Independent since 1674

Transcription

1 Independent since 1674 Fiscal 2016

2 2 Contents Metzler at a Glance 3 Editorial 4 Boards 6 Consolidated Companies 7 Consolidated Balance Sheet and Consolidated Profit and Loss Account (Short Version) 8 Audit Opinion 12

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. Preserving our independence is pivotal to success In order to apply this principle to the benefit of our clients, Metzler s approximately 800 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 The global economy grew by around 3.1% in 2016, nearly as fast as in the pre vious year, principally because the pace of growth stabilised in the emerg ing markets. The international equity markets closed the year up overall: in both emerging markets and the industrialised countries some equities posted double-digit returns in local currencies. Yields on the US, European and Jap a nese bond markets dropped to new lows in summer 2016 but then picked up slightly during the remainder of the year. The euro traded sideways against the US dollar until Donald Trump was elected US president, then dropped to below EUR 1.04 per USD towards the end of the year. Despite the challenging conditions on the capital markets, which were compounded by the high political uncertainty, our business performance in the reporting period was considerably better than we had anticipated at the start of the year. Total assets under management in the Asset Management segment increased by more than 15% to EUR 74 bn also due to pleasing growth in the institutional funds business and in the mutual funds we manage. Metzler Pensionsfonds AG secured the first mandates for around 6,600 pension beneficiaries. This resulted in capital investments in excess of EUR 800 m. The assets administered via the Metzler Fund Xchange trading platform remained stable at a high level. The results of our operations to support clients investments in US commercial property were once again significantly above the previous year s very good level. In the Capital Markets segment we increased our market share in conventional equity brokerage. Despite persistently low interest rates, we achieved a further significant year-on-year improvement in our fixed income business. Our FX risk management operations registered a slight increase in assets under management. Our good performance in difficult markets makes us confident that we can achieve further growth in the management of foreign exchange risks. In the Corporate Finance segment we gained major mandates, not all of which were completed in the reporting period. Our clients value us as a trusted, independent advisor with a clear strategic focus, direct access to decision-makers and investors, and extensive sector and process know-how. Assets under management in the Private Banking segment developed as positively as expected. Discussions with our clients

5 5 focused on the geopolitical influences on the capital markets, the impact of low or zero interest rates, especially in Europe, and the profit outlook for companies on both sides of the Atlantic. The response to this dialogue was consistently positive. We see a good chance that economic growth will increase slightly in 2017 to 2.2% in the USA and 1.5% in the euro zone. The situation is likely to be similar in the emerging markets because the Brazilian and Russian economies should grow again and China will probably post stable growth. The steady decline in the unemployment rate in all developed economies should also allow moder ate pay rises, bringing back core inflation. On the equity markets, our clear preference is for European rather than US equities, as US equities are merely expected to trade sideways. Although there are higher downside risks for European equities as a consequence of the considerable political uncertainty in the European Union, they offer considerably higher price potential because the economic cycle in Europe lags the US cycle by several years. On the bond market, we assume that yields will remain far higher in North America than in Germany: an interest rate reversal as in the USA is not yet likely in the European Union (EU) and Japan. The biggest uncertainties in our view are the fragile situation in the Middle East, further terrorist attacks also in Europe, new trade protectionism in the USA, the mounting uncertainty in connection with Brexit, a further rise in right-wing populist forces in the EU, and more bad news from Greece. We are confident that we will be able to master all the challenges, including the regulatory ones, continue our good business performance and strengthen our reserves further. Our risk-defensive strategy, which includes a very longterm focus, our comfortable equity ratio and stable demand for our services provide a good basis for this.

6 6 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 Udo Behrenwaldt Gerhard Schleif Dr. Ronaldo Schmitz Heinz-Joachim Wagner Partners Committee: Harald Illy Michael Klaus Friedrich von Metzler Emmerich Müller Dr. Johannes Reich Gerhard Wiesheu

7 7 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 IT-Services 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

