Independent since 1674

Transcription

1 Independent since 1674 Fiscal 2017

2 2 Contents Metzler at a Glance 3 Editorial 4 Boards 8 Consolidated Companies 9 Consolidated Balance Sheet and Consolidated Profit and Loss Account (Short Versions) 10 Reference to the Unqualified Auditor s Opinion 14

3 3 Metzler at a Glance Modern corporate structure The core of Metzler is B. Metzler seel. Sohn & Co. KGaA, Germany s oldest private bank with an unbroken tradition of family ownership since its establishment in Metzler focuses on providing personal service to corpor ate and institutional customers and high net-worth private clients in its four core business areas n Asset Management n Capital Markets n Corporate Finance n Private Banking. These business activities are performed by the bank and its affiliates, which operate as independent legal entities under the auspices of B. Metzler seel. Sohn & Co. Holding AG. Metzler is headquartered in Frankfurt/Main and has offices and subsidiaries in Cologne/Düsseldorf, Hamburg, Munich, Stuttgart, Atlanta, Los Angeles, Seattle, Tokyo, Beijing and Dublin. Asset Management Capital Markets Corporate Finance Private Banking Fund management Pension management Real estate investments Administration Master KVG Fund platform MFX CTAs Coverage of equity, forex, fixed income and money markets for institutional clients Trading in equities, forex and interest rate products Currency overlay Research in equities, forex and fixed income Mergers & Acquisitions Capital markets solutions Financing advisory Fiduciary and investment structuring Discretionary portfolio management Trustee services ("Vermögenstreuhand") Preserving our independence is pivotal to success In order to apply this principle to the benefit of our clients, Metzler s approximately 850 em ployees concentrate on fields where they can provide services which rank among the international leaders. Traditional lending and deposit business only plays an insignificant role at Metzler.

4 4 Editorial Global economic growth increased to around 3.7% year-on-year in 2017, driven principally by the upswing in Europe and the continued revival of business in the emerging markets. Prices on the international equity markets surged during the year: the extremely easy monetary policy in Europe and Japan, combined with the booming global economy, enabled euro investors to achieve double-digit growth on many major stock exchanges, fuelled above all by high gains on technology stocks as well as mid and small caps. By contrast, the global bond markets saw prices fall almost everywhere. For example, the yield on ten-year German government bonds rose from 0.2% at the start of the year to around 0.4% at the end of the year, cutting their value by 1.4% according to the JP Morgan government bond index. By contrast, in the euro zone as a whole, the value of government bonds grew by 0.4% as a result of the reduction in political risk (based on the JP Morgan government bond index for the European Monetary Union). On the currency markets, the US dollar was caught in a downward spiral and depreciated against all other major currencies despite threeinterest rate hikes by the Federal Reserve. At the end of the year, the euro/dollar exchange rate was over In light of the good overall capital market conditions, our business again developed very positively in the past twelve months and our performance was considerably better than we had anticipated at the start of the year. Total assets under management in the Asset Management segment increased from EUR 74 bn to EUR 76 bn. Above all, there was pleasing growth in the mutual funds we manage. In the institutional funds business, we successfully managed to compensate for the outflows that were foreseeable at the start of the year. Metzler Pensionsfonds AG acquired another major client

5 5 in This increased investments to nearly EUR 1,150 m for around 12,000 pension beneficiaries. The assets administered via the Metzler Fund Xchange platform rose significantly in 2017, principally as a result of inflows to fundbased asset management and the institutional busi ness. Our operations to support clients investing in US commercial property also generated good results. In the Capital Markets segment, we increased our market share in conventional equity brokerage business and gained new clients. Although interest rates were low overall, our fixed-income business achieved a further slight improvement on the previous year s good performance. Our FX business continued to benefit from our stable client base, which we were able to extend further, and from growth in the assets entrusted to us for currency management. In view of this pleasing trend, we are confident that we can post further growth in our FX risk management operations. In the reporting period, the mandates in our Corporate Finance portfolio comprised M&A and capital market transactions for national and international corporations, family businesses, financial investors and the public sector. We concluded sales mandates with investors from Europe, Asia and North America. However, a further increase in the complexity of such transactions meant that not all mandates were completed during the financial year as had originally been planned. Nevertheless, the results were slightly higher than in the previous year. Assets under management in the Private Banking segment developed positively, in line with our expectations at the start of the year. In discussions with our clients, we focused in particular on analysing the global economy in general and politico-economic influences in particular, for example ahead of the parliamentary and presidential elections in the Netherlands, France and Italy. As in previous years, our clients response to this dialogue was consistently positive.

6 6 Most economists see a good chance that global economic growth will gain further momentum; their average growth forecast is 3.7%. One of the main reasons for this is the expected turnaround in corporate investment, driven by the rising pace of digitisation, accompanied by increased networking, the data explosion and the resulting high demands on software. At the same time, the upswing in the emerging markets should continue to gain pace. For a long time, the equity markets have been dominated by the mon etary policy of the world s major central banks, which look set to re duce the supply of liquidity slightly as a consequence of the good eco nomic situation. This is likely to cause a sharp rise in price volatility on the equity markets and affect equity valuations as a whole, so declining price/earnings ratios could put downward pressure on prices. On the other hand, the markets should be supported by robust growth in corporate profits in all regions. On the bond market, we anticipate that the expected return on investment in government bonds will remain low; the planned turnaround in the monetary policy of the three major central banks will probably result in rising yields and therefore push down prices. On the currency markets, the US dollar will probably continue to feel downward pressure against all major currencies because there will be a substantial rise in the US budget deficit and public sector debt. In our view, the principal uncertainties for macroeconomic development are the USA s new trade protectionism, the still unclear modalities of the United Kingdom s exit from the European Union, and a range of geopolitical risks, including further escalation of the situation in Syria, a renewed flare-up of the conflict with North Korea, the uncertainty surrounding the formation of a government in Italy and the unstable political situation in Spain following the Catalonia crisis.

