Lombard Odier exceeds the 300 billion mark under management

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Lombard Odier crossed the 300 billion mark under management in 2020, after finishing 2019 at 299 billion. Net capital inflows reached 12 billion last year, or 4% of assets, in the range of 3 to 5% targeted by the bank. The markets had a positive effect of 5 billion, so that the assets under management amounted to 316 billion francs at the end of 2020 (+ 6%), according to a press release released on Thursday.

The “net new money” was positive in private management, which represents 187 billion in assets, and in institutional management (62 billion in assets). The launch of a dozen new strategies, particularly in sustainable management, also supported capital inflows, specifies in Time Patrick Odier, the senior partner of the banking group.

IT investments

Lombard Odier’s third activity, IT services, is linked to CHF 67 billion in assets. The Geneva group has hosted ten establishments on its IT platform, since the Syz group joined it in 2019. “Negotiations are underway with other partners but we decided in 2019 to take a break from integrating new establishments, to define the necessary investment strategy in order to have the most efficient technological platform in the long term, ”observes Patrick Odier.

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The bank plans to modernize this infrastructure, rethinking its basic architecture and adopting new technologies. This project is the second most important investment in the history of the group founded in 1796, after the construction of its new headquarters. in the Geneva municipality of Bellevue, which should be inaugurated in 2023. The acquisition of the plot that will house the future building had cost 49 million.

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Our interlocutor avoids giving a figure for the investments made in IT, except that this cycle should last 5 to 7 years. In an interview with Sphere magazine in September 2020, the partner in charge of this profession, Alexandre Zeller, recalled that the long-term objective of the IT services activity was to generate revenue representing around a third of Lombard’s IT budget. Odier, which employed 2,560 people in 24 jurisdictions at the end of 2020.

Operating income + 15%

On the income side, operational turnover rose 15% last year to 1.405 billion francs. Two main factors explain this development, according to Patrick Odier: “On the one hand, the high level of assets at the start of 2020, which serves as the basis for calculating management fees, and on the other hand the marked increase in transactions in the first half of the year, in order to rebalance the portfolios. ” Net profit amounted to 208 million francs, up 19%. The cost-to-income ratio stood at 74%, an improvement from 79% in 2019. Return on equity was 15.4%, compared to 14.1% in 2019.