Julius Bär Gruppe (BAER) H2 2025 (Media) earnings summary

Executive summary

• Assets under management reached a record CHF 521 billion, up 5% year-over-year, driven by CHF 14.4 billion in net new money and rising equity markets, reinforcing the position as the largest independent international wealth manager.

• Underlying profit before taxes rose 17% to CHF 1,266 million, reflecting a 6% increase in operating income and improved cost efficiency, while IFRS net profit fell 25% to CHF 764 million due to non-recurring items, higher net credit losses, and the sale of the Brazil business.

• 2025 marked a key transition year, with legacy issues addressed, a comprehensive credit review completed, and new risk management frameworks implemented.

• Entering the 2026-2028 strategic cycle with strong momentum, focusing on profitable growth, operational efficiency, and digital transformation.

• Strengthened capital position with CET1 capital ratio at 17.4% and total capital ratio at 24.7%.

Financial highlights

• Underlying operating income increased 6% year-over-year to CHF 4,073 million, while IFRS operating income declined 3% to CHF 3,760 million.

• Net commission and fee income grew 5% to CHF 2,314 million; net income from financial instruments at FVTPL up 25% to CHF 1,608 million.

• Net interest income dropped 67% to CHF 125 million, mainly due to lower rates and currency effects.

• Net credit losses surged to CHF 213 million, primarily from mortgage and private debt loan books.

• Gross cost savings of CHF 130 million exceeded the target by CHF 20 million.

Outlook and guidance

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

• Focus on profitable growth, operational efficiency, and further CHF 130 million in gross structural efficiency improvements.

• Board proposes an unchanged ordinary dividend of CHF 2.60 per share; share buybacks subject to regulatory approval.