Swiss private bank Lombard Odier released its half-year 2024 financial results this week. It also announced the appointment of a new managing partner, after Alexandre Zeller decided to retire.

Geneva-headquartered Lombard Odier's net profits were down 15 per cent in the first half of the year, compared with the same time in 2023, reaching SFr115 million ($136 million). 

Revenues were SFr665 million, down 6 per cent year-on-year, driven by a 30 per cent decline in the bank’s net interest income that reflected the increased cost of deposits from conversion to interest-bearing products. Operating expenses stood at SFr540 million, up 3 per cent year-on-year, reflecting the firm’s investment programme and the impact of the upcoming move to its new headquarters.

Assets under management (AuM) were up 8 per cent in the second half of the year, compared with December 2023, standing at SFr209 billion, largely as a result of positive market and currency effects. Overall, the group reported total client assets of SFr318 billion, from SFr296 billion at the end of 2023. 

The group said it saw solid new client acquisition within its private clients division, driven primarily by the recent investment in new talent. Meanwhile, asset management net inflows were impacted by clients shifting to higher interest rate cash solutions, the firm said in a statement. 

The group remains focused on delivering organic growth through its wealth and asset management businesses.

“We are now two thirds of the way into our current investment cycle, which will allow us to improve the efficiency of our overall business and deliver growth. It will also see us move into our new, landmark headquarters in Geneva,” Hubert Keller, senior managing partner, said.

New managing partner
Meanwhile, Alexandre Zeller has decided to retire as managing partner of Lombard Odier at the end of 2024. He joined the group as managing partner in 2019 and will become a non-executive board member of Banque Lombard Odier & Cie. 

Xavier Bonna (pictured) will become a managing partner of the Lombard Odier Group in January 2025, subject to regulatory approval, the firm added. With experience in private banking and investment management, Bonna joined Lombard Odier in 2016. He has since served in various senior roles in the private clients division, mostly active in serving the bank’s large client relationships. 

“As the generational transition of our partnership continues, we would like to thank Alexandre Zeller for his outstanding contribution to Lombard Odier. His experience and leadership have been a great asset to our firm, and we are pleased to see him join our board,” Hubert Keller said.

Market outlook 
Lombard Odier believes that global macroeconomic fundamentals remain solid, even as the US economy slows from above-trend levels. The bank judges recession risks to be low as the global rate-cutting cycle gathers pace. With major central banks continuing to shift rates from restrictive to neutral territory in 2025, growth should revert to longer-term trend levels. Nevertheless, the bank concluded that it is important to keep monitoring political and geopolitical risks.