Reports
Profits Rise At Pictet
Assets under management and profits rose at the venerable Swiss private banking group in the first half of this year.
Pictet, which began
publishing financial results for the first time four years ago,
announced that its operating income in the first six months of
this year rose by 14 per cent year-on-year to SFr1.347 billion
($1.39 billion). Operating results rose by 31 per cent to SFr418
million, and consolidated profit rose by 30 per cent to SFr321.3
million.
Assets under management or custody amounted to SFr512 billion at
30 June, against SFr509 billion at 31 December 2017, with net
inflows more than offsetting slight negative market and currency
effects combined, the Geneva-based firm, which operates in
several regions, said.
In 2014, the group, along with firms Lombard Odier and
Mirabaud, began to
disclose financial figures after the banks changed their old
unlimited liability partnership structure.
The firm said that its core Tier 1 capital ratio – a typical
measure of a bank’s financial strength - rose to 21.8 per cent
(with SFr2.6 billion of Common Equity Tier 1. The Basel III
regulations stipulate a minimum core Tier 1 capital ratio of 4.5
per cent. Swiss regulator FINMA requires a minimum core Tier 1
capital ratio of 7.8 per cent.
The past six months have seen Pictet appoint former Julius Baer
chief executive, Boris Collardi, as a managing partner, a move
that came as a surprise to the market at the time. In June Pictet
Wealth Management said that its chief executive, Christian
Gellerstad, would be leaving in September. However, it stressed
that the departure of Gellerstad was not caused by Collardi’s
arrival, as reported in the media.
“All business categories have seen an encouraging growth in
revenues and profits during the first half of 2018, compared to
the first half of last year. These results reflect new client
acquisitions, strong client investment interest in certain equity
and absolute return strategies, and increased take-up of our
advisory offering,” Nicolas Pictet, senior managing partner,
said.
