Banks Julius Baer posts significantly lower half-year profit
Julius Baer suffered a significant decline in profits in the first half of the year due to the high loan impairment charges already announced and other charges. However, the private bank was able to report significantly higher inflows of new money than a year ago.
22.07.2025, 07:26
SDA
Net profit fell by 35 percent year-on-year to CHF 295 million, as Julius Baer announced on Tuesday. The wealth manager had already announced in May that it was making further value adjustments of CHF 130 million on its loan portfolio.
In addition to the new value adjustments, the half-year result was also affected by the exit from the Brazilian domestic business. This had a negative impact of CHF 99 million on profit. Adjusted for special factors, the half-year profit of CHF 511 million was 11 percent higher than the previous year's result.
Net new money inflow in the first half of the year amounted to 7.9 billion francs, after the bank had reported an inflow of 3.7 billion francs a year ago. This corresponds to annualized net new money growth of 3.2 percent. The inflows came primarily from clients in Asia, Western Europe and the Middle East.
Assets under management (AuM) amounted to CHF 483 billion at the end of June. Compared to the end of 2024, however, assets under management have fallen by around 3 percent. The inflow of new money and a good performance on the equity markets were more than offset by the weakness of the dollar and the deconsolidation of Julius Baer Brazil, according to the statement.
The Bank was able to improve its cost efficiency. The underlying cost/income ratio amounted to 68.2 percent compared to 71.0 percent in the same period of the previous year. The cost-cutting measures had a positive impact on the Group's results for the first time, the Bank writes.
With its half-year results, Julius Baer disappointed analysts' profit expectations - they had expected an average profit of CHF 341 million (AWP consensus). However, the company exceeded forecasts in terms of new money inflows and assets under management.
