Private banking firm Brown Shipley saw its profits increase in 2024 despite a “challenging year” where its gross inflows and assets under management (AUM) fell, and staff numbers were reduced.

The UK arm of the Luxembourg-headquartered Quintet Private Bank reported that its profit before tax increased from £1.2m to £7.8m during the year.

However, gross inflows into discretionary and advisory portfolios, excluding internal transfers, fell from £1.1bn to £500m during the same period.

Brown Shipley’s private banking AUM also fell in 2024, decreasing from £8.7bn at the end of 2023 to £8.1bn at the end of 2024.

In 2024, Brown Shipley agreed to sell a second non-core affluent client book with AUM of £68m to Saltus, while in 2023 it agreed to sell its non-core client book of Court of Protection AUM for £1.37m.

The transfer of the non-core client book began in Q4 2023 and £567,000 of proceeds was recognised in 2023, with the remaining clients transferred in the first quarter of 2024 and the remaining consideration of £802,000 recognised in 2024.

The non-core affluent book transfer commenced in the second half of 2024 and will be finalised in 2025.

Brown Shipley’s annual report also revealed that its headline terms costs fell by 7.3 per cent year-on-year to £84.4m in 2024.

This was primarily due to a reduction in staff numbers as the firm continued to “apply discipline to managing expenses”.

Staff numbers were reduced by 57 in 2024, with the number of full-time equivalent staff falling to 305, resulting in staff costs falling from £53.8m in 2023 to £44.1m in 2024.

“Brown Shipley has produced a profit in 2024 despite a challenging year where gross inflows and AUM decreased, investment performance on profitability improved,” the report stated.

“Clients value the advice and guidance that we offer and given the economic, political, and market environment they have faced through 2024, access to personal service and advice has helped us strengthen relationships and demonstrate value to the clients we serve.”

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