Compagnie Bancaire Helvétique achieved strong growth in 2023 thanks to net new money inflows and an increase in net interest income. New hires and investments also resulted in higher costs.
Geneva-based private bank CBH Compagnie Bancaire Helvétique has posted a consolidated profit of 34.5 million Swiss francs for 2023. This corresponds to a 66 percent increase compared with last year, as announced by the bank on Tuesday.
Assets under management rose further to 14.3 billion Swiss francs at the end of the year. This represents a year-on-year increase of 7 percent, it states.
The bank’s performance was helped by “largely favorable market dynamics" and net new money inflows of 1.3 billion Swiss francs, making up for the negative impact of the rise in the Swiss franc against other major currencies.
Several Private Bankers Hired
The Group's operating income grew by 47 percent to 183.5 million Swiss francs. Net interest income increased significantly, mainly driven by the recent rise in interest rates.
“This growth was also supported by the hiring of several talented and experienced private bankers, particularly in our Swiss offices,” reports CBH.
Costs also rose sharply, with operating expenses of 81.7 million Swiss francs, 15% higher than in 2022, also attributed to the many new hires needed to support the Group’s digitalization strategy, the development of its asset services and structuring capabilities, as well as its private equity activities, the release continues. After deducting costs, the operating result was 92.2 million Swiss francs.
Stronger Capital Base
CBH significantly improved its market capitalization in 2023, with a Tier 1 ratio of 43 percent. Consolidated shareholders’ equity amounted to 371.7 million Swiss francs compared with 290.5 million Swiss francs at the end of 2022.
“These remarkable results confirm the consistency of our strategy in these rather uncertain times,” CEO Philippe Cordonier says of the results. The boss of the bank is optimistic about the current year and wants to continue this trend of positive growth. In the long term, the bank intends to continue investing in banking technologies, customized investment solutions and digital daily banking solutions for clients.
The private banking group founded in 1975 is family-owned and headquartered in Geneva. CBH currently employs around 300 people at 10 locations worldwide. Over the last ten years, the bank has expanded its operations into South America, the United States, Asia and Israel through a series of acquisitions.
