Annual Report 2025 (Financial Statements IFRS) Bank Julius Baer & Co. Ltd.

‌FINANCIAL STATEMENTS IFRS 2025

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Bank Julius Baer & Co. Ltd.

Contents

1. Primary financial statements

   4 Consolidated income statement

   5 Consolidated statement of comprehensive income

   6 Consolidated balance sheet

   8 Consolidated statement of changes in equity

   10 Consolidated statement of cash flows

2. Comment on risk management

3. Comment on capital management

4. Notes to the

   consolidated financial statement

   13 Note 1 Net interest income

   13 Note 2 Net commission and fee income

   14 Note 3 Other ordinary results

   14 Note 4 Personnel expenses

   14 Note 5 General expenses

   15 Note 6 Income taxes

   20 Note 7 Financial assets and financial liabilities

   24 Note 8 Property, equipment and leases

   26 Note 9 Goodwill and other intangible assets

   28 Note 10 Debt issued

   30 Note 11 Provisions

   1. Note 12 Other assets and liabilities

   2. Note 13 Earnings per share and shares outstanding

   3. Note 14 Related party transactions

   4. Note 15 Pension plans

   40 Note 16 Share-based payments and other compensation plans

   44 Note 17 Securities financing transactions

   45 Note 18 Derivative financial instruments

   47 Note 19 Fair values

   55 Note 20 Credit risk

   70 Note 21 Risk measures

   75 Note 22 Hedge accounting

   1. Note 23 Liquidity analysis

   2. Note 24 Interests in subsidiaries and other entities

   1. Note 25 Reporting by segment

   2. Note 26 Off balance sheet Items

   1. Note 27 Events after the balance sheet date

   2. Note 28 Summary of selected accounting policies

5. Additional information

   85 Note 29 Assets under management

   87 Note 30 Differences between IFRS and Swiss GAAP

6. Report of the Statutory Auditor to the Annual General Meeting of Bank Julius Baer & Co. Ltd., Zurich

‌Primary financial statements

Consolidated income statement

‌Consolidated statement of comprehensive income

CHF m CHF m

Other comprehensive income (net of taxes):

Net unrealised gains/(losses) on debt instruments measured at FVOCI 145.7 164.4

Net realised (gains)/losses on debt instruments

measured at FVOCI reclassified to the income statement -0.1 -0.2

‌Consolidated balance sheet

‌Consolidated statement of changes in equity

At 1 January 2024 Net profit

Items that may be reclassified to the income statement Items that will not be reclassified to the income statement Total other comprehensive income

Total comprehensive income

Net realised gains reclassified from OCI to retained earnings Dividend payment

Share-based payments expensed for the year

Distribution to the parent related to share-based payments for the year

At 31 December 2024

Net profit

Items that may be reclassified to the income statement Items that will not be reclassified to the income statement Total other comprehensive income

Total comprehensive income Dividend payment

Share-based payments expensed for the year

Distribution to the parent related to share-based payments for the year

¹ Includes the effective portion of changes in fair value of hedging instruments designated as cash flow hedges as well as cost of hedging related to cash flow hedges.

Other components of equity

‌Consolidated statement of cash flows

CHF m CHF m

Non-cash items included in net profit and other adjustments:

• Depreciation of property and equipment 69.9 71.4

• Amortisation and impairment of intangible assets 144.9 133.1

• Change in loss allowance 187.1 14.4

• Deferred tax expense/(benefit) -1.6 -5.4

• Net loss/(gain) from investing activities -72.6 -124.4

• Net loss/(gain) from financing activities -0.3 -0.1

• Other non-cash income and expenses 63.2 50.8

  Net increase/decrease in operating assets and liabilities:

• Net due from/to banks -3,107.1 -405.7

  - Net financial assets measured at FVTPL and derivative financial instruments 1,936.4 -3,789.3

• Net lombard loans, mortgages/due to customers -1,066.2 3,813.5

• Issuance and repayment of financial liabilities designated at fair value 4,225.3 1,967.4

• Accrued income, prepaid expenses and other assets -1,190.9 149.0

• Accrued expenses, deferred income, other liabilities and provisions 79.1 10.9

Adjustment for income tax expenses 102.2 -44.1

Income taxes paid -165.3 -22.9

Purchase of property and equipment and intangible assets -224.8 -230.3

Net (investment in)/divestment of financial assets measured at FVOCI 2,152.9 1,681.4 Net (investment in)/divestment of other financial assets measured at amortised cost -1,541.3 597.2

Dividend payments -512.0 -400.0

Distribution to the parent related to share-based payments for the year -72.6 -41.0 Issuance of long-term debt, including financial liabilities designated at fair value 11.5 -18.2

Cash and cash equivalents at the beginning of the year 19,940.7 16,413.8

Cash flow from operating activities 1,790.6 2,527.9

Cash flow from investing activities 386.8 2,048.3

Cash flow from financing activities -573.1 -459.2

Effects of exchange rate changes on cash and cash equivalents 820.6 -590.1

Cash and cash equivalents are structured as follows:

CHF m CHF m

Cash and balances at central banks 4,848.1 5,950.1

Due from banks¹ 3,458.5 3,043.6

Receivables from securities financing transactions¹ 4,480.5 5,298.4

Debt instruments measured at FVOCI¹ 9,578.5 5,648.6

¹ Original maturity of less than three months

CHF m CHF m

Interest received in cash 2,093.6 2,606.4

Interest paid in cash 2,669.0 2,857.4

Dividends on equities received in cash 271.3 254.9

‌Comment on risk management

For information about risk management, refer to the respective section in the Annual Report 2025 of Julius Baer Group Ltd.

Comment on capital management

Management of capital including regulatory capital

For information about capital management including regulatory capital, refer to the respective section in the Annual Report 2025 of Julius Baer Group Ltd.

