04 May 2015
KBL European Private Bankers (KBL epb), headquartered in Luxembourg and operating in 50 cities in Europe, announced today its positive financial results for the 12-month period ending December 31, 2014.
KBL epb reported a group net profit of €67 million for 2014, significantly exceeding its full-year target, driven by strong income levels – especially in Luxembourg – consequential affiliate contributions, reduced impairment provisions and the bank’s capacity to leverage market conditions.
In 2014, revenues stood at €539 million, in line with the previous year, highlighting the sustained performance of the group’s core private banking activities across its pan-European footprint. This top-line stability can also be attributed to the contribution of the group’s Global Markets, Asset Management and Life Insurance business lines.
Over the same period, the group recorded an increase in both assets under management (AuMs) and assets under custody (AuCs), reaching a combined total of nearly €90 billion.
As of December 31, 2014, AuMs stood at €44.9 billion, compared to €42.3 billion on the same date in 2013. AuCs stood at €43.8 billion as of December 31, 2014, compared to €41.3 billion one year earlier.
As of December 31, 2014, KBL epb’s Basel III core tier-1 capital ratio reached 13.7%, demonstrating the strong solvency position of the group.
Commenting on these results, Yves Stein, Group CEO, KBL epb, said: “We take significant satisfaction in our financial performance in 2014, a period marked by the finalization of the onshorization process and the start of a new era of transparency in Luxembourg.
“Over the same period, even more importantly, we continued to successfully execute our long-term business development strategy – through organic, semi-organic and external initiatives – reflecting priorities endorsed by Precision Capital, our shareholder.”
Stein highlighted that the group made a series of significant investments over the second half of 2014 – including the acquisition of the operations of UBS Belgium, a transaction that is expected to successfully close in June 2015. Earlier this year, KBL epb announced the further strengthening of Puilaetco Dewaay, its Brussels-headquartered affiliate, through the acquisition of BIL Belgique.
According to Stein, the group also continues to enlarge the scale and scope of staff training opportunities – through the recently launched KBL epb Group University, a major internal initiative – while simultaneously increasing the recruitment of talented front-office professionals, including by hiring some 50 private bankers in 2014.
As a consequence of such investments in semi-organic and external growth – and because KBL epb recorded fewer non-recurring capital gains in the second half of 2014 than it did during the first half of last year – the group’s full-year profitability stood at a somewhat lower level than in 2013, although revenues remained stable over the period.
“As we move forward, we will continue to focus on strengthening the ties that bind us as a group, combining deep domestic insight and broader international perspective to meet the evolving needs of our HNWI clients here in Luxembourg and across our network,” said Stein. “Together, our team of over 2,200 professionals will continue striving with shared purpose to be recognized as trusted partners everywhere we operate.”