The Genevan private bank posted a profit well below expectations for its 200th year of existence.

Mirabaud's income and profit fell in 2019, according to its annual report. Income from commissions and services slipped nearly nine percent to 240.7 million Swiss francs ($250.2 million), while revenue from trading and interest also edged lower.

This led to a nearly 15 percent drop in profits to 50.8 million francs for the Genevan, family-controlled bank, which turned 200 last year. The only marker to climb was assets under management, which rose 7 percent to 34.7 billion francs – mainly due to favorable financial markets.

New Branches Need Time

The bank suffered net withdrawals of 100 million francs, it said. Last year. Mirabaud spent considerably on opening branches in Abu Dhabi, Montevideo, and Sao Paolo. The 2019 results make apparent that the bank needs some time to translate the efforts into new assets.

Last year, partner Camille Vial took over operational management of Mirabaud's Swiss bank while Nicolas Mirabaud joined as a partner. Mirabaud also named Middle East and Africa head Alain Baron a limited partners last February.

«Grand Paris» Investment

This February, partner Michael Palma left suddenly. It remains for the newly-shuffled management to demonstrate it can grow this year. 

Its asset management division, led by veteran Lionel Aeschlimann, has proven a savvy investor in private equity and wants to expand in lifestyle and real estate investments. One of its key projects is its investment in «Grand Paris,» a major French infrastructure expansion.