Geneva-based private bank Lombard Odier reports strong results for 2024, with assets under management rising 12 percent. Private banking, in particular, stands out as a key driver of success. But net profit for the year declined.

Lombard Odier has made significant investments in private banking in recent years, especially following the collapse of Credit Suisse, the institution has recruited numerous advisors from the former banking giant.

These efforts are now delivering results. «2024 was a record year for private banking. We acquired many new clients,» said Hubert Keller, Senior Managing Partner at Lombard Odier, in an interview with finews.asia. The bank did not provide further details.

Strong Net New Money

As of the end of December 2024, assets under management (AUM) stood at 215 billion Swiss francs ($238 billion), marking a 12 percent increase compared to the previous year. This growth was primarily driven by strong net new money inflows and solid investment performance.

At year-end, the group’s total client assets amounted to 327 billion francs, reflecting an 11 percent increase year over year.

Interest Rate Impact Weighs on Earnings

Operating expenses remained flat at 1.11 billion francs. Investments in IT, infrastructure, and personnel were notable cost drivers, as were additional expenses related to the bank’s upcoming relocation. Lombard Odier is set to move into its new headquarters just outside Geneva this year, consolidating its various offices spread across the city.

Lower Net Profit

As a result of these factors, net profit for the year declined by 19 percent to 179 million francs.

Nonetheless, the bank's balance sheet remains strong and highly liquid, with total assets of 14 billion francs as of year-end 2024. The Common Equity Tier 1 (CET1) ratio stood at 32 percent – more than twice the regulatory requirement.

Cautiously Optimistic for 2025

Looking ahead, the bank remains confident. «In 2025, we will continue to focus on delivering first-class investment performance for our clients. Markets remain volatile, but we are cautiously optimistic. The outlook for US and global economic growth remains solid. We are confident in our ability to achieve our targets for 2025,» said Keller.

While volatility has increased, Lombard Odier sees a low risk of recession as the global rate-cutting cycle gains momentum. «The world’s major central banks will continue shifting rates from restrictive to neutral territory in 2025. This should allow growth to return to its long-term trend,» Keller added.