‌Notes to the consolidated financial statement

Note 1 Net interest income

The interest in the following table is accounted for under the effective interest method:

CHF m CHF m

Interest income on amounts due from banks 105.7 187.4

Interest income on loans 961.9 1,372.5

Interest income on debt instruments at FVOCI 319.2 405.9

Interest income on debt instruments at amortised costs 197.6 180.9

Negative interest received on financial liabilities 0.1 -

The Bank recognises fee and commission income related to its wealth management-related services either at the time the service is performed, i.e. upon execution of a transaction, or in the corresponding periods over the life of a contract if services are

provided over a certain period of time. Income and income components that are based on performance are recognised to the extent that it is highly probable that a significant reversal will not occur.

‌Note 3 Other ordinary results

CHF m CHF m

Dividend income on equity instruments at FVOCI 3.3 3.2

Result from disposal of debt instruments at FVOCI - 0.2

Real estate income 6.6 6.8

Other ordinary income 82.2 81.5

Other ordinary expenses 0.1 0.0

Note 4 Personnel expenses

CHF m CHF m

Salaries and bonuses 1,148.0 1,104.7

Contributions to staff pension plans (defined benefits) 94.4¹ 80.9²

Contributions to staff pension plans (defined contributions) 27.7 26.8

Other social security contributions 85.8 81.7

Share-based payments 63.2 50.8

Other personnel expenses 10.3 11.6

¹ Includes the gain from a curtailment to the Swiss pension plan in the amount of CHF 10.3 million.

² Includes the gain from a curtailment to the Swiss pension plan in the amount of CHF 5.5 million.

Note 5 General expenses

CHF m CHF m

Occupancy expense 23.0 25.0

IT and other equipment expense 113.8 101.9

Information, communication and advertising expense 167.4 172.3

Service expense, fees and non-income taxes 382.0 387.4

Provisions and losses 48.7 32.4

Other general expenses 3.1 1.6

‌Note 6 Income taxes

Income tax expense comprises current taxes, top-up taxes, and deferred taxes.

Current income taxes are calculated on the basis of the applicable tax laws of the respective countries and are recognised as expense in the financial year in which the related taxable income arises.

Top-up taxes are determined on the basis of the applicable top-up tax laws of the respective countries and recognised as expense at the level of

the constituent entity in the financial year in which the related GloBE-income (Global Anti-Base Erosion - Pillar 2) arises.

Deferred tax assets and deferred tax liabilities are taken into account for the expected future tax consequences of all temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding local tax values. However, no deferred tax assets and liabilities related to Pillar 2 taxes are recognised.

Note 6A Tax effects recognised in the income statements

The following table presents the reconciliation between the product of accounting profit multiplied by the applicable (statutory) tax rate and the effective tax expense of the Bank:

CHF m CHF m

Income tax on profit before taxes (statutory tax expense) 137.4 131.9

Effect of tax rate differences in foreign jurisdictions -18.4 -13.0

Effect of domestic tax rate differences -3.4 -4.5

Income subject to a reduced tax rate -35.2 -33.0

Effect from unrecognised tax losses 0.7

Adjustments related to prior years -0.4 -144.6¹

Non-deductible expenses 9.1 11.9

Other 11.5 2.5

¹ The vast majority of the adjustments related to prior years resulted from a substantial release of tax provisions following the completion of a Swiss corporate income tax audit covering the financial years 2017-2022.

The basis for the above table is the statutory income tax rate of 19.0% (2024: 19.0%), which corresponds to the average Bank tax rate in Switzerland.

The Bank applies management judgement in identifying uncertainties related to income tax treatments and the respective interpretations by local tax authorities. In addition, management also adequately considers court decisions and aligns its estimates accordingly.

The Bank operates in an international tax environment that has become more complex and challenging

in recent years because of multinational (e.g., Base

Erosion and Profit Shifting [BEPS] project by OECD/ G20) and unilateral initiatives. Among other things, the Bank applies transfer pricing arrangements among different Bank entities due to its cross border operations to correctly align taxable profits with value creation. Therefore, the Bank subsidiaries' tax filings in different jurisdictions include effects related to such transfer pricing arrangements and

the local tax authorities may challenge the applied tax treatment. However, based on its ongoing analysis of the tax regulations and the respective application in the different locations as well as the benchmarking process, the Bank is of the opinion that its transfer pricing arrangements will be accepted

by the tax authorities. Moreover, the tax treatment of various items requires an interpretation of local tax law and practice in many jurisdictions to the best of the Bank's knowledge. In addition, the Bank books tax provisions where adequate to cover future potential tax. After considering the above, the Bank is of the opinion that the tax expense and tax liabilities in the financial statements are adequate and based

on reasonable judgements by tax professionals.

The OECD/G20 introduced a new minimum taxation regime under GloBE Model Rules, which applies to multinational groups that have consolidated revenues of EUR 750 million or more. The Bank is in scope

of this new regime. Various countries have changed their tax laws accordingly since 1 January 2024. In Switzerland, the Qualified Domestic Minimum

Top-up Tax (QDMTT) has been applicable as of

1 January 2024 and the Income Inclusion Rule (IIR) has been applicable as of 1 January 2025.

Top-up taxes are determined on the basis of the applicable top-up tax laws of the respective countries and recognised as expense at the level of the constituent entity (top-up taxes based on QDMTT) are recognised as expense at level of the Ultimate Parent Entity ["UPE"] Julius Baer Group Ltd. (top-up taxes based on IIR) in the financial year in which the related GloBE-income (Global Anti-Base Erosion - Pillar 2) arises.

In 2025, the Bank is subject to the OECD GloBE Model Rules in various jurisdictions. The Bank established the respective liability in the amount of CHF 12.8 million (2024: CHF 0) through the income statement.

