Interim Management Statement for the first ten months of 2025 and conclusion of the credit review*

Ad hoc announcement pursuant to Art. 53 LR

Julius Baer delivers improved performance, with record assets under management, improved operating leverage, and enhanced capital position, and draws a clear line under legacy credit issues.

• Assets under management (AuM) reached a record CHF 520 billion by 31 October 2025, crossing the half-trillion mark for the first time in the Group’s history, on the back of solid net new money of CHF 11.7 billion year to date, despite ongoing de-risking, and rising stock markets more than offsetting the impact of a significantly stronger Swiss franc.
• The rise in client assets at a broadly stable underlying gross margin has in turn driven meaningful year-on-year revenue growth, while operating leverage improved, demonstrating the resilience of Julius Baer’s franchise.
• The Group has now completed its credit review and decided to manage down a subset of loan book positions, which are not aligned with its refocused strategy and revised risk appetite framework. These positions are primarily in the income-producing residential and commercial real estate book and amount to CHF 0.7 billion.
• As a result, further loan loss allowances of CHF 149 million will be recognised in the financial accounts in November 2025.
• The Group’s balance sheet remains highly liquid and its capital position strong, with the CET1 capital ratio strengthening to 16.3%^**, significantly exceeding minimum requirements.
• Victoria McLean to join as Chief Compliance Officer and member of the Executive Board at end of February 2026, subject to final regulatory approval.
• Further progress on strengthening the Group’s footprint with new leadership appointments in home market Switzerland, the opening of a new office in Lisbon, and the planned opening in Abu Dhabi, following Milan earlier this year.

Stefan Bollinger, CEO of Julius Baer, said: “Over the last ten months, we have significantly de-risked our business, while delivering improved operating leverage, attracting solid net new money, and further strengthening our capital position. This performance demonstrates the resilience of our wealth management proposition and the trust our clients place in us.

“The completion of the credit review in this 2025 transition year is an important milestone in addressing legacy credit issues. With our clear strategic focus, our revised risk appetite framework, and overall strengthened risk function and processes, we are now entirely aligned around our core wealth management proposition.

“We are also pleased to welcome Victoria McLean to Julius Baer and our Executive Board. With the arrival of the new Chief Compliance Officer, we will complete the formation of our new risk organisation.

“Today, Julius Baer is stronger, simpler, and fully focused on the future.”

Conclusion of credit review and associated increase in loan loss allowance
Under the leadership of Ivan Ivanic, newly appointed Chief Risk Officer, the Group has undertaken fundamental upgrades to its Risk organisation and underlying processes. This was underpinned by several key senior appointments including the internal promotion of Stefano Pollina to Chief Credit Officer and the recruitment of Carl-Erik Schranz as Head of Credit Risk Management for Mortgages. Stefano Pollina has built a strong track record over more than a decade as Chief Credit Officer Asia. Carl-Erik Schranz brings more than 25 years of in-depth experience from key senior credit roles at UBS across Mortgages including Recovery Management as well as Structured Lombard.

At the Strategy Update in June 2025, the Group clearly committed to refocusing squarely on Julius Baer’s core wealth management proposition, including traditional Lombard and residential mortgage lending. In line with this strategic shift, the Group has undertaken a comprehensive revision of the Group’s risk appetite framework, which was approved by the Board of Directors over the summer. This was subsequently implemented and informed the final phase of the credit review. That review has now been completed.

Firstly, the review has confirmed that the Lombard loan book and the traditional residential mortgage portfolio are resilient and well collateralised. Secondly, when benchmarking against the new strategy and new risk appetite framework, it was decided to manage down a subset of the loan book. This portfolio amounts to CHF 0.7 billion and is primarily in income-producing residential and commercial real estate.

Similar to the almost completed wind-down of the private debt portfolio, this process will be executed in an orderly and disciplined manner, in order to protect shareholder value. To reflect forward-looking risks and the possibility of tighter customer refinancing conditions during this process, the Group believes it is adequate and appropriate to recognise additional loan loss allowances of CHF 149 million (CHF 121 million net of taxes) in the financial accounts in November 2025.

The conclusion of the review marks the final phase in addressing legacy credit issues.

Financial performance
In the first ten months of 2025, against the backdrop of continued de-risking of the client book, the Group achieved solid net new money inflows of CHF 11.7 billion (2.8% annualised). These inflows were derived predominantly from clients domiciled in key markets in Asia (especially Hong Kong, India, Singapore, and Thailand), Western Europe (in particular the UK & Ireland, Germany, and Iberia), and the Middle East (particularly the UAE).

The positive impacts of continued net inflows and rising global equity market valuations more than offset the impact of the stronger Swiss franc (particularly versus the US dollar) and the sale and deconsolidation of Julius Baer Brazil in March 2025. As a result, AuM grew to CHF 520 billion (up 8% from the end of June, and 4% year to date), a record high. This also marks the first time that reported AuM crossed above the half a trillion Swiss francs mark. The significant rise in client assets at a broadly stable gross margin in turn drove strong underlying year-on-year revenue growth.

Excluding the impacts related to M&A and net credit losses reported in the first four months of the year, the business delivered an underlying gross margin for the first ten months of 2025 of 83 basis points (bp), unchanged from the 83 bp gross margin for full year 2024 (FY 2024).

