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Rothschild & Co: 2019 – Full year results release

10/03/2020

Good results coming off the back of a record year 2018

  • Strong underlying business performance as evidenced by:
    - Global Advisory: number one adviser in Europe for more than a decade and number two globally by number of deals
    - Wealth & Asset Management: growth of 17% in assets under management thanks to strong net new assets of €2.4 billion and favourable market effect
    - Merchant Banking: growth of 27% in assets under management and a 9% increase of profit
  • Revenue decreased by 5% to €1,872 million (2018: €1,976 million)
  • Net income - Group share excluding exceptionals: €233 million (2018: €303 million) and Net income - Group share including exceptionals: €243 million (2018: €286 million)
  • Earnings per share (EPS) excluding exceptionals: €3.24 (2018: €4.10) and EPS including exceptionals: €3.38, (2018: €3.88)
  • Foreign exchange translation effects increased revenue by €23 million but had a negligible effect on Net income - Group share
  • +8% dividend increase at €0.85 per share, pay-out ratio of 26% 

Alexandre de Rothschild, Executive Chairman, commented:

“2018 was a record year for the Group and we are pleased that Rothschild & Co has again in 2019 produced good results thanks to outstanding employees, its balanced business mix, broad client reach and underlying strong European position.

“Our Global Advisory business has performed well despite lower market activity. We continue to advise on more transactions than any other adviser in Europe, providing solid revenue streams and placing us in a unique position to understand market trends and enabling us to provide the best advice to our clients. We enjoyed an exceptionally strong fourth quarter which gives us good momentum going into 2020.

“Our Wealth & Asset Management business continues to attract new clients thanks to our long-term investment approach. This has resulted in a high level of net new assets which, combined with positive market conditions, have contributed to further growth in assets under management.

“Merchant Banking enjoyed another strong year with positive developments across all of our strategies, as evidenced by a 27% growth in assets and a significant contribution to Group profits.

“We are delighted to announce that an increase of 8% in our dividend will be proposed to shareholders at our AGM in May. This reflects our confidence in the fundamentals of our business model and our ability to deliver growth and good returns over the medium and long term. Recent market events, notably linked to the outbreak of coronavirus, are obviously increasing the level of uncertainty in the short term in the different markets in which we operate but it is too early to determine the impact on our activity levels and profitability.”

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Download the full results (PDF 545 KB)

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