Lower interest income at Lombard Odier led to a drop in revenues and overall profit for the first six months of 2024.
Lombard Odier posted a net profit of 115 million Swiss francs ($136 million) in the first half of 2024, according to the bank’s financial results, down 15 percent year-on-year.
Revenues fell 6 percent to 665 million, driven by a 30 percent decline in net interest income that reflected the increased cost of deposits from conversion to interest-bearing products. Operating expenses increased 3 percent to 540 million francs, reflecting the bank’s investment program and the cost of its headquarters relocation in Geneva.
AUM: Positive Market Impact
Assets under management rose 8 percent compared to end-2023 to 209 billion francs, largely due to positive market and currency effects. Overall, the group’s client assets increased by 22 billion francs during the six-month period to 318 billion francs.
«Solid new client acquisition» within its private clients division was driven primarily by the recent investment in new talent. The asset management business' net inflows were impacted by clients shifting to higher interest rate cash solutions.
«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,» commented Hubert Keller, senior managing partner at Lombard Odier. «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.»