7 7 Continued stable demand for our services makes us confident that we will be able to master all the challenges in 2018 and continue the pleasing development of our business. Our risk-averse strategy, with its very long-term focus, and our comfortable equity ratio provide a stable basis for further expansion of our activities in all core areas of business.

8 8 Boards B. Metzler seel. Sohn & Co. Holding AG Supervisory Board: Dr. Christoph Schücking, Chairman Hans Hermann Reschke, Deputy Chairman Michael Neumann Advisory Board: Dr. Christoph Schücking, Chairman Hans Hermann Reschke, Deputy Chairman Dr. Kurt W. Bock Hans Freudenberg Franz Albert von Metzler Dr. Leonhard von Metzler Gerhard Schleif Dr. Ronaldo Schmitz Heinz-Joachim Wagner Partners Committee: Harald Illy Michael Klaus Friedrich von Metzler Emmerich Müller Gerhard Wiesheu

9 9 Consolidated Companies The consolidated accounts of B. Metzler seel. Sohn & Co. Holding AG include the following companies: B. Metzler seel. Sohn & Co. KGaA B. Metzler GmbH Metzler am Main GmbH & Co. KG Metzler Asset Management GmbH Metzler FundServices GmbH Metzler Immobilien GmbH Metzler Immobilien 2 Beteiligungs GmbH Metzler Pensionsfonds AG Metzler Real Estate GmbH Metzler Securities GmbH UMA 1 GmbH & Co. KG Metzler Asset Management (Japan) Ltd. Metzler Ireland Limited Metzler North America Corporation Metzler Realty Advisors Inc. MP & R Ventures Inc. Metzler/Payden, LLC

10 Consolidated Balance Sheet as at 31 December 2017 (Short Version) Assets 2017 EUR 2017 EUR 2016 EUR 000 Cash reserve 385,752, ,528 Due from banks on demand 205,824, ,311 other receivables 251,535, , ,360, ,908 Due from customers 101,457, ,799 Bonds and other fixed-interest securities issued by the public sector 127,184, ,624 issued by others 1,227,183, ,311,278 1,354,368, ,584,902 Equity shares and other variable-yield securities 125,486, ,680 Trading assets 175,658, ,768 Equity investments and shares in associated companies 11,554, ,310 Fiduciary assets 1,161,253, ,698 Intangible assets and tangible fixed assets 107,867, ,453 Other assets 41,620, ,761 Total assets 3,922,378, ,709,807

11 Liabilities 2017 EUR 2017 EUR 2016 EUR 000 Due to banks on demand 45,409, ,252 with an agreed term or notice period ,389 45,409, ,641 Due to customers on demand 2,324,920, ,136,482 with an agreed term or notice period 5,846, ,312 2,330,766, ,137,794 Fiduciary liabilities 1,161,253, ,698 Other liabilities 31,191, ,812 Provisions 102,672, ,718 Fund for general banking risks 50,000, ,000 Capital and reserves Subscribed capital 16,746, ,000 Reserves 182,419, ,261 Currency translation 2,655, ,444 Minority interests 2,264, ,129 Consolidated unappropriated profit 2,310, , ,084, ,144 Total liabilities 3,922,378, ,709,807 Contingent liabilities from guarantees and indemnity agreements 4,964, ,753 Other commitments Irrevocable lines of credit granted 12,375, ,085

12 Consolidated Profit and Loss Account for the Period 1 January to 31 December 2017 (Short Version) 2017 EUR 2017 EUR 2016 EUR 000 Interest income 1,991, ,414 Interest expenses 3,057, ,048, ,315 Current income from equity shares, other variable-yield securities and financial assets 2,901, ,078 Commission income 253,529, ,920 Commission expenses 60,612, , ,916, ,945 Net trading result 413, General administrative expenses Personnel expenses 118,266, ,307 Other administrative expenses 56,824, , ,090, ,924 Depreciation on intangible assets and tangible fixed assets 7,877, ,750 Other operating income/expense 6,778, Provision for contingent loan losses and result from the valuation of certain securities 5,053, ,087 Result from financial assets 140, Operating income 16,725, ,529

13 2017 EUR 2017 EUR 2016 EUR 000 Taxes 5,280, ,326 Profit for the year 11,444, ,203 Transfer to reserves 9,000, ,754 Profits attributable to minority interests 134, Consolidated unappropriated profit 2,310, ,310

14 14 Reference to the Unqualified Auditor s Opinion Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Eschborn/Frankfurt am Main, Germany, has issued an unqualified audit opinion for the complete con solidated financial statements and the group management report for the fiscal year from 1 January 2017 to 31 December 2017 prepared by B. Metzler seel. Sohn & Co. Holding Aktiengesellschaft, Frankfurt/Main, Germany.

15 15 Imprint Published by B. Metzler seel. Sohn & Co. Holding AG Untermainanlage Frankfurt/Main Germany Phone (+49-69) Fax (+49-69) Editor Gerald Pucher Layout Ulf Rößling Andrea von Blohn Pre-press Ilonka Ritter Printed by Druckerei Merkur, Frankfurt/Main (Germany) Unless otherwise stated, all information in this year s financial statements relates to the 31 December 2017 reporting date. We will be happy to provide further information on the annual financial statements for Please address your request to: crm@metzler.com

16 B. Metzler seel. Sohn & Co. B. Metzler seel. Sohn & Co. Holding AG Untermainanlage Frankfurt/Main Germany P.O. Box Frankfurt/Main Germany