Banks Julius Baer has to write off a further 149 million francs
Following a review of its loan book, private bank Julius Baer had to write down a further CHF 149 million. At the same time, the bank was able to post more assets under management after ten months and also attract further net new money.
24.11.2025, 07:30
SDA
Julius Baer has completed the review of its loan portfolio, which has been ongoing for some time. The bank had to write down a further 149 million francs, as detailed in a press release on Monday.
"Similar to the almost completed reduction of the private debt loan portfolio, this process is being carried out in an orderly and disciplined manner in order to protect shareholder value", the bank writes. This concludes the final phase of the workout of the legacy assets in the loan book.
Assets under management increase
Assets under management (AuM) rose to CHF 520 billion at the end of October, up from CHF 483 billion at the end of the first half of the year, the Zurich-based wealth management bank announced on Monday. New money inflows and the good performance on the stock markets were the main contributors to the increase. The weak US dollar was the main headwind.
Specifically, the bank received net new money of CHF 11.7 billion by the end of October. This represents an annualized inflow of 2.8 percent. The money came primarily from clients in the key markets of Asia, Western Europe and the Middle East.
Gross margin constant
At 83 basis points (bp), the gross margin in the first ten months remained unchanged compared to the full year 2024. On the cost side, the bank made progress thanks to the cost-cutting measures introduced. The adjusted cost/income ratio was 66%, slightly below the half-year figure of 68.2% and well below the previous year's figure of 71%.
At Group level, the management expects IFRS consolidated profit this year to be below that of the previous year, partly due to the credit losses recognized and the reversal of tax provisions in 2025. However, excluding one-off effects, profitability and capital generation remain strong, it emphasizes.
With its figures, Julius Baer exceeded analysts' forecasts in terms of assets under management, margin and costs, but new money fell slightly short of the AWP consensus.
