Geneva-based Reyl posted a substantial increase in assets under management for 2016. Operating profit however declined by a quarter following a drop in performance fees at the fund management division.
Reyl refuses to be affected by a perceived pessimism taking hold of Geneva’s financial market. The banking group, which is family-owned, has a strong increase in assets under management to show for, according to a statement sent today.
Assets under management at the group rose to 13.2 billion Swiss francs at the end of 2016 from 11.3 billion a year earlier, an increase of 17 percent. Net new money amounted to 1.1 billion francs.
Drop in Performance Fees
Bank Reyl, the group’s banking business, also had a good year, with assets rising 9.6 percent to 7.1 billion francs and operating profit of 4.2 million francs, more than double from 2015.
The group’s result was impaired by the performance of the fund division. The consolidated figures, which include non-recurring operating income, essentially composed of performance fees resulting from the management of investment funds by RAM Active Investments, show operating profit of 18.5 million francs, down 26 percent. This reduction is mainly due to the lower level of performance fees relative to the previous financial year, with a minus of 23.3 million.
Looking for Synergies
The performance of the fund division also had a negative impact on the operating cost-income-ratio, which worsened to 78 percent from a previous 77 percent.
The company will continue to identify synergies between the five divisions (Wealth Management, Corporate & Family Governance, Corporate Advisory & Structuring, Asset Services and Asset Management) as well as between the branches in Switzerland, Europe, Middle East, Asia and the U.S.
