International

Sal. Oppenheim jr. & Cie. (Luxembourg) S.A. focuses its business activities on private banking for high-net-worth private clients, custodian banking for investment funds domiciled in Luxembourg, and its function as a processing centre for Sal. Oppenheim Group companies.

Its close cooperation with its sister companies in the Grand Duchy of Luxembourg and other Group companies allows the bank to offer its clients the full range of Sal. Oppenheim Group services.

Business performance 2006

Financial year 2006 was a great success for Bank Sal. Oppenheim jr. & Cie. (Luxembourg) S.A. Net income (after tax) rose by 28.2% to € 10.34 million, the best result in the bank's history. Commission, interest and foreign exchange income rose to a total of € 28.45 million, the lion's share of which was attributable, as expected, to commission business with € 19.02 million. The cost/income ratio improved to 52.5%.

Private Banking increased its volume through inflow of funds by over 13% in 2006. The above-average increase in asset management mandates and the high level of acceptance for alternative investment concepts among clients in this segment were very encouraging. This growth was both organic, due to the existing network, and the result of the setup of a further advisory team.

In the custodian business, the volume of assets under custody increased by 18%, thereby passing the 8 billion mark for the first time. Net new assets totalled just under € 816 million, showing above-average performance compared with the bank's competitors in Luxembourg. The bank further expanded its range of innovative products and services in the area of alternative investment concepts and asset engineering in financial year 2006. This meant that it could offer its internationally active clients tailored financial solutions for asset structuring, working in close collaboration with its sister company Services Généraux de Gestion S.A., which is also based in Luxembourg. The client advisory business also focussed on diversifying the product range. In addition to derivative certificate strategies, the bank clearly distinguished itself from its Luxembourg-based competitors by offering alternative solutions, in particular, thus generating substantial added value for its clients.

Outlook 2007

The bank sees a solid foundation for further expanding its business areas in 2007. Increasing awareness of Sal. Oppenheim as Europe's leading private banking group has led the bank to expect good growth opportunities, particularly in international private banking, which is why it has optimised its advisory team accordingly. The bank also expects positive growth opportunities in its safe custody business, particularly because it can offer tailored solutions in all areas of the fund industry. In this respect, the new institutional fund legislation will have a positive effect on business in Luxembourg.

Top