The Lombard Odier Group Reports Results for the First Half of 2014
GENEVA, Aug. 28, 2014 /PRNewswire/ —
- Total client assets on 30 June 2014 amounted to CHF 211 billion of which assets under management were CHF 156 billion
- Consolidated net profit was CHF 62.5 million for the Group
- Fully-loaded Basel III CET1 ratio stood at 23.8%
Assets under management and strategic diversification across three business lines
Several years ago, Lombard Odier decided to accelerate the expansion of its private client business in Europe, Asia and Switzerland, to sharpen the scope of its asset management business and to turn its technology platform into a profit centre. This long-term strategic evolution is showing steady progress and positions the firm for the future.
As a result, today the Group is organised around three business lines with total client assets at the end of June 2014 of CHF 211.0 billion. Total client assets in the private clients business amounted to CHF 114.7 billion. Asset management clients invested CHF 47.8 billion. Technology and banking services clients entrusted an additional CHF 48.5 billion of assets to Lombard Odier.
The Group’s consolidated income in the first six months was CHF 527.1 million and the operational cost base was CHF 429.7 million. Operating cost-income ratio for the Group stood at 80%, reflecting long-term investments in three strategic areas: the private client businesses in Europe, Asia and Switzerland; asset management expertise for institutional clients; and further developments into the technology platform that Lombard Odier provides to third parties.
"These results are in line with our expectations and reflect both the investments we make towards our strategic objectives as well as the conservative use of our balance sheet," said Patrick Odier, Senior Managing Partner. "Our Group is increasingly diversified, more international and more balanced between private and asset management clients and we are expanding our partnerships with financial services providers. Our solid net profit allows us to continue investing in all three businesses."
Strong and liquid balance sheet
The consolidated balance sheet totals CHF 17.1 billion and is conservatively invested. The Group has no external debt and is well capitalised with a fully-loaded Basel III CET1 ratio of 23.8%, which is well above the FINMA’s 12% target. The Liquidity Coverage Ratio was 653%.
One of the Group’s objectives is to remain one of the best capitalised banks in the world. Lombard Odier’s strong capitalisation is a foundation of its clients’ trust in the firm.
About Lombard Odier
Lombard Odier provides its private clients with a full range of bespoke services such as succession planning, discretionary and advisory portfolio management, tax reporting and custody services. With a view to remaining close to its clients’ needs, the Group is able to harness expertise and technology to provide wealth management solutions across the globe. Lombard Odier has developed significant private banking operations in Europe, Asia and Switzerland.
Lombard Odier Investment Managers (LOIM), the Group’s asset management unit, seeks to deliver performance by identifying sources of both risk and return through absolute return, smart beta and high conviction strategies. LOIM offers its clients a range of innovative solutions including risk-based asset allocation, thematic equity investments, convertible bonds and absolute return as well as alternative strategies.
Lombard Odier provides its technology and banking clients with its own IT and operational infrastructure as well as global custody and reporting services.
The Lombard Odier Group has a presence in the world’s main financial centres and offers its clients a global perspective through its network of offices in 19 jurisdictions. The Group employs about 2,000 people.
The Group has a AA- Fitch rating with a "stable" outlook.
Lombard Odier is headed by eight Managing Partners, who represent up to the seventh generation of bankers running the Firm. They are both owners and managers and are involved with leading the firm’s strategy and management as well as serving clients. Since its founding in 1796, the Firm has stayed true to its primary vocation of preserving and nurturing the assets entrusted to it and helping to hand them to future generations.
For more information: http://www.lombardodier.com
Bank Lombard Odier & Co Ltd
Rue de la Corraterie 11
Media Relations (English)
Christoph G. Meier
Head of Communications
Relations Medias (Francais)