Julius Bär Gruppe (BAER) Trading Update summary

Net new money, asset growth, and relationship manager trends

• Net new money growth accelerated to 4.2% in the last four months, with year-to-date growth expected between 3%-4% by year-end.

• Net new money inflows reached CHF 7.5 billion (4.8% annualised) from July to October, with strong contributions from Europe, Asia, and the Middle East.

• Assets under management rose 12% year-to-date to CHF 480 billion, with total client assets at a record CHF 570 billion.

• Relationship manager headcount increased by 46 FTEs to 1,389, with seasoned RMs contributing positively after a slow first half.

• The proportion of RMs on business case is expected to rise from 25% to 27% by year-end, supporting future growth.

Financial performance and margins

• Gross margin for July–October was 81 basis points, down from 85 in H1 and 88 in 2023, with a ten-month average of 83 bp.

• Recurring income contributed 37 bp, interest-driven income 23 bp, and activity-driven income 21 bp to gross margin.

• Adjusted cost/income ratio remained at 71%, with a pre-tax margin of 24 bp.

• Net interest income edged down slightly, offset by a rise in FX swap income; private debt portfolio wind-down also impacted NII.

• IFRS net profit for 2024 is expected to significantly exceed 2023.

Capital and regulatory updates

• CET1 capital ratio improved to 16.7%, up from 16.3% at end-June and 14.6% at end-2023; total capital ratio rose to 24.7%.

• Tier 1 leverage ratio stood at 4.8%, well above the 3.0% regulatory requirement.

• Basel III Final implementation in Switzerland is expected to have a 2-2.5 percentage point capital impact, with some uncertainties remaining.

• $300 million AT1 bond was redeemed in September without pre-financing.

• Private debt loan book reduced to just above CHF 0.4 billion.