Quintet Private Bank revealed its 2022 financial results, demonstrating the company’s continuing expansion of its core business during a 12-month period that saw the company return to profitability.
Founded in 1949, Quintet Private Bank (Europe) S.A., is based in Luxembourg and has offices in 50 cities around Europe, employing approximately 2,000 people.
Quintet is widely regarded as a private banking pioneer, serving wealthy individuals and their families, as well as a diverse variety of institutional and professional clients such as family offices, foundations, and external asset managers.
The group income increased by 14% to €524mn in 2022, up from €460.8mn in 2021.
Increased lending contributed to revenue growth, which reached €4.9bn, up 10% from €4.5bn in 2021.
Group expenses remained essentially unchanged in 2022, at €493.2mn, a 2% decrease from €504.6mn in 2021.
Despite severe market volatility and ongoing inflationary pressures, Quintet posted a net profit of €18.1mn for 2022. This is a significant improvement over 2021, when one-time expenses impacted heavily on the company’s bottom line.
Total client assets stood at €86.7bn as of December 31, 2022, a 10.2% decrease from the end of 2021, largely due to a price impact associated with volatile financial markets.
The firm anticipates that total customer assets will recover once markets stabilise.
By the end of 2022, Quintet’s Basel III common equity tier 1 ratio was 18.4%, significantly higher than the required level and up from the previous year’s end value of 18%.
The firm’s liquidity coverage ratio increased from 138.5% at the end of 2021 to 153.2% at the end of 2022, exceeding the legal threshold in the process.
Current liquidity and finance sources are incredibly steady.
“We are pleased with our 2022 results,’’ stated Rory Tapner, Chair of the Board of Directors.
“Our clients value our rich heritage, local proximity and personalized service. At the same time, they prize our ability to provide broader perspective and expert independent advice,” Tapner said. “Thanks to that unique combination of proximity and perspective, Quintet will continue to stand apart as a reliable wealth manager with the protection of client wealth firmly at the center of its approach.”
Group CEO Chris Allen, who took the leadership of Quintet in July 2022, added, “We are strengthening the foundation of our firm to support sustained growth. That includes through our strategy refresh – a series of measures we will implement consistently over the course of this year and 2024 – and our new five-year business plan.’’
“We also intend to make further investments in the bank this year, including in areas such as client experience, digitization and staff training,’’ Allen continued.
‘’In combination, these measures will lead to greater productivity, increased revenues, and lower expenses.’’