Presentation of the 2026 half-year results for the Julius Baer Group Dienstag, 21. Juli 2026 - 07:03
Ad hoc announcement pursuant to Art. 53 LR
Stefan Bollinger, Chief Executive Officer of Julius Baer Group Ltd., said: “Overall, we delivered a strong operating performance in the first half of 2026, reporting record net profit, driven by pronounced client activity, all-time high assets under management, sustained net new money inflows, and continued improvement in operating leverage. This underscores the strength of our business model and our team’s ability to support clients effectively through market complexity and volatility.
“Today’s results represent a solid start to our new three-year strategic cycle. We are making steady progress across each of our priorities through disciplined execution and consistent delivery, with a particular focus on reigniting organic growth. We are pleased to reaffirm our mid-term targets.”
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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 International Financial Reporting Standards (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 2026, available at www.juliusbaer.com/reports. See also the Alternative Performance Measures paragraph at the end of this media release.
Performance analysis across reporting views: reported, adjusted, and underlying
For enhanced transparency, the analysis in this media release presents the Group’s financial performance from three perspectives: on a reported IFRS basis, on an adjusted basis excluding M&A-related items, and on an underlying basis that further excludes the impact of elevated credit losses in H1 2025.
Julius Baer prepares its consolidated financial statements in accordance with IFRS. However, the Group’s medium-term targets for the cost/income ratio and return on CET1 capital (RoCET1) are based on adjusted results that exclude M&A-related impacts on operating income and expenses, as well as the associated tax effects. Consequently, the analysis of income statement developments is provided on both a reported and adjusted basis to better reflect the Group’s performance evaluation framework.
Additionally, the Group notes that H1 2025 was impacted by a non-M&A-related notable item: materially elevated net credit losses of CHF 130 million (CHF 103 million net of taxes). These resulted from increased loan loss provisions on selected exposures in the mortgage and private debt loan books in H1 2025. To provide a clearer view of underlying performance trends, in the following analysis H1 2026 adjusted results are also compared with H1 2025 underlying results – that is, adjusted both for M&A-related items and the aforementioned elevated net credit losses booked in the prior year period.
Reporting views explained
- Reported: full IFRS results
- Adjusted: excludes M&A-related items and related tax effects
- Underlying: further excludes notable credit losses in H1 2025 (CHF 130 million; CHF 103 million net of taxes)
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Robust growth in client assets, supported by continued net new money inflows
Assets under management (AuM) rose to a record CHF 547 billion, a year-to-date increase of CHF 26 billion (+5%). This growth was driven by positive market performance and currency impacts as well as continued net new money inflows. Monthly average AuM increased by 7% year on year to CHF 526 billion. Including assets under custody of CHF 102 billion, total client assets rose to an all-time high level of CHF 649 billion.
After a slow start to the year, net new money reached CHF 5.7 billion (2.2% annualised), as progress remained affected by the ongoing implementation of the Group’s revised risk and compliance framework. All regions contributed to net inflows, with particularly strong contributions from Western European markets, including Switzerland. After a pause in the first four months of 2026, client releveraging resumed towards the end of the period. While the impact of the risk and compliance framework’s implementation is expected to persist into 2027, the Group reaffirms its net new money growth target of 4–5% by 2028.
Strong increase in operating income on record-high AuM and heightened client activity
IFRS operating income reached CHF 2,276 million, an increase of 26% compared to CHF 1,810 million in H1 2025. The improvement reflected higher net commission and fee income, rising net income from financial instruments measured at fair value through profit or loss (FVTPL), and an increase in net interest income. In addition, the comparable period last year was weighed down by two significant items: an M&A-related net impact of CHF 99 million from the sale of Julius Baer Brazil and the aforementioned elevated net credit losses.
As M&A-related operating income adjustments were de minimis in the first half of 2026, adjusted operating income also reached CHF 2,276 million, an increase of 12% compared to the underlying result of CHF 2,040 million in the year-ago period, and the corresponding gross margin increased to 87 bp (H1 2025: 83 bp).
Net commission and fee income grew by 12% to CHF 1,279 million, with recurring income rising by 10% to CHF 984 million. High client activity drove a 12% increase in brokerage commissions and income from securities underwriting to CHF 448 million, while commission expense declined by 1% to CHF 153 million.
