Switzerland’s Lombard Odier Group profits have fallen 13% year-on-year, partly due to the strengthening of the US dollar.
Consolidated profits for the first half of the year stood at 61 million Swiss francs (€54.8 million) and client assets were described as “broadly flat”.
Currency fluctuations and investment in business activities were cited as main causes.
Currency fluctuations – in particular the strengthening of the dollar against sterling and the Swiss franc – saw client assets fall slightly, to 223 billion francs. However, currency movements were partly offset by net new money.
As a result, total client assets stood at 223 billion francs at the end of June 2016. Of this, client assets in the private clients business amounted to 112 billion francs, while asset management clients invested 48 billion francs with Lombard Odier Investment Managers, and technology & banking services clients entrusted the group with an additional 63 billion francs.
A decrease in foreign exchange trading and clients’ securities transactions led to a 7% drop in consolidated operating income, which stood at 509 million francs, and the group’s operating cost-to-income ratio increased by 3% to 83%.
Part of the reason was continued investments in each of Lombard Odier’s main business lines, such as private client investment advisory, and solutions within asset management, said the group.
”The financial performance of the group is in line with our expectations. It reflects both subdued market conditions and continued investments to maintain a first-class client experience,” said Patrick Odier, senior managing partner of Lombard Odier.
The group’s assets under management stood at 156 billion francs at June 30.
©2016 funds europe
