Rothschild & Co, the Paris-based bank, expects a 50% drop in profits in the first half of the year before going private by the end of 2023.
In a statement released today, the bank said that expected net income will be around 125 million euros (about 137 million dollars) for the first six months of the year and around 280 million euros for the whole 2023. In 2022, profits amounted to €249 million in the first half and €606 million for the full year.
Despite the difficulties, Rothschild still expects a “strong performance” for its investment and wealth management business. The company emphasized that it will continue to focus on these key areas, despite the challenges posed by the current market environment.
Rothschild is preparing to leave the stock market after its main shareholder bid to take it private. The deal involves several of France’s wealthiest dynasties, including the Dassault, Peugeot and Wertheimer families, and values the bank at around €3.7 billion. The company now expects shareholders’ equity to be €3.6 billion as of June 30.