For the calendar year ended 31 December 2018, the Pictet Group reported a 5.7% rise in operating income to CHF 2.666 billion, and a 4.1% increase in consolidated net profit to CHF 596 million.
Assets under management or custody amounted to CHF 496 billion at 31 December 2018, slightly lower than at 31 December 2017. Inflows and outflows almost offset each other, resulting in net new money of CHF 1 billion.
The core tier 1 capital ratio stood at 21.1% (based on CHF 2.35 billion of core tier 1 equity, which is the strongest form of equity), while the liquidity coverage ratio was 164%, both at 31 December 2018.
These ratios compare with the minimum 7.8% core tier 1 capital ratio set by Pictet’s Swiss regulator FINMA, and the minimum 100% liquidity coverage ratio under the BIS’s Basel III requirements.
Nicolas Pictet, Senior Partner, said, “2018 was a particularly challenging year. Volatile equity markets unsettled investors, who were cautious as a result. While the market environment remains demanding, we see opportunities in investing counter-cyclically on a longer term view. We therefore continue to invest strongly in talent and in infrastructure, which represent our future success. This is something we can do as a private business.”
Transition in the Pictet partnership
Nicolas Pictet will retire from the partnership with effect from 1 September 2019. He has been a Partner of the Pictet Group since 1991.
Renaud de Planta, who joined Pictet as a Partner in 1998, succeeds him as Senior Partner. He is the second most senior of Pictet’s seven partners. He has spent much of his career at Pictet building and leading Pictet Asset Management, which now accounts for almost half of Group assets under management and profits. Previously, he spent 12 years with UBS, holding various management positions, including as CEO of UBS in Hong Kong and North Asia. He has a PhD and a Masters in Financial Economics from the University of St. Gallen and an MBA from the University of Chicago.
Nicolas Pictet will remain chairman of the board of Banque Pictet & Cie SA, the Swiss bank of the Group, and join the supervisory board of Pictet & Cie Group SCA, the Group’s managing entity, with effect from 1 September 2019.
Sébastien Eisinger, Deputy CEO at Pictet Asset Management and Head of Investments, will join the Pictet partnership with effect from 1 April, 2019. He entered Pictet Asset Management in 1999 as an investment manager on the fixed income team, rising to CIO Fixed Income before his current position. He began his career with Lazard Frères Gestion in Paris as a quantitative analyst. He holds a DEA (Diplôme d’étude approfondie) in Statistics and an MA in Mathematics from Paris VII University.
Nicolas Pictet said, “We are delighted to welcome Sébastien to the Board of Partners. With his entrepreneurial spirit, his long term thinking and deep investment experience in asset management, not to mention his knowledge of Pictet and appreciation of our distinctive culture, we expect him to make a vital contribution to our future success.”