Impressive costs but flows taking time: Reiterate Buy, PO of CHF79.0 post H126 results

Research evidence excerpt

Impressive costs but flows taking time: Reiterate Buy, PO of CHF79.0 post H126 results

iQprofile SM Julius Baer

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(CHF Millions) Banks-Multinational/Universal

Total Revenue 3,861 3,861 4,476 4,554 4,878

Adjusted PBT 1078 1053 1526 1453 1579

Tax Expense -32 -175 -276 -276 -300 Company Description Profit After Tax 1047 878 1250 1177 1279

Reported Tax Rate % 2.9 16.6 18.1 19.0 19.0 Julius Baer Group is a Swiss-based private bank with an

Adjusted EPS 5.10 4.27 6.14 6.01 6.78 exclusive focus on servicing and advising Swiss and

Dividend/Share 2.60 2.60 3.00 3.00 3.40 international private clients. The group has around

Key Balance Sheet Data CHF547bn of AUM, about 1,200 relationship managers, and

Cash & Cash Equivalents 8,232 7,238 7,600 7,980 8,379 is active in more than 25 countries including in Asia where

Goodwill-Net 2,617 2,637 2,637 2,637 2,637 Baer has a strong presence.

Total Assets 105,072 107,489 107,851 108,231 108,630

Long Term Debt 3,722 3,981 3,981 3,981 3,981

Total Liabilities 98,243 100,259 100,207 100,565 100,818 Investment Rationale

Ordinary Shareholders' Equity 6,827 7,228 7,642 7,664 7,810

We like Julius Baer's pure private banking value proposition,

Tangible Equity 4,212 4,592 5,006 5,028 5,174

gearing to client activity, resilient net new money, and

Key Metrics strong capital position. Baer is well-positioned in fast-

Price/ Earnings Ratio 13.9 16.6 11.5 11.8 10.5 growing regions (EM, Asia) and has attractive scale. There is

Return on Equity % 16.1 12.5 16.8 15.4 16.5

excess capital optionality over time for M&A and/or capital

Return on Tangible Equity % 26.8 19.9 26.0 47.0 50.9

return. Valuation is attractive given improving flows, Dividend Pay Out % 51 61 49 50 50