Swiss private bank Julius Baer reported a 128% year-over-year increase in first-half net profit to 673 million Swiss francs, driven by 5.7 billion Swiss francs in net new money inflows. However, the bank anticipates its de-risking strategy will continue to impact operations until 2027.
Julius Baer's strong profit and inflow figures signal a potential recovery in wealth management, but the ongoing impact of its de-risking strategy highlights the challenges of balancing growth with regulatory compliance.
Swiss private bank Julius Baer reported a significant increase in net profit for the first half of the year, reaching 673 million Swiss francs, a 128% rise from the previous year which was impacted by loan loss provisions. The bank also announced that net new money for the period amounted to 5.7 billion Swiss francs, surpassing expectations and indicating a recovery after a slow start to the year.
Despite the positive financial results, Julius Baer stated that the implementation of its revised risk and compliance framework continues to affect its progress. The bank warned that the impact of its de-risking strategy is likely to persist into 2027. However, it reaffirmed its commitment to a net new money growth target of 4%-5% by 2028.
In terms of leadership, the bank is nearing the completion of a management overhaul with the upcoming appointment of Peter Burrill as its new chief financial officer in August, subject to regulatory approval. CEO Stefan Bollinger expressed confidence in the bank's current setup, noting progress in establishing the 'second line' of defense.
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