Julius Baer Outlines its New Targets

Bank Julius Baer announces new targets for 2023 to 2025 and will sharpen its capital distribution policy, and focus on the development of a pure wealth management business model. Swiss Julius Baer is looking to return more capital to its shareholders, targeting an adjusted return on common equity tier 1 capital (CET1) of at least 30 percent during its medium-term time frame running from 2023 through 2025, the private bank announced Thursday.

It said it updated the capital distribution policy with a clear commitment to return capital exceeding a CET1 capital ratio of 14 percent through annual share repurchases, in addition to the 50 percent dividend payout ratio.

The bank said it would focus on sustainable profit growth and the development of a pure wealth management business model.

It will focus on improving earning quality by increasing its ability to improve recurring revenues, including increasing its wealth management mandate by offering a strong value proposition to complement its advisory solutions.

We are embarking on a new phase of profitable growth, building on the transformation we have successfully pursued since 2020. Our unique client-centric business model with dedicated focus on high net worth and ultra-high net worth clients gives us a strong competitiveness to shape our future. Building on this strength, we will consolidate our position as the leading international wealth manager by the end of the decade. To do so, we will grow business volumes and profitability, improve earnings quality and evolve the way we do business, said CEO Philipp Rickenbacher.

The strategy will be supported by a binding sustainability strategy and strong risk management, the statement said.

The bank aims to save 120 million Swiss francs on a gross basis by 2025, by streamlining its geographic footprint and market coverage.