Mirabaud, Geneva's third-biggest private bank, suffered a 16 percent drop in profit last year. The bank is now evaluating the products in the brokerage and corporate finance businesses.
Mirabaud had a profit of 27.1 million Swiss francs last year, down from 32.2 million a year earlier, the company said in a statement today. Assets under management were marginally higher at 32.8 billion, compared with 32.7 billion in 2014.
The Asset Management unit is managing 8.5 billion francs and Wealth Management has 24.3 billion under its wings. Mirabaud attracted one billion francs in new money, offsetting the negative impact of the fall on markets and the exchange-rate impact of assets denominated in foreign currencies, the bank said.
Drop in Fees
Mirabaud, Geneva's No. 3 after Pictet and Lombard Odier, suffered a 8 percent drop in fees, to 226.9 million, because of the fall in fees generated by the brokerage and corporate finance. Revenues of 291.1 million francs contrast with operating expenses of 250.5 million, up from 243.3 million a year earlier.
«In spite of a challenging environment in 2015 due to negative interest rates, fluctuating exchange rates and lower volumes on the brokerage market, our results reflect the impressive performance of our Wealth Management and Asset Management businesses,» said Yves Mirabaud, senior managing partner at the bank. «We recorded inflows of net new money in all the countries in which we operate, including Switzerland, which proves that our financial market is still attractive.»
Revamp of Brokerage Services
Mirabaud has a Tier 1 ratio of 21.06 percent, well above the levels of the requirements set by Basel III.
The bank has decided to overhaul the product line of the brokerage and corporate finance business in a bid to revive the performance. It aims to capitalize on activities adding real value and wants to profit from synergies.
