Julius Bär Gruppe (BAER) H2 2025 earnings summary

Executive summary

• Assets under management reached a record CHF 521 billion, up 5% year-over-year, with net new money inflows of CHF 14.4 billion, despite de-risking and divestments.

• Underlying pre-tax profit rose 17% year-over-year, driven by a 6% increase in operating income and cost discipline, while IFRS net profit declined 25% to CHF 764 million due to higher credit losses and one-off items, including the sale of the Brazilian business.

• Cost/income ratio improved to 67.6%, with CHF 130 million in gross cost savings, exceeding targets.

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

• Strategic transformation included governance enhancements, renewed leadership, and a focus on profitable growth and operational efficiency.

Financial highlights

• Adjusted operating income increased 6% year-over-year to CHF 4,073 million, while IFRS operating income declined 3% to CHF 3,760 million due to credit losses and the Brazil sale.

• Net commission and fee income grew 5% to CHF 2,314 million, with brokerage commissions up 12%.

• Net interest income dropped by CHF 252 million to CHF 125 million, mainly due to lower rates and currency effects.

• Net income from financial instruments at FVTPL increased 25% to CHF 1,608 million, driven by treasury swap income.

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

Outlook and guidance

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

• Transformation focuses on balancing growth, cost, and risk, with technology and cultural change as enablers.

• Dividend proposal remains unchanged at CHF 2.60 per share, with additional buybacks subject to regulatory approval.

• Expected adjusted tax rate for 2026–2028: 18–20%.