Rising interest rates were the highlight of 2022 for management banks, and Pictet, which released its annual results on Tuesday, is no exception. The net interest income item has thus increased considerably compared to 2021, specifies Renaud de Planta, the senior partner of the Geneva bank: “Interest rates have normalized, following twelve years of abnormally low net interest margin, due to the policy of central banks. Even a few percentage point rise in interest rates has a huge effect.”
This increase offset the decline in management fees, caused by the 12% drop in assets under management in 2022. A year marked by an average market decline of 18% in dollars, the worst simultaneous drop in stocks and bonds since 1932, emphasizes Renaud de Planta.
Net profit of 768 million
Last year, Pictet increased its operating profit by 1% compared to 2021, to 930 million, while its net profit fell by 1% to 768 million. Revenues fell overall by 2% to 3.19 billion francs, while the bank posted a cost/expense ratio of 71%, an improvement compared to 2021 (72%).
Regarding the net inflow of funds of 4 billion recorded last year (compared to a record of 29 billion in 2021), Renaud de Planta notes that “when the markets are turbulent, customers are rather on the defensive and there are fewer movements from one bank to another, as the results already published by our competitors seem to show. But over three rolling years, we are within our objectives of net new money».
The bank has also announced the departure on June 30 of the partner Bertrand Demole, who will have sat for twelve years in the college of owner-managers. “We thank Bertrand for all that he has brought to Pictet and to the college over these many years, comments our interlocutor. He worked tirelessly to ensure the prosperity of the activities under his responsibility, such as trading orasset servicing. We will miss his entrepreneurial spirit, but we respect his decision and are delighted that he has agreed to serve as an independent director.”
Bertrand Demole’s responsibilities will be divided between Laurent Ramsey and Sven Holstenson, who will join the college on May 1. This date corresponds to that of the departure of Rémy Best, following twenty-five years spent in the group where he has been a partner since 2003.
Is Pictet looking for a new partner? “As evidenced by the appointment of Sven Holstenson to the college of associates, we are comfortable with the promotion of executives internally, because they share our values,” says senior partner Renaud de Planta. The bank will therefore have seven partners once these changes have been made.
Coal
On January 20, climate activists dumped 250 kg of coal in front of Pictet’s headquarters in Les Acacias, to denounce its investments in the German company RWE, via a fund classified as sustainable. Shortly before, demonstrations had taken place in the hamlet of Lützerath, in western Germany, where RWE has a project to expand the largest open-pit lignite mine in the country.
Read also: Lützerath, the German hamlet fighting once morest coal
Why should Pictet change its investments? “It is difficult to understand that NGOs who like us want the ecological transition blame us for being invested in this company, which is one of the largest investors in the world in renewable energies, concludes Renaud de Planta. Some 90% of RWE’s investments are indeed devoted to green energies such as solar and wind power; the company has pledged to phase out coal in 2030, well ahead of others. As shareholders, we are in dialogue with the management of RWE, this is how we can influence decisions. We can already measure the positive impact of this approach and we intend to continue in this direction.”
