The Genevan bank disclosed results for its wealth management arm the first time. It shows what Syz is aiming for following a wide-ranging restructuring.
Last year is the first that the group controlled by Eric Syz reports specific results for its wealth management arm, Banque Syz. The unit recorded a profit of 7.1 million Swiss francs ($7.3 million) on spending of 107 million francs, Syz said in a statement on Monday.
The results aren't directly comparable to 2018 because Syz is emerging from an intense period of restructuring: it sold its Oyster fund arm and disposed of its Bahamas arm through a management buyout to Nestor Asset Management. Syz also pulled out of several markets, which cost it 615 million Swiss francs (or $628 million) in withdrawals, and gave key positions to both Marc Syz and Nicolas Syz, sons of the 62-year-old Swiss banker who co-founded the firm.
Healthy Cushion
Under new CEO Yvan Gaillard, Syz's hardest capital ratio stood at 21.3 percent – which still represents a healthy cushion. The bank's assets stood at 24.6 billion francs, from its last readingof 28.8 billion francs for the entire group before the disposals.
Profits nearly doubled on the year, but comparisons are difficult because Syz wrote down several assets in 2018, had an exodus of talent, and a drop in profits. The group discloses results around mid-year for its annual meeting.
Active vs Passive
Syz alluded to the coronavirus-induced market turmoil in the statement: «In today’s environment, there’s no substitute for an active approach to generate portfolio yield» Nicolas Syz said.
«Our strong results are a reflection of our discretionary and advisory portfolio managers’ performance, delivering significant value for our clients with a strong upside participation and reduced downside risk,» The bank is off to a strong start to 2020, he noted.
