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Lombard Odier reports half-year 2024 results and announces evolution in the Partnership
Lombard Odier’s assets under management (AuM) stood at CHF 209 billion at the end of June 2024, up 8% on end-December 2023. The AuM increase resulted largely from positive market and currency effects. Overall, at end-June 2024, the Group had total client assets of CHF 318 billion compared to CHF 296 billion at the end of 2023.
The Group saw solid new client acquisition within its Private Clients division, driven primarily by the recent investment in new talent. Asset management net inflows were impacted by clients shifting to higher interest rate cash solutions.
First half revenues were CHF 665 million, down 6% year-on-year, driven by a 30% decline in our net interest income, in line with most of the industry and reflecting the increased cost of deposits from conversion to interest-bearing products. Operating expenses stood at CHF 540 million, up 3% year-on-year, reflecting our investment programme and the impact of the upcoming move to our new headquarters. First half net profits were CHF 115 million, down 15% year-on-year.
The Group remains focussed on delivering organic growth through its Wealth and Asset Management businesses. Its expertise in sustainable investing is being recognised by clients, as evidenced by its appointment by Nest, the UK’s largest workplace pension scheme, to build and manage a mandate of USD 6 billion by 2030 that invests in global equities that are well positioned for the transition to a Net Zero, Nature Positive, and Socially Fairer economy.
Hubert Keller, Senior Managing Partner, commented: “What matters to us, as an investment firm, is to deliver solid performance for our clients in the face of markets that are increasingly uncertain. We have achieved this objective in the first half of the year and will continue to work hard to deliver results over the long term.
We are now two thirds of the way into our current investment cycle, which will allow us to improve the efficiency of our overall business and deliver growth. It will also see us move into our new, landmark headquarters in Geneva.”
Strong balance sheet and capitalisation
Lombard Odier’s balance sheet remains strong, liquid and conservatively invested, and totalled CHF 13 billion at end-June 2024. The Group has a significant equity base. As of 30 June 2024, its CET1 ratio was among the highest in the industry at 31.7% and more than double that required by the regulator. Fitch reaffirmed the Group’s credit rating at AA- with a stable outlook in July 2024.
Evolution in the Group’s Partnership
Alexandre Zeller has decided to retire as Managing Partner of Lombard Odier at the end of 2024. He joined the Group as Managing Partner in 2019 and will retire following a distinguished career in the banking industry. He will become a non-executive board member of Banque Lombard Odier & Cie*.
Xavier Bonna will become a Managing Partner of the Lombard Odier Group on 1 January 2025*. With extensive experience in private banking and investment management, Xavier Bonna joined Lombard Odier in 2016. He has since held various senior roles in the Private Clients division, mostly active in serving the Bank’s large client relationships.
Hubert Keller stated: “As the generational transition of our Partnership continues, we would like to thank Alexandre Zeller for his outstanding contribution to Lombard Odier. His experience and leadership have been a great asset to our Firm, and we are pleased to see him join our board*.
We look forward to welcoming Xavier Bonna as we build our next generation of Managing Partners. His passion for investments, leadership skills and dedication to clients underline what we stand for as a Bank.”
Market outlook
Global macroeconomic fundamentals remain solid, even as the US economy slows from above-trend levels. We judge recession risks to be low as the global rate-cutting cycle gathers pace. As major central banks continue to shift rates from restrictive to neutral territory in 2025, growth should revert to longer-term trend levels. Political and geopolitical risks will remain key to monitor.
*Subject to regulatory approval
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.
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