08 May 2018
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:
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.