Before-tax

(expense)/

Net-of-tax

Before-tax amount

Tax (expense)/

benefit

2024

Net-of-tax amount

CHF m CHF m CHF m

Note 6C Deferred tax assets

CHF m CHF m

Balance at the beginning of the year 10.0 16.9

Income statement - credit 2.9 -

Income statement - charge 2.1

Recognised directly in OCI -5.5 -4.8

The components of deferred tax assets are as follows:

Employee compensation and benefits 6.1 6.1

Financial assets measured at FVOCI 4.3 13.6

Other 3.8 1.6

Offset -6.8 -11.3

¹ For balance sheet purposes, the Bank recognises either a deferred tax asset or a deferred tax liability for each consolidated company if that company is allowed to net its deferred tax assets and deferred tax liabilities in line with the local tax rules. Disaggregation of these net balances (in this case deferred tax assets) into the single components may result in negative amounts (in this case deferred tax liabilities), which are disclosed as offsetting amounts.

In general, deferred tax assets arising from temporary differences and from loss carryforwards eligible

for offsetting are only capitalised if it is likely that sufficient future taxable profits will be available against which those temporary differences or loss carryforwards can be offset; those related to

operating loss carryforwards are assessed at each year-end with regard to their sustainability based on the actual three-year business forecast.

There are no unrecognised accumulated loss carryforwards in the Bank.

Note 6D Deferred tax liabilities

CHF m CHF m

Balance at the beginning of the year 38.2 52.3

Income statement - charge 2.6 0.5

Income statement - credit -1.3 -8.0

Recognised directly in OCI 0.9 -6.6

The components of deferred tax liabilities are as follows:

Property and equipment 28.8 31.6

Financial assets measured at FVOCI 15.8 15.5

Pension asset 2.6 2.4

Offset -6.8 -11.3

¹ For balance sheet purposes, the Bank recognises either a deferred tax asset or a deferred tax liability for each consolidated company if that company is allowed to net its deferred tax assets and deferred tax liabilities in line with the local tax rules. Disaggregation of these net balances (in this case deferred tax liabilities) into the single components may result in negative amounts (in this case deferred tax assets), which are disclosed as offsetting amounts.

‌Note 7 Financial assets and financial liabilities

Note 7A Classification of financial assets and financial liabilities

Note 7B Financial assets and financial liabilities measured at FVTPL

CHF m CHF m

Trading securities - debt FVTPL 3,076.4 3,693.1

of which listed 1,775.2 2,262.0

of which unlisted 1,301.2 1,431.1

Trading securities - equity FVTPL 11,037.4 10,560.9

of which listed 10,577.9 9,425.5

of which unlisted 459.5 1,135.4

Other financial assets mandatorily measured at FVTPL 173.3 293.3

of which listed 147.4 114.1

of which unlisted 25.9 179.2

Debt instruments at FVTPL 329.1 153.7

of which listed 301.7 148.7

of which unlisted 27.4 5.0

Equity instruments at FVOCI 963.7 624.9

of which listed 947.6 594.1

of which unlisted 16.1 30.8

Note 7C Financial assets measured at FVOCI

CHF m CHF m

Government and agency bonds 3,245.3 3,552.5

Financial institution bonds 4,372.4 5,322.7

Corporate bonds 774.4 1,519.2

of which listed 4,968.7 7,052.0

of which unlisted 3,423.4 3,342.4

of which unlisted 125.6 122.3

Note 7D Other financial assets measured at amortised cost

CHF m CHF m

Government and agency bonds 3,430.4 2,857.1

Financial institution bonds 2,346.6 1,780.0

Corporate bonds 612.9 544.8

of which listed 6,138.0 4,791.4

of which unlisted 251.9 390.5

Note 7E Financial assets pledged or ceded

Effective Effective

Carrying value commitment Carrying value commitment

CHF m CHF m CHF m CHF m

Cash and balances at central banks¹ 25.3 25.3 25.3 25.3

Securities 707.2 707.2 968.1 968.1

Other 31.3 31.3 8.8 8.8

¹ Cash and balances at central banks includes the pledged cash at the Swiss National Bank related to the Swiss deposit guarantee institution.

The assets are mainly pledged for Lombard limits at central banks, stock exchange securities deposits, covered bonds with Swiss central mortgage institutions, and collateral in over-the-counter

(OTC) derivatives trading. Not included in these numbers are financial assets provided as collateral in securities transactions (refer to Note 17 for details).

‌Note 8 Property, equipment and leases

Property and equipment includes bank premises, IT hardware, communication systems, leasehold improvements, and other equipment. Items of property and equipment are depreciated over their

estimated useful lives using the straight-line method. Bank premises are depreciated over a period of 66 years, leasehold improvements over the shorter of

the residual lease term or useful life, IT hardware over three years, and other items of property and equipment generally over five to ten years.

Current maintenance and servicing costs are recognised in general expenses.

Bank

premises Leases

Other property and equipment

CHF m CHF m CHF m CHF m

Balance at 01.01.2024 438.8 371.5 181.7 992.0

Additions 6.5 23.6 26.0 56.1

Disposals/transfers¹ - 54.3 20.8 75.1

Balance at 31.12.2024 445.3 340.8 186.9 973.0

Additions 3.1 15.1 21.2 39.4

Disposals/transfers¹ 1.0 3.3 4.9 9.2

Balance at 31.12.2025 447.4 352.6 203.2 1,003.2

Balance at 01.01.2024 173.9 169.0 117.2 460.1

Charge for the period 10.3 33.7 27.4 71.4

Disposals/transfers¹ - 54.3 20.8 75.1

Balance at 31.12.2024 184.2 148.4 123.8 456.4

Charge for the period 9.6 33.7 26.6 69.9

Disposals/transfers¹ 0.7 3.3 5.2 9.2

Balance at 31.12.2025 193.1 178.8 145.2 517.1

Balance at 31.12.2024 261.1 192.4 63.1 516.6

¹ Includes also derecognition of fully depreciated assets not used anymore.

