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Rothschild & Co | Annual Report 2017
31
1. Overview
4. Financial statements
3.
Management report
2. Business review
2015
(12m toMar)
2016
(12m toMar)
2017
(12m toMar)
(1)
2016
(12m toDec)
2017
(12m toDec)
(1)
25
25
25
7
82
×12
profit before tax
over 12 months
+40%
revenue growth
over 12 months
Financial results for 2017
Rothschild Private Wealth & Asset Management
revenue for 2017 was €514 million, up 40%
(2016: €368 million) mainly due to organic growth
and the consolidation of Martin Maurel (representing
€105 million of revenue).
In a highly evolving market that has been challenging
on several fronts including regulatory change
(MIFID II) and fee pressure from clients, we have
undertaken a number of initiatives to build revenue,
cut costs and refocus the business on its core
activities. This resulted in growth in profitability with
income, excluding Martin Maurel integration costs
of €27 million, rising to €82 million for 2017 (2016:
€7 million excluding Martin Maurel integration costs
of €6 million). This represents a 16% operating
margin (2016: 2%), significantly better than the
previous years.
In July 2017, the merger of the two private banks
in France of Rothschild & Compagnie Banque and
Banque Martin Maurel was completed and the French
private banking activity is now operating under the
name “Rothschild Martin Maurel”. The operational
integration is progressing to plan.
Assets under management increased to €67.3 billion
in 2017 due to €10.0 billion from the merger with
Martin Maurel Group, €1.7 billion of net inflows
and market appreciation partly offset by negative
exchange rate effects of €1.6 billion. Net new assets
were driven by inflows of €1.3 billion in Private Wealth
across all major geographies and of €0.4 billion in
Asset Management.
Profit before tax – excluding exceptional items
(2)
(in millions of euros)
(1) Including Martin Maurel Group.
(2) Exceptional items are Martin Maurel integration costs (2017: €27 million, 2016: €6 million).
Revenue
(in millions of euros, 12 months to December)
2013
2014
2015
2016
2017
(1)
299
319
382
368
514