Since 1 July 2007, Sal. Oppenheim jr. & Cie. S.C.A., resulting from the holding company Sal. Oppenheim International S. A. merging with Bank Sal. Oppenheim jr. & Cie. (Luxembourg) S. A., is the new Group parent company headquartered in Luxembourg.
Luxemburg, 10 April 2008
Dear clients, business associates and shareholders,
The Group coped well with the remarkable financial year of 2007. Our strategic positioning as an integrated asset management and investment bank has proved to be the right move especially in these turbulent times. Thanks to our conservative risk policy and our successful risk management, we were barely affected by the turmoil on the capital markets. So we are able to report the most successful year in the 219-year history of our family business, with profit from operating activities for the whole Group increasing 7.8 % to € 333 million.
All of our business divisions, branch offices, subsidiaries and affiliated companies contributed to this substantial success. BHF-BANK also made another encouraging contribution to the Group’s total earnings, having experienced a profitable growth phase in its third year under our management.
The values of an owner-managed company are what unite us with our clients, many of whom are entrepreneurs themselves. Reliability, sustainable management, sound balance sheet and financial positions as well as corporate and social responsibility are the values we are committed to and represent.
Our contribution to social responsibility is the creation of long-term secure jobs. In the past year, the Sal. Oppenheim Group gained 335 new employees, taking the total staff, including BHF-BANK, to 4,107 at the end of the year. We currently employ 3,414 people in Germany, 136 more than last year. After all, our Bank’s economic success is only possible thanks to our highly qualified and motivated staff whose commitment has gained the trust of our clients and earns it anew every day. On behalf of my partners and the entire Bank family, I would like to sincerely thank all our employees for this outstanding commitment.
In order to be able to fully exploit our business potential internationally, we moved the Group headquarters to Luxembourg with effect from 1 July 2007. As one of Europe’s leading financial centres which is recognised on the international stage, Luxembourg is an ideal location for the further expansion of our international business. The successful bundling of all Group activities in the new Group parent company Sal. Oppenheim jr. & Cie. S.C.A. is now complete.
The European dimension of our services and our focus on our clients’ needs have top priority and form the core of our corporate philosophy. However, the Bank’s particularly strong position on the German market remains key to international success. We believe that we continue to have good chances of gaining further market share in Germany. By expanding our capacities at each of our locations, we have laid the foundation for continuously developing business there.
We intensified existing client relationships in Asset Management, as well as gaining an encouraging number of new clients. The volume of assets under our management rose by € 14 billion to a record € 152 billion. This reflects our clients’ sustained great trust in our asset management.
Despite an extremely demanding capital market in the second half of the year, the investment bank again achieved a very good result under these circumstances. The number of mandates, transactions and issues reached new highs; we also received many awards. The progress in the integration of Investment Banking and Asset Management benefits both divisions equally.
Our investments in private equity, which is key for Sal. Oppenheim, are becoming increasingly important. Here, the interests of the Bank and the family are in line with those of our clients through joint investments.
The key to our business and the basis of our success is continued strengthening of our capital base. We extend thanks to our shareholders for again making the majority of the net profit generated available as a capital increase. This allowed
€ 239 million to be added to the capital base, increasing equity to € 2.2 billion.
Our corporate philosophy primarily focuses on the needs of our clients. We pursue a solid and low-risk business policy, which is particularly important during difficult market phases. We aim to continue our sound development, applying entrepreneurial skill, and to confirm the trust placed in us.
Yours faithfully,
Matthias Graf von Krockow
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