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Rothschild & Co | Annual Report 2017
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Dear Shareholders,
2017 has been another strong year for Rothschild & Co. Our
Group has reached global scale today which demonstrates
the relevance of our model and our values. We believe that
purpose and principles allow us to hire some of the most
talented individuals who together form true partnerships
and teams across more than 40 countries.
Our Global Advisory business had another record-breaking
year in terms of revenues and we maintained our leading
position as the number one advisor for the number of deals
globally. Private Wealth and Asset Management saw a
significant improvement in revenue and profits thanks
to tight cost control and strong organic growth. Our more
recently developed Merchant Banking business is starting
to reach maturity and we saw its revenue jump 39%.
Thanks to these strong results, our shareholders will be
rewarded with a dividend of €0.68 per share, which
although at the same level as last year, represents an
effective increase since it is only for a shorter nine-month
period, in line with our progressive dividend policy. This will
be subject to approval at the Annual General Meeting to be
held on 17 May 2018.
Global economic activity gathered momentum and
broadened through 2017, bringing the economic cycle
to a high point. Signs of excess remain limited despite
some variations; US consumer finances remain healthy and
despite the political uncertainties which persist, especially
in the UK, we believe the business climate can continue to
offer opportunities, even if it is more reasonable to think
that the growth cycle is close to full maturity.
In the long term, there are certain risks, such as inflation,
which could lead central banks to adjust their monetary
policy or even gradually increase their interest rates. This
partly explains why volatility has recently revived after a
particularly favourable 2017. That said, we believe that
markets still offer attractive opportunities for far-sighted
managements and investors.
Message from the Chairman
Long-term thinking is also one that has always guided us
in our strategic choices. The integration of Rothschild &
Compagnie Banque and Banque Martin Maurel in France,
was finalised in July to create Rothschild Martin Maurel
and we welcomed some 500 new colleagues to the Group,
whilst expanding our geographic footprint, essentially in
France. The combination of two family-owned businesses
that share a similar history and understanding of their
industry is on track to creating a first class group to serve
our clients.
Before ending my message I would like to share with you
some information concerning our investment in the United
States in mergers and acquisitions and restructurings.
In this world leading market, we have significantly
strengthened our teams in New York, continued to develop
in Los Angeles, Chicago and launched our new team
specialising in technology, based in the heart of Silicon
Valley. We will pursue this investment policy which we
believe will lead to strong results.
At the end of this more than satisfactory period, I would
like to take this opportunity to thank our shareholders and
our clients for their support. I would also like to thank all
those who work in our Group, who always give their utmost
in support of our firm and its clients.
David de Rothschild
Chairman of Rothschild & Co Gestion
Managing Partner of Rothschild & Co