Ad hoc announcement pursuant to Art. 53 LR
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Julius Baer Group Ltd. / Key word(s): Half Year Results
Ad hoc announcement pursuant to Art. 53 LR
Stefan Bollinger, Chief Executive Officer of Julius Baer Group Ltd., said: “It is encouraging to see the positive momentum with net new money more than doubling year on year and underlying net profit increasing double digit due to our continued focus on clients and risk management. Now that we have a clear strategic agenda in place, we are making significant progress in unlocking growth while implementing organisational and operational changes and delivering on our cost programme ahead of plan. I remain confident that we have all ingredients in place to unleash our full potential and reach our mid-term goals.”
Alternative performance measures and reconciliations
Overall improved underlying business performance year on year
On the Group’s usual adjusted basis ( excluding M&A-related items), profit before taxes declined by 12% to CHF 484 million and the pre-tax margin decreased by 4 basis points (bp) to 20 bp. Adjusted net profit and adjusted EPS decreased by 11% to CHF 408 million and CHF 1.98, respectively. On the same basis, the adjusted return on CET1 capital (RoCET1) declined to 22% (H1 2024: 30%). Excluding the impact of net credit losses on the H1 2025 adjusted results, underlying profit before taxes rose by 11% to CHF 614 million. This reflects 5% underlying revenue growth as well as an improvement in the underlying cost/income ratio to 68.2% (H1 2024: 71.0%), as the cost saving measures began to positively impact the Group’s results, more than offsetting the impact of a 2 bp decline in the underlying gross margin (to 83 bp). The underlying pre-tax margin improved by 1 bp to 25 bp. Underlying net profit and underlying EPS rose by 11% to CHF 511 million and CHF 2.49, respectively, and the underlying RoCET1 increased to 28%.
More than doubled net new money inflows year on year
Assets under management totalled CHF 483 billion as of 30 June 2025, a year-to-date decrease of CHF 15 billion (-3%), as the positive effects of solid net new money and rising global equity market valuations were more than offset by the impact of the weaker US dollar and the sale and deconsolidation of Julius Baer Brazil (AuM of CHF 8 billion) in March 2025. Monthly average AuM increased by 7% year on year to CHF 491 billion. Including assets under custody of CHF 89 billion, total client assets amounted to CHF 572 billion.
IFRS operating income down 7% on Brazil sale, but underlying operating income rises following year-on-year AuM increase
Excluding the M&A-related impact on operating income, adjusted operating income decreased by 2% to CHF 1,910 million , resulting in an adjusted gross margin of 78 bp (H1 2024: 85 bp). Excluding the impact of CHF 130 million of net credit losses on adjusted operating income, underlying operating income grew by 5% to CHF 2,040 million, largely on the back of the 7% year-on-year increase in monthly average AuM. The corresponding underlying gross margin was 83 bp on that basis. Net commission and fee income grew by 5% to CHF 1,143 million, with recurring income rising by 4% to CHF 896 million . Higher client activity drove a 14% increase in brokerage commissions and income from securities underwriting to CHF 402 million, while commission expense rose by 31% to CHF 154 million. As the interest-driven revenue components shifted further towards net income from financial instruments measured at FVTPL, net interest income declined by CHF 151 million to CHF 72 million. Following a year-on-year decrease in interest rates, a relative shift to lower-rate Swiss-franc-denominated loans, as well as a weaker US dollar, interest income on loans fell by 27% to CHF 628 million. Income from the treasury portfolio (the sum of interest income on debt instruments at fair value through other comprehensive income (FVOCI) and interest income on debt instruments at amortised cost) declined by 14% to CHF 264 million, and interest income on amounts due from banks decreased by 49% to CHF 81 million. Partly on the back of lower interest rates and exchange rate impacts, interest expense on amounts due to customers decreased by 19% to CHF 747 million, while interest expense on amounts due to banks fell by 31% to CHF 79 million. Net income from financial instruments measured at FVTPL grew by CHF 170 million, or 27%, to CHF 807 million. This reflects a meaningful increase in treasury swap income, driven by higher volumes and a widening spread between US and Swiss interest rates. Income related to structured products and FX trading rose in the first four months of 2025, especially during the market volatility spike following the US tariff announcements in early April, before tapering off in May and June. IFRS other ordinary results decreased by CHF 81 million to CHF -83 million , reflecting the aforementioned M&A-related impact. Adjusted other ordinary results improved by CHF 19 million to CHF 17 million. Net credit losses on financial assets amounted to CHF 130 million (H1 2024: CHF 7 million).
