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Rothschild & Co | Annual Report 2017
155
1. Overview
4. Financial statements
3.
Management report
2. Business review
Preferred shares
Preferred shares within NCI mainly consist of amounts calculated in accordance with legal clauses applicable to French limited partnerships owned by
Rothschild Martin Maurel SCS, the French holding company of our Private Wealth and Global Advisory businesses located in France. The preferred amounts
are based on the partnerships’ individual local earnings, and take into account the share that relates to workers’ remuneration.
Perpetual subordinated debt
Subsidiaries inside the Group have issued perpetual subordinated debt instruments which have discretionary clauses relating to the payment of the
interest. Under IFRS, these instruments are considered to be equity instruments and are shown as part of NCI because they were issued by subsidiaries
and not held by the Group. The interest payable on these instruments is shown as a charge to NCI. The instruments are shown below.
In thousands of euro
31/12/2017 31/03/2017
Perpetual fixed rate subordinated notes 9 per cent (£125 million)
166,605
172,905
Perpetual floating rate subordinated notes (€150 million)
58,270
60,474
Perpetual floating rate subordinated notes (US$200 million)
64,124
71,993
TOTAL
288,999
305,372
Rothschild Holding AG group
The Group holds a 90.09% (31 March 2017: 86.80%) economic interest in the equity of Rothschild Holding AG (RHAG), the Swiss holding company of
part of our Private Wealth business. The non-controlling interest in the Group’s income statement and balance sheet is calculated based on this
economic interest.
The following table shows a summarised income statement and balance sheet of the RHAG group of companies.
In thousands of euro
RHAG Group
Income statement information
01/04/17
31/12/17
(9 months)
01/04/16
31/03/17
(12 months)
Net banking revenue
158,839
214,432
Net income
19,109
16,784
Total other comprehensive income for the period, after tax
(1)
(38,728)
16,591
Total comprehensive income for the period
(19,619)
33,375
Balance sheet information
31/12/2017
31/03/2017
Cash and amounts due from central banks
2,658,600 3,324,725
Loans and advances to banks
255,165
170,521
Loans and advances to customers
1,120,016 1,125,283
Other assets
412,845
460,739
Total assets
4,446,626 5,081,268
Due to customers
2,743,959 3,341,049
Other liabilities
1,086,180 1,093,806
Total liabilities
3,830,139 4,434,855
Shareholders’ equity
616,487
646,413
(1) Other comprehensive income in RHAG comprises gains and losses from translation, actuarial movements and revaluation of long-standing shareholdings.