Shares in the standalone private banking group have risen this year but a record half-year 2026 profit result wasn't enough to enthuse investors. The bank said it logged strong net new inflows, with "exceptional" client activity in the first quarter.

Yesterday, Julius Baer reported a net profit on an IFRS basis of SFr673 million ($831 million), a record, for the first half of this year. That figure rose 128 per cent year-on-year, the Zurich-listed bank said.

Shares fell 3.93 per cent, with investors appearing insufficiently impressed by the more-than-doubling of net profit. Since the start of 2026, shares have risen around 7.7 per cent, based on the share price at around 12:00 noon UK time on 21 July.

Adjusted net profit matched the IFRS figure at SFr673 million (EPS: SFr3.27), up 32 per cent on an underlying SFr511 million (EPS: SFr2.49) in H1 2025.

Assets under management rose 5 per cent over the year-to-date, reaching a record SFr547 billion. The bank said the gain was driven by positive market performance and foreign exchange effects, and net new money inflows of SFr5.7 billion.

The bank's gross margin rose to 87 basis points, against an underlying first-half 2025 figure of 83 basis points, following "exceptionally high client activity" in the first quarter of this year.

An improvement in Julius Baer's operating leverage was reflected in an adjusted cost/income ratio of 62.6 per cent, down from an underlying 62.8 per cent a year earlier.

Julius Baer said its Common Equity Tier 1 capital ratio – a standard measure of a bank's capital strength – stood at 18.5 per cent at the end of June, up from 17.4 per cent a year earlier, and significantly above minimum requirements.

"Overall, we delivered a strong operating performance in the first half of 2026, reporting record net profit, driven by pronounced client activity, all-time high assets under management, sustained net new money inflows, and continued improvement in operating leverage," Stefan Bollinger, CEO of Julius Baer, said.

Operating income
Providing further detail, Julius Baer said IFRS operating income reached SFr2.276 billion, up 26 per cent on a year earlier. The improvement reflected higher net commission and fee income, rising net income from financial instruments measured at fair value through profit or loss (FVTPL), and an increase in net interest income.

In addition, the comparable period last year was weighed down by two significant items: an M&A-related net impact of SFr99 million from the sale of Julius Baer Brazil and elevated net credit losses. (The bank has also tightened controls since suffering credit losses of SFr606 million, stemming from loans to a European conglomerate, Signa Group. 

As previously stated, Julius Baer is targeting gross efficiency improvements of SFr130 million by 2028. In H1 2026, costs-to-achieve related to the programme totalled SFr7 million, while net savings generated by the programme amounted to SFr11 million.

Adjusted personnel costs rose by 4 per cent to SFr974 million, driven by a 1 per cent year-on-year rise in average headcount and higher incentive and performance-related compensation. As of 30 June 2026, Julius Baer employed 7,675 full-time equivalents (FTEs), representing a year-to-date net increase of 285 positions.