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1. Company Snapshot

1.a. Company Description

Julius Bär Gruppe AG provides wealth management solutions in Switzerland, Europe, Americas, Asia, and internationally.Its solutions include discretionary mandates, investment advisory mandates, securities execution and advisory, foreign exchange and precious metals, family office services, Lombard lending, structured products, global custody, real estate advisory and financing, and wealth planning.It also operates an open product and service platform.


Julius Bär Gruppe AG was founded in 1890 and is headquartered in Zurich, Switzerland.

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1.b. Last Insights on BAER

Julius Bär Gruppe AG's recent performance was driven by several positive factors. The company's assets under management (AUM) reached SFr 520bn for the first 10 months of 2025, reflecting net new money inflows of SFr11.7bn since the start of the year. Additionally, Julius Baer concluded a review related to legacy credit issues, providing a positive outlook. The company also plans to replace its Swiss IT system with Temenos product, modernizing its infrastructure amid mounting regulatory requirements. Furthermore, Julius Baer's analysts see a positive outlook for gold in the near term.

1.c. Company Highlights

2. Julius Bär 2024 Full Year Results: A Promising Start to a New Era

Julius Bär reported a strong set of full-year results for 2024, with profit before tax increasing to CHF 1.1 billion and adjusted net profit reaching CHF 1 billion, benefiting from a favorable tax impact. The asset base remains strong, with record assets under management of nearly CHF 0.5 trillion, driven by CHF 14.2 billion in net inflows. Net new money growth picked up to over 4% in the second half of the year, resulting in net inflows of CHF 14.2 billion. The recurring fee income grew by 14% to CHF 2.2 billion, and net income from financial instruments at fair value through profit and loss improved by 21% to CHF 1.3 billion.

Publication Date: Feb -19

📋 Highlights
  • Strong Asset Base: Record assets under management of nearly CHF0.5 trillion, driven by CHF14.2 billion in net inflows, with a 4.4% net new money growth in the second half of the year.
  • Improved Profitability: Profit before tax of CHF1.1 billion, outperforming the run rate of the first half, and adjusted net profit of CHF1 billion, benefiting from a favorable tax impact.
  • Cost Savings Initiatives: Extension of the cost savings program to target an additional CHF110 million of gross cost savings in 2025, bringing the total cumulative savings to CHF250 million, focusing on simplifying group governance and streamlining back and middle office functions.
  • Strong Capital Position: CET1 capital grew by 21% to CHF3.6 billion, with a CET1 capital ratio improving from 14.6% to 17.8%, and a highly liquid balance sheet with a loan-to-deposit ratio of 61% and one of the highest LCRs in Europe at 292%.
  • Net New Money Growth: Expectation of net new money to be around 3% for the year, driven by growth in strategic markets such as Asia, Singapore, Hong Kong, the UK, Germany, India, and Switzerland, with a focus on client obsession and cultural transformation.

Financial Performance

The gross margin analysis shows that the key moving revenue drivers are NII, treasury swap income, and recurring fee income. The company has seen a stabilization in the downward shift of interest-driven income and a tick down in recurring income gross margin. The cost savings program has been extended to target an additional CHF 110 million of gross cost savings in 2025, bringing the total cumulative savings to CHF 250 million. As Stefan Bollinger, the new CEO, stated, "I'm pleased with what I've seen and heard since joining Julius Bär on January 9. We have a high-quality client portfolio, a compelling wealth management proposition, a unique and resilient brand, and excellent people with an entrepreneurial mindset."

Cost Savings and Efficiency

The company's cost-income ratio is not acceptable, and the cost program extension aims to improve it. The program will achieve a gross cost savings of CHF 110 million, which will be achieved through G&A and compensation reductions. The company expects the cost-income ratio to end up roughly at the level where it ended up in 2024, assuming a stable balance sheet structure and a stable AUM base.

