Geneva-based private bank Banque Heritage built on its favorable year-end results, by increasing operating income and reducing costs. In what could be a good sign overall for the industry, its assets under management increased.

Following a strategic realignment, Geneva-based Banque Heritage reported its net operating income increased 16 percent in the first half from the comparable year-ago period to 21.8 million Swiss francs ($24.5 million), according to results released Tuesday.

At the same time, it was able to reduce total costs by 3.3 percent to 18.3 million francs, resulting in a net profit of 3.5 million. Consolidated results showed a net group profit of 7 million francs, bolstered by the contribution from its Uruguayan banking unit.

Assets Under Management Grow

While it didn't provide exact numbers, Banque Heritage said that during the first half of the year «our assets under management have developed positively as a result of inflows and portfolio performances generated by our Asset Management team.»

To be sure, the results of one private bank are no guarantee of an industrywide upswing, it is nevertheless positive news for an industry that was battered last year by multiple developments. As other banks begin releasing their results, the reports will be pored over for signs of positive client inflows, Credit Suisse notwithstanding. 

Stragegic Transformation

«These solid results confirm the strategy adopted by our Board and Executive Committee over the last three years, which has enabled us to transform the bank's business model and refocus mainly on our Private Banking and Asset Management activities in a limited number of markets,» said CEO Marcos Esteve.

The statement went on to say that it maintains strong liquidity and capital ratios well above regulatory requirements.

The bank also saw its fund representation activities for foreign collective investment programs, launched last year, develop positively over the first half of the year. It will expand its scope to include paying agent services for equities and fixed-income securities.