Interim Management Statement for the first four months of 2025*

Ad hoc announcement pursuant to Art. 53 LR

• Continued client momentum with solid net new money inflows of CHF 4.2 billion despite ongoing de-risking of the client book
• Assets under management (AuM) at CHF 467 billion reflecting stronger Swiss franc and deconsolidation of Julius Baer Brazil
• Client activity driving the increase in underlying gross margin to 87 basis points (bp) (H2 2024: 80 bp) before loan loss allowance
• On track to achieve CHF 110 million additional cost savings as announced in February
• Significant progress on the wind-down of private debt book to below CHF 0.2 billion (0.4% of total loan book)
• Review of credit portfolio, with subsequent increase in loan loss allowances associated with remaining private debt book and selected positions in the mortgage book, drove a net charge of CHF 130 million
• Post a review of the Group’s risk functions, subject to regulatory approval, the following changes will be implemented as of 1 July 2025:
  • Oliver Bartholet is retiring, Ivan Ivanic will replace him as Chief Risk Officer
  • All legal, and pro tem compliance functions, will be consolidated under the leadership of Christoph Hiestand, Group General Counsel
  • A Chief Compliance Officer will be recruited and will join the Group’s Executive Board in due course
• Further progress on optimising the Group’s footprint with the successful completion of the sale of Julius Baer Brazil and the opening of an onshore branch in Italy
• The Group’s balance sheet remains highly liquid and its capital position robust, with CET1 capital ratio strengthening to 15.2%, well in excess of regulatory requirements of 8.3%

 Zurich, 20 May 2025 – Stefan Bollinger, CEO of Julius Baer said: “The business has performed steadily in the first four months of the year despite macro-economic and market turbulences, with solid net inflows, an increase in the underlying gross margin, and continued delivery on cost savings. Since January, we have implemented several measures aimed at simplifying governance and the operating model, reinforcing our client focus, and disciplined risk management. The changes announced today represent a further step in this direction. As we are swiftly addressing legacy issues, we are also paving the way forward to unleash the full potential of our unique franchise and delivering on our stakeholders’ expectations. The whole leadership team is looking forward to providing insights on progress to date and outlook at our Strategy Update next month.”

Financial performance
In the first four months of 2025, against the backdrop of continued de-risking of the client book, the Group achieved strong high-quality net new money inflows of CHF 4.2 billion (2.5% annualised). This net new money was predominantly from clients domiciled in the key markets in Asia (especially Hong Kong and Singapore) and Western Europe (in particular the UK and Germany). The inflows partially offset the effects of a significantly stronger Swiss franc, especially versus the US dollar. The overall result was a reduction in AuM to CHF 467 billion, a decrease of 6% compared to year-end 2024 (of which the currency impact was CHF 28 billion).

The adjusted gross margin rose by 7 bp to 87 bp (H2 2024: 80 bp) on an underlying basis, driven by client activity. Activity was elevated throughout the four-month period and notably strong in the first weeks of April, before moderating towards the end of the month. The contribution to the gross margin from recurring income remained stable.

• Recurring income (within net commission and fee income): 37 bp (H2 2024: 37 bp).
• Activity-driven income: 28 basis points (bp) (H2 2024: 20 bp), of which over 10 bp (H2 2024: 10 bp) from the non-recurring revenues within net commission and fee income, and over 17 bp (H2 2024: 11 bp) from net income from financial instruments measured at FVTPL (excluding treasury swap income).
• Interest-driven income: 21 bp (H2 2024: 23 bp). Following the decline in Swiss interest rates, a further shift from net interest income (2 bp, vs H2 2024: 6 bp) to treasury swap income (19 bp, vs H2 2024:16 bp).

These three primary drivers of operating income, plus a 1 bp contribution from other ordinary results, contributed 87 bp to the adjusted gross margin, up from a group gross margin of 80 bp in H2 2024. Including the credit-related charge (as described in the loan loss allowance section below), the adjusted gross margin was 8 bp lower at 79 bp.

The implementation of the CHF 110 million additional gross cost savings announced in February is on track and is expected to start benefiting the Group’s profitability towards the latter part of 2025. Of the expected cost-to-achieve of around CHF 55 million, so far CHF 19 million has been reflected in the financial accounts.

