Results to 30 June 2011
The Banque Privée Edmond de Rothschild Group posted higher earnings and continued to grow in the first half of 2011, bucking an environment marked by volatile markets, low interest rates and the negative impact of exchange rates.
Net profit up
Despite adverse economic developments, gyrating asset values and the weakness of the US dollar and euro, our consolidated net profit came to CHF 71.8 million, up 1.9% on the year-earlier period.
Gratifying increase in net fresh money
The Banque Privée Edmond de Rothschild Group continues to attract new clients. The inflow of fresh funds in the first half of 2011 amounted to CHF 4.0 billion, compared with CHF 4.1 billion at 30 June 2010. This ongoing growth reflects clients’ confidence in the professionalism of our wealth management teams and in our Group’s sound financial base.
Remarkably steady assets under management
Despite market declines and the negative impact of the US dollar and the euro, total client assets remained nearly flat and totalled CHF 92.1 billion at end-June 2011 (as against CHF 92.7 billion at 31 December 2010).
Outlook for the second half of 2011
Knowing that volatile asset prices and adverse exchange rates will weigh heavily on margins in the second half of 2011, we will maintain a prudent investment policy geared towards preserving clients’ capital. But we will also be studying the trends in financial markets with a view to capturing opportunities as they arise.
We continue to extend our international network in all our traditional areas of operation, but particularly in Asia where we should receive the licence for our new branch in Hong Kong this autumn. The unit will spearhead our expansion in Asia, a region that in our view will be instrumental in our Group’s growth and future success.