The Zurich-based private bank Rothschild & Co Bank looks back on a challenging financial year 2025. Net profit almost halved, while the cost-income ratio rose to more than 82 percent.

Rothschild Chairman Gary Powell writes in the annual report of a year «marked by geopolitical uncertainty and structural change.» Operationally, the business in Switzerland developed positively. The bank generated net new money of 802 million francs there, of which well over 535 million francs were recorded in the first half of the year.

The business in Germany was considerably less encouraging, where larger outflows resulted in net new money of only 13 million francs. Overall, assets under management amount to 35 billion francs, practically unchanged from the end of 2024.

Market and currency effects contributed 465 million francs, although the weakness of the US dollar, pound and euro against the franc had a dampening effect.

In the important commission business, Rothschild & Co was able to grow last year. Revenue here increased by almost 3 percent to 138,3 million francs, while trading income rose by 26 percent to 22,4 million francs. Clients were particularly active in the first half of the year, the bank said.

By contrast, the interest business generated around 24 million francs less income than in the previous year. This corresponds to a decline in net interest income of 36 percent to 42 million francs. Altogether, this results in total income of 223,6 million francs, or 6 percent less than in 2024.

On average over the year, the bank employed the equivalent of 479 full-time positions, a good four percent more than in 2024. Personnel costs increased by just under 2 percent to 134 million francs, while other expenses rose by a good 6 percent.

This resulted in an operating profit of 28,6 million francs, or 41 percent less than a year earlier. Net profit almost halved to 19,6 million francs (-48 percent), despite a significantly lower tax burden of just over 7,4 million francs. The cost-income ratio rose from 74,9 to 82,3 percent.

Rothschild Chairman Gary Powell emphasised the bank’s strong capital base. The total capital ratio stands at 23,1 percent, well above regulatory requirements. Liquidity ratios also remained clearly above minimum requirements, with an LCR of 162,2 percent and an NSFR of 146,3 percent.

Looking ahead to 2026, Powell warns of heightened geopolitical uncertainty and ambitious valuations, particularly in the US technology sector. At the same time, he sees support from solid US corporate balance sheets and rising European government spending.

The bank intends to continue investing in personnel, advisory expertise and sustainable growth.