In the July–October 2025 period, the adjusted gross margin was just over 82 bp, a moderate decline from the 83 bp (underlying) reported for H1 2025, but a clear improvement from the 76 bp gross margin in May–June 2025:

• Recurring income (within net commission and fee income): 36 bp (H1 2025: 37 bp), in line with the level in May–June 2025, which had declined modestly following the deconsolidation earlier this year of Julius Baer Brazil (the revenue contribution of which had been composed largely of recurring fee income).
• Activity-driven income: 21 bp (H1 2025: 22 bp), of which 11 bp (H1 2025: 10 bp) from the non-recurring revenues within net commission and fee income, and 11 bp (H1 2025: 12 bp) from net income from financial instruments measured at FVTPL (excluding treasury swap income). Client activity-driven income softened in the summer months before improving again in September and October.
• Interest-driven income: Stable at 24 bp (H1 2025: 24 bp), of which 2 bp from net interest income (H1 2025: 3 bp) and 22 bp from treasury swap income (H1 2025: 21 bp). While the loan book grew in absolute terms since the end of June 2025, loan penetration (loans relative to total AuM) decreased modestly over this period.

The operating leverage improved: On the same underlying basis, the adjusted cost/income ratio for the first ten months of 2025 was 66% (FY 2024: 71%) and the adjusted pre-tax margin 27 bp (FY 2024: 23 bp). In the July–October 2025 period, the adjusted cost/income ratio was 63% (H1 2025, underlying: 68%) and the adjusted pre-tax margin 30 bp (H1 2025, underlying: 25 bp).

The Group expects to achieve gross cost savings of CHF 130 million on a run-rate basis by the end of 2025, exceeding its original target by CHF 20 million. The total estimated cost-to-achieve are now estimated at CHF 45 million, of which CHF 34 million has been reflected in the results for the first ten months of 2025.

Strong balance sheet and capital position
In Switzerland, the final Basel 3 standard (B3F) was implemented as of the current financial year. As a reminder, Julius Baer’s capital ratios were impacted by 350 bp in the move to B3F.

In the first ten months of 2025, the Group’s CET1 capital ratio strengthened to 16.3% (end 2024, pro forma B3F-equivalent: 14.2%), the total capital ratio improved to 22.9% (end 2024, pro forma B3F-equivalent: 21.1%), and the tier 1 leverage ratio remained at 4.9% (end 2024: 4.9%)^**.

At these levels, the Group’s CET1 and total capital ratios remain 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. The Group’s tier 1 leverage ratio stood well above the regulatory requirement of 3.0%.

Victoria McLean to join the Executive Board as Chief Compliance Officer
Following the announcement on 20 May 2025 to create a separate Chief Compliance Officer position on the Executive Board, the Group has appointed Victoria McLean in this role effective end of February 2026, subject to final regulatory approval. A seasoned compliance leader with over 30 years’ experience in wealth management, Victoria McLean joins from Goldman Sachs and brings extensive cross-border expertise in private wealth management, and a deep understanding of Julius Baer’s core markets including Switzerland, continental Europe, the UK, Middle East, and Asia.

Strengthening position in Switzerland and expanding global footprint
One of the key strategic priorities of the Group is to bolster its position in Switzerland in order to capitalise on further untapped growth potential in Julius Baer’s home market. As recently announced, Marc Blunier and Alain Krüger will take over responsibility as co-heads on 1 January 2026.

At the same time, the Group is cementing its presence in the high-growth markets of the Middle East and Asia, as well as in core Western European markets. Julius Baer has received in-principle regulatory approval to open a new advisory office in ADGM, the international financial centre of Abu Dhabi, complementing its over two-decades-long presence in Dubai’s DIFC.

As announced on 28 October 2025, Julius Baer has received the necessary regulatory approvals to open a dedicated presence of Bank Julius Baer Europe Ltd. (Julius Baer Europe) in Lisbon, Portugal, in the fourth quarter of 2025, following the opening of the new office in Milan, Italy, earlier this year.

Outlook
As a result of the non-recurring release of tax provisions in December 2024, the impact on IFRS net profit from the sale of Julius Baer Brazil earlier this year, and the after-tax impact of the net credit losses booked during 2025, the Group currently expects that IFRS net profit for the full year 2025 will be less than the one achieved FY 2024. Excluding these items, underlying profitability and capital generation remain strong, supported by record assets under management, solid net new money, and disciplined cost management.

Q&A webcast
Following the publication of today’s Interim Management Statement for the first ten months of 2025 and the completion of the credit review, Julius Baer CEO Stefan Bollinger, CFO Evie Kostakis, and CRO Ivan Ivanic will hold a question-and-answer session with analysts at 8.15 a.m. (CET). 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.

^**Based on 100% profit recognition; for regulatory reporting purposes under B3F, when financial results have not been audited or reviewed by external auditors, the recognition of profit is capped at 70%. On that basis, the CET1 capital ratio was 16.0% at the end of October 2025, the total capital ratio 22.6%, and the leverage ratio 4.9%.

Important dates
2 February 2026: Publication and presentation of 2025 full-year results

16 March 2026: Publication of Annual Report 2025 including Remuneration Report 2025

16 March 2026: Publication of Sustainability Report 2025

9 April 2026: Annual General Meeting, Zurich

Contacts
Media Relations, tel. +41 (0) 58 888 8888
Investor Relations, tel. +41 (0) 58 888 5256

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. At the end of October 2025, assets under management amounted to CHF 520 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 around 25 countries and 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 media release 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. For definitions and more details please refer to the Alternative Performance Measures section of the Half-Year Report 2025, available from www.juliusbaer.com.