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Half-year results 2021
Client assets up 11% to CHF 352 billion with strong net new money
Robust increase in client assets
Total client assets at end-June 2021 stood at CHF 352 billion, up 11% from end-December 2020. This robust increase was supported by strong net new money flows over the six-month period, positive investment performance and market impacts.
Growth in operating income and earnings
Operating income for the first half of 2021 was CHF 717 million, up 6% from the first six months of 2020. Consolidated net profit was CHF 143 million, up 20% from the first half of 2020.
Strong balance sheet and capitalisation
The Group’s balance sheet remains strong, liquid and conservatively invested, and totalled CHF 20.8 billion at end-June 2021. The Group has a significant equity base with no external debt. At end-June 2021, the CET1 ratio was 29.1% and the liquidity coverage ratio was 223%. Fitch reaffirmed1 the Group’s credit rating at AA- with a stable outlook in July 2020.
“These strong results reflect the strengths of our business model and our commitment to excellent client service,” said Patrick Odier, Senior Managing Partner (Group). “We have prudently managed our client portfolios, generating strong investment performance while attracting significant net new money. We have also continued to invest in talent, and in new sustainable investment solutions, including a range of strategies that address the urgent need for our global economy to transition to a net zero model.”
Sustainability as a key investment differentiator: launch of TargetNetZero strategies
Sustainability, via the transition to a circular, lean, inclusive and clean (CLIC™) economic model, is at the heart of Lombard Odier’s approach to its business and investment philosophy. As a leader in this field, the Group has developed differentiated investment solutions and methodologies, including a new science-based framework that allows us to measure the carbon risk inherent in any client portfolio. This proprietary tool facilitates the design of resilient investment strategies which also benefit from the global transition to net zero.
Continued investment in our in-house technology remains key to our long-term success
We continue to make significant investments in our proprietary banking platform, which has helped us develop business with clients and third parties for almost 30 years. Our multi-year “GX” project, to build a technology platform for a new era, is designed around three main axes: modernising technologies, rethinking and digitalising our processes, and improving the client experience.
Market outlook
The first half of 2021 saw markets gain ground as the world’s economies started to emerge from the difficulties of the pandemic. As we move forward in 2021, Lombard Odier remains cautiously optimistic on the market outlook, with a portfolio positioning that reflects this constructive stance. As always, we remain focussed on our core mission of preserving and growing our clients’ assets, while managing potential risks.
1 https://www.fitchratings.com/research/banks/fitch-affirms-lombard-odier-at-aa-outlook-stable-26-06-2020
Important information
This media release has been prepared by Bank Lombard Odier & Co Ltd, a bank and securities dealer authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA) (hereinafter "Lombard Odier"). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This media release is provided for information purposes only. It does not constitute an offer or a recommendation to enter into a relationship with Lombard Odier, nor to subscribe to, purchase, sell or hold any security or financial instrument.
This document may not be reproduced (in whole or in part), transmitted, modified, or used for any public or commercial purpose without the prior written permission of Lombard Odier.
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