MarketBank Lombard Odier & Co
Company Profile

Bank Lombard Odier & Co

The Lombard Odier Group is an independent Swiss banking group based in Geneva. Its operations are organised into three divisions: private banking, asset management, and IT and back and middle office services for other financial institutions. In 2022, the bank had total client assets of CHF 296 billion, which makes it one of the biggest players in the Swiss private banking sector.

History
The founding families The Lombard family (from Lombardi) arrived in Geneva in 1573 from Tortorella (Kingdom of Naples), fleeing religious persecution under viceroy Antoine Perrenot de Granvelle. The two sons of Theodoro Lombardi, César and Marc-Antoine Lombard, performed dressage and were involved in the horse trade. They received the title of burgesses of Geneva in 1589 for their services in the fight against the duke of Savoie. The family came from Pont-en-Royans in France. Louis Darier died accidentally shortly after the birth of his son, Hugues Darier, who became a prominent figure in clockmaking and obtained the title of burgess of Geneva in 1787. His son, Henri Hentsch (1761–1835), founded the family bank in 1796. In 1793, Henri Hentsch was arrested by the Genevan revolutionaries and temporarily exiled to Nyon, where he began a silk trading business with an associate, Edmé Mémo. Despite the environment of economic difficulty and increased unemployment, Henri Hentsch came back to Geneva to found H. Hentsch & Cie on 11 January 1796, at the age of 35. Initially a proctor of Henri Hentsch, Jean-Gédéon became his partner at the bank on 19 June 1798. In spite of this, the firm was able to continue in business. Jean-Jacques Lullin left the bank on 31 December 1815, but continued as a limited partner until his death in 1837. Therefore, from 1816 the firm took the name Jean-Gédéon Lombard & Cie until 1 January 1826, when Jean-Gédéon Lombard partnered with Paul-Frédéric Bonna. The bank then took the name Lombard, Bonna & Cie. On 31 March 1830, Paul Frédéric Bonna left the firm to start his own bank, Bonna & Cie. The bank remained active for almost a century, before being absorbed into Hentsch & Cie in 1920. Charles Odier, who was 25 years old at the time, had learned the banking profession from the firm Gabriel Odier & Cie, which was managed by his Parisian cousin, and held significant assets from the success of the company F. Courant & Odier, which he founded in 1826 in Le Havre for importing cotton from the USA. Jean-Eloi Lombard dedicated himself to local business while Charles Odier concerned himself with international business, particularly thanks to contacts that he had maintained from the US. In 1834, Alexandre Lombard, the third son of Jean-Gédéon Lombard (aged 24), became a managing partner for the bank. He was responsible for steering Lombard, Odier & Cie towards the American market, In 1857, the partners from Lombard, Odier & Cie participated in creating the Geneva Stock Exchange. On 1 December 1859, the only son of Charles Odier, Jacques (also known as James) Odier, became a partner at the bank. This followed his trip to the US in 1854 and his marriage to Blanche Lombard in 1856, the daughter of Jean-Eloi. Jacques Odier continued to grow Lombard, Odier & Cie on American soil. Along with Jules Darier-Rey, in 1872 he also co-founded the Genevan life insurance company Genevoise Compagnie d'Assurance sur la Vie, which would later be chaired by his son Émile and then his grandson Edmond. Alexis Lombard, the son of Jean-Eloi Lombard and brother-in-law of Jacques Odier, became a partner in 1866. He became a founding member of the Chamber of Commerce of Geneva in 1872, created the Genevan Bank of loans and deposits in 1881, and became a member of the board of the Swiss National Bank after it was created in 1907. Alexis Lombard and Jacques Odier remained partners at the bank for half a century, continuing to manage the firm through the First World War, while their descendants Albert Lombard and Émile Odier were conscripted into the Swiss army. had wide repercussions in Europe and on Swiss banks After the Great War, Émile Odier, (partner from 1890), Albert Lombard (partner from 1908), Albert's first cousin Jean Lombard (partner from 1913), and Émile's son Edmond Odier (partner from 1919) took over the management of the bank. In 1921, Lombard, Odier & Cie assumed ownership of the bank Lenoir, Julliard & Cie which was created in 1795. In 1929 and at the beginning of the 1930s, the Swiss financial sector was affected by the Wall Street crash of 1929 and the Great Depression, which impacted the whole of Europe. Several Swiss banks recapitalised or had to close, such as the Banque de Genève (1931) and the Comptoir d’Escompte de Genève (1934). Affected by its exposure to American markets, but eager to show that it would not be brought down by difficulties, Lombard, Odier & Cie changed its statutes in 1933 to become a general partnership, which held the group of acting partners responsible with their own personal assets in case of collapse. Nevertheless, the bank avoided this situation, and even absorbed Hentsch, Forget & Cie in 1934. In 1937, with the death of Edmond Odier, his wife Francine Odier-Dunant became a non-executive partner of the firm so that it could keep its registered company name and its status. She kept this position until her son Marcel Odier succeeded her in 1948. In 1941, the bank took ownership of SAGED, After the Second World War, business grew again: the bank's archives estimate that in 1950 its private clients’ assets reached nearly a billion Swiss francs and mostly came from Switzerland, France and Belgium. Under the management of Marcel Odier, the bank became international, opening its first branch in Montreal in 1951, and established its first investment funding in Canadian real estate aimed at its private clients. In doing so, Lombard, Odier & Cie regularly began to introduce funds in which institutional investors could invest money for them to manage. With the arrival of Jean-François Chaponnière, Alain Patry, and Fernand Oltramare as partners in 1964, then of Laurent Dominici and Pierre Keller in 1970, the bank continued developing its base of international institutional clients, and opened divisions in America, Europe, the Middle East and Asia. At the end of the 1990s, Lombard, Odier & Cie had around 800 employees, 600 of which were in Geneva, and 200 in foreign offices. The firm merged with Darier, Hentsch & Cie in the summer of 2002. Darier, Hentsch & Cie , inquiring about promissory notes negotiable in the United States (1811) Henri Hentsch turned to financing the French Empire from the year 1800. The bank Henri Hentsch & Cie most notably organised the transfer of funds to Italy, where the Empire was expanding. Thanks to its operations, Henri Hentsch had developed good relationships with the French upper class. After his death on 14 August 1835, his sons had already been for some time partners at the bank Hentsch & Cie in Geneva, but they did not take on managing the firms that their father had founded in Paris. In 1854, Édouard Hentsch (the grandson of Henri Hentsch) resumed managing of the bank Mathieu, Hentsch & Cie in Paris. He enjoyed a high-ranking career in finance, later becoming the president of the bank Comptoir national d'escompte de Paris, and then the Banque de l'Indochine, before founding the Swiss railways bank (Banque des Chemins de fer suisses). Away from this turmoil, the bank Hentsch & Cie continued its operations in Geneva and was passed down the family for several generations. In the 1950s, under the management of Léonard Hentsch, the bank Hentsch & Cie became a pioneer in the distribution of investment funds in Switzerland. In 1837, Jean-François Chaponnière founded the bank Chaponnière & Cie in Geneva, which then became the bank Darier, Chaponnière & Cie in 1876, during the time when Jules Darier-Rey became a partner. This then became Darier & Cie in 1880. Before becoming a partner at the bank, in 1872 Jules Darier-Rey co-founded the first life insurance company in Geneva, La Genevoise, with James Odier. As with the bank Hentsch & Cie, Darier & Cie was passed down through the family for several generations. One of the first merger projects between Hentsch & Cie and Darier & Cie was planned in 1971 by the Hentsch bank, but did not succeed then. In 1872, Quatuor merged with Omnium, another private banking association in Geneva founded in 1849, regrouping Paccard, Ador & Cie, P.F. Bonna & Cie, as well as Ph. Roget & Fils. Together, these firms partnered with the new Banque de Paris et des Pays-Bas to create the Finance Association of Geneva, with the aim of collecting enough capital to conduct financial operations in Switzerland and abroad. According to Bauer and Mottet (1986), this collaboration between Genevan private banks would be at the heart of their sustainability. Lombard Odier Group In the summer of 2002, Lombard, Odier & Cie merged with Darier, Hentsch & Cie, creating the partnership Lombard, Odier, Darier, Hentsch & Cie. The merger resulted in one of the most significant private banks in Switzerland, totalling 20 branches abroad, 2,000 employees, and EUR 95 billion in managed assets. The descendants of the four historical families, Thierry Lombard, Patrick Odier, Pierre Darier and Christophe Hentsch were included in the bank's partners until the departure of Pierre Darier in 2010. Some time later, the firm simplified its corporate name and became the