• Julius Baer reports record group profit, supported by an all-time high in assets under management, significantly increased client activity, and improved operating leverage.
• IFRS group profit increased to a record CHF 673 million and IFRS earnings per share (EPS) to CHF 3.27, a 128% rise compared to CHF 295 million (EPS: CHF 1.44) in the first half of 2025.
• Adjusted group profit was the same as IFRS group profit at CHF 673 million (EPS: CHF 3.27), up 32% from the underlying CHF 511 million (EPS: CHF 2.49) in the first half of 2025.
• Assets under management rose by 5% since the beginning of the year to a record CHF 547 billion, supported by positive market performance and currency effects, as well as net new money inflow of CHF 5.7 billion.
• The gross margin increased to 87 basis points (bps) (1H 2025, underlying: 83 bps) owing to exceptionally high client activity in the first quarter.
• Further improvement in operating leverage reflected in a reduced adjusted cost/income ratio of 62.6% (1H 2025, underlying: 68.2%).
• Capital position further strengthened with a CET1 capital ratio increased to 18.5% (end of 2025: 17.4%), clearly above minimum requirements.
• The balance sheet remains highly liquid with a liquidity coverage ratio of 344% (end of 2025: 261%).
Today's results represent a solid start to our new three-year strategy cycle. Through disciplined and consistent execution, we are making steady progress on all our priorities, with a particular focus on accelerating organic growth. We are pleased to confirm our medium-term targets.
Significant Growth in Client Assets with Continued Net New Money Inflows
Assets under management (AuM) climbed to a record CHF 547 billion, a CHF 26 billion (+5%) increase since the start of the year. This increase was driven by positive market development and currency effects, coupled with ongoing net new money inflows. The average monthly AuM rose by 7% year-over-year to CHF 526 billion. Including custody assets (AuC) of CHF 102 billion, total client assets under management reached a new high of CHF 649 billion.
Following a subdued start to the year, net new money flows reached CHF 5.7 billion (2.2% annualized), as progress continued to be influenced by the ongoing implementation of the Group’s revised risk and compliance framework. All regions recorded net inflows, with particularly strong contributions from Western Markets, including Switzerland. Following a pause in the first four months of 2026, clients began re-leveraging towards the end of the reporting period. Although the impacts of implementing the risk and compliance framework are expected to continue into 2027, the Group reaffirms its net new money growth target of 4–5% by 2028.
Strong Increase in Operating Income with Record High AuM and Enhanced Client Activity
IFRS operating income reached CHF 2,276 million, marking a 26% increase compared to CHF 1,810 million in the first half of 2025. This improvement reflects an increase in commission and fee income, net income from financial instruments measured at FVTPL (fair value through profit or loss), and net interest income. Moreover, the prior year comparison was affected by two significant items: the M&A-related net effect of CHF 99 million from the sale of Julius Baer Brazil and the aforementioned increased net credit losses.
As the M&A-related adjustments to operating income were negligible in the first half of 2026, adjusted operating income also amounted to CHF 2,276 million, representing a 12% increase over the underlying result of CHF 2,040 million in the prior-year period. The corresponding gross margin rose to 87 bps (1H 2025: 83 bps).
Success from commission and fee business increased by 12% to CHF 1,279 million, with recurring income rising by 10% to CHF 984 million. High client activity led to a 12% growth in brokerage and securities issuance income to CHF 448 million. Commission expenses decreased by 1% to CHF 153 million.
Net interest income rose by 80% to CHF 130 million, driven by a 21% decline in interest expenses, more than offsetting the 13% decrease in interest income. Despite an increase in average loan volumes compared to the prior year, interest income from customer lending fell by 16% to CHF 529 million, given the continued low- interest environment. Conversely, interest income from the treasury portfolio - consisting of debt instruments valued at FVOCI (fair value through other comprehensive income), as well as interest income from debt instruments measured at amortized cost - increased by 2% to CHF 270 million, supported by a slight rise in average holdings. Meanwhile, interest expenses on liabilities to customers decreased by 22% to CHF 582 million, primarily due to lower deposit rates, despite a slight increase in average holdings.
Income from financial instruments measured at FVTPL increased by 9% to CHF 876 million. Income from foreign exchange and precious metal trading, as well as structured products, was exceptionally strong in the first three months of 2026, benefitting from periods of high volatility and robust client inflows. In subsequent months, they weakened with the normalization of market conditions. Despite slightly higher average volumes, income from treasury swaps declined, attributable to the decreased interest spread between US and Swiss interest rates compared to the previous year.
Other ordinary income under IFRS rose to CHF 14 million (1H 2025: CHF -83 million), reflecting the aforementioned M&A-related effect in 1H 2025. Compared to the adjusted other ordinary income of CHF 17 million in 1H 2025, the development showed a slight decrease.
Net credit losses on financial assets normalized to CHF 23 million, following CHF 130 million in 1H 2025 (1H 2025, underlying: none).
Further Improvement in Operating Leverage, Adjusted Cost/Income Ratio at 62.6%
IFRS operating expenses reached CHF 1,462 million, a 2% increase compared to CHF 1,440 million in 1H 2025. Personnel expenses increased by 4% to CHF 974 million, while general expenses remained unchanged at CHF 371 million. Depreciation and impairments on intangible assets were almost unchanged at CHF 73 million. Depreciation on properties and equipment decreased by 8% to CHF 44 million. M&A-related operating expenses were negligible in 1H 2026 (1H 2025: CHF 14 million). Consequently, adjusted operating expenses also amounted to CHF 1,462 million, representing a 2% increase (1H 2025: CHF 1,426 million).
