Reports

Profits Rise At Pictet

Tom Burroughes, Group Editor, 6 September 2018

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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.

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