Compagnie Lombard, Odier & Cie. On 31 December 2015, the Lombard Odier bank announced that it had come to an agreement with the DOJ, which consisted of a US$99.8 million payout to settle the disputes linked to tax noncompliance. The firm changed its legal structure on 1 January 2014, becoming a private company limited by shares, abandoning its status as a partnership, which held the partners responsible for their own personal assets indefinitely. This change of status also meant that the bank was henceforth obliged to publish its half-year and annual accounts. After losing its status as a partnership, the Lombard Odier Group considered itself obliged to leave the Association of Swiss Private Bankers, which dictated that its members hold this status. Thierry Lombard retired at the end of 2014, and his son Alexis Lombard left the firm in April 2016, joining the board of directors of Landolt & Cie in Lausanne. In December 2016, the Swiss Public Ministry launched a criminal enquiry into the activities of the private bank Lombard, Odier & Cie for suspected money laundering within the social circle of Gulnara Karimova, the daughter of the former Uzbek president. It was claimed that the bank did not take "all reasonable and necessary organisational measures", as the Swiss penal code requires. The bank stated that it had reported these money laundering activities to the authorities. Annika Falkengren, ex-Executive Director of Skandinaviska Enskilda Banken (SEB), succeeded her a few months later, and joined as a managing partner of the firm from July 2017 until the end of 2023. As of 1 January 2023, the Group had six managing partners. == Operations ==
Operations
Wealth management The Lombard Odier Group's historic activity lies in wealth management for a private client base (a private banking operation). This operation covers most notably the provision of asset management advice, financial investment advice, tax advice, and estate planning. The wealth management operations are mostly overseen in Geneva, at the Lombard, Odier & Cie SA bank, as one of the companies held by the holding company of the Lombard Odier Group. Operations from private banking accounted for 193 billion Swiss francs in outstanding assets from their Swiss and international clientele in 2023. This firm makes use of the Lombard Odier Investment Managers (Lombard Odier IM) brand, by which the Group is known in the international sphere of asset management. This operation mainly involves the management of investment funds placed into shares and bonds, which is added to by investment from hedge funds. These funds are also accessible for clients of the private bank Lombard, Odier & Cie SA, as well as for an international client base of institutional investors and financial advisers outside of the Lombard Odier Group. Since 2015, the management company Lombard Odier IM has been active in the area of ETF (exchange-traded funds), following its partnership with ETF Securities. In 2018, Lombard Odier IM was one of the first management companies to get through a settlement process managed by a private blockchain for the purchase of securities on the bond market. In 2022, the bank managed CHF 63 billion in its asset management branches. Banking IT services Since 2014, the Lombard Odier Group has been offering back and middle office IT services to other banking firms, through a tool dubbed "G2". This tool allowed users to manage their client base and buy and sell securities on the market. Initially offered to six external institutions, "G2 Pro" turned to another dozen banks as clients. The banking IT operations were trialed in 2016 at a separate company owned by the holding company for the Lombard Odier Group. The bank Lombard, Odier & Cie SA is itself a client of the organisation, in the same way as the external firms that it is able to equip. In 2022, this branch of the Lombard Odier Group managed CHF 58 billion from third-party clients. == Branches and international presence ==
Branches and international presence
Switzerland The head office of Hentsch & Cie was located in Geneva from its foundation in 1796. The location of the headquarters has, however, moved over the centuries. In 1858, the Hentsch & Cie moved into the rue de la Corraterie in Maison Gallatin (built in 1708). This remains as the oldest head office of the Lombard Odier Group in Geneva. Lombard, Odier & Cie had moved to the neighbouring house the year before. Between 1921 and 1924, the buildings belonging to the banks Hentsch & Cie and Lombard, Odier & Cie situated on the rue de la Corraterie were both rebuilt to allow for extra floors. In 1957, Lombard, Odier & Cie acquired the neighbouring building at 9 rue de la Corraterie. Before this space was inhabited by the