Jakob Stott, Group CEO of Quintet Private Bank; Credit: Quintet Private Bank
Luxembourg-headquartered Quintet Private Bank announced today its 2020 financial results, while also highlighting significant progress in executing its strategic growth plan last year.
Against the backdrop of the global pandemic, Quintet, which introduced its new name and corporate identity in January 2020, entered a number of new markets, consolidated its European businesses, recruited over 350 professionals across its operations and diversified its long-term funding sources.
In May 2020, Quintet opened for business in Switzerland. Founded with some 40 employees, Quintet Switzerland doubled its headcount by the end of 2020 (despite the impact of the pandemic on recruitment efforts), building teams focused on serving both the domestic market and, from Switzerland, high-growth regions of the world where wealth is being created.
In October, the firm opened a branch in Copenhagen: Quintet Danmark, launched with five staff, has now doubled its team size. In December, Quintet finalised the merger of its EU-based subsidiaries, forming a single business unit known as “Quintet Europe.” In doing so, the firm aims to reduce organisational complexity and increase operational efficiency.
By investing in the future, Quintet grew total group income (including one-off capital gains) to €513 million, up 16% compared to 2019. Robust underlying revenue growth was supported by an increase in total client assets, which rose to €85 billion as of 31 December 2020, up from €81.5 billion at the end of 2019.
Over the same period, those investments contributed to higher group expenses, which increased to €534 million, up 13% compared to 2019. Quintet’s net loss narrowed to €20.3 million in 2020, compared to a net loss of €43.7 million the previous year.
Meanwhile, following the October 2020 placement of €125 million in additional tier-1 (AT1) notes, Quintet’s Basel III tier-one ratio rose to 23.6% at the end of 2020, up from 18% at the end of 2019. Quintet’s liquidity coverage ratio stood at 139% at the end of last year, well above regulatory thresholds. Current sources of funding and liquidity remain stable.
The successful placement of these AT1 notes underscored the high level of institutional investor confidence in Quintet’s fundamentals and strategic growth plan. The proceeds from these notes complemented the significant equity capital commitments already made and foreseen in future by Precision Capital, Quintet’s shareholder. Since acquiring Quintet in 2012, Precision Capital has injected over €300 million in additional capital, including €50 million last year.
“Amidst one of the most significant upheavals in over a century, Quintet was quick to adapt to the new world,” said Rory Tapner, Chairman of the Board of Directors. “The firm achieved a range of significant milestones, while at the same time continuing to support its clients. Consequently, our business today is even stronger and better recognized for the quality of its service and offering than it was a year ago”.
Jakob Stott, Group CEO and member of the Board of Directors, added: “At a uniquely challenging time for everybody, our 2,000 people in 50 cities spanning Europe came together as one. [...] For Quintet, 2020 was a year of material progress". He continued: “As the world is slowly healing and the pace of global economic recovery accelerates, we will continue to pursue our long-term strategic plan, which remains on track, endorsed by the Board of Directors and fully supported by our shareholder. Our focus on the transformation of Quintet remains unwavering, as does our commitment to become the most trusted fiduciary of family wealth".