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Lombard Odier Group reports results for 2020
Client assets up 6% to CHF 316 billion with strong net new money
Strong net new money
Net new money flows were strong in 2020 and, supported by positive market impacts, total client assets at end-December 2020 stood at CHF 316 billion, up 6% from end-December 2019.
Growth in operating income and earnings
Operating income for 2020 was CHF 1.4 billion, up 15% from a year earlier, driven by net new money flows, investment performance and increased client activity in volatile markets. Consolidated net profit was CHF 208 million, up 19% from 2019.
Strong balance sheet and capitalisation
The Group’s balance sheet remains strong, liquid and conservatively invested, and totalled CHF 19.9 billion at end-December 2020. The Group has a significant equity base with no external debt. At end-December 2020, the CET1 ratio was 29.7% and the liquidity coverage ratio was 231%. Fitch reaffirmed the Group’s credit rating at AA- with a stable outlook in July 2020.
“Throughout this challenging year, our results underline the particular strengths of our client-focussed business model,” said Patrick Odier, Senior Managing Partner. “We delivered strong investment performance, generated significant net new money flows, and continuously invested in talent and growth opportunities, particularly in new sustainable investment solutions. Once again, our in-house technology was a critical factor in remaining close to our clients and managing risk.”
Sustainability, alternatives and private assets as key investment differentiators
Sustainability, through the transition to a circular, lean, inclusive and clean (CLICTM) 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 continues to expand its range of sustainability-driven core conviction investment strategies, including successful 2020 launches based around Climate Transition and Natural Capital.
Our focus on developing in-house alternative investment strategies has proven particularly useful at a time of heightened market volatility.
The low interest rate environment has also increased the appeal of private assets, such as private equity, real estate and infrastructure, where we have expanded our long-standing offering.
Continued investment in technology remains key to our long-term success
Our proprietary banking platform enabled us to stay close to our clients and to provide seamless and highly secure service throughout the crisis. We will continue to make significant investments in this technology, which has helped us build business with clients and third parties for over 25 years.
Market outlook
2020 was an unprecedented year for global economies and markets. As we move forward in 2021, Lombard Odier is cautiously optimistic in terms of market outlook. We remain focussed on our core mission of preserving and growing our clients’ assets, while managing potential risks.
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.
© Bank Lombard Odier & Co Ltd – All rights reserved
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