Net interest income rose by 80% to CHF 130 million, driven by a 21% decline in interest expense that more than compensated for a 13% decrease in interest income. Despite a year-on-year increase in average loan volumes, interest income on loans fell by 16% to CHF 529 million, reflecting lower prevailing interest rates. In contrast, interest income from the treasury portfolio – comprising interest income on debt instruments at fair value through other comprehensive income (FVOCI) and interest income on debt instruments at amortised cost – increased by 2% to CHF 270 million, supported by a slight rise in average balances. Meanwhile, interest expense on amounts due to customers declined by 22% to CHF 583 million, primarily due to lower deposit rates, even as average balances edged higher.
Net income from financial instruments measured at FVTPL grew by 9% to CHF 876 million. Income related to FX and metals trading and structured products was particularly elevated in the first three months of 2026, benefitting from volatility events and strong client flows, before moderating in the following months as conditions normalised. Despite slightly higher average volumes, treasury swap income declined, reflecting a year-on-year narrowing of the yield differential between US and Swiss interest rates.
IFRS other ordinary results increased to CHF 14 million (H1 2025: CHF -83 million), reflecting the aforementioned M&A-related impact in H1 2025. When comparing against H1 2025 adjustedother ordinary results of CHF 17 million, the development showed a small decrease.
Net credit losses on financial assets normalised to CHF 23 million, after CHF 130 million in H1 2025 (H1 2025 underlying: none).
Operating leverage improved further, adjusted cost/income ratio at 62.6%
IFRS operating expenses reached CHF 1,462 million, an increase of 2% compared to CHF 1,440 million in H1 2025. Personnel expenses rose by 4% to CHF 974 million, while general expenses remained flat at CHF 371 million. Amortisation and impairment of intangible assets was essentially unchanged at CHF 73 million, whereas depreciation of property and equipment decreased by 8% to CHF 44 million.
M&A-related operating expenses were de minimis in the first half of 2026 (H1 2025: CHF 14 million). As a result, adjusted operating expenses also reached CHF 1,462 million, an increase of 2% (H1 2025: CHF 1,426 million).
As previously communicated, the Group is targeting gross efficiency improvements of CHF 130 million by 2028. In H1 2026, costs-to-achieve related to the programme totalled CHF 7 million, while net savings generated by the programme amounted to CHF 11 million.
Adjusted personnel expenses grew by 4% to CHF 974 million, driven by a 1% year-on-year rise in average headcount and higher incentive and performance-related compensation. As of 30 June 2026, the Group employed 7,675 full-time equivalents (FTEs), representing a year-to-date net increase of 285 positions. Of these, more than half resulted from the internalisation of roles previously managed externally and from a one-time definitional adjustment primarily related to the treatment of long-term absences. On a net basis, the number of relationship managers (RMs) decreased by 14 to 1,247 FTEs, reflecting the onboarding of 50 RMs and the departure of 64 RMs. A significant portion of these departures resulted from ongoing performance management measures. Meanwhile, AuM per RM increased by 6% year to date, reaching CHF 438 million at the end of the period.
Adjusted general expenses were stable at CHF 371 million, despite a 3% increase in provisions and losses, which reached CHF 37 million. Excluding provisions and losses in both periods, general expenses fell by 1% year on year to CHF 333 million, as the impact from the year-on-year increase in technology-related investments following the launch of the platform modernisation project in Switzerland was offset by cost savings and internalisations.
Adjusted depreciation of property and equipment declined by 8% to CHF 44 million, while adjusted amortisation and impairment of intangible assets rose by 5% to CHF 73 million, mainly reflecting higher IT-related investments made in recent years.
The adjusted cost/income ratio (excluding provisions and losses) improved to 62.6% (H1 2025 underlying: 68.2%).
Record net profit
Driven by the strong growth in AuM, heightened client activity, and improved operating leverage, profitability rose significantly in H1 2026. Profit before taxes under IFRS increased by 120% to CHF 814 million, while income taxes rose by 88% to CHF 141 million. As a result, IFRS net profit for the Group and EPS both increased by 128%, reaching a half-yearly record CHF 673 million and CHF 3.27 respectively, compared to CHF 295 million and CHF 1.44 in the prior-year period.
