Julius Baer Group (JBAXY) Q2 2026 Earnings Report

The call presented a strong operational and financial performance in H1: record AUM, record net profit (like-for-like +32%), double-digit revenue growth (12%), expanded gross margin and improved cost-to-income driven by disciplined cost control and efficiency actions. Capital and liquidity positions are robust (CET1 18.5%, LCR 344%). However, a material caveat is the ongoing implementation of a revised risk and compliance framework that is creating headwinds to net new money and is expected to spill into 2027, along with some credit-related clean-up, one-off write-offs and an expected build of costs in H2 as investments accelerate. On balance, the positive financial momentum, capital strength and clear strategic execution outweigh the near-term derisking-related flow impacts and investment-driven cost increases.

Management reconfirmed its mid‑term targets and gave specific guidance: AUM stood at CHF 547bn (up 5% YTD; monthly avg CHF 526bn) and H1 net new money was CHF 5.7bn (2.2% annualised), but they expect 2026 net new money to be below 2025 with implementation headwinds from the revised risk & compliance framework spilling into 2027 (normalising in 2028); cost discipline remains a priority with a target cost/income ratio sustainably below 67% by 2028 (H1 cost/income 62.6%, exit May–June ~63%; H2 expected <67% on an 80 bps gross‑margin input), forward tax guidance of 18–20%, RM hiring of ~120 gross in 2026 with a slight net RM increase by year‑end (1,247 RMs at H1 end; 47 onboarded; 14 signed), capital and risk metrics maintained (CET1 ratio 18.5%, CET1 CHF 4.3bn, RWA CHF 23.3bn, risk density guidance 21–23%, Tier‑1 capital CHF 5.6bn, leverage exposure CHF 120bn, Tier‑1 leverage ratio 4.7%, LCR 344%), dividend policy unchanged (50% payout), and any further share buybacks remain subject to FINMA approval.