Financial Results

Pictet Profit Down In 2015, AuM Up

Amisha Mehta Assistant Editor 15 February 2016

Pictet Profit Down In 2015, AuM Up

The Swiss private banking group generated “positive inflows” across its business lines but still saw net profit dip in 2015.

Geneva-headquartered Pictet saw its consolidated net profit fall 2 per cent to SFr452 million ($464 million) over the course of 2015 despite a rise in assets under management.

In its unaudited figures for the full year, Pictet reported a SFr2 billion increase in assets under management or custody to SFr437 billion at the end of 2015. 

The profit decline came in spite of a 3 per cent climb in operating income to SFr2.12 billion. The group generated net new money of SFr14.6 billion.

“We have seen positive net inflows on all our strategic markets – Switzerland, European Union and Asia – and from each business line – wealth management, asset management and asset services. This growth reflects our focus on clients’ long term interests and our ability to adapt to a changing environment,” said senior managing partner Jacques de Saussure.

As previously reported, the group's assets under management were down by SFr15 billion in the first half of the year at the hands of the Swiss franc surge, brought on by the de-pegging of the Swiss franc in January. Still, it managed an 11 per cent year-on-year rise in consolidated profit to SFr226 million over the half-year.

Pictet's core tier one capital ratio was 22.1 per cent – based on SFr2.15 billion of core tier one equity – while its liquidity coverage ratio stood at 195 per cent as of 31 December 2015. Pictet will release a full annual report at the end of April.

The group has been busy hiring in its asset and wealth management divisions. Most recently, Niall Quinn joined Pictet Asset Management as global head of institutional business (excluding Japan), while in December, Pictet Wealth Management hired JP Morgan's Cesar Perez Ruiz as its new chief investment officer. 

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