Lombard Odier Posts Resilient H1 Results

Editorial Staff 28 August 2020

Lombard Odier Posts Resilient H1 Results

The bank, which operates in a number of regions, delivered a solid performance in a difficult six months. It said it will be taking a "prudent and agile" approach to the rest of the year with sustainability integration helping portfolio performance.

Geneva-based private bank Lombard Odier, which is present in a number of jurisdictions, reported strong net new money flows in the first half of 2020, which were largely offset by difficult market conditions. Total client assets for the end of June stood at SFr290 billion ($319 billion), down by 3 per cent since the end of December 2019.

Operating income for the first six months rose by 16 per cent from a year ago to SFr674 million, driven by strong net new income and increased client activity in volatile markets. Consolidated net profit to June stood at SFr119 million.

A total balance sheet of SFr20.6 billion remains “highly liquid and conservatively invested,” the group reported. It said that the bank is well-capitalised, with a CET1 ratio, a standard measure of capital strength, of 29.7 per cent and a liquidity coverage ratio of 238 per cent for the first six months, and it is not carrying any external debt. The firm runs 29 offices in 23 jurisdictions, employing roughly 2,500.

Senior managing partner Patrick Odier said results were “strong” and reflected client trust. “We have systematically sought to position portfolios to shield clients from the worst of the market falls and benefit from the gradual recovery since mid-March. Our sustainability integration enhanced portfolio performance, while we generated significant net new money flows across our businesses, even amid the pandemic,” he said.

Looking ahead, Lombard Odier said the rest of the year would remain challenging. “Conscious of the need to manage potential risks, the bank will remain prudent and agile in the management of clients’ assets.”

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