30% net income growth, on a proforma basis
Results that confirm the strength of our model:
> Consolidated net profit up to CHF 76 million, up nearly 30%, on a proforma basis (excluding Edmond de Rothschild Bahamas in 2016, a published 20% increase).
> Gross operating income rose 12% and cost income ratio improved by almost 2 points, on a proforma basis.
> Client assets peak at an all-time high of CHF 137.4 billion.
> Strong financial position with a solvency ratio of 28%, which is well above the legal minimum of 12%, and a capital surplus of almost CHF 630 million.
> A proposed dividend of CHF 75 million, up 11%.
Revenues of Edmond de Rothschild (Suisse) S.A. increased by +2.2% on a proforma basis (+0.5% for the published figures).
Assets reached a record high of CHF 137.4 billion and increased by 16%, driven in particular by the growth in assets under management, the complete integration of the activities of Edmond de Rothschild Asset Management (Suisse) S.A. as of 30 September 2017 and a market effect of +11%. Lastly, refocusing the Group’s client-base and on its priority markets had a CHF 2.5 billion negative impact on assets under management.
In this context of significant transformation and investment, expenses were stable (-0.9% +0.0% proforma basis) and amounted to CHF 530 million.
Gross operating income amounted to CHF 128.4 million, up 12% on a proforma basis, with an improvement in the operating ratio of almost 2 points compared to 2016. Consolidated net profit at CHF 76 million is up nearly 30% on a proforma basis and a dividend of CHF 75 million will be proposed at the Annual General Meeting, up 11%.
Edmond de Rothschild (Suisse) S.A. continues to benefit from a solid and liquid balance sheet which, combined with conservative risk management, enables a consolidated solvency ratio of 28% at the end of December 2017, well above the legal minimum (12%), reflecting a capital surplus of nearly CHF 630 million.