A lessee recognises right-of-use assets and lease liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The vast majority of lease contracts where the Bank is the lessee relates to office leases, with a limited number of leases of vehicle and other items. The Bank does not apply lease accounting to software or other intangible assets.

As the implicit rate in leases is generally not available, the Bank as a lessee applies its incremental borrowing rate. This rate is determined based on the Bank's actual funding rate (by currency and term), which is provided to the Bank by external sources on a regular basis.

The following information relates to the Bank's lease activities:

CHF m CHF m

Depreciation charge 33.7 33.7

Interest expense on lease liability 6.9 7.7

Expense related to short-term/low-value leases 0.4 0.5

Cash payments - leases 32.1 30.2

Cash payments - interest paid 6.4 7.7

CHF m CHF m

Less than one year 36.8 36.9

One to five years 102.4 113.1

More than five years 75.9 93.6

‌Note 9 Goodwill and other intangible assets

Customer relationships comprises long-term customer relationship intangibles from business combinations. They are initially recognised at fair value at the date of acquisition and are amortised over their estimated useful life not exceeding ten years, using the straight-line method.

The Bank capitalises costs relating to the acquisition, installation and internal development of software if it is probable that the future economic benefits that are attributable to the asset will flow to the Bank and that the costs of the asset can be identified and measured reliably. The capitalised software

is amortised using the straight-line method over its useful life not exceeding ten years.

Goodwill

Customer

relationships Software

CHF m CHF m CHF m CHF m

Balance at 01.01.2024 1,501.7 1,185.5 1,494.7 4,181.9

Additions - - 197.9 197.9

Disposals/transfers¹ - - 36.4 36.4

Balance at 31.12.2024 1,501.7 1,185.5 1,656.2 4,343.4

Additions - - 200.4 200.4

Disposals/transfers¹ - 1,185.5 50.7 1,236.2

Balance at 31.12.2025 1,501.7 - 1,805.9 3,307.6

Balance at 01.01.2024 - 1,184.2 697.7 1,881.9

Charge for the period - 1.1 132.0² 133.1

Disposals/transfers¹ - - 36.4 36.4

Balance at 31.12.2024 - 1,185.3 793.3 1,978.6

Charge for the period - 0.2 144.7 ³ 144.9

Disposals/transfers¹ - 1,185.5 50.7 1,236.2

Balance at 31.12.2025 - - 887.3 887.3

Balance at 31.12.2024 1,501.7 0.2 862.9 2,364.8

¹ Includes also derecognition of fully amortised assets not used anymore.

² Includes impairment of CHF 3.6 million related to software not used anymore.

³ Includes impairment of CHF 5.4 million related to software not used anymore.

To identify any indications of impairment on goodwill, the recoverable amount based on the value in use is determined for the respective cash-generating unit (CGU, i.e. for the smallest identifiable group of assets that generates cash inflows independently from other assets) and is subsequently compared with the carrying amount of that unit. Within the Bank, cash inflows

are not attributable to either any dimension

(e.g. geographical areas, booking centres, clients, or products) or group of assets. In addition, management makes operating decisions based

on information at the Bank level (see also Note 25 regarding the determination of the segments).

Therefore, the goodwill is allocated to and tested at the level of the Bank.

The Bank uses a proprietary model based on the discounted cash flow method to calculate the recoverable amount. The Bank estimates the free cash flows expected to be generated from the continuing use of the CGU based on its regular financial planning, taking into account the following key parameters and their single components:

• assets under management;

• return on assets (RoA) on the average assets under management (driven by fees and commissions, trading income and net interest income);

• operating income and expenses; and

• tax rate applicable.

To each of these key parameters, reasonably expected growth assumptions are applied in order to calculate the projected cash flows for the next five years,

whereof the first three years are based on the detailed budgeting and the remaining two years on the less detailed mid-term planning (particularly net new money). The Bank expects in the medium and long term a favourable development of the wealth management activities, which is reflected

in the respective growth of the key parameters, although the Bank cannot exclude short-term market disruptions. The Bank also takes into consideration its relative strength as a pure wealth management provider vis-à-vis its peers, which should result in a better-than-average business development in the respective market. Additionally, the estimates of the expected free cash flows

take into account the projected investments that are necessary to maintain the level of economic benefits expected to arise from the underlying assets in their current condition.

The resulting free cash flows are discounted to present value, using a pre-tax discount rate of 10.3% (2024: 9.3%). The discount rate used in the calculation represents the Bank's specific risk-weighted rate based on factors such as the risk-free rate, market risk premium, adjusted Beta, size premium, and country risk premium.

The Bank's approach to determine the key assumptions and related growth expectations is based on management's knowledge and reasonable expectations of future business, using internal and external market information, planned and/or started business initiatives, and other reasonable intentions of management. For that purpose, the Bank uses historical information by taking into consideration the current and expected market situations as well as the current and expected future relative market position of the Bank vis-à-vis its respective competitors and in its industry. Beyond management's planning horizon of five years,

a long-term growth rate of 1% for assets under management is applied.

Deviations of future actual results achieved vs. forecast/planned key assumptions, as well as future changes of any of the key assumptions based on

a future different assessment of the development of relevant markets and/or businesses may occur. Such deviations may result from changes in products and client mix, profitability, required types and intensity of personnel resources, general and company-specific personnel cost development, and/ or changes in the implementation of known or

the addition of new business initiatives, and/or other internal and/or external factors. These changes may cause the value of the business to alter and therefore either increase or reduce the difference between the carrying value in the balance sheet and the recoverable amount, or may even lead to a partial impairment of goodwill.

Management has performed sensitivity analyses on the discount rate and growth rate applied to

a forecast period. Under all these scenarios with reasonably possible changes in key assumptions, the recoverable amount is considerably above the carrying amount of the CGU.

