Presentation of the 2025 full-year results for the Julius Baer Group

Ad hoc announcement pursuant to Art. 53 LR

• Assets under management (AuM) grew by 5% to a record CHF 521 billion, supported by solid net new money of CHF 14.4 billion.
• IFRS net profit of CHF 764 million (2024: CHF 1,022 million) and IFRS earnings per share (EPS) of CHF 3.72 (2024: CHF 4.98) include a number of previously communicated one-off impacts.
• Underlying^* profit before taxes grew by 17% to CHF 1,266 million, on the back of a 6% rise in operating income and a 1% increase in operating expenses.
• The underlying cost/income ratio improved to 67.6% (2024: 70.9%).
• Gross cost savings reached CHF 130 million on a run-rate basis by year end, exceeding the original target by CHF 20 million.
• Julius Baer’s capitalisation strengthened further, with the Basel III Final CET1 capital ratio improving to 17.4% (end-2024: 14.2%) and the total capital ratio to 24.7% (end-2024: 21.1%)^**.
• The Group’s balance sheet remains highly liquid, with a liquidity coverage ratio at the end of 2025 of 261%.
• The Board of Directors will propose an unchanged ordinary dividend of CHF 2.60 per share for the financial year 2025.

 Stefan Bollinger, Chief Executive Officer of Julius Baer Group Ltd., said: “We delivered a strong business performance in 2025, which is testament to our resilience, the continued trust of our clients, and the great commitment of our people. We are now fully focused on delivering profitable growth and the execution of our strategic transformation. I am very pleased with the positive momentum created throughout the organisation and the tangible progress made on multiple fronts; from simplifying our operating model and sharpening client focus to strengthening governance and renewing our leadership team. All in all, 2025 was a successful transition year, setting us well on course to achieve our medium-term targets.”

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 Extract of the Annual 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
The year-on-year development of IFRS net profit was impacted by the non-recurring release of tax provisions in 2024, the 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, and net credit losses of CHF 213 million booked during 2025. The latter were the result of previously reported increases in loan loss allowances following an extensive credit review that was completed in November under the Group’s new risk management leadership, taking into account Julius Baer’s refocused strategy and comprehensively revised risk appetite framework. At the end of 2025, the impact on the financial results of these increased loan loss allowances was partly offset by credit recoveries, primarily related to the credit losses incurred in 2023 on the single largest exposure in the private debt loan book at that time. As a result, profit before taxes under IFRS declined by 11% year on year to CHF 938 million. As IFRS income taxes increased to CHF 174 million (2024: CHF 32 million), IFRS net profit and IFRS EPS decreased by 25% to CHF 764 million and CHF 3.72, respectively.

On the Group’s usual adjusted basis (where only M&A-related items are excluded), profit before taxes declined by 2% to CHF 1,053 million and the pre-tax margin decreased by 2 basis points (bp) to 21 bp. As adjusted income taxes increased to CHF 175 million (2024: CHF 32 million), adjusted net profit and adjusted EPS decreased by 16% to CHF 878 million and CHF 4.27, respectively. On the same basis, the adjusted return on CET1 capital (RoCET1) declined to 23% (2024: 32%).

Excluding the impact of net credit losses on the 2025 adjusted results, underlying profit before taxes increased by 17% to CHF 1,266 million, and the underlying pre-tax profit margin improved by 2 bp to 25 bp. As the underlying tax rate normalised from 3% in 2024 to 17% in 2025, underlying net profit rose by CHF 1 million to CHF 1,048 million, underlying EPS remained at CHF 5.10, and (following a substantial year-on-year increase in CET1 capital) the underlying RoCET1 decreased to 28%.

Rising equity markets and continued net new money inflows drove 5% growth in AuM
Against the backdrop of the de-risking of the client book, the Group achieved solid net new money inflows of CHF 14.4 billion (2.9%). These inflows were derived predominantly from clients domiciled in key markets in Asia (especially Hong Kong, India, Singapore, and Thailand), Western Europe (in particular the UK & Ireland, Germany, and Iberia), and the Middle East (primarily the UAE).

The positive impacts of continued net inflows and rising global equity market valuations more than offset the impact of the stronger Swiss franc (particularly versus the US dollar) and the sale and deconsolidation of Julius Baer Brazil (with AuM of CHF 8 billion). As a result, AuM grew by 5% to a record CHF 521 billion. Monthly average AuM increased by 7% to CHF 499 billion. Including assets under custody of CHF 93 billion, total client assets rose by 4% to a record CHF 614 billion.

