Pictet Group
Pictet corporate ratings
Rating agencies play a key role in the world of international finance by enabling financial institutions to evaluate the credit quality of their counterparties.
Ratings of Banque Pictet & Cie SA
According to FitchRatings and Moody’s Investors Service, two of the major international rating agencies, Pictet’s ratings, shown below, are among the highest in the banking industry.
| ITEM | RATING |
|---|---|
| Long Term Deposit Rating | Aa2 |
| Short Term Deposit Rating | P-1 |
| Adjusted Baseline Credit Assessment | a1 |
| Outlook | Stable |
Moody’s Long Term Deposit Rating was assigned in 2009 and upgraded to Aa2 in 2015.
| ITEM | RATING |
|---|---|
| Long Term Issuer Default Rating (LT IDR) | AA- |
| Short Term Issuer Default Rating (ST IDR) | F1+ |
| Viability Rating (VR) | aa- |
| Outlook | Stable |
Fitch LT IDR has remained unchanged since the rating was assigned in 2005.
These ratings attest to Pictet’s financial solidity. Our capital and liquidity bases are significantly larger than what is required by Swiss banking regulations, which are among the most stringent in the world. The high ratings additionally reflect Pictet’s consistent strategy and management, exemplary asset quality, high profitability and its position as one of the largest Swiss wealth and asset managers. Although these ratings are assigned to Banque Pictet & Cie SA, they are based on an assessment of the consolidated Group and thus reflect the credit strength of the firm as a whole.
You can find more details about our current capital position, which places us among the strongest financial firms globally, in our document about financial solidity and other protections for client assets.
Ratings reaffirmed
Moody’s
Pictet’s Aa2 rating, with a stable outlook, is reaffirmed by Moody’s Investors Service, as stated in a press release issued on 30 September 2024.
Extracts from the press release
“Banque Pictet’s a2 BCA reflects the bank’s profile as a conservatively managed Swiss private bank. Banque Pictet’s sizable liquid resources and strong capitalization are strong mitigants against the reputational, legal and operational risks as well as the short contractual tenor of predominantly uninsured deposits, which are typical characteristics of private banks.”
“Banque Pictet has an extended track record of successfully adapting its wealth management solutions for high net-worth and ultra-high net-worth customers to the evolving market environments, including an early focus on sustainability in investing as well as on private markets in recent years.”
“Banque Pictet’s a1 Adjusted BCA is among the highest globally and mainly benefits from our assessment of additional capital resources and profit-generation capacity at Pictet Group, based on the Group’s sizable additional asset management and asset custody operations. We capture the Group’s overall credit strengths through one notch of affiliate support uplift supporting Banque Pictet’s ratings.”
FitchRatings
On 12 July 2024, Fitch Ratings reaffirmed Banque Pictet & Cie SA's (BPSA) Long-Term Issuer Default Rating (IDR) at 'AA-' with a Stable Outlook and Viability Rating (VR) at 'aa-'.
Extracts from the commentary
“Banque Pictet & Cie SA (BPSA) is the Geneva-based main operating bank of the Pictet Group (Pictet). Its ratings are driven by the Group's stable wealth management-focussed business model, international brand recognition, conservative risk profile with little credit risk, strong profitability and robust capitalisation.”
“Pictet is one of Switzerland's largest wealth managers. Its business model, which also includes an established asset management franchise, has continued to perform well in recent years. While the business model is confidence-sensitive, Pictet's long operating record, sound financial profile and strong liquidity demonstrate its ability to manage this risk extremely well.”
“The loan book is small, and the securities and repo portfolios represent about 50% of total assets. Securities are highly-rated sovereign, public-sector and supranational debt.”
“The Group's consolidated common equity Tier 1 (CET1) ratio of 28.7% at end-2023 was very comfortably in excess of regulatory requirements.”
“Central bank placements, a portfolio of high-quality debt securities and repos represent over half of total assets and reflect the Group's conservative liquidity management.”