Lombard Odier Says Its Stability, Closeness To Clients Will Win In Gulf

We talk to the MENA International head and senior executive officer at the Geneva-headquartered bank about its approach to the Middle East market, particularly at a time of ferment in the world”s banking sector.

The private banking industry has been changed by consolidation
and while there are reasons some businesses go for scale, many
high net worth and ultra-HNW people prefer “pure-play” private
banking which is also bespoke and close to what clients want, a
senior Lombard
Odier banker says.

There’s been plenty of consolidation around – such as the
UBS/Credit Suisse merger in March of 2023 – and there may be
more to come. What is always at stake, but not always addressed,
is where this leaves the actual client.

In regions such as the Middle East, there remains a premium for
banks with tradition, the ability to be patient, and the capacity
to understand clients’ specific needs, Amer Malik (pictured),
head of Middle East International and senior executive officer,
told WealthBriefing. We met Malik recently at Lombard
Odier’s offices in Geneva.

“They [clients] are realising that bigger is not necessarily
better. They like a pure-play private bank with a Swiss heritage
and security,” he said.

Such qualities count when, for example, the Middle East region is
seeing more than $1 trillion changing hands between generations
between now and 2030, Malik said (1). He referred to industry
figures showing that more than 85 per cent of people who inherit
wealth decide to use a different advisor to their parents (2).
 

“What sets us apart is our ability to be nimble and bespoke,” he
said, arguing that Lombard Odier benefits from having a
relatively “flat hierarchy.”

In February, Lombard Odier reported that its assets under
management were SFr193 billion ($214.6 billion) at the end of
December 2023, up from SFr192 billion at end-2022. Positive net
new money inflows and a favourable market impact were offset by
negative currency effects, due to the strengthening of the Swiss
franc. At end-2023, operating income stood at SFr1.402 billion
(vs SFr1.380 billion in 2022); consolidated net profit was SFr221
million (vs SFr243 million in 2022).

DIFC and Abu Dhabi Global Market
Malik is based in the gate building of the
Dubai International Financial Centre. He was appointed to the
Swiss private bank in May last year, having previously worked for
Julius Baer for
more than eight years, and was also based in Dubai at that Swiss
private bank. Prior to that, he was at the private banking arm of
HSBC.

Dubai’s growth – it is now a major centre for non-resident
Indians, expat Europeans (UK, continental Europe, etc), and those
from the Middle East – makes it an important wealth hub. It
has added the expat, international dimension after having
initially…