GENEVA, March 10, 2015 /PRNewswire/ --
- 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%
Growing client assets
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.
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 innovative wealth management solutions across the globe. Lombard Odier has developed significant private banking operations in Europe, Switzerland and emerging economies.
Lombard Odier Investment Managers (LOIM), the Group's asset management unit, seeks to deliver performance by identifying sources of both risk and return across its four investment pillars of smart beta, high-conviction,
absolute return and multi-asset risked based strategies. LOIM offers its clients a range of innovative solutions including risk-based asset allocation, thematic equity investments, convertible bonds 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 26 offices in 19 jurisdictions. The Group employs about 2,100 people.
The Group has a AA- Fitch rating with a "stable" outlook.
The Partners represent the seventh generation of bankers running the firm. As both owners and managers, they 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
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