The first major test has been passed, for now. Julius Baer generated net profit of 673 million Swiss francs in the first half of 2026, the highest ever recorded for a six-month period. Compared with 295 million francs in the same period last year, this represents an increase of 128 percent, as the bank reported on Tuesday. 

However, that comparison is significantly flattered by elevated credit losses and one-off effects in the prior-year period. A more meaningful measure is adjusted net profit, which rose 32 percent from the underlying 511 million francs recorded in the first half of 2025 to 673 million francs.

The result marks an important milestone for CEO Stefan Bollinger following the difficult transition year of 2025.

«Overall, we delivered a strong operating performance in the first half of 2026 and achieved record Group net profit,» Bollinger said in the statement released Tuesday.

Assets Under Management Reach Record High

The result was supported by rising markets, currency effects, and high levels of client activity.

Assets under management rose to a record 547 billion francs at the end of June, an increase of 26 billion francs, or 5 percent, since the end of 2025.

Including 102 billion francs in assets under custody, total client assets reached an all-time high of 649 billion francs.

Revenue generation also improved. Operating income rose to 2.28 billion francs, while the gross margin increased to 87 basis points from an underlying 83 basis points in the first half of 2025.

Julius Baer benefited particularly from exceptionally high client activity during the first quarter. Foreign exchange, precious metals, and structured products generated particularly strong revenues during the first three months of the year before activity normalized as market conditions became less volatile.

Net New Money Remains the Key Challenge

One metric that is central to Bollinger’s growth strategy was considerably less dynamic: net new money.

Julius Baer attracted 5.7 billion francs in net new money during the first half, equivalent to an annualized growth rate of just 2.2 percent. That remains well below the bank’s medium-term target of 4 to 5 percent.

This had already emerged as one of the key issues to watch when Julius Baer presented its four-month figures. At that point, net new money stood at 3 billion francs.

The figures nevertheless indicate some acceleration during the subsequent two months. All regions recorded net inflows, according to Julius Baer, with particularly strong contributions from the Western Markets, including Switzerland.

Despite the relatively modest pace so far, the bank reiterated its target of achieving annual net new money growth of 4 to 5 percent by 2028.

Compliance Overhaul Continues to Weigh on Growth

One reason for the subdued inflows is the very overhaul designed to make Julius Baer a safer institution following the problems of recent years.

The ongoing implementation of the bank’s revised risk and compliance framework continues to affect net new money development. This headwind will not disappear quickly: Julius Baer expects the impact to persist into 2027.

That highlights one of the central tensions in Bollinger’s strategy. Julius Baer wants to accelerate organic growth while simultaneously enforcing tighter risk and compliance standards.

On a more positive note, client releveraging resumed toward the end of the reporting period after being interrupted during the first four months of 2026.

Profitability Improves Significantly

Julius Baer made particularly visible progress on operating efficiency.

The adjusted cost/income ratio improved to 62.6 percent from an underlying 68.2 percent in the prior-year period. Operating expenses rose by only 2 percent, significantly less than revenues.

The bank is targeting 130 million francs in gross efficiency gains by 2028. In the first half of 2026, the program generated 11 million francs in net cost savings, while implementation costs amounted to 7 million francs.

The development of the relationship manager workforce is also noteworthy. Julius Baer hired 50 relationship managers during the first half, but 64 left the bank. As a result, the total number declined by 14 to 1,247 full-time equivalents.

A significant proportion of the departures resulted from ongoing performance management measures, the bank said.

At the same time, average assets under management per relationship manager increased by 6 percent since the start of the year to 438 million francs.

Legacy Risks Recede

The risk picture also improved considerably.

Net credit losses fell to 23 million francs from 130 million francs in the first half of 2025.

The elevated losses had weighed heavily on the prior-year result and were linked to selected exposures in the mortgage and private debt lending portfolios.

The normalization is particularly significant given Julius Baer’s efforts to strengthen its risk management following the Signa debacle, which prompted the bank to fundamentally reassess its lending and risk framework.

Capital Buffers Strengthen

Julius Baer also further strengthened its capital position.

Its common equity tier 1, or CET1, ratio increased to 18.5 percent from 17.4 percent at the end of 2025, leaving the bank with a substantial buffer above regulatory minimum requirements.

The liquidity coverage ratio rose to 344 percent from 261 percent.

Loans increased by 5 percent to 44.4 billion francs. Lombard lending grew 7 percent to 36.2 billion francs, while mortgage lending declined 2 percent to 8.1 billion francs.

Bollinger Reaffirms Targets

For CEO Stefan Bollinger, the first-half results represent an important milestone.

«Today’s results represent a solid start to our new three-year strategy cycle,» he said.

Julius Baer also reaffirmed its medium-term targets.

The key question is therefore increasingly shifting from stabilization to growth capacity. Julius Baer has made convincing progress on profitability, capital strength, and assets under management.

The more difficult part of Bollinger’s strategy, however, still lies ahead: The bank must prove that it can sustainably attract sufficient net new money while operating under a significantly tighter risk and compliance framework.

Only once net new money growth moves closer to the targeted 4 to 5 percent range will it become clear whether Julius Baer’s strong first half truly marks the beginning of a sustainable turnaround.