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February 26, 2021

Lombard Odier profit rises in 2020 amid strong inflows

Lombard Odier has weathered the Covid-19 storm, reporting a growth in net profit and assets due to strong net new money and favourable market impacts.

Highlights in 2020

Consolidated net profit stood at CHF208m ($229.6m), a 19% increase from a year ago.

Fresh money flows, investment performance and increased client activity in turbulent markets led to a 15% year-on-year rise in operating income to CHF1.4bn.

The CET1 ratio, a key measure of strength, was 29.7% at the end of December 2020. The liquidity coverage ratio was 231% at the end of the period.

Client assets as of 31 December 2020 totalled CHF316bn, a growth of 6% from the prior year.

Outlook

The bank aims to be “cautiously optimistic” in the current year and continue its goal of growing its clients’ assets while addressing potential risks.

Additionally, it said that it will continue to make “significant investments” in its proprietary banking platform.

Lombard Odier senior managing partner Patrick Odier said: “We delivered strong investment performance, generated significant net new money flows, and continuously invested in talent and growth opportunities, particularly in new sustainable investment solutions.

“Once again, our in-house technology was a critical factor in remaining close to our clients and managing risk.”

Lombard Odier also reiterated the key role of sustainability, alternatives and private assets in its investment philosophy.

Last month, the private bank extended its alliance with Plastic Bank, a social enterprise committed to eliminating ocean plastic.

It unveiled a new solution to help fund educational programmes in underdeveloped nations while helping minimise ocean plastic.

In November 2020, launched the Natural Capital strategy to offer exposure to public companies that use the regenerative power of nature. The vehicle is backed by Prince Charles of the Royal Family.

Last September, the private bank partnered with the University of Oxford to encourage research and teaching on sustainable finance, with a focus on climate change.

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