Julius Bär Gruppe (BAER) Trading update summary

Financial performance and outlook

• Achieved record operating income and assets under management (AUM) at CHF 528 billion, driven by strong equity markets, net new money inflows of CHF 3 billion, and exceptional client activity.

• Cost-to-income ratio improved to 62%, with pre-tax margin reaching 32 basis points and gross margin at 90 basis points, reflecting widened operating jaws and strong activity-driven income.

• CET1 capital ratio increased to 18.1%, well above regulatory requirements, primarily due to strong profits in the first four months.

• IFRS net profit for H1 2026 expected to be substantially higher than H1 2025, with no significant one-off effects.

• Guidance for cost-to-income ratio remains around 2025 levels, assuming 80 basis points gross margin input and stable FX rates.

Net new money and client activity

• Net new money pace annualized at 1.7%, reflecting a slower start due to de-risking, Middle East uncertainty, and paused client releveraging.

• Net new money for 2026 expected to be slightly below 2025's annualized growth rate, but confidence remains in reaching 4%-5% target by 2028.

• De-risking from revised risk and compliance framework impacts both existing and new clients, improving long-term client book quality.

• Most net new money contributions came from RMs on business case (70%), with seasoned RMs contributing 30%.

Relationship managers and hiring

• Ended April with 1,257 relationship managers (RMs), with over 30 new hires and 15 in advanced discussions.

• Targeting a net increase of around 150 RMs by year-end, with hiring focused on Switzerland and Western Europe.

• New RM compensation framework well-received, aligning incentives with bank and shareholder interests.

• Attrition rates in line with expectations; departures not linked to compensation changes.