Presentation of the 2025 half-year results of the Julius Baer Group

Sustained client momentum with net new money inflows more than doubling year on year to CHF 7.9 billion.
Assets under management (AuM) of CHF 483 billion (end-2024: CHF 497 billion) while monthly average AuM increased by 7% year on year to CHF 491 billion.
IFRS net profit of CHF 295 million, down 35% compared to H1 2024, with IFRS earnings per share (EPS) of CHF 1.44, impacted by previously disclosed increase in loan loss allowances and one-off (non-cash) impact from completion of sale of Julius Baer Brazil.
Underlying net profit (excluding M&A-related items and H1 2025 net credit losses) of CHF 511 million, up 11% year on year.
Underlying cost/income ratio improved to 68.2% (H1 2024: 71.0%).
On track to achieve CHF 130 million additional gross cost savings on run-rate basis by end of 2025.
Solid capitalisation, with CET1 capital ratio of 15.6% and total capital ratio of 22.3%.
Highly liquid balance sheet with tier 1 leverage ratio of 4.9% and liquidity coverage ratio of 303%.
Significant progress in addressing legacy issues and other pressure points, ranging from strengthening risk management and simplifying the organisation, to sharpening the operating model and footprint.

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
This media release and other communications to investors contain certain financial measures of historical and future performance and financial position that are not defined or specified by IFRS. Management believes that these alternative performance measures (APMs), including adjusting the results consistently for items related to M&A activities, provide useful information regarding the Group’s financial and operating performance. These APMs should be regarded as complementary information to, and not as a substitute for, the IFRS results. The definitions of APMs used in this media release and other communications to investors, together with reconciliations to the corresponding IFRS line items, are provided in the Alternative Performance Measures section of the Half-Year Report 2025, available at www.juliusbaer.com/reports. See also the Alternative Performance Measures paragraph at the end of this media release.

Overall improved underlying business performance year on year
IFRS profit before taxes was impacted by previously reported net credit losses of CHF 130 million (recognised following an increase of loan loss allowances for selected positions in the mortgage book and the private debt loan book), and a CHF 99 million net impact from the completion of the sale of the domestic Brazilian business Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários Ltda. (Julius Baer Brazil) in March 2025. As a result, profit before taxes under IFRS declined by 32% year on year to CHF 370 million, and net profit and EPS decreased by 35% to CHF 295 million and CHF 1.44, respectively.

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
Against a backdrop of continued de-risking of the client book, the Group achieved strong high-quality net new money inflows of CHF 7.9 billion (3.2% annualised), an increase of 113% from CHF 3.7 billion in the prior-year period. Net inflows came predominantly from clients domiciled in the Group’s key markets in Asia (especially Hong Kong, Singapore, and India), Western Europe (primarily the UK & Ireland, as well as Germany) and the Middle East (mainly the UAE and Bahrain).

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
IFRS operating income declined by 7% to CHF 1,810 million (H1 2024: CHF 1,945 million). The positive effect of growing net commission and fee income and rising net income from financial instruments measured at fair value through profit or loss (FVTPL) was more than offset by lower net interest income, as well as the aforementioned two previously disclosed larger items (net credit losses and sale of Julius Baer Brazil).

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
Operating expenses under IFRS rose by 3% year on year to CHF 1,440 million. While personnel expenses increased by 3% to CHF 940 million, general expenses rose by 2% to CHF 378 million, and amortisation and impairment of intangible assets increased by 5% to CHF 73 million. Depreciation of property and equipment decreased by 2% to CHF 48 million.

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
Compared to end-2024, the balance sheet declined marginally (CHF -0.4 billion) to CHF 104.7 billion, reflecting a significant impact of the weaker US dollar.

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
The review of the credit book is continuing and is expected to be completed in the next few months. Since the last update in the Interim Management Statement for the first four months of 2025 (20 May 2025), there has been no need to book further loan loss allowances. Once the credit review has been completed, the Group will be in a position to decide whether or not additional loan loss allowances are required.

Solid capitalisation
In Switzerland, the final Basel III standard (B3F) was implemented as of the current financial year. In the first half of 2025, on a like-for-like basis, Julius Baer significantly strengthened its already 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.

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The results conference for analysts and investors will be webcast live at 8.30 a.m. (CEST). All documents (presentation, Half-Year Report 2025, spreadsheets, and this media release) are available 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.