Julius Baer profit doubles to SFr673m as credit losses fall, inflows rise
Julius Baer's first-half profit more than doubled to SFr673m as a sharp drop in credit losses and sustained client inflows signaled a successful start to the Swiss wealth manager's new strategic cycle.
Julius Baer reported first-half net profit of SFr673m, a 128% increase from the prior year, driven by a rebound from 2025 credit provisions and strong asset inflows. Operating income rose 26% to SFr2.27bn. The results mark a decisive recovery from previous hits tied to a Brazilian divestment.
A significant driver of the bottom line was the normalization of credit costs. Net credit losses on financial assets plummeted to SFr23m from SFr130m a year earlier. Meanwhile, net interest income surged 80% to SFr130m, further bolstering the broader revenue base.
Assets under management reached a record SFr547bn, a 5% year-to-date increase fueled by market gains, currency shifts, and sustained inflows. Net new money totaled SFr5.7bn, representing a 2.2% annualized growth rate across all regions. Western Europe and Switzerland were standout contributors, while total client assets, including SFr102bn in assets under custody, stood at SFr649bn.
Notably, client releveraging resumed in the latter half of the period after pausing during the first four months of 2026. This shift in client risk appetite is a positive indicator for future fee income generation in the wealth management sector.
The bank kept a tight grip on expenses as income scaled. Operating costs edged up just 2% to SFr1.46bn, demonstrating meaningful operating leverage. Julius Baer is targeting SFr130m in gross efficiency gains by 2028, having already realized SFr11m in net savings during the first half against SFr7m in implementation costs.
Group CEO Stefan Bollinger pointed to the leverage as validation of the firm's model. "Overall, we delivered a strong operating performance in the first half of 2026, reporting record net profit, driven by pronounced client activity, all-time high assets under management, sustained net new money inflows, and continued improvement in operating leverage," Bollinger said. He added that the results represent a solid start to a new three-year strategic cycle and that the firm is pleased to "reaffirm our mid-term targets."
The earnings release comes amid a leadership shift in the finance department. Earlier this month, Julius Baer named Peter Burrill as its new chief financial officer and executive board member. He is set to replace Evie Kostakis on August 17, 2026, subject to final regulatory approval.
