Julius Bär Gruppe (BAER) Strategy Update summary

Leadership and Organizational Changes

• New CEO and Chairman led a comprehensive strategy update, reducing the Executive Board from 15 to 5 members and introducing new committees for clearer accountability and faster decision-making.

• Regional structure simplified from five to three, with a new Global Products & Solutions unit and a UHNW Competence Centre established.

• Front office restructured, reducing management layers by 33%, increasing team sizes, and reallocating risk/support resources to client-facing teams.

• Enhanced risk management with a new Chief Risk Officer, new risk organization, and ongoing search for a Chief Compliance Officer.

• Conduct and Culture Programme launched to reinforce disciplined risk ownership, performance culture, and increased employee share participation.

Strategic Priorities and Transformation

• Five key priorities: profitable core growth, cost discipline, disciplined risk management, leveraging technology, and fostering a performance and ownership culture.

• Focus on restoring consistency by staying within core wealth management, reducing organizational complexity, and sharpening client segmentation.

• Portfolio optimization includes exiting onshore Brazil, expanding in Italy and other key markets, and a tighter business scope.

• Commitment to regular strategy updates, transparent communication, and disciplined execution to balance growth, returns, cost, and risk.

• Conduct and Culture Programme and talent development initiatives underpin the transformation.

Financial Targets and Outlook

• Medium-term targets: net new money growth of 4%-5% by 2028, cost-to-income ratio below 67%, and return on CET1 above 30%.

• 2025 net new money guided at 3%, with gradual acceleration expected as temporary headwinds subside.

• Cost programs delivered CHF 140 million in run-rate savings (2023–2024), with an additional CHF 130 million targeted by 2028.

• Dividend policy remains at a 50% payout ratio or previous year’s dividend, with share buybacks contingent on regulatory approval and capital policy maintaining a 14% CET1 buyback threshold.

• Sensitivities to FX and interest rates highlighted, with strong capital position and Basel 3 compliance.