Julius Baer profit slumps in 2025 over credit losses

Core Insights - Julius Baer reported a 25% decline in net profit for 2025 to SFr764m ($981.3m), primarily due to one-off items and credit losses, despite a stronger underlying performance [1] - The bank's underlying profit before tax increased by 17% to SFr1.27bn, indicating a solid operational performance [1] Financial Performance - Net credit losses amounted to SFr213m, influenced by significant writedowns from the previous year related to the Signa property group [1] - The sale of its Brazilian business had a net impact of SFr99m, and higher income taxes also affected the overall results [1] - Assets under management rose by 5% to SFr521bn, supported by SFr14.4bn in net new money, with inflows primarily from Asian markets and Western Europe [2] Strategic Initiatives - The bank is pursuing cost cuts and a strategic revamp, with a new cost-saving target of SFr130m to be achieved by 2028 [3] - Chief Executive Stefan Bollinger described 2025 as a "successful transition year," focusing on profitable growth and strategic transformation [4] Governance Changes - Richard Campbell-Breeden will not seek re-election as vice chairman, with Juerg Hunziker set to assume the role, pending shareholder approval [5] - Urban Angehrn is expected to join the board as an independent non-executive director from the 2026 AGM, also subject to shareholder approval [5]