20 March 2014
KBL European Private Bankers (KBL epb), headquartered in Luxembourg, announced today its robust financial results for the 12-month period ending December 31, 2013.
Operating in nine countries in Europe, KBL epb reported a net profit of €84.5 million for 2013, a major turnaround from the previous year. This positive performance – which significantly exceeded the earlier announced full-year target of €50 million – reflects the group’s increased income, lower operating expenses and reduced impairment provisions compared to 2012.
In 2013, revenues reached €540.6 million, an increase of 37% compared to the previous year, highlighting the strong performance of the group’s core private banking activities across its pan-European footprint. This top-line growth can also be attributed to the contribution of the group’s Global Investor Services, Global Financial 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). As of December 31, 2013, AuMs stood at €42.2 billion, compared to €40.9 billion on the same date in 2012. AuCs stood at €41.3 billion as of December 31, 2013, compared to €38.6 billion one year earlier.
As of December 31, 2013, KBL epb’s Basel II tier-1 capital ratio stood at 13.5%, demonstrating the strong solvency position of the group.
Commenting on these results, Yves Stein, Group CEO, KBL epb, said: "We are very pleased with the performance of the group in 2013 – a period marked by a return to profitability and the full implementation of our long-term growth strategy.
"Moving forward, we will maintain our focus on the further professionalization of our approach to clients, delivering greater value to them and contributing to the group’s bottom-line results," he said. "At the same time, we remain committed to establishing a leading presence in every market in which we currently operate – including through potential acquisitions."
Stein added: "Today, we have a healthy balance sheet, strengthened senior management, significant ambitions and the full support of our shareholder to realize our goals, including being recognized as one of the leading European private banking groups."
Both in Luxembourg and across its nine-country network, the group achieved sustained progress last year.
In Luxembourg, where KBL epb provides a range of multi-specialist solutions to its HNWI, UHNWI and institutional clients, the bank made a significant number of senior appointments, including to the Board of Directors and Executive Committee, enhancing its ability to meet the evolving needs of all its stakeholders
In the Grand Duchy, KBL epb also responded quickly to the requirements of a new regulatory environment, supporting clients impacted by the "onshorization" process. To the same end, the bank provided relevant staff with accelerated training and expanded skills development opportunities.
"As we adapt our business to changing external conditions, training has never been more important to us," Stein said. "That’s why we will invest even greater resources in that effort in 2014 than ever before – here and across our operations."
Outside Luxembourg, all of the group’s onshore affiliates are now profitable, while the bank’s greenfield Spanish branch also delivered above-budget performance in 2013.