‌Note 10 Debt issued

CHF m CHF m

Bonds 1,081.9 1,082.5

Debt issued through Swiss central mortgage institutions 11.5 -

CHF m CHF m

Balance at the beginning of the year 1,082.5 1,070.5

Changes from financing cash flows:

• Proceeds from issuance of new bonds - 460.7

• Repayment of bonds 478.9

Total changes from financing cash flows 18.2

Amortisation of premiums/discounts -0.3 -0.1

Foreign exchange - 14.1

Hedge accounting -0.3 16.2

Stated interest rate /

Currency

Notional amount

effective interest rate

Carrying

value

Carrying

value

Senior unsecured

m % CHF m CHF m

2021

2023

2023

bond CHF 260.0 0.125/0.103 257.9 256.8

Senior unsecured

bond CHF 160.0 2.375/2.328 163.1 164.7

Senior unsecured

bond CHF 200.0 2.500/2.461 200.4 200.4

unsecured

2021 issuance

The senior unsecured bond, which is denominated in CHF, was issued by the Bank on 27 April 2021. The bonds have a final maturity on 27 April 2028 and pay interest at a fixed rate of 0.125% per annum payable annually in arrears on 27 April.

2023 issuances

The senior unsecured bond, which is denominated

in CHF, was issued by the Bank on 6 September 2023. The bonds have a final maturity on 6 September 2027 and pay interest at a fixed rate of 2.375% per annum payable annually in arrears

on 6 September.

The senior unsecured bond, which is denominated in CHF, was issued by the Bank on 6 September 2023. The bonds have a final maturity on 6 September 2030 and pay interest at a fixed rate of 2.500% per annum payable annually in arrears on 6 September.

2024 issue

The senior unsecured bond, which is denominated in CHF, was issued by the Bank on 4 April 2024. The bonds have a final maturity on 4 April 2031 and pay interest at a fixed rate of 2.375% per annum payable annually in arrears on 4 April.

‌Note 11 Provisions

Legal risks Other Total Total

CHF m CHF m CHF m CHF m

Balance at the beginning of the year 32.4 19.0 51.4 34.4

Utilised -29.1 -7.4 -36.5 -13.7

Provisions made 42.7 0.2 42.9 34.6

Provisions reversed -0.3 - -0.3 -5.4

Translation differences -2.8 -0.8 -3.6 1.5

Up to one year 10.2 5.4 15.6 19.8

Over one year 32.7 5.6 38.3 31.6

The Bank operates in a legal and regulatory environment that exposes it to significant litigation, regulatory, financial, reputational, and other risks arising from disputes and regulatory proceedings.

Non-compliance with legal and/or regulatory requirements may result in authorities taking regulatory enforcement action or initiating criminal proceedings against the Bank and/or its employees. Possible sanctions could include the revocation of licences to operate certain businesses, the order to suspend or limit certain activities, the suspension or expulsion from a particular jurisdiction or market of any of the Bank's business organisations or their key personnel, the imposition of fines, the disgorgement of profit as well as claims for restitution, and censures on companies and employees with respective impact on the reputation of the Bank and its relation with clients, business partners, and other stakeholders. In certain markets, authorities, such as regulatory or tax authorities, may determine that industry practices,

e.g. regarding the provision and charging of services, are or have become inconsistent with their interpretations of existing local and/or international laws and regulations. Also, from time to time, the Bank is and may be confronted with information and clarification requests, and procedures from authorities and other third parties (e.g. related

to conflicting laws, sanctions) as well as with enforcement procedures and/or litigations relating to certain topics such as environmental, social, governance, sustainability, suitability, disclosure,

crypto, and artificial intelligence-related issues. As a matter of principle, the Bank cooperates with the competent authorities within the confines of applicable laws to clarify the situation while

protecting its own and other stakeholders' interests.

The risks described above and below may not be the only risks to which the Bank is exposed. The additional risks not presently known, or risks and proceedings currently deemed immaterial, may also impair the Bank's future business, results of operations, financial condition and prospects. The materialisation of one or more of these risks may individually, or together with other circumstances, have a materially adverse impact on the Bank's business, results of operations, financial condition, reputation, and prospects.

The Bank is involved in various legal, regulatory, and administrative proceedings concerning matters arising within the course of normal business operations. The current business environment involves substantial legal and regulatory risks, the impact of which on the financial position or profitability of the Bank - depending on the status of related proceedings - is difficult to assess.

The Bank establishes legal provisions for pending and threatened legal proceedings in accordance with applicable accounting standards if management is of the opinion that such proceedings are more likely than not to result in a financial obligation or loss, or if the dispute for economic reasons should be settled

without acknowledgement of any liability on the part of the Bank and if the amount of such obligation or loss can already be reasonably estimated.

In rare cases in which the amount cannot be reasonably estimated due to the early stage of the proceedings, the complexity of the proceedings, and/or other factors, no provision is recognised but the case is recorded as a contingent liability. The contingent liabilities may result in a materially adverse effect on the Bank or may for other reasons be of interest to investors and other stakeholders.

In 2010 and 2011, litigation was initiated against the Bank and numerous other financial institutions by the liquidators of the Fairfield funds (the 'Fairfield Liquidators'), which funds had served as feeder funds for the Madoff fraudulent investment schemes. In the direct claims against the Bank, the Fairfield Liquidators are seeking to recover a total amount of approximately USD 64 million in the courts of New York (including approximately

USD 17 million that relates to redemption payments made to clients of ING Bank (Suisse) SA, which merged with the Bank in 2010, and approximately USD 25 million that relates to redemption payments made to clients of Merrill Lynch Bank (Suisse) SA, which merged with the Bank in 2013, such claims in principle being subject to acquisition-related representation and warranties provisions). The proceedings in the courts of the British Virgin Islands, where an amount of approximately

