The investment bank Rothschild suffered in 2023 in a devastated mergers and acquisitions market, with a net profit of 275 million euros, compared to 606 million euros in 2022 (-55% over one year), according to a document published on April 2 on his site.
This result is close to the objective of around 280 million euros that the bank announced last June.
Net banking income, equivalent to turnover for the sector, is down almost 15% compared to 2022, 2.54 billion euros.
The company did not wish to comment publicly on this data. In May 2023, it reported a more difficult year given the macroeconomic and geopolitical environment.
The Rothschild bank, delisted last October, has since no longer been required to comply with the same information obligations as a listed company. However, it published its consolidated accounts on April 2 on its website, without advertising.
Like its Franco-American competitor Lazard, Rothschild suffered especially last year in its mergers and acquisitions advisory businesses, partly offset by other activities, such as asset management and private banking, which reserves a wealthy clientele.
The consulting activity is by nature volatile, with more or less favorable periods for mergers and acquisitions. The tightening of financial conditions and geopolitical uncertainty have caused the market to suffer a cold spell for several quarters.
According to financial data specialist Refinitiv, the cumulative amount of mergers and acquisitions fell by 17% worldwide between 2022 and 2023 to reach a low point since 2013.
Rothschild, however, fared better last year than Lazard, which published on February 1 a net loss of $75 million in 2023, a first in a calendar year since 2009.