bank's staff, it was entirely rebuilt in line with the plans made by the architect Antoine de Saussure. In 1990, all the administrative services for Lombard, Odier & Cie were brought together at a property located in Lancy. Over the years, Lombard, Odier & Cie slowly expanded over the street, buying adjacent houses from its competitors. For 2024, Lombard Odier plans to build a new head office in Bellevue, in the Canton of Geneva: the building has been designed by the architectural firm Herzog & de Meuron. The building will have the capacity to gather together all the staff of the bank, who have been spread across five different sites within Geneva. A part of the original building, la Maison Gallatin will be kept, renovated, and dedicated to event organisation. The Lombard Odier Group also has several branches and representative offices throughout Switzerland. The bank has been present in Lausanne since 1882, in Vevey and Zurich since 1989, and in Fribourg since 2008. Europe The Lombard Odier Group owns several European subsidiaries which were combined into one branch which opened in Luxembourg in 2011. The group of subsidiaries of the Lombard Odier in Europe were therefore considered in the legal and financial plan as branches of its Luxembourgish bank. today leading the asset management operations for the Group. The London branch was historically dedicated to the institutional management operations for Lombard, Odier & Cie, and therefore held the corporate name Lombard, Odier International Portfolio Management Ltd (LOIPM). This firm managed in particular the portfolios of institutional investors in the US and Middle East. Still under British jurisdiction, the group was also present in Gibraltar from 1987. The aim of the branch was to expand into a French institutional client base, and to further the distribution of investment funds from the Lombard Odier brand. The partnership ended in October 2008, and Lombard Odier launched its own office specialising in hedge funds, complementing its specialist offices for bondholder investments, asset allocation and socially responsible investing. Americas The Lombard Odier Group has been present in North America since 1951, when Lombard, Odier & Cie opened its first international abroad, in Montreal, Canada. This branch, initially created under the name Secfin Company Ltd, now bears the name Lombard Odier Securities (Canada) Inc. The Lombard Odier Group has also been present in Bermuda since 1992 and Nassau since 1979. As for Latin America, the Group has been present in Panama City since 2013. Lastly, the Group has had offices in Dubai and Abu Dhabi, as well as Tel Aviv and Johannesburg. == Philanthropy ==
Philanthropy
The tradition of banking families engaging in philanthropic or humanitarian causes originates in the 19th century. Alexandre Lombard in his time participated in a supporting committee aiming to raise money to help those injured in the Second Italian War of Independence. This came in response to the appeal from Henry Dunant, an initiative which would lead to the founding of the Red Cross in 1863. His son, Alexis Lombard, was a member of the administration committee at the General Hospice of Geneva for 38 years, assuming presidency of the institution eleven times between 1876 and 1900. The Lombard Odier Group has two philanthropic foundations: the Lombard Odier Foundation, a business foundation funded by donations from the Lombard Odier Group, and the Philanthropia Foundation, targeted at donations from private banking clients. The Lombard Odier Foundation distributes between 1 and 1.5 million Swiss francs a year, mostly to projects in areas of education and humanitarian works. In 2020, the foundation endowed the Lombard Odier associate professorship in Sustainable Finance at Oxford University stating, "The multi-year partnership will create the first endowed professorship of sustainable finance at any major global research university". The first holder of the position is Dr. Ben Caldecott. The Philanthropia foundation, created in 2008, invites clients of the bank to make donations for philanthropic work in five main areas: humanitarian and social, education and training, medical and scientific research, environment and sustainable development, and art and culture. To mark its 10th anniversary in 2018, the foundation announced that it had received a total sum of donations totalling CHF 116 million, and had given away every year an average of 10% of its assets to some 100 organisations (for a total of CHF 59 million, 15 million of which went to organisations for cancer research and prevention). The Philanthropia foundation has been chaired by Denis Pittet since 2016. ==See also==
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