Lombard Odier set new asset records in 2022, with assets under management reaching CHF 172 billion, up from CHF 165 billion at the end of 2021. The Swiss private bank attributed the growth to net inflows of CHF 7.4 billion and positive market performance, despite what it described as complex and volatile market conditions.
Record Assets and Net Inflows
The bank's assets under management rose by 4.2% over the year, driven by net new money of CHF 7.4 billion. Lombard Odier said that the inflows were broad-based across its client segments, including private clients, asset management, and its technology and services division. The bank's total client assets, including assets under management and custody assets, stood at CHF 325 billion at the end of 2022, compared with CHF 314 billion a year earlier.
Profit and Revenue Performance
Lombard Odier reported net profit of CHF 123 million for 2022, down from CHF 140 million in 2021. The decline was attributed to higher operating expenses, including investments in technology and talent, as well as the impact of the strong Swiss franc. Operating income rose to CHF 1.42 billion from CHF 1.38 billion, driven by higher net interest income and fee income. The bank's cost-income ratio improved to 79.8% from 80.5% in 2021.
Market Conditions and Strategic Outlook
According to Lombard Odier, the bank navigated a challenging environment marked by high inflation, rising interest rates, geopolitical tensions, and market volatility. The bank said it continued to invest in its business, including hiring new staff and expanding its digital capabilities. Lombard Odier's CEO, Hubert Keller, said in a statement: "Our results demonstrate the resilience of our business model and the strength of our client relationships, even in a complex and volatile market environment." The bank also noted that it had strengthened its balance sheet, with a Tier 1 capital ratio of 24.1% at the end of 2022, well above regulatory requirements.
Impact and Future Plans
Lombard Odier said it expects market conditions to remain challenging in 2023, but remains focused on long-term growth and client service. The bank plans to continue investing in technology, talent, and sustainable investing capabilities. The record assets under management and net inflows underscore the bank's ability to attract and retain clients despite headwinds, positioning it for continued growth in the coming years.
