Geneva-based private bank Lombard Odier has reported a 20% year-on-year rise in net profit in the first half of 2021.

The firm’s consolidated net profit was CHF143m in the first six months through June 2021.

During the period, the firm’s client assets increased 11% from the end of December 2020 to CHF 352bn.

The surge was brought in by strong net new money flows over the six-month period, positive investment performance and market impacts, Lombard Odier said.

Operating income for the first half of the year was CHF717m, representing a 6% year-on-year increase.

The group said its balance sheet remains strong, liquid and conservatively invested at end-June 2021, totalling CHF20.8 bn

Lombard Odier Group senior managing partner Patrick Odier said: “These strong results reflect the strengths of our business model and our commitment to excellent client service.

“We have prudently managed our client portfolios, generating strong investment performance while attracting significant net new money.

“We have also continued to invest in talent, and in new sustainable investment solutions, including a range of strategies that address the urgent need for our global economy to transition to a net zero model.”

Focus on sustainability and technology

Lombard Odier said it has developed differentiated investment solutions and methodologies that allow it to measure the carbon risk inherent in any client portfolio.

These include a new science-based framework that facilitates the design of resilient investment strategies.

Furthermore, Lombard Odier plans to make significant investments in its proprietary banking platform, which helps to develop business with clients and third parties.

Market outlook

Lombard Odier said it would remain cautiously optimistic on the market outlook for the remainder of the year.

“As always, we remain focussed on our core mission of preserving and growing our clients’ assets, while managing potential risks,” it said.

Lombard Odier reported a growth in net profit and assets in 2020 due to strong net new money and favourable market impacts.