At the AGM scheduled for Thursday 24 March Oddo & Cie, the Oddo Group will present 2015 results reflecting robust growth.
Net banking income rose 35% to 426 million euros, and gross operating profit increased by 62% to 136 million euros over the period. Net profit came in at 91.7 million euros (vs 54.1 million euros in 2014).
This brisk momentum is partly due to the widening of the group's scope in Germany, with the successive acquisitions of Seydler Bank in January 2015 and Meriten Investment Management in July 2015. Even so, apart from these acquisitions, group momentum was particularly solid as organic growth accounted for around half of total growth.
Consolidated shareholders' equity came in at 740 million euros against 539 million in 2014. This increase is attributable to the quality of earnings, but also to the capital increase of 100 million euros to which all shareholders subscribed with a view to the acquisition of BHF-KB Group. As a reminder, this acquisition was finalised in March 2016 with the end of the squeeze-out’s acceptance period. BHF-KB Group is composed of the following three main components: BHF-Bank, Kleinwort Benson, which has just been sold to Société Générale and Kleinwort Benson Investment based in Ireland. With BHF-Bank, the total amount of assets under management is above the 100 billion euro threshold and the total headcount is of 2,500 of which 1,400 in Germany.
The investment banking activities
The tie-up between the investment banking activities in Paris and those in Frankfurt with the group Oddo Seydler is now complete. These activities are under the joint Franco-German leadership of Nicolas Wirz and René Parmantier, the teams are working with the same tools, the coherence of the activity is overseen by a single executive committee from the group's investment banking arm. The intermediation activity saw its Net Banking Income grow which confirms the quality of our financial analysis. Our Investment Banking activity, also under the responsibility of a Franco-German tandem, Nadine Veldung and Karl Filbert, has been given a large number of advisory mandates. The bond activity continued to gain market share abroad where our expertise is increasingly recognized. The metal trading business had a very good year in 2016, despite a market characterised by falling prices.
Asset management activities
With regards to third-party asset management activities, the link-up with Meriten Investment Management has proved a resounding success. Under the Franco-German stewardship of Nicolas Chaput and Werner Taïber, the new Oddo Meriten Asset Management entity has moved into a different league. This change of category is not only linked to the scale effect but also to the complementary nature of the excellence of various expertise in both equities and convertible bonds in Paris and fixed-income in Dusseldorf. OMAM's outstandings totalled € 47bn at 31 December 2015. With regards to the private banking activity, here again the trend was positive with outstandings of 6 billion euro on behalf of 20,000 clients. The performances of our portfolio compare very favourably with the competition.
Furthermore, the level of confidence of our partners, the Wealth Management Consultants has strengthened to reach a life insurance inflow of 600 million euros. 2015 was also a very busy year for our back-office, securities and life-insurance outsourcing solutions activities. All of our teams continued to strive to meet the needs of our external clients, such as Private Banks and Asset Managers.
Although the situation in 2016 is more difficult than that in 2015 we remain optimistic for the Group given both the performance of our funds, the implementation of the French-German dynamic and the finalisation of ongoing operations.