Growth in operating income and earnings

Operating income for 2018 was CHF 1.2 bn, up 6% from a year earlier. This was driven by an increase in client activity across the business, accompanied by solid growth in net new money.

Consolidated net profit, excluding one-off items, was at CHF 165 million, up 13% from CHF 146 million in 2017. The positive net impact of one-off items amounted to CHF 107 million, giving total consolidated net profit of CHF 272 million.

Positive net new money

Total client assets at end-December, 2018 were at CHF 259 billion. Net new money flows were robust, which partially counteracted a negative market impact that reflected the sharp falls across most asset classes seen in the final months of the year.

Solid balance sheet and capitalisation

The Group’s balance sheet remains strong, highly liquid and conservatively invested, totalling CHF 17.5 billion. The Group has no external debt and is well capitalised, with a CET1 ratio of 29.9% and a liquidity coverage ratio of 196% at end-December 2018. Fitch reaffirmed the Group’s credit rating at AA- in July 2018.

“Market volatility increased in 2018, with a particularly negative impact in December. Against this background our results improved in 2018, reflecting, in part, the positive impact of new clients making Lombard Odier their bank of choice,” said Patrick Odier, Senior Managing Partner.

 “Our focus remains on delivering excellence and value for our clients. Although we begin 2019 with ongoing market uncertainty, we stay committed to growing our franchise in Switzerland and internationally, while conservatively managing our strong balance sheet.”

“Amid the current global shift transforming our economies, we have made further strides in embedding sustainability into our investment processes across the Group. We believe that investing according to the principles of sustainability will be one of the main drivers of return for our clients.”