Berenberg announces record 2013 results as expansion continues (as distributed in the UK)
- Net profit for the year up 9.8% to €66.1m
- Record level of net commission income up 13.5% to €234.4m
- 49% increase in institutional commission
- Assets under management increase by 6.8% to €30.1bn
- Over €8bn of volume across 23 ECM transactions
- Senior roles on 4 of the 14 largest IPOs across Europe and UK
Berenberg delivered record results from its global operations with a particularly strong performance in net commission income, the main driver of the firm’s
service-led partnership model. Net commission income reached a record €234.4m (an increase of 13.5% over 2012). Overall revenue increased to €309.2m (€289.7m).
Expansion continued in the key financial centres of London, Frankfurt and New York. Berenberg now employs more than 250 people in those cities alone, out of more than 1,150 for the whole Group.
Hendrik Riehmer, a fully liable partner of Berenberg, said: “The solid market position we have developed, particularly in equities, makes it essential to have a strong presence on the ground in these markets. We will continue to bolster our position in all three centres. Clients in these markets really like our model”.
Investment Banking delivered revenue of €180m (2012: €164m) as Berenberg continued to focus on developing the highest quality research to serve its clients. In addition to continuing to evolve the research platform, which is now one of the largest in Europe, the introduction of the ATLAS concept (Alpha, Thought Leadership, Access, Service) has received wide recognition from institutions. A 49% increase in institutional commission is clear testament to the strength of Berenberg’s research offering.
Andrew McNally, Chairman of Berenberg UK, said: “The unrivalled breadth and depth of our institutional relationships has allowed us to significantly strengthen our ability to raise capital for corporates”.
The Group facilitated 23 transactions with a total volume of over €8bn in 2013. Further internationalisation saw Berenberg act on transactions in the UK, France and Sweden – building on the strong German speaking ECM franchise where it ranks number 2 according to Bloomberg. Of particular note was its involvement in the spin-out of Osram on behalf of Siemens, the IPO’s of Deutsche Annington and Stock Spirits, Berenberg’s second UK transaction. Involvement in 13 Debt Capital Market transactions also highlights the opportunities for Berenberg in this area going forward.
Private Banking has responded to an ever-changing business environment by further enhancing the quality of advice it offers to wealthy individuals and strengthening the team to deliver performance. The recruitment of Stefan Keitel to run the Chief Investment Office is a key part of this strategy. In addition, the consolidation of the Zurich and London Private banking groups as one team further strengthens the service offering to global clients who are increasingly responding to the changing landscape. Asset Management continued to rapidly build AUM, particularly in quantitative currency, equity and duration overlay strategies. Of particular note is the interest in this product from UK based pension funds for whom Berenberg now manages assets of 1bn GBP. The expansion of client service in this division to New York offers great potential.
Continued service and product enhancement in both Private Banking and Asset Management delivered a 6.7% increase in external assets under management to €30.1bn.
As Berenberg continued to focus on financial stability, assets grew to €4.5bn (2012: €4.3bn). Fully liable equity capital increased to €223.4 m (2012: €220.9 m). The Group’s core capital ratio increased to 15.3% (2012: 14.4%), comfortably above regulatory requirements.
MHP Communications (UK PR agency)
Gay Collins / Jamie Ricketts / Christian Pickel
Phone +44 20 3128 8580 / +44 20 3128 8146 / +44 20 3128 8208
Phone +44 20 3207 7802
Established in 1590, Berenberg is one of the leading privately owned banks in Europe today, focusing on four operating divisions: Private Banking, Investment Banking, Asset Management and Corporate Banking. The Hamburg-based bank with a strong presence in London, Zurich, Frankfurt and New York has 17 offices in Europe, America and Asia and is managed by personally liable partners. With a firm grasp of our traditions, we have 1,150 staff driving our business into the future.
Berenberg opened its London office in 2003 and the Bank’s multi-awarded European equity and economic research team is now based there with over 80 analysts covering 25 sectors. Having established a reputation as a centre of excellence with more than 180 people in the UK, Berenberg launched its London based Private Banking and Asset Management operations in 2011.
Director Corporate CommunicationKarsten Wehmeier
Phone +49 40 350 60-481 email@example.com