Julius Bär Gruppe (BAER) Strategy Update summary

Strategic transformation and leadership changes

• New CEO and Chairman initiated a comprehensive strategy update, reducing the Executive Board and introducing new committees to strengthen governance and accountability.

• Enhanced risk management with a new risk organization, appointment of Ivan Ivanic as Chief Risk Officer effective July 2025, and consolidated legal and compliance functions.

• Front office and operating model streamlined, reducing leadership positions by 33%, reallocating risk/support resources, and simplifying regional structure.

• Conduct and Culture Programme launched to reinforce disciplined risk ownership and performance culture.

• Strategy update prompted by outdated targets, recent performance challenges, and the need for clarity on future direction.

Strategic agenda and operational priorities

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

• Focus on high-net-worth and ultra-high-net-worth client segments, with sharpened segmentation and enhanced product offerings.

• Technology investments include a new Digital Business Transformation unit, proprietary tools like Wealth Navigator, and IT infrastructure modernization in Switzerland.

• Operational efficiency targeted via cost discipline, process optimization, smart sourcing, and AI-driven productivity.

• Client-centric approach reinforced by leadership engagement and feedback loops, aiming for long-term relationships and trust.

Financial targets and cost discipline

• Medium-term targets: net new money growth of 4–5% by 2028, adjusted cost/income ratio below 67%, and adjusted RoCET1 of at least 30%.

• Cost-saving programs to deliver CHF 270 million by 2025, with an additional CHF 130 million targeted by 2028 through structural efficiency improvements.

• Gross cost savings target extended to CHF 110 million (2023–2025), expected to be exceeded by CHF 20 million.

• Cost programs delivered CHF 140 million in run-rate savings (2023–2024) and are on track for an additional CHF 130 million by 2028.

• Investments in growth and technology balanced with strict cost management and reinvestment in high-potential areas.