IFRS operating income impacted by net credit losses and Brazil sale, but underlying operating income rises due to AuM growth
IFRS operating income declined by 3% to CHF 3,760 million (2024: CHF 3,861 million). The positive impact of higher net commission and fee income, and the increase in net income from financial instruments measured at fair value through profit or loss (FVTPL), was more than offset by lower net interest income, the aforementioned rise in net credit losses, and a decline in other ordinary results. The latter was largely driven by the one-off impact from the sale of Julius Baer Brazil, mainly resulting from non-cash cumulative currency translation adjustments previously recognised in the Group’s equity.

Excluding the M&A-related impact on operating income, adjusted operating income was unchanged at CHF 3,861 million, resulting in an adjusted gross margin of 77 bp (2024: 83 bp). Excluding the impact of CHF 213 million of net credit losses on adjusted operating income, underlying operating income grew by 6% to CHF 4,073 million, largely on the back of the 7% year-on-year increase in monthly average AuM. The corresponding underlying gross margin decreased by 1 bp to 82 bp.

Net commission and fee income grew by 5% to CHF 2,314 million, with recurring income (the sum of advisory and management fees and commission and fee income on other services) rising by 5% to CHF 1,822 million. Higher client activity drove a 12% increase in brokerage commissions and income from securities underwriting to CHF 802 million, while commission expense rose by 23% to CHF 310 million.

As the interest-driven revenue components shifted further towards net income from financial instruments measured at FVTPL, net interest income declined by CHF 252 million to CHF 125 million. Despite a 1% year-on-year increase in loans, the combination of a further decrease in interest rates, a relative shift to Swiss franc-denominated loans that are subject to lower interest rates, as well as a weaker US dollar, resulted in interest income on loans declining by 29% to CHF 1,159 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 11% to CHF 530 million, and interest income on amounts due from banks decreased by 51% to CHF 139 million. Partly on the back of lower interest rates and exchange rate impacts, interest expense on amounts due to customers decreased by 23% to CHF 1,398 million, while interest expense on amounts due to banks fell by 22% to CHF 147 million. A net increase in bond issuance in combination with a relative shift to euro- and US dollar-denominated debt drove a 22% rise in interest expense on debt issued, to CHF 144 million.

Net income from financial instruments measured at FVTPL grew by CHF 326 million, or 25%, to CHF 1,608 million. This reflects a meaningful increase in treasury swap income, driven by higher volumes and a wider average 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 subsiding during the remainder of the year.

Adjusted other ordinary results improved by CHF 14 million to CHF 26 million.

Improved underlying cost/income ratio after exceeding gross cost savings target
Operating expenses under IFRS increased by 1% year on year to CHF 2,823 million. While personnel expenses grew by 3% to CHF 1,851 million and amortisation and impairment of intangible assets increased by 6% to CHF 154 million, general expenses fell by 7% to CHF 722 million and depreciation of property and equipment decreased by 4% to CHF 96 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 Extract of the Annual Report 2025, adjusted operating expenses exclude M&A-related expenses (CHF 15 million, down from CHF 24 million in 2024). On this basis, adjusted operating expenses increased by 1% to CHF 2,808 million.

Expense measures resulted in gross cost savings of CHF 130 million on a run-rate basis by the end of 2025, exceeding the original target of CHF 110 million by CHF 20 million. These savings were realised against a total cost-to-achieve of CHF 40 million. As previously communicated, in the 2026–2028 strategic cycle, the Group aims to achieve a further CHF 130 million in gross structural efficiency improvements on a run-rate basis by the end of 2028, against a currently estimated cost-to-achieve of approximately CHF 65 million.

Adjusted personnel expenses grew by 4% to CHF 1,848 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 2025, the Group employed 7,390 full-time equivalents (FTEs), a decline of 205 from end-2024, as the increase of 184 FTEs from the internalisation of formerly external staff was more than offset by the decrease related to Julius Baer Brazil (-250 FTEs) and other measures. At the end of 2025, a total of 1,262 FTEs were employed as relationship managers (RMs), a year-to-date decrease of 118, of which 28 RMs were connected with the sale of Julius Baer Brazil.

Adjusted general expenses fell by 7% to CHF 714 million, despite a 28% increase in provisions and losses to CHF 56 million. Excluding provisions and losses, adjusted general expenses fell by 9% to CHF 658 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 3% to CHF 96 million, adjusted amortisation and impairment of intangible assets rose by 8% to CHF 150 million, mainly reflecting higher IT-related investments in recent years.

