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Julius Baer Group Ltd. / Key word(s): Strategic Company Decision
Julius Baer sets focused strategy to unleash its full potential
through disciplined execution
03-Jun-2025 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Ad hoc announcement pursuant to Art. 53 LR
- Julius Baer today provides an update on progress since January 2025 in addressing legacy issues and immediate pressure points, as well as the results of its strategic review and new medium-term targets
- The measures implemented, ranging from governance changes and strengthening risk management to sharpening the operating model and footprint, form a solid foundation for the transformation process ahead
- Building on its strong fundamentals and unique franchise, the Group sets five strategic priorities aimed at unleashing its full potential to drive top-line growth and restore positive operating leverage, underpinned by disciplined risk management
- As a result, the Group announces updated medium-term targets* (2026–2028)
- Net new money improving to 4–5% by 2028
- Adjusted cost/income ratio improving to less than 67% by 2028
- Adjusted return on CET1 capital (RoCET1)** of at least 30% over the cycle
- Through reliable execution and delivery on its strategic targets, the Group is committed to achieving sustainable performance and long-term value creation for its clients, shareholders, and employees
Zurich, 3 June 2025 – Stefan Bollinger, CEO of Julius Baer, said: “Since January, we have made a lot of progress on multiple fronts aimed at strengthening our organisation and the trust of all our stakeholders. The last 20 weeks only reinforced my conviction in the uniqueness of this franchise, the high quality and commitment of our employees, as well as the significant underlying business potential.”
He added: “We now have a clear strategic agenda and priorities to capture future opportunities. I am excited as we embark on the next chapter of our transformation, and the team and I are fully committed to disciplined execution on our mid-term targets.”
Investor update
With the appointment of Stefan Bollinger as the new CEO in January 2025 and the election of Noel Quinn as Chair of the Board of Directors in May, Julius Baer today provides an update on the actions taken under the new leadership to address legacy issues and immediate pressure points. The Group further shares its strategic agenda and priorities, and a new set of financial targets for the upcoming three-year period commencing in 2026. The update will be presented to analysts and investors in London today. The presentation is available via www.juliusbaer.com/webcast.
First 20 weeks: measures taken and strategy review process
Over the past 20 weeks, Julius Baer has implemented several measures aimed at strengthening transparency and accountability, increasing client focus, and ensuring more efficient management processes.
The Group introduced changes to its governance and management structures (including reduced Executive Board, new Global Wealth Management Committee, streamlined regional set-up, new Global Products & Solutions unit), enhanced risk management (including new focused risk organisation and leadership, review of credit book), and sharpened its operating model and footprint (including additional cost measures, new front operating model, new UHNW Competence Centre, exit of Brazil onshore, and entry of Italy onshore).
Those measures also laid the foundation for the strategy review process, which has resulted in the following agenda to reignite profitable growth, drive operational efficiency and cost discipline, strengthen disciplined risk and compliance management, leverage technology, and foster a performance and ownership culture.
Reigniting profitable growth in the core wealth management business
Given the strengths of the franchise including its client portfolio, holistic product offering, international footprint, and independent wealth management proposition, Julius Baer is uniquely positioned to capture future growth opportunities.
To deliver on its growth ambition, the Group aims to: sharpen segmentation and coverage, enhance its product offering, strengthen top positions in core geographies, and increase the front productivity.
This will require a clear prioritisation and stringent focus on delivering distinct client solutions for its high-net-worth and ultra-high-net-worth client segments across geographies, to reach a 4–5% net new money growth target by 2028.
Driving operational efficiency and cost discipline
Julius Baer has a clear focus on restoring positive operating leverage, targeting an adjusted cost/income ratio of less than 67% by 2028.
Consequently, and to complement the growth ambition, the Group will implement further efficiency measures amounting to CHF 130 million by 2028, against an expected cost-to-achieve of approximately 50%. These additional savings will be achieved by completing the ongoing optimisation of the company’s operating model, process and IT simplifications, as well as by anchoring cost discipline. A particular emphasis will be placed on streamlining non-personnel expenses.
This will come in addition to the extended gross cost savings target of CHF 110 million already announced in February 2025 as part of the 2023–2025 cost programme, anticipated to be exceeded by approximately CHF 20 million.
Strengthening disciplined risk and compliance management
Julius Baer is committed to upgrading its risk and compliance management processes and accountability throughout the organisation. This includes the calibration of its risk profile in line with the perimeter of its core wealth management business, a strengthened first line of defence, and a culture of disciplined risk ownership.
Building on a set of measures to strengthen the risk functions, the Group has taken a major step by establishing a new Risk organisation under a new leadership, as communicated in the Interim Management Statement on 20 May 2025. Ivan Ivanic, currently Chief Credit Officer, has been appointed as new Chief Risk Officer, effective 1 July 2025.
Leveraging technology to enable the business
As part of its strategic agenda, Julius Baer will continue to invest in both the digital experience for its clients and for the front employees serving them. Designed to complement Julius Baer’s signature high-quality personal service, digital tools will rely on a scalable and harmonised backbone. To this end, the Group has established a new Digital Business Transformation unit and launched an IT infrastructure project in Switzerland.
Performance and ownership culture
A shift towards a performance and ownership culture will be instrumental to the success of Julius Baer’s transformation process. The Group aspires to be a prime spot for prime talent, united around common values of client focus, disciplined execution, and strong heritage.
Financial targets 2026–2028
For the strategic cycle 2026–2028, Julius Baer sets realistic three-year targets, assuming no meaningful deterioration in markets or foreign exchange rates:
- Net new money improving to 4–5% by 2028
- Adjusted cost/income ratio improving to less than 67% by 2028
- Adjusted RoCET1*** of at least 30% over the 2026–2028 cycle
Disciplined execution of the Group’s strategy will restore positive operating leverage and support consistent and reliable delivery on committed targets, leading to long-term value creation for its shareholders.
Capital distribution policy
While the Group’s stated capital distribution policy remains unchanged, the Board of Directors will not consider a potential future launch of a share repurchase programme until the Group has received the necessary clarity from the Swiss Financial Market Supervisory Authority FINMA.
Webcast for media
The strategy update presentation will be preceded by a media web conference at 8.30 a.m. (BST) (9.30 a.m. CEST).
Webcast for analysts and investors
The full details of Julius Baer’s updated strategy are available at www.juliusbaer.com. The presentation will take place in London at 10.00 a.m. BST (11.00 a.m. CEST) and will be webcast simultaneously at 10.00 a.m. (BST) (11.00 a.m. CEST) via www.juliusbaer.com/webcast.
*In relation to the use of alternative performance measures, please refer to the Alternative Performance Measures paragraph at the end of this media release.
**Calculated on the basis of a pro forma constant CET1 capital ratio of 14%.
***Calculated on the basis of a pro forma constant CET1 capital ratio of 14%.
Contacts
Media Relations, tel. +41 (0) 58 888 8888
Investor Relations, tel. +41 (0) 58 888 5256
About Julius Baer
Julius Baer is the leading Swiss wealth management group and a premium brand in this global sector, with a focus on servicing and advising sophisticated private clients. In all we do, we are inspired by our purpose: creating value beyond wealth. At the end of April 2025, assets under management amounted to CHF 467 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating back to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and are included in the Swiss Leader Index (SLI), comprising the 30 largest and most liquid Swiss stocks.
Julius Baer is present in over 25 countries and around 60 locations. Headquartered in Zurich, we have offices in key locations including Bangkok, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Madrid, Mexico City, Milan, Monaco, Mumbai, Santiago de Chile, Shanghai, Singapore, Tel Aviv, and Tokyo. Our client-centric approach, our objective advice based on the Julius Baer open product platform, our solid financial base, and our entrepreneurial management culture make us the international reference in wealth management.
For more information, visit our website at www.juliusbaer.com
Cautionary statement regarding forward-looking statements
This media release by Julius Baer Group Ltd. (‘the Company’) includes forward-looking statements that reflect the Company’s intentions, beliefs or current expectations and projections about the Company’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. The Company has tried to identify those forward-looking statements by using the words ‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’, ‘continue’ and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous.
These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. The Company and its subsidiaries, and their directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.
Alternative Performance Measures
This Interim Management Statement and other communication to investors contain certain financial measures of historical and future performance and financial position that are not defined or specified by International Financial Reporting Standards (IFRS). Management believes that these alternative performance measures (APMs) provide useful information regarding the Group’s financial and operating performance. These APMs should be regarded as complementary information to, and not as a substitute for, the IFRS results.
Adjusted results are derived by excluding from the IFRS financial results the impact on operating income (new since 1 January 2025) or on operating expenses related to acquisitions or divestments of businesses or participations (i.e. M&A transactions) as well as the taxes on those respective items. The M&A-related adjustments can represent inter alia items such as gain or loss on disposal; recycling of currency translation adjustments; amortisation of acquired customer relationships; goodwill impairment charges; M&A-related restructuring costs (examples of which include employee termination benefits that relate directly to the restructuring; contract termination costs; onerous contract provisions; consulting fees that relate directly to the restructuring; expected costs from when operations cease until final disposal); fees paid to advisers on the planning, execution, or financing of M&A transactions; integration-related IT or other general expenses; additional provisions set up for litigation or the recovered amount from the seller.
End of Inside Information
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