الخميس، فبراير 8 فبراير 2024
Pictet’s profit dips as the strong Swiss franc and a hefty US fine take a toll, yet the bank sees growth in asset management.
In 2023, Pictet, a Geneva-based private bank, experienced a notable profit drop, influenced by the Swiss franc’s strong performance and a substantial settlement with US authorities. Despite these challenges, the bank continued to attract new funds.
The asset management division reported a 25% decrease in profit, down to 577 million francs. The 122.9 million USD settlement with the US Department of Justice (DOJ) related to a tax evasion dispute was a significant factor.
Pictet acknowledged its role in aiding US clients to conceal over 5.6 billion dollars from US tax officials between 2008 and 2014, leading to an estimated 50 million dollars in tax evasion, per DOJ findings.
Considering “extraordinary factors,” the bank’s net profit saw a lesser decline of 9%. Senior partner Renaud de Planta highlighted that profits would have remained steady without the impact of foreign exchange rates.
De Planta explained the currency challenge: “Almost 80% of our managed assets are in foreign currencies, while about 60% of our costs and workforce are in Switzerland.” The Swiss franc’s strength notably affected the bank’s financials.
This currency impact extended to the bank’s revenues, with a slight dip in operating income to 3.16 billion francs, a 1% decrease. The bank faced higher costs in wages, rent, and supplier expenses.
On a positive note, assets under management grew by 4% to 633 billion francs, with net inflows totaling 16 billion francs across all regions and business sectors.
Despite the broader upheavals in the Swiss banking landscape, Pictet did not significantly benefit from Credit Suisse’s troubles. Instead, Pictet bolstered its private equity expertise, as de Planta noted.
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