Capital Allocation and Liquidity

Regarding capital allocation, the company is still assessing its priorities, but will provide more information at a strategy update before summer. The company is not planning to reduce its liquidity coverage ratio, which is currently at 292%, as it is already very liquid and solid. The company's deposit mix has changed, with Swiss francs decreasing from 55% to 50%, while dollar and euro deposits have increased.

Valuation

With a price-to-earnings ratio of 32.21 and a dividend yield of 4.43%, the stock appears to be reasonably priced. The free cash flow yield of 19.46% and return on equity of 6.07% also suggest that the company's financial performance is strong. However, the valuation metrics indicate that the market is pricing in a certain level of growth and profitability, and the company will need to continue to deliver on its performance imperatives to justify its current valuation.

3. NewsRoom

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Julius Baer AUM reaches SFr 520bn for 10M 2025

Nov -25

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Switzerland’s Julius Baer Draws Line Under Credit Review With New Charge

Nov -24

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Julius Baer Draws Line Under Credit Review as Bank Posts Record Client Assets

Nov -24

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Financial Services Roundup: Market Talk

Nov -20

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Julius Baer to replace Swiss IT system with Temenos product, sources say

Nov -19

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Julius Baer (SWX:BAER): Evaluating Valuation as Shares Take a Pause After Year-Long Climb

Nov -19

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Dubai sets the benchmark for next-generation financial cities, outpacing established centres: DIFC report

Nov -18

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Gold's Outlook Remains Positive in Near Term Amid Rally

Nov -11

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.92%)

6. Segments

Wealth Management

Expected Growth: 6.92%

Julius Bär Gruppe AG's 6.92% growth in Wealth Management is driven by increasing demand for investment products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on digitalization, innovative advisory services, and strong relationships with high-net-worth individuals contribute to its growth momentum.

7. Detailed Products

Wealth Management

Comprehensive wealth management services for private and institutional clients, including investment advice, portfolio management, and asset allocation.

Investment Banking

Advisory services for corporate clients, including mergers and acquisitions, equity and debt capital markets, and restructuring.

Markets

Trading and execution services for institutional clients, including equities, fixed income, currencies, and commodities.

Asset Management

Active and passive investment strategies for institutional and wholesale clients, including equities, fixed income, and multi-asset solutions.

Custody and Fund Services

Custody, fund administration, and transfer agency services for institutional clients, including fund managers and pension funds.

8. Julius Bär Gruppe AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Julius Bär Gruppe AG is medium due to the presence of alternative investment products and services offered by other financial institutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized and personalized services offered by Julius Bär Gruppe AG, which creates a high level of customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of investment products and services, but Julius Bär Gruppe AG's strong brand and reputation give it some bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the private banking and wealth management industry, including regulatory requirements and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established players in the private banking and wealth management industry, leading to a highly competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.20%
Debt Cost 10.33%
Equity Weight 51.80%
Equity Cost 10.33%
WACC 10.33%
Leverage 93.05%

11. Quality Control: Julius Bär Gruppe AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Julius Bär

A-Score: 6.4/10

Value: 6.4

Growth: 6.4

Quality: 6.0

Yield: 8.1

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Schroders

A-Score: 6.3/10

Value: 6.8

Growth: 3.1

Quality: 6.6

Yield: 8.1

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
RIT Capital Partners

A-Score: 6.2/10

Value: 5.0

Growth: 3.8

Quality: 8.6

Yield: 3.1

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
L E Lundbergföretagen

A-Score: 4.7/10

Value: 3.7

Growth: 4.1

Quality: 6.2

Yield: 1.2

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Latour

A-Score: 4.6/10

Value: 1.4

Growth: 7.3

Quality: 6.4

Yield: 3.1

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Bure Equity

A-Score: 3.5/10

Value: 5.4

Growth: 3.0

Quality: 4.6

Yield: 0.6

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.98$

Current Price

57.98$

Potential

-0.00%

Expected Cash-Flows