ZURICH, Feb 2 (Reuters) - Swiss bank Julius Baer on Monday reported a net profit of 764 million Swiss francs ($988 million) for 2025, a 25% drop from 2024 that still beat analyst expectations in a year marked by writedowns.
Shares were down 1.5% in late morning trading, after earlier dropping almost 5%.
The bank booked a net credit loss of 213 million francs in 2025, with previously announced loan loss allowances partly offset by credit recoveries.
"All in all, 2025 was a successful transition year,"
CEO Stefan Bollinger said, following the writedowns he announced during his first year in the role.
Assets under management grew 5% to 521 billion francs, with net new money of 14.4 billion francs matching a Zuercher Kantonalbank forecast.
These inflows and rising global equity market valuations more than offset the impact of a stronger Swiss franc, Julius Baer said.
The bank aims to do better than last year in 2026 in terms of net new money, improving such growth to the stated target of 4%-5% by 2028, CFO Evie Kostakis told analysts.
By hiring over 150 relationship managers a year, Julius Baer expects to grow their net number in 2026, 2027 and 2028, Kostakis said.
NO CLARITY ON ONGOING FINMA PROBE
The bank is still under an enforcement assessment by Swiss financial market authority FINMA for major losses incurred prior to Bollinger taking up the post. The assessment prohibits the bank from announcing new share buybacks.
"We are just waiting for the enforcement proceeding to be completed," Bollinger said, adding the bank had not yet requested any buybacks.
Bollinger said any discussions on a potential buyback could only start when Victoria McLean joins the bank as its new chief compliance officer at the end of February.
Separately, Julius Baer announced changes to its board of directors, with current vice chairman Richard Campbell-Breeden set to step down in April. He will be succeeded by Juerg Hunziker, subject to shareholder approval, the bank said.
($1 = 0.7730 Swiss francs)
(Reporting by Ariane Luthi, Editing by Friederike Heine and Bernadette Baum)
