Switzerland · Delayed Price · Currency is CHF Julius Bär Gruppe AG Earnings Call Transcripts
Fiscal Year 2026
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Record net profit and AUM were achieved, with strong revenue growth and improved cost efficiency. De-risking continues to weigh on net new money, with normalization expected by 2028, while capital and liquidity positions remain robust.
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Record AUM and operating income were achieved, with strong capital generation and improved cost efficiency. Net new money growth was slower due to de-risking and geopolitical factors, but confidence remains in reaching midterm targets. RM hiring and strategic investments are progressing well.
Fiscal Year 2025
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Record assets under management and strong net new money drove a 17% rise in pre-tax profit, with improved cost efficiency and robust capital ratios. Asia led regional growth, while ongoing regulatory review and IT investments shape the outlook.
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Record AUM and strong net new money drove a 17% rise in pre-tax profit, with cost discipline and capital strength supporting improved financial ratios. Strategic transformation and efficiency programs are on track, with growth momentum in key regions and a clear path to midterm targets.
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Strong operating performance with record assets under management and improved capital ratios was achieved, while a comprehensive credit review concluded with CHF 149 million in provisions, closing legacy issues. Cost efficiency gains and a stable relationship manager base support future growth ambitions.
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Half-year 2025 results show doubled net new money and 11% growth in underlying net profit year-on-year, despite a 35% drop in IFRS net profit from one-off items. Cost efficiency improved, and the company remains on track for CHF 130 million in cost savings.
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Underlying net profit rose 11% year-on-year to CHF 511 million, with net new money inflows doubling to CHF 7.9 billion. Cost-income ratio improved to 68.2%, and CET1 capital ratio reached 15.6%. Guidance for net new money and cost efficiency remains unchanged.
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A comprehensive transformation is underway, focusing on core wealth management, cost discipline, and risk management. Medium-term targets include 4%-5% net new money growth, a cost-to-income ratio below 67%, and a return on CET1 above 30%. Technology upgrades, organizational simplification, and a renewed client focus underpin the strategy.
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Credit portfolio review is nearly complete, with no significant new risks identified and provisions spread across several clients. Financial performance shows improved margins and capital ratios, while de-risking and cost initiatives continue. Management is refocusing on core wealth management and will provide a strategy update on June 3rd.
Fiscal Year 2024
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Leadership is driving a strategic overhaul with a resized Executive Board, extended cost program, and a comprehensive review to address performance and efficiency. Net new money growth is expected to be muted in 2024, with 300-400 job cuts planned, while the dividend remains stable.
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Record AUM and solid profit growth were achieved despite higher costs and margin pressure, with strong net new money from key markets and a focus on operational efficiency. The cost program was extended, and capital ratios remain robust, though Basel III final will temporarily impact CET1.
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Net new money growth accelerated, supported by both new and seasoned relationship managers, with year-end growth expected between 3%-4%. Margins remained stable despite lower gross margin and currency headwinds, while the CET1 ratio improved to 16.7%. Share buybacks await regulatory review completion.
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H1 2024 saw a return to growth with CHF 3.7bn net new money, improved cost-income ratio, and strong capital metrics, despite lower net interest income and profit year-over-year. Strategic cost savings, business streamlining, and robust hiring support a positive outlook.