USD 8.5 million had been claimed from the Bank, were finally dismissed in favour of the Bank with

a ruling of the Privy Council, the highest court of appeals for the British Virgin Islands. In addition to the direct claims against the Bank, the Fairfield Liquidators have made combined claims in the amount of approximately USD 1.8 billion against

more than 80 defendants, with only a fraction of this amount being sought from the Bank (and ultimately its clients concerned). The combined claims aggregate the damages asserted against all defendants, such that a reliable allocation of the claimed amounts between the Bank and the other defendants cannot be made at this time. Finally, in further proceedings, the trustee of Madoff's broker-dealer company (the 'Trustee') seeks to recover approximately USD 110 million in the courts of New York (including approximately USD 46 million that

relates to redemption payments made to clients of Merrill Lynch Bank (Suisse) SA, which merged with the Bank in 2013, such claims in principle being subject to acquisition-related representation and warranties provisions), largely in relation to the same redemption payments that are the subject matter of the claims asserted by the Fairfield Liquidators. The Bank is challenging these actions on procedural and substantive grounds and has taken further measures to defend and protect its interests. In the proceedings initiated by the Trustee, the Bankruptcy Court in New York dismissed the case against the Bank and other defendants in November 2016 based on extraterritoriality principles. The Trustee appealed this decision, and, in February 2019, the Court of Appeal reversed the decision by the Bankruptcy Court. The Supreme Court refused to review this decision, therefore the proceedings continued with the Bankruptcy Court. The Bankruptcy Court has denied the Bank's motion to dismiss and the Bank has filed an answer to the Trustee's amended complaint. The case has begun with the fact discovery phase, which, per the case schedule,

will continue at least until March 2026. In the proceedings initiated by the Fairfield Liquidators, the Bankruptcy Court in New York decided in December 2018 on certain aspects, which were appealed by the Fairfield Liquidators. The Bankruptcy Court additionally decided on certain other aspects in the Bank's favour in late 2020.

That decision was also appealed by the Fairfield Liquidators. Both appeals were consolidated.

In August 2022, the U.S. District Court for the Southern District of New York ruled on the pending appeals and confirmed the Bankruptcy Court's decision. The Fairfield Liquidators appealed the decision to the U.S. Court of Appeals for the Second Circuit. Further, in October 2021, the Bank filed a motion to dismiss for lack of personal jurisdiction. In response, the Fairfield Liquidators requested jurisdictional discovery, which has been completed.

Following jurisdictional discovery, Fairfield filed its opposition to the Bank's motion to dismiss for lack of personal jurisdiction. In September 2024,

the Bankruptcy Court denied the Bank's motion to dismiss, along with the motions of other similarly situated defendants. In August 2025, the Court of Appeals ruled on the pending appeals and dismissed all of the Fairfield Liquidators' claims, including

the combined claim in the amount of approximately USD 1.8 billion. The Fairfield Liquidators have

petitioned the Court of Appeals for a rehearing. Depending on the court's decision whether to grant a rehearing, the Liquidators may subsequently seek further review by the U.S. Supreme Court. In both cases, whether further review is granted is at the discretion of the Court.

In the context of an investigation against a former client regarding alleged participation in tax fraud relating to environmental-certificate trading in France, a formal procedure into suspected lack of due diligence in financial transactions/money laundering was initiated against the Bank in June 2014 and dismissed for formal reasons by a court order in March 2017. The deposit in the amount of EUR 3.75 million made in October 2014 by the Bank with the competent French court as a precautionary measure representing the amount of a potential fine was accordingly reimbursed to the Bank. However, in July 2017 the same amount was deposited again as a new investigatory procedure with respect to the same matter was initiated against the Bank. In May 2020, following an application by the prosecutor, the court admitted a new indictment against the Bank in this matter. A trial in the matter took place in December 2021, at which a fine of EUR 5 million and a restitution amount of EUR 2 million were proposed to be charged against the Bank. The competent court of first instance issued its decision on 14 March 2022 and found the Bank guilty of aggravated money laundering and confirmed the fine of EUR 5 million but reduced the claimed restitution amount to EUR 0.4 million. On 16 December 2025, the Court of Appeal confirmed the decision issued by the court of first instance but reduced the fine to EUR 2 million and rejected the claimed restitution amount of EUR 0.4 million.

The Bank has appealed the decision to the Cour de Cassation and continues to protect its interest.

In November 2019, a former employee filed a labour law-based claim in the amount of USD 34.1 million in Venezuela against several Julius Baer companies, including the Bank, combined with a respective precautionary seizure request in double the amount.

In December 2023, the court of first instance and, in January 2024, the Superior Labour Court decided to partially uphold the claim, such decision having been appealed by both parties to the Venezuelan Social Cassation Chamber of the Supreme Court of Justice, which confirmed the Superior Labour Court's decision in December 2025. Julius Baer continues contesting the jurisdiction of the Courts, the awarded amounts and the execution of such decisions and continues to defend its interests.

In May 2021, the Bank became aware that a writ of summons ('the Writ') had been registered against it at the Registry of the High Court of the Hong Kong Special Administrative Region, Court of First Instance. The Writ had been filed by SRC International (Malaysia) Limited claiming the sum of approximately USD 112 million (plus interest) from the Bank, alleging the Bank was in breach of its fiduciary duty of care by accepting and processing payment instructions for the transfer of funds during the period 25 October 2013 to September 2016. On

4 May 2022, the amended writ and statement of claim in the amount of USD 112.5 million was served on the Bank. The Bank is contesting the claim while taking appropriate measures to defend its interests.

In the context of a credit event that occurred in the Bank's private debt business (being run down) and which led to a loan loss allowance in the amount of CHF 586 million reflected in the 2023 consolidated financial statements, recovery activities by the Bank are ongoing, subject to material uncertainties related to the enforceability of collateral, including competing third-party claims and counterclaims as raised by liquidators in charge of the defaulted borrower. In this context the Bank has been served with a claim

in the amount of EUR 62.3 million as filed by a liquidator in April 2025 with a court in Vienna. The Bank is contesting the claim while taking appropriate measures to defend its interests. The credit event and its wider context are also subject to a consolidated regulatory enforcement procedure by the Swiss Financial Market Supervisory Authority FINMA.

