Your bank’s financial statistics for 2020, Yves Mirabaud, appear to be dismal at first sight — profit has plummeted dramatically. In comparison to 2019 and 2018, which both saw record revenue, this assessment may appear correct. We consider 2020 to be one of the five finest years in our 200-year history, with extremely good outcomes, notwithstanding the circumstances surrounding Covid-19. A 15% return on equity is reasonable.

Despite this, sales dropped 8% in a year when clients and investors were quite active. Several things have an impact on the fall. The weakening of the US dollar has an impact on our interest business. Yves Mirabaud began safeguarding our actively managed client portfolios in March, before the financial market instability, in terms of commission and trading income. As a result, around 60% of our clients were passively invested during this extraordinarily active market time – by which I mean that they were still involved during both the market dip and the market rebound. This was good for our clients and their portfolios’ success, but not so much for Mirabaud’s revenue.

Our culture is not to be aggressively out in the market, which may make us appear old-fashioned and conservative. Our customers didn’t have any issues with us. Clients didn’t lose much sleep as a result of the lower volatility in their investments, and performance was almost always positive. Actually, we did. Only Mirabaud is used for execution by two to three significant clients. That is, we carry out or make possible the client’s request. During the market volatility, we called some margin for these clients since their portfolios had a lot of leverage. As a result of this, their positions fell, and income decreased as well.

Yves Mirabaud experienced two distinct developments: we gained a large number of new wealth management customers searching for a safe haven in Switzerland.

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