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Julius Baer Group Ltd (CH:BAER)
:BAER
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Julius Baer Group Ltd
(BAER)
66Neutral
Positive Factors
Cost Savings
There is an expectation of continued progress on cost savings initiatives and stable-to-improving revenue margins, which will drive significant growth in profit before tax.
Earnings
A recovery in net new money is expected to contribute to significant growth in earnings per share.
Strategic Vision
The new CEO proposes a strategic vision with a focus on enduring client relationships, technology enhancement, and cultivating talent.
Negative Factors
Financial Challenges
Cost action may be necessary to achieve a target cost-to-income ratio, indicating potential financial challenges.
Regulatory Proceedings
The company's cautious approach to capital returns is influenced by ongoing FINMA proceedings.
Stock Rating
There is a downgrade to Hold as the shares are trading close to the estimated value.
Julius Baer Group Ltd (BAER) vs. S&P 500 (SPY)
Market Cap
CHF9.75B
Dividend Yield5.26%
Average Volume (3M)763.54K
Price to Earnings (P/E)9.9
Beta (1Y)1.23
Revenue Growth7.69%
EPS Growth126.15%
CountryCH
Employees7,595
SectorFinancial
Sector Strength82
IndustryAsset Management
Share Statistics
EPS (TTM)4.98
Shares Outstanding206,001,790
10 Day Avg. Volume723,768
30 Day Avg. Volume763,543
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF62.55Price Target Upside21.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Julius Baer Group Ltd Business Overview & Revenue Model
Company DescriptionJulius Baer Group Ltd (BAER) is a leading Swiss private banking group that provides wealth and asset management services to private clients globally. Established in 1890 and headquartered in Zurich, Switzerland, Julius Baer operates primarily in the private banking and wealth management sectors. The company offers a comprehensive range of services, including investment advice, financial planning, and portfolio management, tailored to meet the needs of high-net-worth individuals (HNWIs) and families worldwide.
How the Company Makes MoneyJulius Baer Group Ltd makes money primarily through fees and commissions generated from its wealth and asset management services. The company charges management fees for overseeing clients' investment portfolios and advisory fees for providing personalized financial advice. Additionally, it earns commission income from trading activities, such as buying and selling securities on behalf of clients. Julius Baer also generates revenue through interest income on loans and deposits, as well as performance fees linked to the returns of managed investment products. Strategic partnerships with financial institutions and leveraging its extensive network also play a crucial role in driving business growth and profitability.
Julius Baer Group Ltd Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.88B | 3.24B | 4.52B | 4.27B | 4.06B | 3.38B | Gross Profit |
| 1.32B | 813.40M | 4.52B | 4.27B | 4.06B | 3.38B | EBIT |
| 567.50M | 655.90M | 1.30B | 1.42B | 1.23B | 834.90M | EBITDA |
| -60.40M | 749.80M | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 374.20M | 454.00M | 949.60M | 1.08B | 698.00M | 464.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 18.57B | 16.22B | 18.91B | 25.80B | 23.06B | 18.57B | Total Assets |
| 102.04B | 96.79B | 105.64B | 116.31B | 109.14B | 102.04B | Total Debt |
| 18.61B | 6.05B | 5.92B | 7.07B | 6.83B | 18.61B | Net Debt |
| 40.90M | -7.49B | -12.99B | -18.73B | -16.24B | 41.00M | Total Liabilities |
| 95.85B | 90.62B | 99.35B | 109.56B | 102.70B | 95.85B | Stockholders Equity |
| 6.18B | 6.16B | 6.29B | 6.73B | 6.43B | 6.18B |
| Cash Flow | Free Cash Flow | ||||
| 2.34B | -1.17B | 1.72B | 123.80M | -1.83B | -9.06B | Operating Cash Flow |
| 2.57B | -929.10M | 1.91B | 320.60M | -1.64B | -8.89B | Investing Cash Flow |
| -3.25B | -1.69B | -5.37B | 764.60M | 743.40M | 1.82B | Financing Cash Flow |
| -1.03B | 79.30M | -3.48B | 1.62B | 5.25B | -48.60M |
Julius Baer Group Ltd Technical Analysis
Negative
51.66
Price Trends
55.21
Negative
55.67
Negative
52.12
Negative
Market Momentum
-2.10
Negative
46.98
Neutral
44.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:BAER, the sentiment is Negative. The current price of 51.66 is below the 20-day moving average (MA) of 52.07, below the 50-day MA of 55.21, and below the 200-day MA of 52.12, indicating a bearish trend. The MACD of -2.10 indicates Negative momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 44.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:BAER.
