Bank Degroof Petercam published its consolidated results for 2021 on Thursday 5 May, showing total net customer assets of €86bn. This represents an increase of €11bn compared to the end of 2020, partly driven by “sustained commercial activity in asset management and private banking activities,” the bank said. "This growth is explained by the positive performance of the markets and by new capital injections,” says Hugo Lasat, CEO of Degroof Petercam.
After taxes, the consolidated net profit for the banking group reached €47.6m. This is equivalent to an increase of 19% compared to the end of 2020.
In 2021, Degroof Petercam also experienced a 16% growth in net income, reaching €545.7m. Lasat stated: “Operating income grew faster than operating expenses, creating de facto positive operating leverage.”
44% of revenues from private banking
Results were driven in part by the private banking business, which recorded a 13% increase in operating revenues, contributing 44% of the group’s total revenues. Asset management, which contributed 26% of revenues, passed the €50bn mark in assets under management and posted 29% growth in operating revenues.
The asset services business grew by 9% to represent 14% of consolidated revenues. The investment banking part of the business equalled its level of the previous year.
In early April, Degroof Petercam sold its Swiss subsidiary. A year earlier, the group’s Spanish subsidiary was sold. These two moves are part of the group’s two-year drive to simplify its operational structure. The bank is currently working on the operational and administrative transformation of its new French management company, which will be created by the merger, at the end of 2021, between its local banking subsidiary and its former fund management entity.
The consolidated annual accounts for 2021 will be submitted to a shareholders vote at Degroof Petercam’s general meeting of on 24 May.
Bruno Colmant’s departure
The meeting will also vote on the appointment of three new non-executive directors. Bruno Colmant, head of the bank's private banking division, has voluntarily chosen to leave the group. He joined seven years ago as managing director.
“It has been a great honour to contribute to the development of the group over the last few years.” As the group enters a new phase of its evolution, he says he wishes to “devote himself to consultancy, research and writing activities,” he explained. His achievements within the group include heading the macroeconomic research department and the position of CEO.
Sabine Caudron, who has been proposed to succeed Colmant, has almost 30 years of experience in the financial sector and, more particularly, in private banking. At the same time, the board of directors proposed the appointment of Sylvie Rémond and Tamar Joulia-Paris as non-executive directors.
In view of the geopolitical uncertainties and their macroeconomic repercussions, which are shaking the financial markets and liquidity management, Degroof Petercam notes that “the bank and its subsidiaries [...] have very little exposure (if any) to countries in conflict.”
The bank nevertheless states that it is “closely monitoring the situation and the impact that the current crisis may have on its activities”, namely the management of its clients’ portfolios and funds, the liquidity of the portfolios, client interaction and information, and the IT and operational environment.
Originally published in French by Paperjam and translated for Delano