‌Note 12 Other assets and liabilities

CHF m CHF m

Precious metals (physical) 4,894.2 3,201.3

Tax receivables 1,057.3 1,691.9

Accounts receivable 9.8 14.9

Pension asset 13.5 12.6

Other 193.8 147.3

CHF m CHF m

Lease liability 193.6 211.7

Other tax payable 65.9 62.4

Accounts payable 51.3 5.5

Other 96.7 107.4

There is no authorised share capital.

‌Note 14 Related party transactions

CHF m CHF m

Salaries and other short-term employee benefits 18.7 27.3

Post-employment benefits 0.7 1.7

Share-based payments 12.2 10.7

Julius Baer Group entities 1,465.8 204.1

significant shareholders² 2,806.7 2,513.9

key management personnel - 13.8

Julius Baer Group entities 2,557.1 3,207.6

significant shareholders² 3,606.4 2,559.9

key management personnel 9.0 11.5

own pension funds 15.6 16.0

Julius Baer Group entities 106.4 195.4

key management personnel 0.2 0.1

Julius Baer Group entities 315.6 475.3

significant shareholders² 183.0 146.6

key management personnel 0.1 0.6

Julius Baer Group entities 97.5 79.2

significant shareholders² 30.2 33.1

¹ Key management personnel consists of the members of the Board of Directors and the Executive Board of Julius Baer Group Ltd. Refer to chapter II. Corporate Governance of this Annual Report of Julius Baer Group Ltd. for an overview of the members of those boards as of the end of 2025.

² Julius Baer Group Ltd.

The loans granted to key management personnel consist of Lombard loans on a secured basis (through pledging of the securities portfolios) and mortgages on a fixed and variable basis.

The interest rates of the Lombard loans and mortgages are in line with the terms and conditions that are available to other employees, which are in line with the terms and conditions granted to third parties adjusted for reduced credit risk.

Transactions with Group entities and own pension funds are at arm's length.

‌Note 15 Pension plans

The Bank maintains various defined contribution and defined benefit pension plans in Switzerland and abroad. The pension plans in Switzerland have been set up on the basis of the Swiss method of defined contributions under the Swiss pension law. Employees and pensioners or their survivors receive statutorily determined benefits upon leaving the Bank or retiring and in the event of death or invalidity. These benefits are the result of the conversion rate applied to the accumulated balance of the individual plan participant's pension account at the retirement date. The accumulated balance equals the sum of the regular employer's and employee's contribution that were made during the employment period, including the accrued interest on these amounts. However, these plans do not fulfil all the criteria of a defined contribution plan according to IFRS Accounting Standards and are therefore treated as defined benefit plans for the purpose of the Bank's financial statements.

The pension obligations are largely covered through plan assets of pension funds that are legally separated and independent from the Bank. In case the plans become significantly underfunded over an extended period as per the Swiss pension law, the Bank and the employees share the risk of additional payments into the pension fund. The pension funds are managed by a board of trustees consisting of representatives of the employees and the employer.

Managing the pension funds includes pursuing a medium- and long-term consistency and sustainability balance between the pension plans' assets and liabilities, based on a diversified investment strategy correlating with the maturity of the pension obligations. The organisation,

management, financing and investment strategy of the pension plans comply with the legal requirements, the foundation charters, and the applicable pension regulations.

For defined benefit plans, the net defined benefit liability recognised in other liabilities in the balance sheet is the present value of the defined benefit obligation less the fair value of the plan assets as of the reporting date. It is recognised in other liabilities in the balance sheet. If the fair value of the plan assets is higher than the present value of the defined benefit obligation, the recognition of the resulting net asset is limited to the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan ('asset ceiling').

The Bank applies the projected unit credit method to determine the present value of the defined benefit obligation and the current and past service cost. The corresponding calculations are carried out by independent qualified actuaries.

1. Development of pension obligations and assets 2025 2024

   CHF m CHF m

   Present value of defined benefit obligation at the beginning of the year -3,535.7 -3,286.2 Current service cost -94.4 -76.2

   Employees' contributions -53.4 -52.4

   Interest expense on defined benefit obligation -33.0 -51.7

   Past service cost, curtailments, settlements, plan amendments 0.2 -0.8 Benefits paid (including benefits paid directly by employer) 171.3 114.2

   Transfer payments in/out 2.0 -0.2

   Experience gains/(losses) on defined benefit obligation -2.4 -77.2

   Actuarial gains/(losses) arising from change in demographic assumptions 36.7 1.1

   Actuarial gains/(losses) arising from change in financial assumptions 16.7 -105.7

   Translation differences 0.7 -0.6

   Present value of defined benefit obligation at the end of the year -3,491.3 -3,535.7

   of which due to active members -2,501.3 -2,497.1

   of which due to deferred members -4.6 -5.1

   of which due to pensioners -985.4 -1,033.5

   Fair value of plan assets at the beginning of the year 3,763.0 3,437.7 Interest income on plan assets 36.0 55.5

   Employees' contributions 53.4 52.4

   Employer's contributions 115.0 112.1

   Curtailments, settlements, plan amendments 4.3

   Benefits paid by fund -171.3 -114.2

   Transfer payments in/out -2.0 0.2

   Administration cost (excluding asset management cost) -1.2 -1.2

   Return on plan assets (excluding interest income) 130.3 224.0

   Translation differences -0.9 0.8

   Fair value of plan assets at the end of the year 3,922.3 3,763.0

   2025 2024

   CHF m CHF m

2. Development of effect of asset ceiling

   Effect of asset ceiling at the beginning of the year -214.7 -139.4 Interest income/(expenses) on effect of asset ceiling -2.0 -2.3 Change in effect of asset ceiling excluding interest expense/(income) -200.8 -73.0