8 Consolidated Balance Sheet as at 31 December 2016 (Short Version) Assets 2016 EUR 2016 EUR 2015 EUR 000 Cash reserve 132,528, ,421 Due from banks on demand 186,310, ,116 other receivables 549,597, , ,908, ,928 Due from customers 113,799, ,330,560 Bonds and other fixed-interest securities issued by the public sector 273,624, ,104 issued by others 1,311,277, ,096,995 1,584,902, ,332,099 Equity shares and other variable-yield securities 118,679, ,972 Trading assets 44,768, ,913 Equity investments and shares in associated companies 12,310, ,113 Fiduciary assets 817,698, ,603 Intangible assets and tangible fixed assets 109,452, ,450 Other assets 39,760, ,331 Total assets 3,709,807, ,660,390

9 Liabilities 2016 EUR 2016 EUR 2015 EUR 000 Due to banks on demand 15,251, ,792 with an agreed term or notice period 396,388, , ,640, ,167 Due to customers Savings deposits Other liabilities on demand 2,136,482, ,593,362 with an agreed term or notice period 1,311, ,170 2,137,793, ,632,541 Securitized liabilities ,294,815 Fiduciary liabilities 817,698, ,603 Other liabilities 18,812, ,485 Provisions 100,718, ,346 Fund for general banking risks 40,000, ,000 Capital and reserves Subscribed capital 16,000, ,000 Reserves 161,260, ,757 Currency translation 1,444, Minority interests 2,129, ,990 Consolidated unappropriated profit 2,310, , ,144, ,433 Total liabilities 3,709,807, ,660,390 Contingent liabilities from guarantees and indemnity agreements 4,753, ,971 Other commitments Irrevocable lines of credit granted 13,085, ,622

10 Consolidated Profit and Loss Account for the Period 1 January to 31 December 2016 (Short Version) 2016 EUR 2016 EUR 2015 EUR 000 Interest income 10,413, ,798 Interest expenses 900, ,327 11,314, ,471 Current income from equity shares, other variable-yield securities and financial assets 6,078, ,680 Commission income 230,919, ,725 Commission expenses 54,975, , ,944, ,990 Net trading result 616, General administrative expenses Personnel expenses 109,307, ,397 Other administrative expenses 50,616, , ,924, ,831 Depreciation on intangible assets and tangible fixed assets 6,750, ,316 Other operating income/expense 190, ,001 Provision for contingent loan losses and result from the valuation of certain securities 3,087, ,408 Result from financial assets 28, Operating income 30,529, ,115

11 2016 EUR 2016 EUR 2015 EUR 000 Taxes 7,326, ,685 Profit for the year 23,203, ,430 Transfer to reserves 20,753, Profits attributable to minority interests 139, Consolidated unappropriated profit 2,310, ,310

12 12 Audit Opinion Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft has issued the following audit opinion on the complete consolidated financial statements and the group management report: We have audited the consolidated financial statements prepared by B. Metzler seel. Sohn & Co. Holding Aktiengesellschaft, Frankfurt am Main, comprising the balance sheet, the income statement, the notes to the consolidated financial statements, cash flow statement, and statement of changes in equity, together with the group management report for the fiscal year from 1 January 2016 to 31 December The preparation of the consolidated financial state ments and the group management report in accordance with German commercial law is the responsibility of the Company s management. Our responsibility is to express an opinion on the consolidated financial statements and the group management report based on our audit. We conducted our audit of the consolidated financial statements in accordance with Sec. 317 HGB ( Handelsgesetzbuch : German Commercial Code) and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschafts prüfer (Institute of Public Auditors in Germany; IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial state ments in accordance with German principles of proper accounting and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the deter mination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the con solidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of the companies included in consoli dation, the determination of the companies to be included in consolidation, the accounting and consolidation principles used and significant estimates made by management, as well as evaluating the overall presentation of the consoli dated financial statements and the group management report. We believe that our audit provides a reasonable basis for our opinion.

13 13 Our audit has not led to any reservations. In our opinion, based on the findings of our audit, the consolidated financial statements comply with the legal requirements and give a true and fair view of the net assets, financial position and results of operations of the Group in accordance with German principles of proper accounting. The group management report is consistent with the consolidated financial statements, complies with statutory provisions and as a whole provides a suitable view of the Group s position and suitably presents the opportunities and risks of future development. Eschborn/Frankfurt am Main, 28 March 2017 Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Heist Wirtschaftsprüfer Egger Wirtschaftsprüferin

14 14 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) We will be happy to provide further information on the annual financial statements for Please address your request to: crm@metzler.com

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