M&A Climate Slows Rothschild Momentum

Jackie Bennion, Deputy Editor, 14 November 2019


After a record 2018 for the French business, year-to-date profit held in check by a slowing trend in mergers and acquisitions.

In results published yesterday, Rothschild & Co’s global advisory business reported €766 million ($843 million) in revenues for the nine months to September, down by 18 per cent compared with record growth reported by the business for the same period last year. Third quarter earnings at the Paris-based firm were also down by 25 per cent to €221 million compared with €296 million logged for Q3 2018.

The French business of the global investment house said that earnings for the first nine months were consistent with the global trend in completed M&A transactions.

The group reported strong growth in its wealth and asset management business with net new assets managed rising by 14 per cent for the nine months, and revenues up marginally by 1 per cent to €363 million from the €360 million registered in September 2018. The latest quarter revenues were up by 3 per cent to €123 million.

Its merchant banking division also reported strong results, with AuM at the business rising by 16 per cent on an annualised basis. Revenue was up by 31 per cent for the quarter to €30 million, from €23 million in Q3 2018. For the year to September, it was up by 10 per cent to €141 million. The group reported that revenue for the nine-month cycle averaged over the previous three years was up by 27 per cent. It also said that €14 million in growth to September was made in positive currency translation.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes