The investment bank Rothschild and Co published Thursday a net profit of 128 million euros in the first half, half less than last year, due to the slowdown in mergers and acquisitions.
After two exceptional years in 2021 and 2022, we are publishing solid results for this first half, explained during a press presentation Franois Prol, partner and co-chairman of the executive committee of the investment bank.
Revenues reached 1.24 billion euros between January and June, 10% less than last year over the same period.
The net result is in line with that communicated by the bank on June 19, then estimated at 125 million euros.
The financial advisory business is unsurprisingly the one that is suffering the most, with a turnover down 21%, to 676 million euros.
Investment banking has been impacted by the sharp decline in the global M&A market, Mr. Prol said.
The tightening of financial conditions and geopolitical uncertainty have put a chill on the market for several quarters.
The private bank, reserved for wealthy clients, combined with asset management, saw its revenue grow by 24% and reports strong net inflows and a positive market performance in the first half of the year .
The results of Rothschild and Co contrast this semester with those of its longtime competitor, the investment bank Lazard.
The latter, more dependent on financial advice and large-scale operations, announced on July 27 a net loss of 146 million dollars between January and June.
The takeover bid (OPA) for Rothschild and Co by the holding company of the Rothschild family, Concordia, launched on July 24, is also following its course.
At the last score communicated by Mr. Prol, the consortium of investors around Concordia already holds more than 80% of the capital and 85% of the voting rights, thus approaching the 90% withdrawal threshold.
The investment bank had achieved a turnover of nearly 3 billion euros last year, for a net profit of 606 million euros, after a record year 2021.
In line with the first half, ambitions are more limited in 2023, with approximately 280 million euros in expected profit.