Julius Baer profit more than doubles to record 673 million francs, net new money beats forecast

Record half-year profit

Julius Baer reported net profit of 673 million Swiss francs for the first half of 2026, more than double the 295 million francs recorded a year earlier. The 128% increase marks the highest half-year profit in the bank's history, according to the Wall Street Journal. The prior-year result was depressed by loan loss provisions tied to risky lending, including exposure to Austrian property entrepreneur Rene Benko. Assets under management also grew, contributing to the earnings surge. The bank had previously signalled that first-half net profit would substantially exceed the year-earlier figure.

Net new money beats forecast

Clients added 5.7 billion francs in net new money during the six months, equivalent to $7.04 billion at the exchange rate of 0.81 francs per dollar. The inflow represents annualised growth of 2.2%, beating analyst expectations after a sluggish start to the year. Julius Baer confirmed its medium-term target of 4% to 5% annual net new money growth by 2028. However, the bank said progress on gathering fresh client assets continued to be affected by the implementation of its revised risk and compliance framework.

De-risking drag to persist into 2027

The bank warned that the impact of de-risking measures is likely to persist into 2027. The stricter controls were introduced after the losses from the Benko-linked lending, which prompted a management shake-up and regulatory scrutiny. Julius Baer did not specify when the drag might ease, but the warning suggests that the compliance overhaul will remain a headwind for at least another 18 months. The bank's ability to attract new money at the targeted pace hinges on completing the risk framework without further disruption to client relationships.

Management overhaul nears completion

Earlier in July, Julius Baer announced that Peter Burrill would join as chief financial officer in August, subject to regulatory approval. The appointment fills the last gap in a top management overhaul that followed the heavy losses. CEO Stefan Bollinger told reporters that the bank now has its second line of defence in place, referring to the risk and compliance function.

This moves into the right direction. We have now the second line in place and so we're feeling very good about our setup.

The bank again declined to give a timeline for resuming share buybacks, which remain suspended pending an ongoing assessment by Swiss regulator FINMA. Bollinger indicated that progress had been made following the management changes, but no decision has been reached.

## Outlook Julius Baer's 2028 net new money target of 4% to 5% annual growth remains in place, but the near-term trajectory depends on how quickly the de-risking measures can be completed without further disrupting client flows. The restart of share buybacks will be a key signal of regulatory confidence. With the executive team now fully staffed, attention turns to executing the risk framework and rebuilding momentum in wealth management. The bank's shares, listed on the SIX Swiss Exchange under ticker BAER, will be watched for any update on the regulatory assessment.