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08 May 2018

KBL epb announces positive 2017 financial results 

  • Group net profit reaches €35.2 million, up significantly from 2016
  • Group revenues rise to €487.9 million, up 5%; group expenses decline slightly to €446.1 million
  • Group private banking AuMs reach €65.2 billion, up 28%
  • Download the full report

    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, 2017.

    KBL epb reported a group net profit of €35.2 million for 2017, compared to €6 million in 2016, while the group’s pre-tax profit stood at €42.9 million, up from €16.1 million the previous year.

    2017 group revenues stood at €487.9 million, up 5%, while group expenses declined slightly to €446.1 million, despite major ongoing investments in priority areas such as IT.

    Group private banking assets under management rose by 28% to €65.2 billion as of December 31, 2017, demonstrating the strength of KBL epb’s core activities across its pan-European footprint; that increase also reflects the 2017 acquisition of Insinger de Beaufort, the Amsterdam-headquartered private bank, and a positive market effect.

    As of December 31, 2017, the group’s Basel III common equity tier-1 capital ratio stood at 17.2%, underscoring KBL epb’s  strong solvency position.

    “During a period of limitless technological change, shifting societal trends and ongoing industry consolidation, KBL epb  is in the midst of deep and positive organizational transformation,” said Peter Vandekerckhove, who assumed the role of Group CEO at the start of this year.
    “Here in Luxembourg and across our footprint – as we continue to enhance internal processes, eye further strategic acquisitions and achieve sustained profitability – we’re working together to earn the trust of each client we have the opportunity to serve,” he said. “To ensure that we meet their needs today and across generations, we have identified a set of clear priorities, which represent the five pillars of our long-term growth.”

    According to Vandekerckhove, those pillars include:

    1. Continually investing in enhanced products and services to earn the recommendation of every client, based upon a clear segmentation strategy and encompassing the group’s holistic offering, including asset management, lending, and wealth planning and structuring
    2. Ensuring technological relevance by prioritizing investments in areas most important for clients to deliver to them a seamless hybrid experience, while also increasingly embedding digital in internal activities
    3. Further improving productivity, prudently managing costs and driving sustained profitability as a relatively small organization that simplifies processes from end to end, benefiting each client and the organization as a whole
    4. Ensuring that the bank is a trusted partner for its clients by acting in compliance with all relevant regulations, embracing the principles of diversity, promoting socially responsible investment strategies and contributing to the well-being of the community everywhere it operates
    5. Working together as colleagues who are part of a unique network of strong domestic private banking brands, which offer close client proximity and leverage their deep local insight to provide pan-European perspective

    Turning to KBL epb’s  business in the Grand Duchy, Carlo Friob, CEO, Luxembourg, highlighted a series of recent milestones, including the launch last year of a best-in-class IT platform and the introduction of a new service offering for the bank’s private clients.

    With stronger infrastructure in place, the private bank in Luxembourg is focused on growing its wealth management business in its domestic market, while also increasing market share in neighboring countries, according to Friob, who said that KBL epb Luxembourg also continues to acquire HNWI clients in other markets, leveraging the attractiveness of the Luxembourg financial center.
    At the same time, he emphasized the positive outlook for the bank’s Global Institutional & Professional Services business line, which serves family offices, foundations, external asset managers, investment funds and other institutional clients. That business line continues to make an important contribution to the group’s overall profitability.

    “Next year, we will celebrate the 70th anniversary of our founding in the Grand Duchy,” Friob said. “Over the decades, KBL epb  has dramatically expanded its reach and range of services – but we have never lost sight of our mission to preserve and grow each client’s wealth across generations.”

    In recognition of that client-centricity, KBL epb  was named the best private bank in Luxembourg for the second consecutive year at the 2017 PWM/The Banker Global Private Banking Awards. The group was also recognized, for the third straight year, among the “Outstanding Private Banks in Europe” at the Private Banker International Global Wealth Awards.