Adjusted profit before taxes increased to CHF 814 million, up 33% compared to the underlying result a year ago, with the corresponding pre-tax margin improving by 6 bp to 31 bp.
Partly as the result of the further implementation of the OECD minimum tax rate in different jurisdictions, the adjusted tax rate increased to 17.3% (H1 2025 underlying: 16.7%).
Adjusted net profit for the Group grew to CHF 673 million, and adjusted EPS increased to CHF 3.27, up 32% from the underlying CHF 511 million and CHF 2.49 respectively in H1 2025.
Notwithstanding a meaningful increase in CET1 capital, adjusted RoCET1 improved to 32% (H1 2025 underlying: 28%).
Strong and liquid balance sheet
Compared to end-2025, the balance sheet expanded by 8% to CHF 116.6 billion, driven primarily by an increase in amounts due to customers (client deposits) to CHF 72.1 billion (+8%).
Loans increased by 5% to CHF 44.4 billion, consisting of CHF 36.2 billion of Lombard loans (+7%) and CHF 8.1 billion of mortgages (-2%). This resulted in a decline in the loan-to-deposit ratio to 61%, down from 63% at end-2025.
The total treasury portfolio grew by 15% to CHF 17.6 billion, supported by increases in financial assets measured at FVOCI, up 13% to CHF 9.9 billion, and other financial assets measured at amortised cost, rising 17% to CHF 7.7 billion.
Equity attributable to shareholders of Julius Baer Group Ltd. rose by 2% to CHF 7.4 billion.
The balance sheet remains highly liquid, with a liquidity coverage ratio of 344% (end-2025: 261%).
Solid capital position
In the first half of 2026, Julius Baer significantly strengthened its already solid capital position.
Compared to end-2025, CET1 capital rose by CHF 0.4 billion, or 9%, to CHF 4.3 billion. Despite the redemption of USD 350 million of Additional Tier 1 (AT1) capital instruments in March 2026, tier 1 capital and total capital increased by CHF 0.1 billion to CHF 5.6 billion and CHF 5.7 billion, respectively.
On 30 June 2026, risk-weighted assets (RWA) amounted to CHF 23.3 billion, an increase of CHF 0.6 billion, or 3% compared to the end of 2025. The rise was driven by higher credit risk positions, which grew by CHF 0.3 billion to CHF 11.3 billion, alongside a comparable expansion in market risk positions to CHF 2.1 billion. Operational risk positions and non-counterparty-related positions remained stable at CHF 9.3 billion and CHF 0.6 billion, respectively.
These developments led to a CET1 capital ratio of 18.5% (end-2025: 17.4%) and a total capital ratio of 24.4% (end-2025: 24.7%). Meanwhile, the leverage exposure rose by 7% to CHF 120 billion, resulting in a tier 1 leverage ratio decreased to 4.7% (end-2025: 4.9%).
The Group’s capital position remains robust: both the CET1 capital ratio and the total capital ratio stand well above the Group’s internal floors of 11% and 15%, respectively, and significantly exceed the regulatory minimums of 8.4% and 12.6% applicable as of end-June 2026. The tier 1 leverage ratio also remains well above the 3.0% regulatory threshold.
*As M&A-related adjustments were de minimis in H1 2026
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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 2026, spreadsheets, and this media release) are available at www.juliusbaer.com.
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Contacts
Media Relations, tel. +41 (0) 58 888 8888
Investor Relations, tel. +41 (0) 58 888 5256
Important dates
23 November 2026: Publication of Interim Management Statement for first ten months of 2026
1 February 2027: Publication and presentation of 2026 full-year results
15 March 2027: Publication of Annual Report 2026 including Remuneration Report 2026
15 March 2027: Publication of Sustainability Report 2026
15 April 2027: Annual General Meeting, Zurich
About Julius Baer
Julius Baer is the leading Swiss wealth management group and a premium brand in this global sector, with a focus on servicing and advising sophisticated private clients. In all we do, we are inspired by our purpose: creating value beyond wealth. At the end of June 2026, assets under management amounted to CHF 547 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating back to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and are included in the Swiss Leader Index (SLI), comprising the 30 largest and most liquid Swiss stocks.
Julius Baer is present in around 25 countries and 60 locations. Headquartered in Zurich, we have offices in key locations including Abu Dhabi, Bangkok, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, Lisbon, 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.