Edmond de Rothschild’s Swiss bank said it attracted a record amount of net new money last year and warned that markets will continue to be volatile in 2016.
Clients added 8.2 billion Swiss francs ($8.2 billion) last year across all businesses, helping to boost assets under management 4.9 percent to 114.8 billion francs, the Geneva-based private bank and asset manager said in a statement Wednesday.
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The new money helped compensate for the impact of negative interest rates, adverse exchange rate effects and pressure on margins, according to the statement. Net income fell 11 percent to 56 million francs last year, reflecting “particularly difficult market conditions in the second half of the year, ” the bank said.
“2016 will be a year full of ambitions and challenges, ” Ariane de Rothschild, who chairs the Edmond de Rothschild group executive committee, said in the statement. “Notably, we will face continued turbulence this year owing to the high level of market volatility.”
Edmond de Rothschild, established in Paris in 1953 and present in Geneva since 1965, is led today by Baron Benjamin de Rothschild and his wife Ariane. The Swiss unit traces its roots to the acquisition of Banque Privee in Geneva in 1965. It was among about 80 Swiss banks that paid penalties and revealed how they helped Americans hide money from the Internal Revenue Service in exchange for agreements they won’t be prosecuted.
Edmond de Rothschild reported a solvency ratio of 31 percent, above the legal minimum of 12 percent, and taking into account a $45 million settlement with the U.S. Department of Justice in December.
The firm said last week it’s the subject of a French criminal probe regarding a former business relationship managed by a former employee, without providing further details.
Bloomberg, by Giles Broom in Geneva
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