As a result of the credit-related charge, the adjusted cost/income ratio increased to 72% (H2 2024: 71%) and the adjusted pre-tax margin declined to 21 bp (H2 2024: 22 bp). Excluding the credit-related impact, the underlying cost/income ratio was 66% and the underlying pre-tax margin 29 bp.

Credit review and associated increase in loan loss allowance
The traditional Lombard loan book – our core lending business – continued to perform well despite the significant volatility and market dislocation experienced in the first weeks of April.

Furthermore, the Group has made significant progress, ahead of plan, on the wind-down of the private debt loan book, with the remaining notional exposure now well below CHF 0.2 billion, a more than 50% reduction since the end of 2024. The remaining book stands at just 0.4% of the total loan book.

Following the targeted reviews of the Private Debt and Structured Lombard loan portfolios conducted last year, the new leadership is undertaking an extended review of the remainder of the credit portfolio. After applying more prudent criteria with respect to credit quality and adequacy (or extent) of wealth management relationship, the loan loss allowances for selected positions in the mortgage book as well as the remaining private debt loan book were increased. This led to a total net charge of CHF 130 million (H2 2024: CHF 7 million) being reflected in the income statement.

The Group will continue to enhance its proactive credit risk oversight and to instill a stricter risk/reward discipline to support sustainable profitable growth of our core wealth management business.

Enhancement of the Risk Function
Over the past four months the Group has been reviewing its Risk, Compliance and Legal functions in order to improve governance and risk management, and to strengthen the risk management of the credit portfolio. As a result, the following changes will be implemented as of 1 July 2025, subject to regulatory approval:

• Ivan Ivanic, who joined Julius Baer in February 2025 as Chief Credit Officer, will become the Chief Risk Officer and a member of the Executive Board. Ivan has a proven track record in senior risk management roles, including Chief Risk Officer of UBS in Asia.
• All legal functions that are currently a part of the CRO organisation will be consolidated and transferred into the office of the Group General Counsel, under the leadership of Christoph Hiestand.
• A separate compliance function reporting to the CEO will be established, with the Chief Compliance Officer being a member of the Executive Board. An announcement of this role will be made in due course.
• The current Chief Risk Officer Oliver Bartholet will retire from the bank at the end of the year and hand over his responsibilities on 1 July. He will remain available to the bank until his retirement date to facilitate an orderly transition.

Optimising the global footprint
As announced previously, the sale of Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários Ltda. (Julius Baer Brazil) was successfully completed on 28 March 2025. Julius Baer will continue to service Brazilian clients out of other locations and, as such, the Brazil International business remains unaffected and an important offering of Julius Baer.

While the deconsolidation of Julius Baer Brazil impacted Group AuM by CHF 8 billion, the transaction was 35 bp accretive to Julius Baer’s CET1 capital ratio. The completion of the sale resulted in a one-off impact to operating income of CHF 99 million, mainly resulting from non-cash cumulative currency translation adjustments already recognised previously in the Group’s equity. For the purpose of reporting the adjusted key performance indicators (gross margin, cost/income ratio and pre-tax margin) in this media release, IFRS operating income has been adjusted to exclude the latter.

In Italy, following the receipt of the necessary regulatory approvals, Julius Baer has entered the onshore market through its recently opened dedicated branch in Milan. The new branch will serve Italian ultra-high and high net worth clients, as well as family offices, with a dedicated local team. The Milan branch is part of Bank Julius Baer Europe S.A. in Luxembourg (Julius Baer Europe) and complements Julius Baer Europe’s successfully established presences in Dublin, Madrid, and Barcelona.

Strongly capitalised
In Switzerland, the final Basel 3 standard (B3F) was implemented as of the current financial year.

In the first four months of 2025, the Group’s CET1 capital ratio strengthened to 15.2% (end 2024, pro-forma B3F-equivalent: 14.2%). Tier 1 capital and total capital additionally benefitted from the successful issuance of AT1 bonds (USD 400 million aggregate nominal amount) in February 2025. As a result, the Group’s total capital ratio improved to 23.2% (end 2024, pro-forma B3F-equivalent: 21.1%) and the tier 1 leverage ratio to 5.2% (end 2024: 4.9%).

At these levels, the Group’s CET1 and total capital ratios remained well above the Group’s own floors of 11% and 15% respectively, and significantly in excess of the regulatory requirements of 8.3% and 12.5% respectively, and the Group’s tier 1 leverage ratio stood well above the regulatory requirement of 3.0%.

