Julius Baer sets focused strategy to unleash its full potential through disciplined execution

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 RoCET13 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


Contact:
Media Relations
tel. +41 (0) 58 888 8888

--- END press release Julius Baer sets focused strategy to unleash its full potential through disciplined execution ---

  Bank Julius Bär & Co. AG (company entry)

  Julius Bär: Zielgerichtete Strategie zur Freisetzung des vollen Potenzials bei disziplinierter Ausführung (news article in german on swiss-press.com)