Assets under management or custody at Pictet Group dipped to CHF610bn as of 30 June 2022, compared with CHF698bn in the year-ago period.

The Swiss wealth and asset manager attributed the result to market fluctuations.

Pictet registered consolidated profit of $389m (CHF380m) in the first six months of this year, a 40% slump from CHF635m in the first half of 2021.

However, net profit for the same period rose 1% after adjusting for the one-off gain from the sale and lease back of the firm’s main building in Geneva.

The group’s operating income stood at CHF1.58bn in H1 2022, which is a year-on-year growth of 2%. Cost/income ratio remained stable at 70%.

Capital ratio totalled 23.5%, more than the minimum of 12% mandated by Swiss Financial Market Supervisory Authority (FINMA), on the basis of CHF3.06bn of total regulatory capital.

First-half operating income rose 2% to CHF1.57bn, while total operating expenses before tax increased 3% to CHF1.11bn.

Pictet Group senior managing partner Renaud de Planta said: “After two years of pandemic and following Russia’s invasion of Ukraine, the world entered a new and more fractured global order.

“Both events have inverted the macroeconomic backdrop of the past two decades, with a shift from low inflation and low interest rates to high inflation and rising interest rates.

“The impact of the market-driven drop in our assets under management has been partly offset by rising interest rates.”