The Geneva-based private bankers have been exposed to a rougher climate in the first half of the year and have earned less money as a consequence. Mirabaud bank sees no option but to continue with the strategy it has chosen to pursue.
Mirabaud, one of the exclusive private banks situated on the shores of Lake Geneva, has seen its profitability declined in the first six months of 2016. Net income dropped to 17.3 million Swiss francs from 19.6 million a year earlier, mainly due to a fall in volumes and transactions across all markets, the bank said in a statement today.
The first half of 2015 had been exceptionally good, the bank added, as it accounted for close to two thirds of the annual profit.
Lower Fee Income
Mirabaud had revenue of 139.5 million francs in the six-month period, which compares with 154.9 million a year ago. Fees dropped to 105.9 million from 120.5 million and income from trading activities to 18.4 million from 21.9 million.
On the plus side, Mirabaud had an improved interest margin of 11.6 million francs, compared with 7.7 million in the same period of 2015.
Assets Increase Slightly
Assets under management increased to 31.6 billion francs from 31.4 billion. The bank didn't give more detail about the origin of the money.
«Despite an environment of highly volatile markets and negative interest rates that are particularly punishing for institutions such as ours, we have been able to maintain the financial strength, profitability, cost control and outlook that will allow us to continue to develop our services,» said Yves Mirabaud, senior managing partner at Mirabaud, adding that the bank would strive to «offer innovative, high-quality products.»
