Quintet Private Bank announced today its 2020 financial results, while also highlighting significant progress in executing its strategic growth plan over that extraordinary 12-month period.
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 last year, 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 likewise doubled its team size. In December, Quintet finalized the merger of its EU-based subsidiaries, forming a single business unit known as “Quintet Europe.” In doing so, the firm is reducing organizational complexity and increasing operational efficiency, generating important client benefits.
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 December 31, 2020, up from €81.5 billion at the end of 2019.
Over the same period, those significant 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. That is up from 18% at the end of 2019, underscoring the firm’s robust solvency position. 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 extremely stable.
The successful placement of these AT1 notes underscores the high level of institutional investor confidence in Quintet’s fundamentals and strategic growth plan. The proceeds from these notes complement 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.”
“At a uniquely challenging time for everybody, our 2,000 people in 50 cities spanning Europe came together as one,” said Jakob Stott, Group CEO and member of the Board of Directors. “I am proud of the way our people closed ranks to advance our multi-year plan to transform our firm into a healthy, growing and profitable private banking franchise. For Quintet, 2020 was a year of material progress.
“Our 2020 results reflect the significant investments we are making in the future,” he said. “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.
“We are convinced that we have the right strategy and confident that, if we continue to service our clients well and solve for their needs, our franchise will continue to grow,” Stott concluded.
Quintet Private Bank (Europe) S.A., founded in 1949, is headquartered in Luxembourg and operates in 50 cities across Europe, staffed by 2,000 professionals. Widely recognized as a private banking leader, Quintet serves wealthy individuals and their families, as well as a broad range of institutional and professional clients, including family offices, foundations and external asset managers.
Quintet’s family of private banks includes:
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Group Head of Corporate Communications
Quintet Private Bank
43, boulevard Royal
+352 4797 2065