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Lombard Odier reports half-year results for 2022
Solid performance and stability, despite challenging markets
Client assets impacted by market corrections, but net new money was solid
The challenging environment and volatile markets of the first six months of the year resulted in significant corrections in asset valuations. Total client assets at end-June 2022 stood at CHF 310 billion, down 13% from end-December 2021. Nevertheless, net new money in our Private Client and LOIM businesses was solid in the first half of 2022.
Operating income and earnings reflect challenging markets
Operating income for the first half of 2022 was CHF 689 million, down 4% from the first six months of 2021. Consolidated net profit was CHF 136 million, down 5% from a strong first half of 2021.
Strong balance sheet and capitalisation, the foundations of our stability
The Group’s balance sheet remains strong, liquid and conservatively invested, and totalled CHF 24.7 billion at end-June 2022. The Group has a significant equity base with no external debt. At end-June 2022, the CET1 ratio was 29.5% and the liquidity coverage ratio was 217%. In August 2022, Fitch reaffirmed the Group’s credit rating at AA- with a stable outlook.
“During these turbulent markets, the solidity of our business model and our focus on prudently managing our clients’ assets were key, allowing us to attract net new money,” said Patrick Odier, Senior Managing Partner. “As an independent, long-term oriented private bank, we continued to invest in our people, technology and investment expertise, while maintaining close proximity with our clients at all times.”
Hubert Keller, Senior Managing Partner, further stated: “We continue to focus on our Group’s strategic priorities of sustainability and private assets, as both remain critical in helping our clients achieve their financial goals. In H1 2022 we launched multiple high-conviction sustainable investment strategies and further developed our expertise in private assets, both key areas where long-term value can be generated for investors.”
Leading the way in science-based sustainable investment strategies
Lombard Odier continues to lead in the field of sustainability, identifying how clients can most effectively invest in the environmental transition. In H1 2022, the Group launched new investment strategies in the spheres of Sustainable Private Credit, Plastic Circularity and New Food Systems, essential elements that will facilitate the transition to a sustainable economy.
In 2022, the Group also expanded its sustainable investment framework for private client portfolios, helping to mitigate risk, generate performance and deliver impact.
Market outlook
The first half of 2022 was very challenging for investors. As monetary tightening continues and growth slows in the second half, we anticipate more market volatility. We retain a cautious outlook and a prudent portfolio positioning.
Our mission for over two centuries has been to help clients navigate volatile markets while providing stability in uncertain times; values that remain at the heart of our business model. We remain focussed on preserving and growing our clients’ assets, while managing potential risks.
Important information
This media release has been prepared by Bank Lombard Odier & Co Ltd, a bank and securities dealer authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA) (hereinafter "Lombard Odier"). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This media release is provided for information purposes only. It does not constitute an offer or a recommendation to enter into a relationship with Lombard Odier, nor to subscribe to, purchase, sell or hold any security or financial instrument.
This document may not be reproduced (in whole or in part), transmitted, modified, or used for any public or commercial purpose without the prior written permission of Lombard Odier.
© Bank Lombard Odier & Co Ltd – All rights reserved
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