Degroof Petercam
2023 consolidated results
Continued growth with solid capital position and strong commercial results. Proposal to appoint Jacques Prost (CEO Indosuez Wealth Management) as non-executive director.
May 8, 2024
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BRUSSELS May 8, 2024 – The board of directors of Degroof Petercam has approved the financial accounts for the year 2023. These will be submitted for approval to the shareholders at the general meeting on 28 May 2024.
In the context of the planned acquisition of a majority stake by CA Indosuez Wealth Management, the meeting will also vote on the appointment of Mr. Jacques Prost, CEO of Indosuez Wealth Management, as a future non-executive director of Bank Degroof Petercam, subject to the approval of the transaction by the regulatory authorities.
- Gross operating profit of 118.5 million euros (106.7 million in 2022)
- Net profit of 56.3 million euros (76.4 million in 2022)
- Total net revenues of 579.0 million euros (559.0 million in 2022)
- Total client assets (net) at 74.3 billion euros (71.1 billion at end 2022)
- Capital ratio (CET1): 24.0% (20.3% at end 2022), well above prudential requirements
- Completion of transaction subject to relevant regulatory bodies approvals scheduled for mid 2024
Hugo Lasat, CEO of Degroof Petercam: “We are pleased to report a year in which all our business lines generated solid results, bolstered by an increase in revenues driven also by higher interest margins. Our clients benefited from deeper and broader services, which translated into increased commercial dynamics. Looking ahead, we are optimistic about the outlook, and our capacity to continue to address our clients’ needs and create value for our stakeholders with our enriched value proposition thanks to the trust in our organization and the knowledge of our people.”
Total client assets (net) were positively impacted by favorable market conditions in 2023, with the overall year-end level of 74.3 billion euros, up 5% on the previous year's closing figures. Net income totaled 579 million euros in 2023, up 4% compared to 559 million euros last year. The gross operating result recorded an 11% increase from 106.7 million euros in 2022 to 118.5 million euros in 2023, demonstrating the company’s resilience and positive development. A higher level of exceptional costs of non-recurring items related to the strategic review of the group's shareholder structure and an increase in corporate taxes weighed on the net profit that reached 56.3 million euros in 2023.
At the end of 2023, the balance sheet total stood at 8.1 billion euros, of which more than 4.5 billion euros are highly liquid assets. As a result of prudent management, Degroof Petercam’s consolidated solvency rate stood at 24.0% on December 31, 2023, significantly above the minimum threshold.
Business results
Private Banking operating revenues were up compared to 2022, contributing 51% to total group income. This performance is explained by the interest margin increase, as well as higher commissions following positive evolution of assets under management.
Institutional Asset Management ended the year with slightly lower revenues compared with last year and contributed 21% to total group income. The revenues evolution was mainly due to a less favorable product mix, reflecting a higher proportion of Fixed Income solutions than of equity products.
Asset Services continues to be a strong contributor to the group, and an important part of the company's integrated model. Asset Services operating revenues grew by 3% year-on-year, contributing 14% of the total group income.
Investment Banking ends the year slightly down compared to 2022‘s exceptional level and contributes 14% to the group total income. The Corporate Finance business line reported a 10% decline in operating revenues compared to 2022, which was marked by high volumes of M&A mandates. Global Markets recorded a slight drop in buy-side volume in 2023, partially offset by an increase in sell-side equity business and posted a 5% contraction in operating revenues compared to 2022 that showed record derivatives and incentive plans.
2023 was marked by the signature on August 3 of an agreement between CA Indosuez Wealth Management and Degroof Petercam under which Indosuez agreed to acquire a majority stake in Banque Degroof Petercam. The transaction will be carried out in partnership with CLdN, Degroof Petercam's reference shareholder, which will maintain a stake of approximately 20% of the capital.
The alliance between Degroof Petercam and the Indosuez Wealth Management would form an international leader in wealth management, capitalizing on global growth drivers. The closing of the transaction between Indosuez Wealth Management and Degroof Petercam is subject to the approval of the relevant regulatory and competition authorities. The transaction is expected to be finalized mid 2024.
Gilles Samyn, chairman of the board: “The proposed alliance with Indosuez Wealth Management will provide us with a new controlling shareholder, backed by a leading global player, subject to regulatory approval. This solid strategic partner, who knows our activities inside out, will further strengthen the Degroof Petercam franchise, while nurturing our agility and entrepreneurial spirit in the interest of our clients. This transaction will be carried out in partnership with the CLdN group, a historical shareholder which will retain a stake around 20%, reflecting the desire to preserve our roots and domestic presence in Belgium for the long term.”
In this context, the appointment of Mr. Jacques Prost, CEO of Indosuez Wealth Management, as a non-executive director of Bank Degroof Petercam, will be submitted to the shareholdersmeeting, subject to the approval of the transaction by the regulatory authorities.
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Annex: biography Jacques Prost
Jacques Prost (°1965) began his career in the Corporate department of Crédit Lyonnais in London, where he worked from 1986 to 1988. In 1988, he joined Banque Paribas, where he held a number of positions in the European property finance and project finance divisions. In 1996, he was appointed Head of Project Finance at Paribas Milan. He joined the Crédit Agricole group again in 2000, to take charge of structured finance at Crédit Agricole Indosuez in Italy, an activity that included LBOs and project finance as well as financing for the telecoms, transport and property sectors. From May 2008 to October 2011, he headed the Real Estate and Hotels division (DIH) at Crédit Agricole Corporate and Investment Bank’s Structured Finance division. In November 2011, he was appointed Head of Structured Finance. In August 2013, Jacques Prost became Deputy Chief Executive Officer of Crédit Agricole CIB.
He has been active as CEO of CA Indosuez Wealth Management since June 2018 and he is a member of the Crédit Agricole SA management committee.
Jacques Prost is a graduate of Sciences Po Paris and holds a postgraduate degree in financial markets from Paris Dauphine University.