Julius Baer Group Ltd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | CHF27.68B | 24.23 | 3.60% | 9.45% | 12.15% | ||
66 Neutral | CHF9.75B | 9.94 | 5.26% | 7.69% | 126.15% | ||
63 Neutral | $12.06B | 9.31 | 8.10% | 79.51% | 12.80% | -4.67% | |
62 Neutral | $3.60B | 11.52 | 13.89% | 4.86% | 11.14% | 7.22% | |
61 Neutral | $3.18B | 11.90 | 12.22% | 4.81% | 9.24% | ― |
* Financial Sector Average
Performance Comparison
CH:BAER
Julius Baer Group Ltd
51.66
5.98
13.09%
CH:PGHN
Partners Group Holding AG
1,084.50
-59.92
-5.24%
CH:EFGN
EFG International AG
11.84
1.61
15.73%
CH:VONN
Vontobel Holding AG
56.60
7.79
15.96%
Julius Baer Group Ltd Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: -15.17% | Next Earnings Date: Jul 22, 2025
Earnings Call Sentiment Neutral
Julius Bär's 2024 earnings call highlighted record assets under management, strong net new money growth, and improved profitability and capitalization. However, concerns about a high cost-income ratio, significant declines in net interest income, challenges in private debt wind down, and regulatory impacts on capital remain. The sentiment is balanced, with notable achievements offset by ongoing challenges.Highlights
Record Assets Under Management
Julius Bär achieved record assets under management of nearly CHF0.5 trillion, driven by CHF14.2 billion in net inflows, aided by a strong equity market and currency tailwinds.
Strong Net New Money Growth
Net new money grew at 4.4% in the second half, with strong contributions from strategic key markets like Singapore, Hong Kong, India, the U.K., Germany, Switzerland, and the UAE.
Improved Profitability and Capitalization
Adjusted profit before tax was CHF1.1 billion, and adjusted net profit reached CHF1 billion, with a return on CET1 capital of 32%, exceeding the target of 30%.
Successful Cost Reduction
The cost reduction program delivered CHF140 million in gross savings on a run rate basis by the end of 2024, exceeding the initial target.
Balance Sheet Strength
The balance sheet remains highly liquid with a loan-to-deposit ratio of 61% and a liquidity coverage ratio (LCR) of 292%.
Lowlights
Disappointing Cost-Income Ratio
The cost-income ratio of 70.9% is far from the target of below 64% for 2025, indicating inefficiencies despite cost-saving measures.
Decline in Net Interest Income
Net interest income declined by 55% to just under CHF0.4 billion due to the rise in the cost of deposits.
Challenges in Private Debt Wind Down
The private debt book, although more than halved, still poses a challenge, and some recovery is expected, but with uncertain timing and impact.
Regulatory and Capital Concerns
The impact of Basel III final is significant, with a pro forma impact of 350 basis points on the CET1 ratio, and ongoing regulatory reviews may affect capital distribution plans.
Limited Releveraging and Cautious Outlook
Despite some signs, full-fledged client releveraging has not yet materialized, and the net new money pace for 2025 is expected to be closer to 3%.
Company Guidance
In the Julius Bär 2024 Full Year Results Presentation, CEO Stefan Bollinger emphasized the company's focus on enhancing its financial performance through strategic initiatives such as improving net new money generation, achieving sustainable long-term growth, and maintaining margin resiliency. The company reported a record CHF0.5 trillion in assets under management, driven by CHF14.2 billion in net inflows, and a net profit of CHF1.047 billion, reflecting an 11% increase year-on-year. The CEO announced an extension of the cost reduction program, targeting an additional CHF110 million in savings by 2025, in addition to the CHF140 million already achieved. The company aims to improve its cost-income ratio, currently at 70.9%, with a target of below 64%. Furthermore, Bollinger outlined plans to streamline operations by reducing the Executive Board from 15 to 5 members and reorganizing management structures to enhance accountability and efficiency.Julius Baer Group Ltd Corporate Events
Julius Bär Group AG Approves Key Resolutions at General Meeting
Apr 10, 2025
At the ordinary General Meeting of Julius Bär Group AG, all agenda items and proposals by the Board of Directors were approved, including the election of Noel Quinn as the new Chairman. The meeting also approved financial statements, compensation reports, and a dividend payout, while re-electing several board members and appointing KPMG AG as auditor. These decisions reflect Julius Bär’s commitment to maintaining its leadership in wealth management and ensuring robust governance, which is likely to strengthen its market position and stakeholder confidence.
Julius Bär Streamlines Organization for Enhanced Customer Focus
Apr 7, 2025
Julius Bär has announced organizational changes aimed at enhancing customer focus and sustainable growth. The company has created a new Global Products & Solutions unit and divided its customer business into three regions, with a focus on simplifying its structure and promoting accountability. These changes are expected to strengthen Julius Bär’s position in the wealth management industry and support its growth strategy.
Julius Baer Completes Sale of Brazilian Business to BTG Pactual
Mar 28, 2025
Julius Baer Group Ltd. has completed the sale of its domestic Brazilian wealth management operation to Banco BTG Pactual S.A., which is expected to positively impact its capital ratio and result in a significant one-off gain in operating income. Despite the sale, Julius Baer remains committed to serving Brazilian clients through its international business, maintaining its presence in the broader Latin American wealth management market.
Julius Baer Expands into Italian Onshore Market
Mar 18, 2025
Julius Baer Group Ltd. is expanding its European presence by establishing a new branch in Milan, Italy, set to open in the first half of 2025. This strategic move aims to serve Italian ultra-high and high net worth clients, reinforcing Julius Baer’s commitment to the Italian market and strengthening its position as a leading wealth manager in Europe.
Julius Bär Releases 2024 Annual and Sustainability Reports
Mar 17, 2025
Julius Bär Group has released its Annual Report and Sustainability Report for 2024, highlighting its financial performance and commitment to sustainability. The reports underscore the company’s strong market position with CHF 497 billion in assets under management, reflecting its robust financial base and strategic focus on creating value beyond financial gains.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.