The Swiss bank’s profit rose last year, when stripping out the impact of merging its French activities. Inflows from wealthy as well as asset management clientele eclipsed fund withdrawals.
The Geneva-based wealth mananger posted 57 million Swiss francs in net profit last year, from 44 million francs ($47.3 million) in 2019, it said in an emailed statement on Wednesday. Without the effect of integrating its French activities in 2019, the rise in profit was four percent.
Edmond de Rothschild's revenue surged 15 percent amid the merger, part of a consolidation in Switzerland of the eponymous family bank’s activities. A high volume of transactions fed into recurring revenue in both its main arms, private banking and asset management.
Steady Strategy Amid Changes
The bank’s strategy remains unchanged following the sudden death of owner Benjamin de Rothschild in January. His widow, Ariane de Rothschild, already chaired the bank, which delisted its shares two years ago. She now also chairs Edmond de Rothschild's holding company.
The Swiss bank said it took in 400 million francs of net new money last year, which corresponds to a rate of just over two percent on its existing assets. It took in 2 billion francs in fresh money from wealthy clients and 2.2 billion in real estate funds, but this was reduced in the total due to outflows in liquid asset management funds.
Lower Overall Assets
Edmond de Rothschild's overall assets edged three percent lower to 168 billion francs. The fall was due to foreign exchange swings – its traditionally has more assets in euros than other Swiss wealth managers, which tend to hold a larger U.S. dollar asset base than euros – and to refocusing some markets as well as clients.
The bank said its priorities this year under CEO Vincent Taupin are to focus in asset management on both liquid and illiquid speciality areas, strengthen its range of thematic funds, and continue a four-year goal of socially responsible investments. Its wealth arm is seeking to recruit private bankers, digitize more effectively, and strengthen its product innovation in areas like club deals and private equity mandates.
