Julius Bär: Radical austerity course for profitable growth by 2028!

Julius Bär: Radical austerity course for profitable growth by 2028!

Schweiz - The Swiss bank Julius Bär presented new medium -term goals for the years 2026 to 2028 on June 3, 2025. This strategy focuses on returning to profitable growth in the core business of the bank. This is done as part of an announced savings program, which provides for a cost reduction of CHF 130 million (around 139 million euros) by 2028. About 50 percent of this amount are already planned for implementation. At the same time, the focus is on an existing efficiency program, which should save CHF 110 million by the end of 2025 and will be exceeded by around CHF 20 million, such as [OE24] (https://www.oe24.at/businesslive/signa-bank-muss-zu-radikalem-sparkers- reported.

A central goal of the Julius Bär Group is an annual net new money growth of 4 to 5 percent by 2028. In the course of this realignment, the desired cost-income ratio was raised to less than 67 percent, which was previously below 64 percent. The aim of a return on the core capital (Rocet1) of at least 30 percent remains unchanged. In addition, a capital distribution policy is aimed at, the review of a possible share buyback program is only carried out after clarification by the federal financial market supervision (FINMA).

regulatory challenges

The Finma is currently investigating the high loss of loan that arose in 2023 by the bankruptcy of the real estate group Signa. In this context, 606 million francs were written out to Signa on loans. The new medium -term goals from Julius Bär are therefore under pressure to generate both profitable growth and to meet the regulatory requirements.

The changes in the bank's management team also contribute to this realignment. Stefan Bollinger took over the CEO office of Philipp Rickenbacher in January 2025, while Noel Quinn was employed as the new Board of Directors in April 2025.

strategic course for the future

In order to meet the new goals, investments in digital transformations and process optimizations are essential. According to KPMG, the resilience of banks will in future be strengthened by the focus on organizational development and innovative business models. The need for stability and improvements in business processes is a long -term challenge for the banking industry.

The intended investment focus includes the management of process data, the implementation of artificial intelligence (AI) and the modularization of process types for individualized customer service. The ability to recognize opportunities in risks and diversify new yield fields will be a key factor for the competitiveness of banks by 2025 and beyond by reducing the dependency on individual business areas.

Overall, the strategic realignment of the Julius Bär Group shows both the challenges and the opportunities that exist in a rapidly changing market environment. The detailed measures for increasing efficiency and strategic growth aim to lead the company to a stable future through the turbulent phase after the Signa bankruptcy, such as Finanztrends summarize.