Banks

BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

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Economy

Draghi: Eurozone will decline without vital productivity growth

It’s productivity, stupid. European Central Bank president Mario Draghi has become the latest major policymaker to warn of the long-term economic damage posed by chronically low productivity growth, as he urged eurozone governments to take action to lift growth and stoke innovation. Speaking in Madrid on Wednesday, Mr Draghi noted that productivity rises in the […]

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Currencies

Asia markets tentative ahead of Opec meeting

Wednesday 2.30am GMT Overview Markets across Asia were treading cautiously on Wednesday, following mild overnight gains for Wall Street, a weakening of the US dollar and as investors turned their attention to a meeting between Opec members later today. What to watch Oil prices are in focus ahead of Wednesday’s Opec meeting in Vienna. The […]

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Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

Royal Bank of Scotland has emerged as the biggest failure in the UK’s annual stress tests, forcing the state-controlled lender to present regulators with a new plan to bolster its capital position by at least £2bn. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in the toughest stress scenario ever […]

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Banks

Barclays: life in the old dog yet

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […]

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Categorized | Banks, Financial

Rothschild spends €20m to expand in US


Posted on November 29, 2016

Franco-British investment bank Rothschild is spending €20m this year on bulking up its American operations, as it seeks to break into the world’s biggest market for mergers and acquisitions.

Olivier Pécoux, co-head of the Franco-British investment bank, said the effort includes the hiring of several senior bankers and opening a Chicago office.

“Clearly we are under-represented in the US,” said Mr Pécoux, adding that the bank aimed to increase the share of its revenues coming from North America to 20 per cent of the group total. “It is a bit frustrating because it is taking a lot of time.”

He said the bank was “looking at several options” to expand its US presence, including the possibility of a new office in San Francisco. It already has 160 bankers and offices in New York, Los Angeles and Washington DC.

Rothschild & Co said net profit rose 72 per cent to €67m in the six months to September, as revenues rose 18 per cent, driven mainly by a more than one-third jump in revenues from its M&A and financing advisory businesses.

The family-controlled bank warned that the M&A market was expected to be more “challenging” in the coming months. Mr Pécoux said the UK’s vote to exit the EU would have no impact on its operations, but if it caused a slowdown in the British economy that “could have a knock-on effect on M&A activity”.

Revenues from its private bank and wealth management arm fell 4 per cent due to lower transaction commissions, while revenues at its merchant banking unit rose 7 per cent after its first private equity fund started to earn a profit-share known as carried interest.

The bank said it was on track to complete the acquisition of Compagnie Financière Martin Maurel, the Marseille-based private bank, early next year to create a combined group with almost €10bn of assets under management.