Outlook
Given the dislocation currently evident in global markets, the outlook remains uncertain. As a result of the business developments in the year to date, the impact on IFRS operating income from the completion of the sale of Julius Baer Brazil, and the expected normalisation of the tax rate in 2025, the Group currently expects that IFRS net profit for the first half year of 2025 will be less than the one achieved in the first half year of 2024.

Notwithstanding the current economic uncertainty, the Board of Directors and management remain confident in the fundamental strengths of Julius Baer. As the world’s largest independent wealth manager, with CHF 467 billion of assets under management, entrusted to us over generations, we are well positioned to capture future growth.

Strategy Update 3 June 2025
As announced on 28 February 2025, Julius Baer will present a detailed overview of progress to date, as well as perspectives on value creation going forward, including new medium-term targets, at a Strategy Update on Tuesday, 3 June 2025. The presentation to investors and analysts will take place in London and will start at 10.00 a.m. BST (11.00 a.m. CEST).

The presentation will be preceded by a Media call at 08:45 a.m. (BST) (09:45 a.m. CEST).

Q&A webcast
Following the publication of today’s Interim Management Statement for the first four months of 2025, Julius Baer CFO Evie Kostakis will hold a question-and-answer session with analysts at 8.15 a.m. (CEST) tomorrow (21 May 2025). The webcast can be followed live, and will remain available, via www.juliusbaer.com/webcast.

^{*Based on unaudited management accounts. In relation to the use of alternative performance measures, please refer to the Alternative Performance Measures paragraph at the end of this media release.}   

Contacts

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

Investor Relations, tel. +41 (0) 58 888 5256

Important dates

3 June 2025: Publication and presentation of Strategy Update, London

22 July 2025: Publication and presentation of 2025 half-year results

24 November 2025: Publication of Interim Management Statement for first ten months of 2025

About Julius Baer
Julius Baer is the leading Swiss wealth management group and a premium brand in this global sector, with a focus on servicing and advising sophisticated private clients. In all we do, we are inspired by our purpose: creating value beyond wealth. At the end of April 2025, assets under management amounted to CHF 467 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating back to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and are included in the Swiss Leader Index (SLI), comprising the 30 largest and most liquid Swiss stocks.

Julius Baer is present in over 25 countries and around 60 locations. Headquartered in Zurich, we have offices in key locations including Bangkok, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Madrid, Mexico City, Milan, Monaco, Mumbai, Santiago de Chile, Shanghai, Singapore, Tel Aviv, and Tokyo. Our client-centric approach, our objective advice based on the Julius Baer open product platform, our solid financial base, and our entrepreneurial management culture make us the international reference in wealth management.

For more information, visit our website at www.juliusbaer.com

Cautionary statement regarding forward-looking statements
This media release by Julius Baer Group Ltd. (‘the Company’) includes forward-looking statements that reflect the Company’s intentions, beliefs or current expectations and projections about the Company’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. The Company has tried to identify those forward-looking statements by using the words ‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’, ‘continue’ and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous.

These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. The Company and its subsidiaries, and their directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

Alternative Performance Measures
This Interim Management Statement and other communication to investors contain certain financial measures of historical and future performance and financial position that are not defined or specified by International Financial Reporting Standards (IFRS). Management believes that these alternative performance measures (APMs) provide useful information regarding the Group’s financial and operating performance. These APMs should be regarded as complementary information to, and not as a substitute for, the IFRS results.

Adjusted results are derived by excluding from the IFRS financial results the impact on operating income (new since 1 January 2025) or on operating expenses related to acquisitions or divestments of businesses or participations (i.e. M&A transactions) as well as the taxes on those respective items. The M&A-related adjustments can represent inter alia items such as gain or loss on disposal; recycling of currency translation adjustments; amortisation of acquired customer relationships; goodwill impairment charges; M&A-related restructuring costs (examples of which include employee termination benefits that relate directly to the restructuring; contract termination costs; onerous contract provisions; consulting fees that relate directly to the restructuring; expected costs from when operations cease until final disposal); fees paid to advisers on the planning, execution, or financing of M&A transactions; integration-related IT or other general expenses; additional provisions set up for litigation or the recovered amount from the seller.