WASHINGTON (dpa-AFX) - Swiss banker Julius Baer Group Ltd. (JBARF.PK, JBAXY.PK) Tuesday updated its medium-term targets, for the years 2026 to 2028, citing progress since January 2025 in addressing legacy issues and immediate pressure points.
For the strategic cycle 2026-2028, Julius Baer now expects net new money improving to 4% to 5% by 2028, and adjusted cost/income ratio improving to less than 67% by 2028.
Further, adjusted return on CET1 capital or RoCET1 is projected to be at least 30% over the 2026-2028 cycle.
To complement the growth ambition, the company said it will implement further efficiency measures amounting to 130 million Swiss francs by 2028, against an expected cost-to-achieve of around 50%. These additional savings will be achieved by completing the ongoing optimisation of the company's operating model, process and IT simplifications, as well as by anchoring cost discipline. The banker will give particular emphasis on streamlining non-personnel expenses.
The company in February had extended gross cost savings target of 110 million francs as part of the 2023-2025 cost programme, anticipated to be exceeded by approximately 20 million francs.
Julius Baer noted that the disciplined execution of its strategy will restore positive operating leverage and support consistent and reliable delivery on committed targets.
The company further said its stated capital distribution policy remains unchanged, while the Board of Directors will not consider a potential future launch of a share repurchase programme until the firm has received the necessary clarity from the Swiss Financial Market Supervisory Authority FINMA.
In its update on progress as well as the results of its strategic review and new targets, the company noted that it has set five strategic priorities to find its full potential to drive top-line growth and restore positive operating leverage, with disciplined risk management.
Stefan Bollinger, CEO of Julius Baer, said, 'Since January, we have made a lot of progress on multiple fronts aimed at strengthening our organisation and the trust of all our stakeholders. The last 20 weeks only reinforced my conviction in the uniqueness of this franchise, the high quality and commitment of our employees, as well as the significant underlying business potential. We now have a clear strategic agenda and priorities to capture future opportunities.'
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