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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 and posted record client assets. The bank also secured regulatory clearance for a new office in Portugal, expanding its services to ultra-high and high-net-worth clients. Furthermore, Julius Baer's digital business transformation function and IT infrastructure modernization project in Switzerland are underway.

1.c. Company Highlights

2. Julius Bär's 2025 Earnings: A Strong Underlying Performance

Julius Bär reported a robust financial performance in 2025, with operating income increasing by 6% year-over-year to CHF 3.861 billion, while costs rose by 1% to CHF 2.808 billion. The pretax profit jumped by 17% to CHF 1.27 billion, with an underlying pretax margin improving by 2 basis points to 25 basis points. Earnings per share (EPS) came in at CHF 2.29, beating analyst estimates of CHF 1.85. The company's assets under management (AUM) reached a record high of over CHF 520 billion, driven by solid net new money of CHF 14.4 billion.

Publication Date: Feb -08

📋 Highlights
  • Record Assets Under Management:: AUM reached CHF 520 billion, driven by CHF 14.4 billion in net new money.
  • Strong Pretax Profit Growth:: Pretax profit surged 17% YoY to CHF 1.27 billion with a 25 basis points margin improvement.
  • CET1 Capital Ratio Recovery:: Improved by 320 basis points to 17.4%, nearing pre-Basel III levels within 12 months.
  • Operating Efficiency Gains:: Cost-to-income ratio dropped to 68%, with a target of below 67% by 2028.
  • Dividend Stability:: Proposed dividend remains unchanged at CHF 2.6 per share, reflecting confidence in capital management.

Key Drivers of Financial Performance

The strong financial performance was underpinned by a 5% growth in AUM to CHF 521 billion, with a monthly average AUM increasing by 7% year-over-year to CHF 499 billion. Net new money reached CHF 14.4 billion by year-end, with an initial amount of releveraging in H2, adding 0.6 percentage points to the net new money pace in H2 and 0.3% for the full year. As Evie Kostakis, CFO, highlighted, "Underlying operating income showed a year-over-year increase of 6% to almost CHF 4.073 billion, with a CHF 106 million or 10% increase in interest-driven income to almost CHF 1.2 billion."

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of around 2.04, Julius Bär's valuation appears reasonable. The dividend yield stands at 3.89%, providing a relatively attractive return for investors. Analysts estimate next year's revenue growth at 6.4%, which could potentially drive the stock price higher.

Midterm Targets and Strategic Initiatives

Julius Bär is confident in achieving its 2028 midterm targets, including a cost-income ratio of below 67% and a return on CET1 of above 30%. The company is focusing on profitable growth, cost management, and risk control, with key initiatives such as reviving organic growth, instilling cost consciousness, and driving culture transformation. The dedicated 3-year revenue and growth program aims to address organic growth, with a focus on systematic sales management, pricing, and product adoption.

Outlook and Conclusion

With a strong underlying performance and a clear strategic direction, Julius Bär is well-positioned to achieve its midterm targets. The company's high-quality CET1 capital, robust liquidity position, and improving net new money momentum provide a solid foundation for future growth. As the company continues to execute its strategic initiatives, investors can expect a steady improvement in financial performance, making Julius Bär an attractive investment opportunity in the wealth management sector.

3. NewsRoom

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How Schwab moved $27.7M in payments for Epstein days before his arrest

Feb -20

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How Schwab moved $27.7M in payments for Epstein days before his arrest

Feb -20

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Exclusive-A palace in Marrakesh: How Schwab moved $27.7 million in payments for Epstein days before his arrest

Feb -19

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SMBC and Julius Baer plan India tech hubs – report

Feb -17

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Julius Bär Faces AI Disruption Questions As Board Refreshes Leadership

Feb -13

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AI Angst in US Stocks Sends Global Money Chasing Asia’s Winners

Feb -13

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Wealth Stocks Drop Outside the U.S.

Feb -11

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Bitcoin tumbles below $70,000, wiping out gains since Trump 2024 win

Feb -05

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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
Schroders

A-Score: 6.5/10

Value: 6.3

Growth: 3.1

Quality: 6.6

Yield: 8.1

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
RIT Capital Partners

A-Score: 6.1/10

Value: 4.7

Growth: 3.8

Quality: 8.8

Yield: 3.1

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Julius Bär

A-Score: 6.1/10

Value: 5.5

Growth: 6.4

Quality: 6.4

Yield: 7.5

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
L E Lundbergföretagen

A-Score: 4.8/10

Value: 3.9

Growth: 4.1

Quality: 6.8

Yield: 1.2

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Latour

A-Score: 4.7/10

Value: 1.3

Growth: 7.4

Quality: 6.4

Yield: 3.1

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Bure Equity

A-Score: 3.6/10

Value: 5.6

Growth: 3.0

Quality: 3.9

Yield: 1.2

Momentum: 1.5

Volatility: 6.3

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

65.78$

Current Price

65.78$

Potential

-0.00%

Expected Cash-Flows