Pictet announces full-year 2019 figures: assets under management at record high with strong net inflows
For the calendar year ended 31 December 2019, the Pictet Group reported a fall of 2.4% in operating income to CHF 2.629 billion, and a 9.5% drop in consolidated net profit to CHF 539 million. This was largely a consequence of continued investments in both staff and infrastructure. The Group added a net 374 employees in 2019.
Assets under management or custody rose by 16% to CHF 576 billion at 31 December 2019, which compares with CHF 496 billion at 31 December 2018, owing to a combination of strong markets and net inflows in the Group’s three businesses. Net new money in asset management, wealth management and asset services reached CHF 25 billion.
The core tier 1 capital ratio remained stable at 20.5% (based on CHF 2.59 billion of core tier 1 equity, which is the strongest form of equity), while the liquidity coverage ratio was 156%, both at 31 December 2019.
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.
Balance sheet exposure to fossil fuel producers and extractors
The Pictet Group announces that it has decided to eliminate balance sheet exposure (both gross and net) to fossil fuel producers and extractors (oil and gas, and thermal coal)1. These assets, which amounted to CHF 250 million at 31 December 2019, will be reduced to nil by 31 December this year.
Renaud de Planta, Senior Managing Partner, said, “We believe that, irrespective of collective public sector action on moving to a carbon-neutral economy, companies in the private sector should also advance this objective independently. As we have full control of our balance sheet, this is one undertaking that we can make now.”