Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a762253

Brown Shipley triples profits as it embarks on hiring spree

by Eleanor Lawrie on Jul 17, 2014 at 10:15

Brown Shipley triples profits as it embarks on hiring spree

Brown Shipley saw pre-tax profit triple to £7 million over the course of 2013.

The private bank’s assets under management increased by 12% to £3.1 billion, with 86% of this figure run on a discretionary basis. The group noted a 6% rise in investment management income, contributing to a 7% rise in net operating income to £41.1 million, overcoming a move out of trail-paying units.

In spite of this, Brown Shipley said it is becoming ‘increasingly difficult’ to grow funds under management (FUM).

‘Outflows of FUM from clients are becoming larger as capital withdrawals become more commonplace to compensate for lack of income on investments,’ the company said in its results.

But chief executive Ian Sackfield (pictured) told Wealth Manager Brown Shipley is not the only one in the industry to suffer from these kinds of redemptions.

‘It’s a concern everywhere. Interest rates are at 0.5%. The income is not there so people need more capital,’ he added.

During 2013, Brown Shipley’s Financial Services Compensation Scheme (FSCS) levy more than halved to £151,000; £220,000 less than 2012’s bill.

The results noted ‘the company was involved in a number of acquisition opportunities, although none were pursued to conclusion’ during last year.

Wealth Manager understands these included talks to buy Deutsche’s regional business Tilney, which was clinched by Permira, and Jupiter’s private client business in 2014.

Sackfield said the business is targeting discretionary and financial planning firms, but is not in talks with anyone at the moment. Instead, they will look to augment growth through quality private banking hires.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet