Julius Baer profit surges as AuM hit record

Julius Baer delivered a strong recovery in the first half of 2026, posting net profit of 673 million Swiss francs. The result represents a 128% increase compared with the same period a year earlier. The bank also reported an adjusted profit before tax of about CHF 814 million, underscoring an improvement in its underlying performance. Management highlighted stronger revenues alongside the benefits of operating leverage.

Profitability was further supported by tighter cost control. The adjusted cost-to-income ratio improved to 62.6% in the first half of 2026. This indicates that expenses grew more slowly than income, helping to translate higher revenues into stronger bottom-line results. The combination of higher earnings and better efficiency marked an early turnaround from weaker conditions in the prior year.

Assets under management reached a record 547 billion Swiss francs at the end of June 2026. The increase reflects favourable market effects and client activity during the period. The record level of assets underscores the scale of the wealth manager’s franchise and provides a larger base from which to generate fees and commissions.

Stronger markets and higher transaction volumes contributed to revenue expansion in the first half. As client portfolios grew, the bank benefited from higher asset-based fees. This, combined with its improved cost efficiency, supported the significant rise in net profit compared with the previous year’s first half.

Net new money in the first half of 2026 totalled 5.7 billion Swiss francs. While positive, this level of inflows was described as modest relative to the group’s ambitions. Inflows are an important indicator of the bank’s ability to attract and retain client assets over and above market movements.

Management reiterated a medium-term net-new-money growth target of 4–5% to 2028. At the same time, the bank cautioned that the ongoing implementation of a revised risk-and-compliance framework is expected to weigh on flows through 2027. The adjustments to risk processes are influencing client activity and onboarding, which helps explain why net new money has lagged the pace implied by the medium-term target so far.

The first-half 2026 results show an earnings rebound driven by higher revenues, record client assets and better cost discipline. However, the bank’s guidance on net new money underscores that growth in client inflows may remain constrained in the near term. Management continues to prioritise the rollout of its revised risk-and-compliance framework, even as this exerts pressure on inflows.

Looking ahead to 2028, the bank is targeting stronger net-new-money growth once the bulk of the risk overhaul is absorbed. For now, the earnings profile is supported more by market performance and efficiency gains than by rapid expansion of client assets. The balance between profitability improvement and conservative risk management will remain a central theme for the group over the next several years.