As previously communicated, the Group aims to realize gross efficiency improvements of CHF 130 million by 2028. In 1H 2026, the implementation costs associated with the programme amounted to CHF 7 million, while resulting net cost savings were CHF 11 million.
Adjusted personnel expenses increased by 4% to CHF 974 million, attributable to a 1% rise in the average staff level compared to the previous year and higher performance-related compensation. As of June 30, 2026, the Group employed 7,675 full-time equivalents (FTE), reflecting a net increase of 285 positions since the beginning of the year. More than half of these originated from the internalization of functions that were previously outsourced, as well as a one-time definitional change related particularly to the treatment of long-term absences. On a net basis, the number of relationship managers (RMs) decreased by 14 to 1,247 FTE, reflecting the hiring of 50 RMs and the departure of 64 RMs. A significant portion of these departures stemmed from continuous performance management measures. At the same time, average AuM per RM increased by 6% since the beginning of the year, reaching CHF 438 million at the end of the reporting period.
Adjusted general expenses remained stable at CHF 371 million, despite a 3% increase in provisions and losses to CHF 37 million. Sans provisions and losses in both periods, general expenses decreased by 1% year-over-year to CHF 333 million. The impact of higher technology-related costs following the launch of the Swiss IT platform modernization project was offset by cost savings and internalizations.
Adjusted depreciation on properties and equipment decreased by 8% to CHF 44 million, while adjusted depreciation and impairments on intangible assets increased by 5% to CHF 73 million. The latter was primarily an effect of higher IT-related investments in recent years.
The adjusted cost/income ratio (adjusted for provisions and losses) improved to 62.6% (1H 2025, underlying: 68.2%).
Record Group Profit
Thanks to strong AuM growth, higher client activity, and improved operating leverage, profitability was significantly enhanced in 1H 2026. Profit before tax under IFRS rose by 120% to CHF 814 million, while income taxes increased by 88% to CHF 141 million. Consequently, both the Group's IFRS net profit and earnings per share (EPS) increased by 128%, achieving a half-year record of 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 tax increased to CHF 814 million, a 33% rise over the prior year's underlying result. The corresponding pre-tax margin improved by 6 bps to 31 bps.
Partially as a result of further implementation of the OECD minimum taxation in various jurisdictions, the adjusted tax rate increased to 17.3% (1H 2025, underlying: 16.7%).
The Group's adjusted net profit grew to CHF 673 million and adjusted EPS rose to CHF 3.27, representing a 32% increase over the underlying values of CHF 511 million and CHF 2.49 in 1H 2025.
Alongside a significant increase in CET1 capital, the adjusted RoCET1 improved to 32% (1H 2025, underlying: 28%).
Solid and Liquid Balance Sheet
Compared to the end of 2025, the balance sheet total expanded by 8% to CHF 116.6 billion, primarily driven by an 8% rise in liabilities to customers (customer deposits) to CHF 72.1 billion.
Loans increased by 5% to CHF 44.4 billion, including CHF 36.2 billion in Lombard loans (+7%) and CHF 8.1 billion in mortgage loans (-2%), resulting in a loan-to-deposit ratio of 61%, a decrease from 63% at the end of 2025.
The total treasury portfolio grew by 15% to CHF 17.6 billion, supported by an increase in debt instruments valued at FVOCI by 13% to CHF 9.9 billion, as well as debt instruments measured at amortized cost by 17% to CHF 7.7 billion.
Shareholders’ equity attributable to Julius Baer Group AG increased by 2% to CHF 7.4 billion.
The balance sheet remains highly liquid with a liquidity coverage ratio of 344% (end of 2025: 261%).
Robust Capital Position
In the first half of 2026, Julius Baer significantly enhanced its already robust capital position.
Compared to the end of 2025, CET1 capital increased by CHF 0.4 billion or 9% to CHF 4.3 billion. Despite the repayment of additional Tier-1 (AT1) capital instruments worth USD 350 million 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.
As of June 30, 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. This was due to higher credit risk positions, which increased by CHF 0.3 billion to CHF 11.2 billion, as well as a similar increase in market risk positions to CHF 2.1 billion. Operational risk positions and non-counterparty-related risk positions remained unchanged at CHF 9.3 billion and CHF 0.6 billion, respectively.
These developments led to a CET1 capital ratio of 18.5% (end of 2025: 17.4%) and a total capital ratio of 24.4% (end of 2025: 24.7%). Meanwhile, total exposure grew by 7% to CHF 120 billion, resulting in a Tier 1 leverage ratio of 4.7% (end of 2025: 4.9%).
The Group's capital position remains robust: The CET1 ratio and the total capital ratio are well above the Group's internal floors of 11% and 15% respectively, as well as well above the regulatory minimum requirements of 8.4% and 12.6% effective at the end of June 2026. The Tier 1 leverage ratio remains comfortably above the regulatory threshold of 3.0%.
The results conference for analysts and investors will be broadcast via webcast at 8.30 a.m. (CEST). All documents (presentation, half-year report 2026, time series tables, and the present 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
Key Dates
23 November 2026: Publication of the Interim Management Statement for the first ten months of
2026
1 February 2027: Publication and presentation of the 2026 annual results
15 March 2027: Publication of the 2026 Annual Report, including the 2026 Compensation Report
15 March 2027: Publication of the 2026 Sustainability Report
15 April 2027: Annual General Meeting, Zurich