Quintet Private Bank Europe SA: announces its 2021 financial results and highlights the growth of its core business

Quintet Private Bank today announced its 2021 financial results, highlighting the continued growth of its core business over the 12 month period.

Total group income amounted to €460.8 million in 2021, up 3% compared to €447 million in 2020 after adjusting for significant non-recurring items. Revenue growth was supported by higher net fee and commission income, which reached €348 million, an increase of 11% compared to €315 million the previous year. Revenue growth was also supported by the increase in loans, which reached €4.5 billion, up 25% from €3.6 billion in 2020.

As of December 31, 2021, Quintet’s total client assets stood at €96.6 billion, up 14% from €85 billion at the end of 2020 and their highest level in more than a year. decade. This reflects the steady growth recorded in the firm’s private banking, asset services and financial intermediaries activities, serving individuals and families, as well as professional and institutional clients.

Reflecting Quintet’s focus on sustainable investing, sustainable assets under management reached €11.7 billion at the end of last year – up nearly 100% from €5.9 billion euros by the end of 2020 – following a series of partnerships aimed at introducing innovative investment solutions that meet client needs and help mitigate the impact of climate change. This trend continued in the first quarter of this year when the company launched Quintet Earth – the world’s first multi-asset, climate-neutral investment fund – and then partnered with The Royal Mint to introduce the use of recycled gold into an exchange-traded commodity. .

In 2021, group expenses remained largely stable at €504.6 million, compared to €503.9 million in 2020. Quintet’s underlying pre-tax income, which excludes material one-off and exceptional items, consequently improved to -€5.9 million from -€17.3 million. million the previous year.

At the same time, significant one-time expenses weighed on the company’s results in 2021, in particular those related to the cessation of Quintet’s activities in Switzerland and the restructuring to support the transformation of the company. Taking into account non-recurring and exceptional items, Quintet’s net loss in 2021 amounts to 110.2 million euros. To mitigate this impact, Quintet shareholder Precision Capital injected €60 million of additional capital last year – part of the total over €350 million of additional capital that Precision Capital has injected since the acquisition of Quintet in 2012.

Quintet’s strong solvency position reflects the injection of this additional capital, as well as the previous placement of €125 million in additional Tier-1 bonds. The firm’s Basel III common equity tier 1 ratio stood at 18% at the end of 2021, well above the regulatory threshold. Quintet’s liquidity ratio stood at 138.5% at the end of last year, also well above regulatory thresholds. Current sources of funding and liquidity remain extremely stable.

“Last year was marked by an extremely difficult external environment, and new challenges will continue to present themselves in 2022,” said Rory Tapner, Chairman of Quintet’s Board of Directors. “So far this year, as Europe eased its pandemic-related restrictions, a massive humanitarian crisis unfolded in Ukraine, causing energy price volatility and broader economic shocks.

“In many ways, our job at Quintet is to help our clients navigate this uncertainty, providing expert advice where needed so they can preserve and enhance their wealth through generational change,” Tapner said. “There are many things our colleagues can be proud of, yet there is always more work to do as we constantly strive to earn the trust of every family we have the opportunity to serve.”

Jakob Stott, Quintet Group CEO, added: “While we look forward to a better and more stable prospect for the world, our customers and our business, we remain firmly convinced that our model – a boutique wealth manager who crosses the complexity, acts with agility and works in partnership to meet client needs – will continue to prove itself.

“We are pleased with our continued progress in Europe and the UK, where our ability to grow sustainably has been proven and the long-term opportunity is clear,” Stott said. “We will continue to foster our culture of partnership, where our colleagues are all focused on serving our clients – extending a global view based on deep local knowledge, coming together to become the most trusted trustee of wealth family.”

Mary I. Bruner