The Swiss private bank's net profit surged by nearly one-fifth amid a surge in new money inflows as well as controlled spending. Like crosstown rival Pictet, Lombard Odier benefited from the stability of its 225-year-old business.
The Swiss wealth manager's net profit last year rose by nearly 19 percent to 208 million Swiss francs ($229 million), it said in a statement on Thursday. The partner-led Genevan bank had in August flagged a trading boom in the first half.
The bank appears to be winning considerable inflows from a push – including with Latin America's wealthy – under ex-Credit Suisse banker Andreas Arni in Zurich, as finews.com reported in November. The bank overall took in 12 billion francs in net new money – from private as well as institutional clientele, but didn't disclose the split.
Coupled with favorable market swings, this led client assets six percent higher to 316 billion francs. This mirrors a favorable year at Pictet, Lombard Odier's primary Genevan rival.
Spending Throttled
The bank's cost-income ratio sank to 74 percent from 79 percent in 2019, illustrating that it is keeping a tight lid on its spending. «We...continuously invested in talent and growth opportunities, particularly in new sustainable investment solutions,» senior managing partner Patrick Odier said.
The bank added 60 new employees – net – last year, the vast majority in Switzerland, and plans to keep expanding in 2021. Lombard Odier now employs 2,560 people. The bank is rock-solid, with a ratio of 29.7 percent in the toughest form of capital, common equity tier 1.
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