The Geneva-based private bank is another in a string of companies to report a drop in profitability as it struggled in a difficult economic environment. The bank is adamant about sticking to its strategy.
Pictet, Mirabaud and Lombard Odier, Geneva money institutes renowned for their private banking prowess, had the rough times in the first half eating into their profits.
Now, as a further example for the difficult times, Banque Reyl & Cie follows suit. The family-owned business had a profit of 4.1 million francs in the first six months of 2016, compared with 11.2 million a year ago.
Increase in AuM
Operating profit was also down, reaching 6.2 million compared with 13.4 million in the year-earlier period. Fees and commissions from trading returned less, not least because of lower performance fees from RAM, the asset management unit. Net interest income however was slightly up.
François Reyl, the chief executive officer, said the result had to be seen in the context of the difficult market situation. He emphasized the increase in assets under management and said his bank would continue along the given strategy.
Reyl at the start of the year switched from growing horizontally to a vertical focus on several businesses. The figures for the first half show that the change is leaving the first traces as operative costs and labor costs are down.
