Edmond de Rothschild (Suisse) SA posted a +0.8% increase in assets under management, which reached CHF 109 billion at the end of the reporting year. Excluding changes in the scope of consolidation (CHF – 3.6 billion resulting from the sale of IFS in Italy), assets under management rose by CHF 4.5 billion, or +4.3%, compared with the end of 2013.
Despite an environment marked by increasing regulatory constraints, competitive pressure and historically low interest rates, the decrease in operating income was limited at CHF 15.2 million, or - 2.3%, with operating income reaching CHF 658 million.
Expenses declined by 4.3% to CHF 523 million, illustrating cost discipline despite investments designed to spur our growth.
As a consequence, gross profit rose 6.5% to CHF 134.5 million. The cost-income ratio improved to 79.5%, versus 81.2% in 2013.
Net profit came to CHF 63 million, down 16%, compared to last year, mainly as a result of extraordinary income in 2013 which did not recur in 2014.
Edmond de Rothschild (Suisse) S.A. continues to enjoy a healthy, liquid balance-sheet. This, combined with conservative risk management, enabled us to achieve a 32% capital ratio at end-2014—far above the 12% legal minimum, reflecting surplus shareholders’ equity of over CHF 700 million.