The adjusted cost/income ratio (excluding adjusted provisions and losses) increased to 71.3% (2024: 70.9%). Excluding the impact of CHF 213 million of net credit losses on adjusted operating income in 2025, the underlying cost/income ratio improved by 3 percentage points to 67.6%.

Strong and liquid balance sheet
Despite the impact of a significantly weaker US dollar, the balance sheet grew by CHF 2.4 billion to CHF 107.5 billion, mainly on the back of an increase of 35%, or CHF 4.2 billion, in financial liabilities designated at fair value (structured products issuance) to CHF 16.4 billion, partly offset by a 3%, or CHF 1.9 billion, decrease in due to customers (client deposits) to CHF 66.8 billion.

As loans increased by 1% to CHF 42.1 billion, comprising CHF 33.8 billion of Lombard loans (+2%) and CHF 8.3 billion of mortgages (-2%), the loan-to-deposit ratio rose to 63% (end-2024: 61%).

While cash and balances at central banks decreased by 12% to CHF 7.2 billion, receivables from securities financing transactions rose by 70% to CHF 9.8 billion. The total treasury portfolio, included in financial assets measured at FVOCI (down 18% to CHF 8.7 billion) and other financial assets measured at amortised cost (up 24% to CHF 6.5 billion), decreased by 4% to CHF 15.3 billion.

Equity attributable to shareholders of Julius Baer Group Ltd. rose by 6% to CHF 7.2 billion.

The balance sheet remains highly liquid, with a liquidity coverage ratio of 261% (end-2024: 292%, or 282% on a pro forma B3F-equivalent basis).

Solid capitalisation
In Switzerland, the final Basel III standard (B3F) was implemented at the start of the 2025 financial year. Compared to end-2024, CET1 capital rose by CHF 0.4 billion, or 10%, to CHF 3.9 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 increased by 4% to CHF 5.5 billion and total capital by 5% to CHF 5.6 billion.

Risk-weighted assets (RWA) amounted to CHF 22.7 billion, comprising CHF 11.0 billion of credit risk positions, CHF 9.3 billion of operational risk positions, CHF 1.8 billion of market risk positions, and CHF 0.6 billion of non-counterparty-related risk positions. This compares to total RWA of CHF 20.2 billion, or CHF 25.2 billion on a pro forma B3F-equivalent basis, at the end of 2024.

These developments resulted in a CET1 capital ratio of 17.4% (end-2024: 17.8%, or 14.2% on a pro forma B3F-equivalent basis) and a total capital ratio of 24.7% (end-2024: 26.4%, or 21.1% on a pro forma B3F-equivalent basis). As the leverage exposure increased by 3% to CHF 111 billion, the tier 1 leverage ratio was stable 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 2025. The tier 1 leverage ratio remains comfortably above the 3.0% regulatory minimum.

Proposed ordinary dividend unchanged at CHF 2.60 per share
In line with the Group’s dividend policy, the Board of Directors of Julius Baer Group Ltd. will propose an unchanged ordinary dividend of CHF 2.60 per share for the financial year 2025. Subject to shareholder approval at the Annual General Meeting (AGM) on 9 April 2026, the dividend will be paid on 15 April 2026. The dividend will be subject to 35% Swiss withholding tax.

Overall, 2025 was a pivotal transition year for the Group, resulting in stronger foundations and positive execution momentum. Julius Baer is now well positioned to enter its strategic cycle 2026–2028 and is firmly on track to deliver against its medium-term targets.

^*Excluding M&A-related items and the net credit losses booked in 2025

^**Capital ratios at end of 2024 on a pro forma Basel III Final-equivalent basis

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The results presentation for analysts and investors with Stefan Bollinger (Chief Executive Officer) and Evie Kostakis (Chief Financial Officer) will be webcast live at 8.30 a.m. (CET). This will be followed by a presentation to media at 10.15 a.m. (CET). All documents (presentation, Extract of the Annual Report 2025, spreadsheets, and this media release) are available at: www.juliusbaer.com. 

Contacts
Media Relations, tel. +41 (0) 58 888 8888
Investor Relations, tel. +41 (0) 58 888 5256

Important dates
16 March 2026: Publication of Annual Report 2025 including Remuneration Report 2025

16 March 2026: Publication of Sustainability Report 2025

9 April 2026: Annual General Meeting, Zurich

13 April 2026: Ex-dividend date

14 April 2026: Dividend record date

15 April 2026: Dividend payment date

22 May 2026: Publication of Interim Management Statement for first four months of 2026

21 July 2026: Publication and presentation of 2026 half-year results

About Julius Baer
Julius Baer is the leading independent 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 2025, assets under management amounted to CHF 521 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.