Although the headline net income figure for 2020 fell, the firm said that after a tumultuous year its figures held up relatively well.

Rothschild & Co, the French partnership, yesterday announced that its net income fell to €161 million ($191.4 million) in 2020, down from €243 million from a year ago, with revenues falling to €1.799 billion from €1.872 billion. A fall in merchant banking revenue hit the bottom line result.

The wealth business logged net inflows of €2.9 billion across its main geographic areas. There was “resilient financial performance” in Europe, with revenue rising by 3 per cent to €470 million, and pre-tax profit in that area rising by 9 per cent reaching €74 million (2019: €68 million). 

Total assets under management in the wealth business stood at €50.5 billion, against €42.5 billion a year earlier.

The US asset management outflow was mainly caused by the departure of the team covering multiemployer-defined benefit business (“Taft-Hartley” plans) and where Rothschild’s value-oriented investment philosophy has proved difficult in the current environment, it said. 

The global advisory business posted full-year revenue of €1.146 billion, slipping by 1 per cent compared with 2019. The merchant banking arm chalked up 2020 revenue of €148 million, sliding by 25 per cent because of lower value accretion on investments than in 2019. 

“The wealth management business successfully collected a high level of net new assets, reflecting the strength of our brand, our excellent client service and the quality of our advice in this complex financial landscape,” Alexandre de Rothschild, executive chairman, said. 

Last year, the firm bought Banque Pâris Bertrand, adding to Rothschild & Co’s presence in the Swiss market.