Italian Investment and Private Bank Doubles Profits

Christopher Owen

4 February 2008

Gruppo Banca Leonardo, the Italian investment and private banking group founded in 2006 by former Lazard banker Gerardo Braggiotti, more than doubled net profit for the year to €65 million ($96.2 million) from €30 million in 2006. Net consolidated revenues for the Milan-based firm in 2007 grew to €239 million from €112 million in 2006, 76 per cent of which related to commission income. It said 45 per cent of total revenues were generated outside Italy, compared to 20 per cent in the previous financial year. In Private Banking, GBL acquired Paris-based private bank and wealth manager VP Finance, which had 1,500 private clients and €500 million of assets under management. The division also opened a branch office in Turin, commenced its fiduciary services activities and strengthened its fund management team. Assets under management as at 31 December 2007 totalled €7.9 billion, up from €3.4 billion in 2006. In asset management, GBL said it had established a Luxembourg Sicav platform, to complement that already in existence for its Italian and French domiciled funds, and completed its range of products with the launch of its UCITs and alternative fund offerings. During the course of 2007 the Investment Banking and Corporate Finance divisions, which following the acquisition of Drueker & Co, now operate in France, Germany and Italy under the name of Leonardo & Co, advised on 43 transactions with a total value of over €63 billion. In Private Equity, GBL said 2007 was notable for the commencement of operations of Euraleo – a joint venture with European investment company, Eurazeo. The group made three new investments. As at 31 December 2007 the portfolio consisted of six companies representing a total investment of €92 million, from €35 million in 2006. GBL was acquired and capitalised in April 2006 by a group of European investors led by Mr Braggiotti and including CNP, Eurazeo, IFIL, Fondiaria-SAI, Torreal and Allianz. The group’s strategic focus is on three principal areas of business: investment banking and corporate finance advice, private equity investment and wealth management. GBL also operates in the brokerage business and has a specialist Italian equity research team.