Rothschild & Co: 2020 – 1st quarter release
Very strong start to 2020 impacted by COVID-19 in March
Business highlights
- Global Advisory: revenue down 8% to €269.1 million (Q1 2019: €292.5 million), with the effects of the economic shocks caused by the COVID-19 pandemic being felt only later in the quarter
- Wealth & Asset Management: record first quarter with revenue up 10% to €130.8 million (Q1 2019: €118.5 million), reflecting the strong growth of Assets under Management (AuM) during 2019 and high level of transaction fees in Q1 2020
- Merchant Banking: revenue down 14% to €20.7 million (Q1 2019: €24.1 million), reflecting unrealised negative asset valuation effects in March, and down 9% when compared to the average first quarter revenue for the previous three years
- First quarter revenue impacted positively by currency translation effects of €5 million
Our response to COVID-19
- Our priority is the safety and welfare of our employees. Nearly all of our employees are now working remotely. A small number of critical staff are still working in our offices and we have ceased all travel.
- Our service to our clients has not been affected. We remain in constant dialogue with them through various secured technologies allowing us to maintain our efficiency and responsiveness.
- The Managing Partner monitors the situation on a daily basis and an Operations Committee meets frequently to respond to operational issues as they arise, while trying to anticipate the next potential phases and their possible impact.
- The Group is financially resilient; we have a strong balance sheet with a capital ratio of 20% and high levels of liquidity. Our prudent approach to the business is also reflected in our conservative loan book.
- Thanks to our staff, clients and operating synergies from our three-business model, the Group is confident it will emerge from this crisis stronger and fully able to continue to support our clients and future business opportunities.
Download the full 1st quarter results (PDF 302 KB)