Julius Baer brings in $3.8 bln in net new money, missing forecasts (updated)

Julius Baer Gruppe AG

22/05/2026 06:25

Assets under management rise to 528 billion Swiss francs

No update on Finma probe

Executive board sees changes

Adds share price, CEO comments on de-risking, Middle East

By Ariane Luthi

ZURICH, May 22 (Reuters) - Julius Baer's BAER.S shares slid by as much as 10% on Friday after the Swiss bank reported net new money inflows of 3 billion Swiss francs ($3.8 billion) for the first four months of 2026, below analyst expectations, and cautioned of softer client activity.

The bank attributed its lower annualised net new money pace to a revised risk and compliance framework, heightened uncertainty due to the conflict in the Middle East and a pause in client re-leveraging.

Analysts had forecast net new money inflows of 5.7 billion francs for the four months.

CEO Stefan Bollinger told analysts that the bank had had to clear the client book of more risky assets "somewhat more" than it had expected.

The bank confirmed its net new money growth target of 4% to 5% by 2028, even as it now expects the annualised rate in 2026 to come in "somewhat below" the 2.9% it achieved in 2025, toning down previous guidance.

        Investors should expect a "gradual uptick" in net new money over time, Bollinger said, declining to give a timeline.

        Vontobel analyst Andreas Venditti noted surprisingly weak net new money but very strong activity-driven income boosting margins and the bank's cost-income ratio.

Citi analysts described the four-month results as "a mixed bag", despite earnings above consensus.

Julius Baer shares pared some early losses and were down 7.9% by late morning trade.

HIGHER ASSETS UNDER MANAGEMENT

        In the Middle East, hiring of some new relationship managers stalled due to the conflict, and Julius Baer only observed limited inflows from the region as the wealthiest family clients it serves have booked their assets offshore for a long time, Bollinger said.

The crisis has nevertheless highlighted the value of a stable offshore booking centre like Switzerland, he added.

The bank's assets under management rose to 528 billion francs, driven by strong equity markets and net new money inflows, which together more than offset the negative impact of a further appreciation of the Swiss franc, Julius Baer said.

"We continued to make solid progress on our strategic and operational priorities, keeping us firmly on track to achieve our medium-term targets," CEO Stefan Bollinger said.

Implementation of a 130 million Swiss franc efficiency programme and a new IT platform is progressing as planned, the bank said. Some cost pressure is expected for the second half of the year, CFO Evie Kostakis added.

        SOFTER CLIENT ACTIVITY SEEN AHEAD

With softer client activity observed in April, Julius Baer does not currently anticipate a return to the exceptionally high levels of client activity seen in the first quarter of 2026 in the coming months, the bank said.

The bank's four-month management statement did not mention an ongoing review by Swiss financial watchdog Finma that precludes Julius Baer from announcing share buybacks.

Two appointments will strengthen its executive board, Julius Baer said, with Zurich-based Thomas Frauenlob, co-head of Western Markets and Switzerland, and Singapore-based Rajesh Manwani, co-head of Global Products and Solutions, set to join on June 1.

Group General Counsel Christoph Hiestand will no longer be part of the executive board but continue to report directly to the CEO.

The bank said in April it would replace its chief financial officer in the second half of the year, rounding off a shake-up in the private bank's top management after racking up heavy losses linked to risky lending.

($1 = 0.7861 Swiss francs)

 (Reporting by Ariane Luthi, additional reporting by Oliver Hirt and Marleen Kaesebier; Editing by Friederike Heine, Tomasz Janowski and Susan Fenton)

 ((Ariane.Luthi@thomsonreuters.com;))