The Swiss private bank's profit surged to nearly double in the absence of a major write-down from selling its trust business. Its assets are set to jump when Rothschild & Co Bank can wrap the acquisition of a Genevan rival.
Zurich-based Rothschild & Co's full-year profit climbed to $17 million Swiss francs ($18.2 million) from 9.2 million francs year-ago, according to its annual report disclosed on Thursday. In 2019, Rothschild had taken a nearly 5 million franc charge against its results after disposing of its trust arm in a management buyout the prior year.
The bank's revenue fell nearly six percent to 133 million francs, after interest income crumbled by one-third. CEO Laurent Gagnebin pared-back Rothschild's spending by seven percent by slashing staff costs as well as general expenses. This underpinned a 16 percent rise in operating profit to 21.1 million francs.
Healthy Asset Growth
Rothschild said its private bankers hoovered up 1.3 billion francs in fresh money – a healthy growth rate of 6.5 percent against its existing assets. Its overall funds rose to 21.5 billion, helped by the new money as well as by favorable market swings and a change in what it tallies as assets.
The bank said its assets are set to surpass 27 billion after it swallows Pâris Bertrand, an 11-year-old Genevan boutique it acquired in December. Rothschild hired ex-Credit Suisse wealth manager Henrik Herr as head of Germany last September.