   Effect of asset ceiling at the end of the year -417.5 -214.7

   31.12.2025 31.12.2024

   CHF m CHF m

3. Balance sheet

   Fair value of plan assets 3,922.3 3,763.0

   Present value of defined benefit obligation -3,491.3 -3,535.7

   Surplus/(deficit) 431.0 227.3

   Effect of the asset ceiling -417.5 -214.7

   Net defined benefit asset/(liability) 13.5 12.6

4. Income statement 2025 2024

   CHF m CHF m

   Current service cost -94.4 -76.2

   Interest expense on defined benefit obligation -33.0 -51.7

   Past service cost, curtailments, settlements, plan amendments 0.2 -5.1

   Interest income on plan assets 36.0 55.5

   Interest income/(expense) on effect of asset ceiling -2.0 -2.2

   Administration cost (excluding asset management cost) -1.2 -1.2

   Defined benefit cost recognised in the income statement -94.4 -80.9

   of which service cost -95.4 -82.5

   of which net interest on the net defined benefit/(liability) asset 1.0 1.6

5. Movement in defined benefit asset/(liability)

   Net defined benefit asset/(liability) at the beginning of the year 12.6 12.1

   Translation differences -0.2 0.2

   Defined benefit cost recognised in the income statement -94.4 -80.9

   Employer's contributions 115.0 112.1

   Remeasurements of the net defined benefit asset/(liability) -19.5 -30.9

   Net defined benefit asset/(liability) at the end of the year 13.5 12.6 Remeasurements of the net defined benefit asset/(liability)

   Actuarial gains/(losses) of defined benefit obligation 51.0 -181.8

   Return on plan assets (excluding interest income) 130.3 224.0

   Effect of asset ceiling -200.8 -73.0

   Total recognised in other comprehensive income -19.5 -30.8 31.12.2025 31.12.2024

   CHF m CHF m

6. Composition of plan assets

   Cash 281.3 228.5

   Debt instruments 937.3 930.1

   Equity instruments 1,516.5 1,513.0

   Real estate 754.8 715.1

   Alternative investments 429.8 373.4

   Other 2.6 2.9

   Total 3,922.3 3,763.0 31.12.2025 31.12.2024

   % %

7. Aggregation of plan assets - quoted market prices in active markets

Cash 7.2 6.1

Debt instruments 23.2 22.3

Equity instruments 38.7 40.2

Real estate 9.0 7.6

Alternative investments 2.9 0.5

Other 0.1 0.1

as follows for Switzerland, which accounts obligations and plan assets:

The plan assets are invested in accordance with local laws and do not include shares of Julius Baer

Group Ltd.

The expected employer contributions for the 2026 financial year related to defined benefit plans are estimated at CHF 107.3 million.

The Bank had outstanding liabilities to various pension plans in the amount of CHF 15.6 million (2024: CHF 16.0 million).

The Bank maintains a number of defined contribution plans, primarily outside Switzerland. In the case of defined contribution plans, the pension expenses are charged to the income statement in the corresponding financial year. The expenses for contributions to these pension plans amounted to CHF 27.7 million for the 2025 financial year (2024: CHF 26.8 million).

‌Note 16 Share-based payments and other compensation plans

The Bank maintains various share-based payment plans for its employees. Share-based payments that are subject to the completion of a service period or to other vesting conditions are expensed over the respective vesting period. The fair value of these payments at grant date serves as the basis for

calculating the personnel expenses and, unless subject to non-market performance criteria, is not remeasured for subsequent changes in the fair value of the underlying equity instruments. The amount recognised as an expense is adjusted to reflect the number of share awards for the related services and for non-market performance criteria achievement.

The programmes described below reflect the deferred variable compensation plan landscape as at

31 December 2025. All plans are reviewed annually to reflect any regulatory and/or market changes. The Bank's overall compensation landscape is described in chapter III. Remuneration Report of the Julius Baer Group Ltd. Annual Report.

Equity Performance Plan

The Equity Performance Plan (EPP) has been a long-term incentive mechanism that awards performance units to eligible participants subject to individual performance in the reporting period and to future Bank-based performance-based vesting criteria. It has been an equity plan that sought to create a retention element for key employees and to link a significant portion of the executive compensation to the future performance of the Bank.

Eligibility for the EPP has been determined annually based on various factors, which include nomination by the CEO, overall role within the Bank, total variable compensation, and individual contribution in the

reporting period. All members of the Executive Board, key employees, and employees defined as risk takers of the Bank by virtue of their function within the organisation were considered for the EPP based on their specific role. An EPP grant is made once a year (annual, rolling basis) and award levels are determined in reference to the annual performance-based variable compensation awarded to the individual concerned.

Vesting of the EPP is subject to future performance with the goal of incentivising participants in two ways:

• Firstly, by the nature of its construction, the ultimate value of the award to the participants fluctuates with the market value of Julius Baer Group Ltd. shares.

• Secondly, the performance units are contingent on continued service and two key performance indicators (KPIs): cumulative Economic Profit (cEP) and relative Total Shareholder Return (rTSR).

The service condition requires that the participant generally remains with the Bank for five years after the grant (plans vest pro rata in years three, four, and five following the grant date). The performance of the two KPIs is assessed during the three-year performance period to determine the number

of shares the participant ultimately receives.

The number of shares delivered under the EPP is between 0% and 150% of the number of performance units granted in any given year (with each individual KPI being capped at a maximum multiplying factor of 200%). The cap serves to limit EPP awards so

as to avoid any unforeseen outcome of the final EPP multiplier resulting in unintentionally high or excessive levels of compensation. A high level of performance is required to attain a maximum share delivery (creating a maximum uplift of 50% of the performance units granted), while low-level performance potentially leads to nil compensation.

The KPI targets are set based on the strategic three-year budget/plan that is approved by the Board of Directors on an annual basis.

No further grants are expected to be made under the EPP following the 2025 financial year; however, EPP awards outstanding at the end of 2025 will continue to vest according to their original terms.