Julius Bär Gruppe (BAER) H1 2026 earnings summary

Executive summary

• Achieved record net profit of CHF 673 million in H1 2026, up 32% year-on-year, with EPS of CHF 3.27, driven by strong operating performance, high client activity, and all-time high assets under management of CHF 547 billion, up 5% year-to-date.

• Net new money totaled CHF 5.7 billion, with all regions contributing inflows, especially Western Europe and Switzerland.

• Continued execution on strategic priorities for growth, efficiency, risk and compliance, technology, and people, with a focus on organic growth and culture transformation.

• Strategic cycle 2026-2028 launched, reaffirming mid-term targets and focus on sustainable organic growth.

Financial highlights

• Operating income rose 12% year-on-year to CHF 2.276 billion, driven by record AUM and strong client activity; net commission and fee income increased 12% to CHF 1.279 billion; net interest income rose 80% to CHF 130 million.

• Gross margin expanded to 87 basis points, up from 83 bps year-on-year; cost/income ratio improved to 62.6%.

• Adjusted EPS grew 31% to CHF 3.27.

• Net credit losses normalized to CHF 23 million from CHF 130 million in H1 2025.

Outlook and guidance

• Mid-term targets reaffirmed: net new money growth rate of 4-5% by 2028, cost/income ratio below 67%, and adjusted RoCET1 above 30%.

• Cost-to-income ratio expected to remain below 67% in H2 2026, with further investments and cost build-up anticipated.

• Net new money for 2026 will be below 2025, with headwinds from de-risking expected to continue into 2027; normalization anticipated in 2028.

• Efficiency program targeting CHF 130 million in gross savings by 2028, with CHF 11 million net savings achieved in H1 2026.

• Tax rate guidance for 2026-2028 remains at 18-20%.