Julius Baer’s First-Half Profit Slips Due to Credit Losses
As previously signalled, Julius Baer recorded lower net profit in the first half of 2025, driven by credit losses from its mortgage and private debt book.
Julius Baer’s net profit in the first six months of 2025 fell 35 percent year-on-year to 295 million Swiss francs ($370 million), according to the bank’s financial results.
This was mainly due to previously reported net credit losses of 130 million francs from allowances for selected positions in the mortgage book and private debt loan book as well as a 99 million franc net impact from the sale of its domestic Brazilian business. Adjusted operating income decreased 2 percent to 1.9 billion francs while adjusted operating expenses rose 2 percent to 1.4 billion francs.
Excluding credit losses and M&A-related impact, underlying net profit was 511 million francs, up 11 percent.
Net Inflows Double
On the other hand, the Swiss private bank continued to see assets under management (AUM) grow. Net new money inflows surged 113 percent to 7.9 billion francs, predominantly from clients domiciled in key regions in Asia, Western Europe and the Middle East. Markets highlighted included Hong Kong, Singapore, India, UK, Ireland, Germany, UAE and Bahrain.
AUM totalled 483 billion francs, up from 497 billion francs at end-2024. Net inflows and rising equity market valuations more than offset the effects of a weaker dollar and the sale of the Brazil business.
«It is encouraging to see the positive momentum with net new money more than doubling year on year and underlying net profit increasing double-digit due to our continued focus on clients and risk management,» commented Julius Baer CEO Stefan Bollinger.
