Rothschild & Co: 2023 – Half-year results release

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Robust performance in a more challenging environment

  • Business performance:
    • Global Advisory: first half revenue down 21%1 to €676 million (H1 2022: €857 million), reflecting lower levels of completion activity in the first half of the year. Profit before tax (PBT) of €80 million for the period (H1 2022: €163 million), represented an operating margin of 12%
    • Wealth and Asset Management2: solid first half-year performance helped by market conditions and interest rates, with revenue up 24% to €403 million (H1 2022: €324 million) and PBT of €111 million, up 56% (H1 2022: €71 million). Assets under Management (AuM) increased to €102.4 billion (+9% versus December 2022) due to strong Net New Assets (NNA) of €2.9 billion coupled with positive market performance (€5.3 billion)
    • Merchant Banking: first-half revenue down 25% to €141 million (H1 2022: €188 million). A significant increase in recurring revenue (+31%), mainly driven by our successful fundraising efforts, was offset by lower investment performance revenue. This led to a PBT of €68 million (H1 2022: €121 million). AuM continued to grow, reaching €24.0 billion, up 5% (31/12/2022: €22.9 billion), of which the Group share was €2.1 billion
  • Revenue: €1,241 million, down 10% (H1 2022: €1,375 million)
  • Net income - Group share: €128 million, down 49% (H1 2022: €249 million) 
    • Net income - Group share excluding exceptional items: €149 million, down 40% (H1 2022: €249 million)
  • Earnings per share (EPS): €1.74, down 49% (H1 2022: €3.43)
    • EPS excluding exceptional items: €2.03, down 40% (H1 2022: €3.43)
  • Foreign exchange translation effects decreased revenue by €9 million with no effect on Net income – Group share

Alexandre de Rothschild, Executive Chairman, commented:

"After two record years in 2021 and 2022, the first half of 2023 has shown signs of slowdown. The more challenging market environment has impacted our Global Advisory and Merchant Banking businesses, whereas our Wealth and Asset Management business has benefited fully from the rise in interest rates and growth in AuM. Although the outlook is challenging, we remain confident that our Group will continue to perform well in 2023."

1Excluding our strategic investment in Redburn, revenue was down 25% with an operating margin of 14%. Redburn was treated as an associate until 30/11/2022 and fully consolidated from 01/12/2022.

2Asset Management US has been reclassified in “Other businesses” at Group level from 1 January 2022 following the completion of its disposal in April 2023.

- ENDS -

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