LONDON, Nov 29 (IFR) - Rothschild has reported its highest half-year revenues for its advisory business since the financial crisis, after a strong six months in both M&A and financing advisory.
Revenues from its global advisory unit rose 35% to 537m during the six months to the end of September compared with the same period a year ago.
That was fuelled largely by heightened fees from completed M&A deals, where revenues rose 43% to 397m. The financing advisory business reported a 17% increase to 140m, leaving the firm as the fifth biggest firm for advisory fees over the 12 months to the end of September.
“Despite a fiercely competitive market, our strategy is proving successful in global advisory where we have grown our market share contributing to a sharp increase in revenues for the first half,” said Nigel Higgins and Olivier Pecoux, co-CEOs of Rothschild.
The firm was more sanguine about the current environment. “The next six months ... will inevitably be impacted by a more challenging M&A market,” Higgins and Pecoux said. The firm expects full-year revenues in global advisory to be similar to last year, at constant exchange rates.
Advisory accounted for two-thirds of the group’s overall revenues during the period, which rose 18% to 802m.
First-half pre-tax profit increased by 50% to 187m.
Notable deals included the US$3.9bn restructuring of Alpha Natural Resources, the 18bn reorganisation of Credit Agricole and its regional banks, and the merger of Coca-Cola’s Spanish and German businesses.
Rothschild is currently advising German chemicals producer Bayer on its US$66bn offer for agrochemical business Monsanto. (Reporting by Christopher Spink; Editing by Ian Edmondson)