In line with its ongoing focus on sustainability, Pictet announced in its annual results that it would reduce balance sheet exposure to fossil fuel-related assets to zero by the end of this year.
The group said it scrap balance sheet exposure to fossil fuel producers and extractors including oil and gas, and thermal coal by December 31 this year. As of December 31, 2019, the bank had 250 million Swiss francs of such exposure on its balance sheet.
«We believe that irrespective of collective public sector action on moving to a carbon-neutral economy, companies in the private sector should also advance this objective independently,» said Renaud de Planta, senior managing partner at Pictet. «As we have full control of our balance sheet, this is one undertaking that we can make now.»
Assets Rise, Profits Dip
Overall assets under management at Pictet reached 576 billion Swiss francs, a 16 percent increase from 2018-end’s 496 billion Swiss francs which was attributed to strong markets and net inflows from all three business – asset management, wealth management, and asset services. Net new money from the trio of units for the year totaled 25 billion Swiss francs.
Despite robust asset growth, the Swiss pure-play registered a 9.5 percent dip in net profits to 539 million Swiss francs. Whilst Pictet posted just a 2.4 percent decrease in operating income, the lower profits were a result of continued investments in infrastructure and staff which saw a net increase of 374 in 2019.
