A tax provision release was a major factor in the Julius Baer Group's (SIX:BAER) 2024 net profit of CHF 1.02 billion, which more than doubled from the year before.


After completing a corporate income tax audit covering the fiscal years 2017–2022, the Swiss private banking company saw a one-time tax-related gain. As a result, income taxes were lowered by 47%, which greatly improved the bank's profitability.

Despite increasing operational expenses, which increased by 3% to CHF 2.81 billion due to investments in technology and employment, the profit gain was robust.

On an underlying basis, the cost-to-income ratio, a crucial efficiency indicator, was somewhat higher at 70.9% than it was the year before at 69.1%.

While this was somewhat offset by higher interest costs, overall operating income grew 19% to CHF 3.86 billion from the prior year.

Due to the sinking Swiss currency, increasing global stock markets, and CHF 14.2 billion in net new money inflows, Julius Baer's assets under management jumped 16% to a record CHF 497 billion.

The total value of client assets, including those in custody, hit a record high of CHF 590 billion. In addition to significant inflows from Singapore, Hong Kong, India, and the United Arab Emirates, the company witnessed contributions from important European markets like the UK, Germany, and Switzerland.

The bank's Common Equity Tier 1 capital ratio rose from 14.6% in 2023 to 17.8% in 2024, much above regulatory standards, demonstrating its continued robust capital position.

Additionally, the total capital ratio increased to 26.4%. With a liquidity coverage ratio of 292%, liquidity was still robust.

Julius Baer expressed confidence in its capital situation by proposing an unaltered dividend of CHF 2.60 per share.

Nevertheless, the board decided against starting a fresh program even though it had surpassed the threshold for a possible share buyback.


The bank also announced an extension of its ongoing cost-cutting program, targeting an additional CHF 110 million in gross savings by the end of 2025. This follows a prior cost reduction initiative that yielded CHF 140 million in savings.

In an attempt to increase efficiency and simplify decision-making, Julius Baer reduced the size of its executive board to five members.

Stefan Bollinger, chief executive at Julius Baer Group, said in a statement, "I think Julius Baer has the strong foundation and all the ingredients to succeed given its high-quality client portfolio and excellent people, as well as its strong and resilient brand and unique dedication to wealth management."