Improvement in underlying cost/income ratio − expecting to deliver CHF 130 million gross cost savings by end-2025
As in previous years, in the analysis and discussion of the results in the media release, as well as in the Management Report section of the Half-Year Report 2025, adjusted operating expenses exclude M&A-related expenses (CHF 14 million, up from CHF 9 million in H1 2024). On this basis, adjusted operating expenses rose by 2% year on year to CHF 1,426 million. As previously announced, the Group expects that the gross cost savings target of CHF 110 million on a run-rate basis by the end of 2025 will be exceeded by CHF 20 million. Of the estimated total cost-to-achieve of around CHF 65 million, CHF 27 million has so far been reflected in the financial accounts, including CHF 22 million in personnel expenses (H1 2024: CHF 18 million, all in personnel expenses). Adjusted personnel expenses grew by 3% to CHF 937 million, partly on the back of a rise in incentive and performance-related costs, an increase in pension-fund-related expenses, and higher severance payments. At the end of June 2025, the Group employed 7,335 full-time equivalents (FTEs), a decline of 260 from end-2024 (of which 250 FTEs relate to Julius Baer Brazil). Of the total FTEs, 1,286 were relationship managers (RMs), a year-to-date decrease of 94. This reflects the hiring of 55 RMs, 28 RMs leaving as part of the sale of Julius Baer Brazil, 78 RMs departing (to a large extent driven by performance management), as well as a further net decrease of 43 RMs following internal transfers and changes to the front operating model implemented towards the end of the period. Adjusted general expenses increased by 1% to CHF 371 million, driven by a CHF 24 million increase in provisions and losses to CHF 36 million. Excluding provisions and losses, adjusted general expenses fell by 5% to CHF 335 million, mainly reflecting a reduction in consulting charges and legal fees as well as lower spend on external staff. While adjusted depreciation of property and equipment declined by 1% to CHF 48 million, adjusted amortisation and impairment of intangible assets rose by 6% to CHF 70 million, mainly reflecting higher IT-related investments in recent years. The adjusted cost/income ratio (excluding adjusted provisions and losses) increased to 72.8% (H1 2024: 71.0%). Excluding the impact of CHF 130 million of net credit losses on adjusted operating income, the underlying cost/income ratio improved by 3 percentage points to 68.2%.
Strong and liquid balance sheet
Loans decreased by CHF 0.2 billion to CHF 41.4 billion. This comprises CHF 8.5 billion of mortgages (unchanged) as well as CHF 32.9 billion of Lombard loans (CHF - 0.2 billion), the latter including CHF 0.1 billion of private debt loans (end-2024: CHF 0.4 billion). As the due to customers position (client deposits) declined by 5% year-to-date to CHF 65.3 billion, the loan-to-deposit ratio rose to 63% (end-2024: 61%). While cash and balances at central banks decreased by 9% to CHF 7.5 billion, receivables from securities financing transactions rose by 134% to CHF 13.4 billion. The total treasury portfolio, recorded under financial assets measured at FVOCI (down 16% to CHF 8.9 billion) and other financial assets measured at amortised cost (up 4% to CHF 5.5 billion), decreased by 10% to CHF 14.4 billion. Equity attributable to shareholders of Julius Baer Group Ltd. decreased by 1% to CHF 6.7 billion. The balance sheet remains highly liquid, with a liquidity coverage ratio of 303% (end-2024: 292%, or 296% on a pro forma B3F basis).
Credit review ongoing
Solid capitalisation
Compared to end-2024, CET1 capital rose by CHF 0.2 billion, or 4%, to CHF 3.7 billion, as the combined benefits of net profit generation and the continued ‘pull-to-par’ reversal of the decline (in 2021 and 2022) in the value of bonds held in the Group’s treasury portfolio (financial assets measured at FVOCI) more than offset the impact of the dividend accrual. Following the issuance of USD 400 million of Perpetual Tier 1 Subordinated Bonds in February 2025 and the redemption of CHF 350 million of Perpetual Tier 1 Subordinated Bonds in June 2025, tier 1 capital and total capital were essentially unchanged at CHF 5.3 billion. On 30 June 2025, risk-weighted assets (RWA) amounted to CHF 24.0 billion, comprising CHF 11.3 billion of credit risk positions, CHF 10.7 billion of operational risk positions, CHF 1.3 billion of market risk positions, and CHF 0.6 billion of non-counterparty-related risk positions. This compares to total risk-weighted assets of CHF 20.2 billion, or CHF 25.2 billion on a pro forma B3F-equivalent basis, at end-2024. These developments resulted in a CET1 capital ratio of 15.6% (end-2024: 17.8%, or 14.2% on a pro forma B3F-equivalent basis) and a total capital ratio of 22.3% (end-2024: 26.4%, or 21.1% on a pro forma B3F-equivalent basis). As the leverage exposure was stable at CHF 107 billion, the tier 1 leverage ratio was unchanged at 4.9%. The Group’s capitalisation therefore remains robust: the CET1 and total capital ratios are well above the Group’s own floors of 11% and 15%, respectively, and far exceed the regulatory minimums of 8.3% and 12.5%, respectively, applicable at the end of June 2025. The tier 1 leverage ratio remains comfortably above the 3.0% regulatory minimum. __________________________
Contacts
Important dates
About Julius Baer
Julius Baer is present in around 25 countries and 60 locations. Headquartered in Zurich, we have offices in key locations including Bangkok, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Madrid, Mexico City, Milan, Monaco, Mumbai, Santiago de Chile, Shanghai, Singapore, Tel Aviv, and Tokyo. Our client-centric approach, our objective advice based on the Julius Baer open product platform, our solid financial base and our entrepreneurial management culture make us the international reference in wealth management. For more information, visit our website at www.juliusbaer.com . Cautionary statement regarding forward-looking statements This media release by Julius Baer Group Ltd. (‘the Company’) includes forward-looking statements that reflect the Company’s intentions, beliefs or current expectations and projections about the Company’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities, and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. The Company has tried to identify those forward-looking statements by using the words ‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’, ‘continue’ and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects, or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. The Company and its subsidiaries, and their directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation. End of Inside Information |
| Language: | English |
| Company: | Julius Baer Group Ltd. |
| Bahnhofstrasse 36 | |
| 8010 Zurich | |
| Switzerland | |
| Phone: | +41 58 888 11 11 |
| E-mail: | info@juliusbaer.com |
| Internet: | www.juliusbaer.com |
| ISIN: | CH0102484968 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 2172700 |
| End of Announcement | EQS News Service |
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2172700 22-Jul-2025 CET/CEST