Assets under management at Lombard Odier were CHF198bn ($225bn) in H1 2023, an increase of 4% from the end of December 2022.
Lombard Odier total customer assets at the end of June 2023 were CHF308bn.
Stable net profit and operational income
Operating income for Lombard Odier increased to CHF704m in the first half of 2023 (up 2% from end-June 2022), but consolidated net profit stayed the same at CHF135m.
The steady net inflows of fresh money in the first half of the year and the positive impact of rising markets more than outweighed any negative currency consequences.
Firm balance sheet and capitalisation
At the end of June 2023, Lombard Odier’s balance sheet, which was CHF15.5bn, was still stable, liquid, and wisely invested.
A sizeable equity basis supports the group.
At 30% as of 30 June 2023, the CET1 ratio was one of the highest in the sector.
In July 2023, Fitch confirmed the group’s credit rating at AA– with a stable outlook.
Hubert Keller, senior managing partner, stated: “As an investment house whose business model is solely focused on managing our clients’ assets, Lombard Odier consistently attracted net new money in the first half of 2023. As ever, organic growth remains our priority. We continue to hire in key markets and expand our presence in the region’s most relevant to our clients.”
New strategies from Lombard Odier after H1 2023?
Lombard Odier continues to be optimistic that the environmental transformation will lead to greater returns for clients.
In order to achieve this, Lombard Odier Investment Managers (LOIM) and premier system change company Systemiq introduced holistiQ, a sustainable investment platform, in June 2023.
In addition, the Future Electrification Strategy of LOIM was introduced in H1 2023. As the global energy system migrates to an electrified, decentralised, clean, and efficient paradigm, the strategy seeks to seize possibilities linked with new and shifting electrification profit pools.
With more than $400m raised since the fund’s May inception, there is already considerable investor interest.