.

• Operating income increased 1% to CHF 3.9 billion, as higher commission and fee income (+14%) and income from financial instruments at fair value (+21%) offset a 55% drop in net interest income.

• Adjusted operating expenses rose 3% to CHF 2,782 million, mainly due to higher personnel costs (+4%) and increased amortisation.

• Return on CET1 capital at 32%, above the 30% target; CET1 capital ratio at 17.8% (Basel III), pro forma 14.2% under Basel III final.

• Cost-to-income ratio increased to 70.9%, above the sub-64% 2025 target.

Outlook and guidance

• Net new money growth in 2025 expected to be closer to 3%, reflecting conservative risk framework and ongoing low performer management.

• Recurring fee income margin target remains above 39 basis points, with further details to come in the strategy update.

• Forward tax guidance set at 18–20% due to OECD minimum tax implementation, up from the 2024 rate of 2.9% due to a one-off tax provision release.

• Cost program extended to deliver an additional CHF 110 million gross savings by end-2025, totaling CHF 250 million run-rate savings.

• Basel III final implementation expected to reduce CET1 capital ratio by approximately 350 basis points as of 1 January 2025.