Reuss Private Group AG increases net revenues with moderate growth
- Challenging economic and geopolitical market environment
- Slight increase in net revenues
- Decrease in managed assets
- Important restructuring expenditures and continued high IT investments
- High growth in fixed income after interest rate turnaround
- Diversified business model provides stability
Raoul Weil, CEO of the financial group Reuss Private Group AG, headquartered in Wilen (Switzerland), announces a slight increase in net revenues (+2.5 % to CHF 31.1 million) for the past financial year 2022 in a challenging market environment, although only about 15 % of the revenues were generated with the strengthening Swiss franc. “Almost all of the Group’s activities were affected by the challenging financial market environment, albeit in different ways. This had already become apparent in early 2022 with the announcement of the good business figures for 2021”, says Weil. It was only in the fourth quarter that the economy and market recovery led to a more positive development.
The market environment remains tense
Assets under management fell by 12.8 % to CHF 31.4 billion in the course of the exchange rate and currency corrections in Swiss francs. Macroeconomic developments such as rapidly rising inflation rates, resolute countermeasures of the most important central banks and geopolitical uncertainties had an aggravating effect. “Our growth strategy was dampened against the macroeconomic and geopolitical backdrop. However, due to its diversified business model, the Group is in a stable position, proving to be an advantage, especially in this phase”, says Weil.
The competitive environment of the broker pool FONDSNET – and the Group’s result – were affected by the high level of investment in digitalisation measures, including the successful development of a robo-advisor in the form of a white-label solution for the affiliated financial advisors. Despite the adverse market conditions, the core business in the Investment Division developed stably, while turnover and profit in the core Insurance Division increased slightly. With the acquisition of Haus Finanz Kontor, a specialist for financing advice, FONDSNET strengthened its range of financing services at the end of the financial year and further rounded off its offering as a “full-range provider” for its affiliated partners.
Reuss Private Bank für Wertpapierhandel AG | BN Partners Capital AG
Reuss Private Bank für Wertpapierhandel AG focused on the further development and expansion of client assets under management, especially in the area of standardised asset management mandates, where the growth of new models continued to be very stable. Given the market-related decline in assets under management, the business year was satisfactory overall.
The result of the liability umbrella BN & Partners Capital AG significantly exceeded the previous year’s forecast, mainly due to new fund launches and inflows of funds in the fund advisory business segment, which almost completely compensated for the market-related decline in volumes. Assets under administration in traditional client advisory services increased slightly in the 2022 financial year.
Reuss Private (Switzerland)
Reuss Private AG (Switzerland) was also able to increase its net income thanks to its diversified business model. In the face of rising interest rates and major moves into bonds, the fixed-income segment, in particular, contributed to the stable earnings situation of the company. Asset management and wealth management proved to be robust.
According to Georg Kornmayer, member of the Reuss Private Group Executive Board and country manager for the German market, the market environment for broker pools continues to move along a consolidation path. “We intend to continue to create significant added value for our partners in Germany with our activities. The focus of our IT strategy is on the core units FONDSNET, BN & Partners AG and Reuss Private Bank für Wertpapierhandel AG to grow faster and stronger in our original business models.” According to Kornmayer, the number of affiliated advisors should continue to increase, not least with a focus on the professionalism of new partners.
In its home market of Switzerland, Reuss Private AG is also aiming to further develop its established business segments, as Roman Neff, Member of the Management Board of Reuss Private Group and Country Manager Switzerland, explains: “By hiring new relationship managers and connecting Swiss asset managers, we will continue to have substantial growth opportunities in wealth management in the future. Our established fixed-income segment also offers new opportunities for new partners. Our strategic investment in the fixed-income brokerage and asset management segments should pay off in the new, higher interest rate environment.”