Rothschild & Co’s Swiss wealth management business achieved its highest-ever net new money inflow in the first half of 2026, recording CHF800 million in fresh client deposits. The unit’s assets under management rose to CHF26 billion at end-June, up CHF2.8 billion from the prior-year period.
The performance reflects the cumulative impact of investments made in recent years, including the acquisitions of Banque Pâris Bertrand and Tenalis, a specialist in inheritance and estate planning. Despite the strong net inflows, the Swiss unit faced headwinds from the prevailing interest rate environment, with net interest income declining 26% year-over-year.
Commission-based revenue, however, increased 3.5% and trading results remained broadly stable compared with the first half of 2025. Currency effects weighed on overall earnings, reducing total income by approximately 4% due to the Swiss franc’s strength against the U.S. dollar (8.2%), euro (2.5%) and British pound (5.4%).
The appreciation of the franc disproportionately affected Rothschild & Co’s Swiss operations, where a significant portion of costs is denominated in local currency while a substantial share of revenues is generated in dollars or euros. The group also operates its global wealth management banking platform from Switzerland, amplifying the impact of exchange-rate movements.
International expansion initiatives, including the pending acquisition of Marcard, Stein & Co. in Germany—subject to approval by BaFin—and the takeover of Liechtensteinische Landesbank’s business in Dubai, weighed on profitability in the group’s non-Swiss operations, which slipped into the red. Rothschild & Co is also expanding organically in Spain and Israel, hiring additional staff to support growth in those markets. A corporate restructuring saw the group’s Luxembourg business reallocated to Rothschild Martin Maurel in France, resulting in a decline in reported assets under management and profit contribution from that segment.
The overseas investments align with Rothschild & Co’s long-term growth strategy. Within its Wealth & Asset Management division, the group currently oversees approximately €150 billion in client assets, targeting an increase to more than €200 billion over the next five to seven years. The wealth management and private markets businesses, operating under the Five Arrows brand, are positioned as a more stable counterbalance to the group’s more volatile global advisory operations.
The bank maintains a robust capital position, with a consolidated total capital ratio of 23.6%.
