Summary of Julius Bär Gruppe Trading Update Company Overview - **Company**: Julius Bär Gruppe (OTCPK:JBAX.Y) - **Date of Update**: November 24, 2025 Key Points Industry and Company Performance - Julius Bär is navigating a transition year in 2025, focusing on strong operating performance and the completion of a credit review [5][6] - The company reported record assets under management (AUM) of CHF 520 billion, marking the first time crossing the half-a-trillion mark [7] - Net client inflows reached approximately CHF 12 billion, despite ongoing de-risking efforts [7][10] Financial Highlights - The company announced additional loan loss allowances of CHF 149 million related to a subset of positions totaling about CHF 700 million, primarily in income-producing residential and commercial real estate [5][6] - The capital position improved, with a Common Equity Tier 1 (CT1) capital ratio of 16.3%, up 210 basis points since the start of the year [11] - The cost-to-income ratio improved to 66%, down five percentage points year-to-date, reflecting disciplined cost management and efficiency program benefits [10][11] Strategic Initiatives - The credit review completion allows Julius Bär to move past legacy credit issues and focus on future growth [6] - The company is optimizing its footprint with new openings in Abu Dhabi and Lisbon [7] - A new relationship manager compensation framework was implemented to align incentives with shareholder interests [25][47] Relationship Management and Hiring - The number of relationship managers (RMs) remains stable, with 50 high-quality RMs added in the last four months [17][50] - The company aims to hire over 150 RMs annually in the strategic cycle, with a gross onboarding target of around 130 for the current year [18][50] Risk Management and Compliance - The new Chief Compliance Officer will join by the end of February, completing the risk organization [6][14] - The company is focused on managing down legacy loans in a disciplined manner to protect shareholder value [22][30] Future Outlook - Julius Bär aims to gradually improve net new money growth potential to 4%-5% by 2028 [16] - The company is considering moving to quarterly reporting but has not made a final decision [36] - The cost-to-income ratio is expected to normalize to below 69% for the second half of the year, with significant investments planned for 2026 and beyond [55][62] Additional Insights - The company is actively managing client de-risking, which is expected to continue linearly [42] - The credit provisions are considered adequate and forward-looking, with a focus on protecting shareholder value [21][30] - The total mortgage book size is approximately CHF 42 billion, with a significant portion in Lombard loans [31] This summary encapsulates the key insights from the Julius Bär Gruppe trading update, highlighting the company's performance, strategic initiatives, and future outlook.