Swiss private banks have once again showcased their resilience and adaptability, with the 2024 reporting season yielding largely favorable results. Amongst the leading banks, changes in assets under management (AuM) paint a positive picture, especially as the global markets enjoyed advantageous conditions throughout the previous year.
Key players within the industry, including UBS, Julius Bär, EFG, Pictet, Lombard Odier, Vontobel, and Union Bancaire Privée (UBP), reported their figures, demonstrating varying degrees of success. Notably, Julius Bär experienced significant growth, with AuM increasing from 427.4 billion francs to 497.4 billion francs, marking an impressive rise of 16.4 percent. On the other hand, EFG managed to grow its AuM by the same percentage, reaching 165.5 billion francs with 23.3 billion francs added.
Pictet also enjoyed growth with its AuM rising 14 percent to hit 724 billion francs as of the end of 2024, reflecting the bank's strong client engagement and market positioning. Vontobel observed its Private Clients’ AuM rise from 98 billion francs to 111 billion francs, showcasing a solid 12 percent rise. Lombard Odier increased its total to 327 billion francs, achieving 11 percent growth, whereas UBP reached 154.4 billion francs, up 10.1 percent.
Meanwhile, UBS, the largest among these banks, saw its Global Wealth Management assets increase from approximately $3,922 billion to $4,182 billion, up 6.6 percent. When converted to Swiss francs, this reflects about 15 percent growth within total AuM. Fee-generative assets grew 9.3 percent to reach 1,816 billion by the year's end.
Examining net new money—a key indicator of how effectively banks are attracting clients—EFG led the pack with net inflows of 10.1 billion francs, translating to 7.1 percent growth relative to its AuM. Vontobel followed with 4.6 billion francs, or 4.7 percent. Julius Bär and UBS reported net new money of 14.2 billion francs (3.3 percent) and $96.7 billion (equivalent to 2.5 percent), respectively.
While Pictet's net new money totaled 11 billion francs (1.7 percent), UBP achieved 1.7 billion francs, marking 1.1 percent growth. Lombard Odier, noted for presenting "positive" net new money, did not divulge specific figures.
From the perspective of revenue generation and cost efficiency, the performance of these banks revealed varied insights. The cost/income ratio—which highlights profitability—showed UBP with the best ratio at 67.7 percent, followed by Julius Bär at 70.9 percent. EFG's ratio stood at 72.1 percent, with Vontobel reporting 74.7 percent for their overall bank performance, though specific figures for their Private Client segment were not disclosed.
Pictet's previous year cost/income ratio stood at 77 percent but has yet to disclose updated figures for 2024. UBS followed with 79.5 percent, and Lombard Odier lagged at 83 percent, illustrating the varying levels of operational efficiency across these institutions.
Profit figures also reveal substantial performance variations. Vontobel recorded pre-tax profit increasing by 34 percent to 266.1 million francs, setting it apart from its peers. Pictet's profit rose 15 percent to 665 million francs, and UBP's profit increased by 15 percent, reaching 257.4 million francs.
UBS's pre-tax profit climbed from $3.45 billion to $3.94 billion, reflecting growth of 13.9 percent, whilst Julius Bär reported pre-tax net profit of 1.050 billion francs, up 11 percent from the previous year. EFG, meanwhile, achieved profit of 321.6 million francs, demonstrating growth of 6.1 percent. Sitting at the back was Lombard Odier, whose profit fell 19 percent, totaling 179 million francs, indicating challenges within its operational sphere.
Amidst these results, it is worth noting the entry of new players to the market. Alternative asset manager ICG has opened its first office in Switzerland, reinforcing its commitment to growth within the local sector. ICG has also appointed Jürg Rimle as its managing director, who previously held leadership positions at Fidelity International and Pimco.
Although some institutions are enjoying the fruits of favorable market conditions, the mixed results indicate the dynamic nature of the private banking sector. With heightened competition and shifting client preferences, these banks must continually adapt to maintain their competitive edge.
The full evaluations of these banks' performances provide invaluable insights across the private banking sector and highlight the importance of strategic management and client engagement as key elements for success. The completion of the reporting season signifies the need for these banks to strategize and prepare for potential challenges and opportunities on the horizon.