Annual Report 2017

Rothschild & Co | Annual Report 2017

Rothschild Private Wealth & Asset Management

Rothschild Private Wealth

Rothschild Private Wealth provides a comprehensive range of services to some of

the world’s wealthiest and most successful families, entrepreneurs, foundations

and charities. In an environment where short-term thinking often dominates,

our long-term perspective sets us apart: we believe preservation-first is the right

approach to managing wealth.

We understand the issues wealth owners must address and can help them protect their assets. We advise our clients in

relation to all their financial and non-financial wealth. When helping our clients invest, we aim to deliver inflation-beating

returns and dampen volatility.

We have the scale, intellectual capital and resources to deliver, whilst still being able to provide a truly personal service. Our

distinct perspective makes us a secure and enduring home for our clients’ assets, safeguarding their legacy for generations.

We provide lending in Private Wealth (total loan book €2.8bn at December 2017) including private client lending (€2.4bn at

December 2017) such as loans secured on clients’ investment portfolios and mortgages secured on clients’ residential real

estate; and other lending (€0.4bn at December 2017) such as loans to clients’ businesses. Lending is complementary to our

investment management, wealth planning and administration services, and enables us to meet the wider private banking

requirements of our clients.

Looking ahead, we believe our Private Wealth division is well placed to meet the challenges our industry faces. The demand

for our advice-based, unconflicted business model, with stable and multi-generational family ownership makes us truly

distinctive in a crowded market. We continue to invest in our infrastructure and high-calibre people who work with clients

to become trusted advisers. Over the next few years, we expect to see continued growth with a sustainable improvement

in our profitability as we gain scale.

Rothschild Martin Maurel

Rothschild Martin Maurel combines the Group’s private banking activities in France, Belgium and Monaco.

2017 saw the successful completion of the plan to combine

the French private banking activities of Rothschild & Co and

Compagnie Financière Martin Maurel to create one of the

leading private banks in France. This merger reflects the

Rothschild & Co Group’s aim of expanding in private wealth

management. The new entity, which operates in France

under the name Rothschild Martin Maurel, retains an

entrepreneurial spirit and a human scale, enabling it to

remain close to its clients.

Rothschild Martin Maurel is a major independent player

in private banking in France, Belgium and Monaco, with a

differentiated positioning focusing mainly on entrepreneurs.

It can now leverage the complementary expertise of the two

groups and expand its range of services to encompass a

full corporate banking service for family SMEs (including

transactional banking, lending, etc.), an improved and more

diversified lending capability (wealth management, corporate,

real estate) and expertise in supporting real estate businesses.

The model is based on two core businesses, wealth

planning plus corporate banking services for family

companies. The teams are now structured on a regional

basis, in line with the Group’s geographical mix, while

maintaining a national dimension covered by the business

line heads (Private Banking, Fund Management, Wealth

Planning and Corporate Banking), with access to the rich

capabilities of Rothschild’s worldwide network.

At 31 December 2017, assets under management stood

at €21.2 billion versus €11.1 billion one year earlier, driven

by the merger with Martin Maurel, strong net inflows and

a positive market effect.

This strong asset growth bears witness to the successful

integration of the two groups’ front office teams, whose

ability to develop new business has not been affected by

the merger process. On the contrary, they have now begun

to harness synergies between the Group’s various business

activities, which will be even more visible in 2018.

In parallel, the information systems integration continues

according to plan, with unified front office systems due to

come on stream in the first half of 2018 and a single

banking system in the second half.

€21.5bn

of assets

managed by

RothschildWealth

Management

& Trust

€21.2bn

of assets

managed by

Rothschild

Martin Maurel

€1.3bn

of net new assets

in 2017 in Private

Wealth