Reports

KBL European Private Bankers Swings Back Into Profit

Tom Burroughes, Group Editor, London, 20 March 2014

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KBL European Private Bankers, or KBL epb, the Luxembourg-headquartered parent of UK-based Brown Shipley that has been restructuring its business after suffering a €249.9 million loss in 2012, swung back into a net profit for 2013 of €84.5 million.

KBL European Private Bankers, or KBL epb, the Luxembourg-headquartered parent of UK-based Brown Shipley that has been restructuring its business after suffering a €249.9 million ($343.9 million) loss in 2012, swung back into a net profit for 2013 of €84.5 million.

Net banking income rose sharply year-on-year to €540.6 million last year, from €393.5 million a year earlier. The pre-tax profit was €111.2 million, swinging back from the loss of €243.8 million in 2012, the bank said in a statement today.

The results come over a month after the bank, with a presence in a number of European countries, announced a new chief executive was taking the helm. (For more on that story, see here.)

At the end of last year, the firm had a core Tier 1 capital ratio under Basel 2 rules of 13.5 per cent, up from 12.6 per cent a year earlier. The bank’s cost/income ratio was 78.8 per cent, down sharply from the previous year’s 142.6 per cent.

“This positive performance – which significantly exceeded the earlier announced full-year target of €50 million – reflects the group’s increased income, lower operating expenses and reduced impairment provisions compared to 2012,” the bank said.

In 2013, revenues reached €540.6 million, an increase of 37 per cent compared to the previous year. This top-line growth can also be attributed to the contribution of the group’s global investor services, global financial markets, asset management and life insurance business lines, it said.

Over the same period, the group recorded an increase in both assets under management and assets under custody. As of December 31, 2013, AuMs stood at €42.2 billion, compared to €40.9 billion on the same date in 2012. AuCs stood at €41.3 billion as of December 31, 2013, compared to €38.6 billion one year earlier.  

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