Rothschild & Co sees net income more than halving in 2023

Rothschild & Co SCA

19/06/2023 09:01

PARIS, June 19 (Reuters) - Rothschild & Co  ROTH.PA ,
the Paris-listed investment bank being taken private by its
owners, expects net income to more than halve this year due to a
sharp fall in dealmaking.
    Rothschild forecast on Monday full-year net income of around
280 million euros ($305.9 million), compared with 606 million
euros in 2022 and 125 million euros for the first half of 2023.
Operating income is seen at 540 million euros in 2023 compared
with 967 million euros last year.
    The bank said in a statement the forecasts "reflect the more
challenging market environment in Global Advisory and Merchant
Banking partially offset by a strong performance in Wealth and
Asset Management". It did not provide further details ahead of
half-year results due on Aug. 3. 
    Global mergers and acquisitions activity shrank to its
lowest level in more than a decade in the first quarter of 2023,
as rising interest rates, high inflation and fears of a
recession soured companies' appetite for dealmaking. 
    At Rothschild, sales from M&A advisory - its biggest
business - tumbled by 29% in the first quarter.
    The Rothschild family's holding company Concordia filed its
offer to take the bank private to the French market regulator on
June 8, the statement said. 
    Concordia has said it no longer has as much need to access
capital from equity markets and that the businesses of the bank
are better assessed on a long-term basis rather than for their
short-term performance.

    ($1 = 0.9153 euros)
    

 (Reporting by Silvia Aloisi; Editing by Emelia
Sithole-Matarise)
 ((silvia.aloisi@thomsonreuters.com; +393487607044; Reuters
Messaging: silvia.aloisi.thomsonreuters.com@reuters.net))