The Genevan wealth manager hiked its profits and assets considerably in the first half. Patrick Odier, its senior managing partner, details the reasons to finews.asia.
Patrick Odier's goal is to position Switzerland at the top of the sustainability boom. He has put the issue at the center of investment philosophy at Lombard Odier, which he has led for the past 13 years – and the strategy appears to be bearing fruit. Odier is poised to hand over as senior managing partner to Hubert Keller in 2023.
Lombard Odier's profits rose 20 percent to 143 million Swiss francs ($156 million) in the period and assets climbed 11 percent to 352 billion francs, the wealth manager said in a statement on Thursday. Odier (pictured below) detailed the assets as 207 billion francs in private banking, 68 billion in investment management, and 76 billion on its technology platform.
«Our new money displays a good combination of a rise in private banking and in investment management, though market performance also lifted our assets,» he said.
The rise in investment management, where the 225-year-old Swiss bank's product offering has swung towards sustainable products in recent years, was particularly noteworthy. The shift is paying off, with Odier noting that the unit has been growing for several years.
«This however was not immediately obvious, due to strategic changes we made to the product and investment strategies. The result of our repositioning is that Lombard Odier's investment portfolio is more innovative, and delivers better performance, Odier said.
The eponymous Swiss bank lifted revenue six percent to 717 million francs in the first half, while its profit rose by one-fifth. The combination of asset growth and performance in client portfolios produced a leverage effect, Odier noted. «And thanks to consistent spending discipline,» he added. Lombard Odier's cost-income ratio, at a frothy 80 percent two years ago, dropped to 71 percent in the first half.
Hiring Bankers
Lombard Odier is still investing, including a strategic program to bolster both its investment expertise as well as its technology, but also to open a branch in Sao Paolo. The wealth manager also recently inked a pact with a Swiss cantonal bank over sustainable investments.
This means hiring: «We hired more than 70 new employees in the last six months alone mainly in Switzerland, primarily in investment expertise and client advisory, Odier told finews.asia. The bank also recently hired a team for private debt offerings.
Science-Based Research
While clients look to solidly capitalized lenders like Lombard Odier or its hometown rival Pictet for security, they are also increasingly looking closely at how serious private banks are about their sustainability efforts. This includes how well they are distinguishing themselves with their product offerings and scientific evaluation on the topic.
Lombard Odier partnered recently with Oxford University on finance and investment research on climate change, circular economy, and nature. «We want to keep this head start, and we will continue to invest in science-based research,» Odier said.
