Julius Baer Gruppe AG

First-half 2026 operating income increased 12% year-on-year to CHF 2.276 billion, net profit was a record CHF 673 million, and like-for-like net profit rose 32% year-on-year. AUM reached CHF 547 billion, up 5% year-to-date; monthly average AUM rose 7% year-on-year to CHF 526 billion; and net new money totaled CHF 5.7 billion. Gross margin expanded to 87 basis points, costs rose 2% to CHF 1.462 billion, and the cost/income ratio improved to 62.6%. On the balance sheet, CET1 capital increased to CHF 4.3 billion and the CET1 ratio rose to 18.5%; the Tier 1 leverage ratio was 4.7%. For the outlook, management reiterated that 2026 net new money will be below 2025, expects derisking to continue into 2027, and said the cost/income ratio in H2 should be below 67% with interest-driven income around 22 to 23 basis points and cost-to-achieve more than doubling versus the CHF 7 million booked in H1.

Stefan Bollinger framed the half as “intense but highly productive,” saying the firm delivered a very strong operating performance driven by exceptional client activity, especially in Q1. He emphasized execution across the five strategic pillars, particularly organic growth, risk and compliance, technology, and culture change. His tone was confident but disciplined: he repeatedly stressed that derisking will create short-term pain, but should improve the quality and sustainability of the book over time.

Evie Kostakis said the stronger half was driven by record AUM and strong client activity, with operating income up 12%, costs up only 2%, and gross margin up from just over 83 basis points to almost 87 basis points. She highlighted a strong balance sheet, with a loan-to-deposit ratio of 61%, liquidity coverage ratio of 344%, CET1 capital up to CHF 4.3 billion, and CET1 ratio at 18.5%. She also cautioned that H1 profitability benefited from an exceptionally favorable revenue environment, said H2 costs will step up due to platform investments, cost-to-achieve, and RM hiring, and reiterated tax guidance of 18% to 20% and a risk density cycle target of 21% to 23%.

Analysts focused on the pace and duration of derisking, 2027 net new money implications, RM hiring, and whether cost/income improvements were sustainable. Management said net new money for 2026 will be below 2025, the derisking impact will continue into 2027, and 2028 should be the normalization point, while also describing the net new money path as more of a “hockey stick” into 2028. On staffing, the bank ended H1 with 1,247 RMs, expects around 120 hires in 2026, and said the slight net decrease at June-end should still translate into a slight net increase by year-end. Analysts also asked about Asia and China; management said the franchise remains “very bullish” on the region, with no concern around recent regulatory developments beyond formalizing capital-flow processes.