THE LOMBARD ODIER GROUP REPORTS RESULTS FOR THE FIRST HALF OF 2015
- Total client assets on 30 June 2015 amounted to CHF 209 billion, of which assets under management were CHF 155 billion
- Net inflows were positive across all business lines
- Consolidated net profit amounted to CHF 70 million, up 12% vs half year 2014
- Fully-loaded Basel III CET1 ratio stood at 22.7%
Client assets evolution
The de-pegging of the Swiss franc in January 2015 and the subsequent changes in the relative values of the euro and US dollar led to a decrease in total client assets, which was partially offset by the positive contributions of market performance and net inflows from each of our three business lines during the first six months of the year.
As a result total client assets stood at CHF 209 billion at the end of June 2015. Client assets in the private clients business amounted to CHF 112 billion, while asset management clients invested CHF 47 billion with Lombard Odier Investment Managers and technology & banking services clients entrusted the Group with an additional CHF 50 billion.
Rise in net profit
Despite the impact of foreign exchange and negative interest rates on our businesses, the Group’s consolidated operating income grew 6% from the first half of 2014 to CHF 558 million, benefiting from robust client activity. The operating cost-income ratio for the Group was stable at 80% reflecting ongoing strategic investments and a very prudent use of the balance sheet. “We achieved a strong financial performance in the first half of 2015 despite a difficult market environment, with net profit up 12% compared with the first half of 2014,” said Patrick Odier, Senior Managing Partner. “Our solid financial position allows us to maintain investments in our growth initiatives. We continue to focus on the expansion of our private clients business in Europe, Switzerland and the emerging economies, and continue to sharpen our asset management capabilities. 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 balance sheet is highly liquid and was not impacted by the de-pegging of the Swiss franc. Total assets amounted to CHF 17 billion as of 30 June 2015. The Group has no external debt and is one of the best capitalised globally with a fully-loaded Basel III CET1 ratio of 22.7%.