The Lombard Odier Group reports 2014 results
Growing client assets, earnings on track and a solid balance sheet.
- Total client assets on 31 December 2014 amounted to CHF 215 billion, of which assets under management were CHF 161 bn, up CHF 8.6 bn
- Consolidated net profit for the full year 2014 was CHF 120 million
- Fully-loaded Basel III CET1 ratio stood at 22.6%
Total client assets stood at CHF 215 bn at the end of 2014. Of this, total client assets in the private clients business amounted to CHF 116 bn while asset management clients invested CHF 49 bn with Lombard Odier Investment Managers and technology & banking services clients entrusted the Group with an additional CHF 50 bn.
The increase in assets under management is a reflection of positive market performance and net inflows from the private clients business. The asset management unit recorded net outflows, mainly driven by a decrease in money market funds due to the low interest rate environment.
Earnings on track
The Group’s consolidated operating income in 2014 was CHF 1,030 m and the expenses were CHF 838 m. The operating cost-income ratio for the Group stood at 80% reflecting continued strategic investments, a very prudent use of the balance sheet and reduced transaction levels.
“Our earnings in the second half of 2014 were on track as the bank positions its businesses for the future,” said Patrick Odier, Senior Managing Partner. “Our private clients business will continue to expand its reach in Switzerland, Europe and the emerging economies; our asset management unit will continue to focus on distinctive and innovative investment solutions and our technology & banking services business will further develop its platform for the benefit of our own and third-party clients.”
A solid balance sheet
The Group has no external debt and is very well capitalised with a fully-loaded Basel III CET1 ratio of 22.6%. The Swiss National Bank’s decision to end the minimum exchange rate of CHF 1.20 per euro had no impact on the bank’s balance sheet nor on its capital ratios. Fluctuating exchange rates and volatile market developments may, however, impact the bank’s earnings in the coming year.