media releases
Lombard Odier reports full-year 2022 results, attracting net new money in a volatile environment
Lombard Odier’s total managed client assets (AuM) ended the year 2022 at CHF 192 billion, down 12% from 2021. Throughout the year, the Group continued to attract net new money across its Private Client and Asset Management businesses. The Group’s total client assets stood at CHF 300 billion at end of 2022.
Operating income and earnings reflect challenging markets
Operating income for 2022 amounted to CHF 1,380 million, down 5% on 2021. Consolidated net profit was CHF 243 million, down 10% on an annual basis.
Strong balance sheet and capitalisation, the foundations of our stability
The Group’s balance sheet remains strong, liquid and conservatively invested, and totalled CHF 18.2 billion at end-December 2022. The Group has a significant equity base with no external debt. At end- 2022, the CET1 ratio was among the highest in the industry at 30% and the liquidity coverage ratio was 202%. Fitch reaffirmed the Group’s credit rating at AA- with a stable outlook in August 2022.
Hubert Keller, Senior Managing Partner, commented, “In a turbulent market environment, new and existing clients valued our advice and the stability of our business model. We attracted solid net new money across our Private Banking and Asset Management businesses.
We expect continued volatility in 2023 driven by a persisting tight monetary environment and below potential growth in the US and Europe, and maintain a balanced positioning in our multi-asset mandates. Lombard Odier is an active manager and sustainability remains a core investment conviction.”
Continued investment in sustainability expertise and development of new strategies
In 2022, Lombard Odier continued to invest in and expand its market-leading sustainability research and investment team. The Group also launched multiple new active investment strategies positioned to benefit from the environmental transition, including one on new food systems, one on the global carbon compliance markets, and one in sustainable private credit. Further fund launches linked to the transition are planned for 2023, notably around the themes of nature and the transformation of our energy systems.
As an investment house, Lombard Odier remains convinced that sustainable investing holds enormous potential to unlock performance for clients.
Market outlook
The 2023 investment outlook remains challenging. Falling energy prices and China’s reopening have brightened the global macroeconomic outlook, helping bring inflation down and reducing the likelihood of the worst recessionary outcomes. Nevertheless, with restrictive monetary conditions, still-elevated inflation and the risk of mild recessionary episodes in developed markets, it may be too early for risk assets to see a sustained recovery.
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
share.