Julius Baer’s shares experienced a significant decline, falling by as much as 10% on Friday after the Swiss private banking group reported net new money inflows below analyst expectations for the first four months of the year. The bank, which provides wealth management services to high-net-worth clients worldwide, saw inflows of 3 billion Swiss francs ($3.8 billion), considerably less than the 5.7 billion francs analysts had forecast. The lower figures were accompanied by a caution regarding softer client activity.
The bank attributed the slower annualised net new money pace to several factors, including a revised risk and compliance framework, heightened uncertainty stemming from the conflict in the Middle East, and a pause in client re-leveraging. CEO Stefan Bollinger noted that Julius Baer had to clear its client book of “somewhat more” risky assets than anticipated. Despite confirming its net new money growth target of 4% to 5% by 2028, the bank now expects the annualised rate in 2026 to be “somewhat below” the 2.9% achieved in 2025, adjusting previous guidance. Mr Bollinger indicated a “gradual uptick” in net new money over time.
Market reactions were mixed, with Vontobel analyst Andreas Venditti noting surprisingly weak net new money but strong activity-driven income boosting margins. Citi analysts described the four-month results as a “mixed bag” despite earnings exceeding consensus. The Middle East conflict also impacted Julius Baer, stalling the hiring of some new relationship managers and contributing to limited regional inflows. Nevertheless, the bank’s assets under management rose to 528 billion francs, driven by robust equity markets and net new money inflows, largely offsetting the Swiss franc’s appreciation. The bank is progressing with a 130 million franc efficiency programme and new IT platform, with some cost pressure anticipated in the second half. Two new executive board appointments were also announced.
