ANNUAL REPORT QUINTET PRIVATE 2019 ANNUAL REPORT

QUINTET PRIVATE BANK 43, BOULEVARD ROYAL L-2955 T: +352 47 97-1 [email protected] WWW.QUINTET.COM EUROPEAN NETWORK

www.quintet.com

Herrmann Debrouxlaan 46 2 Moorgate Pacellistrasse 16 Herengracht 537 B-1160 Brussels London EC2R 6AG D-80333 Munich NL-1017 BV Amsterdam The www.puilaetco.be www.brownshipley.com www.merckfinck.de www.insingergilissen.nl www.pldw.be www.kbl.lu www.insingergilissen.nl

57, Calle Serrano 43, boulevard Royal 163, rue du Kiem Bahnhofstrasse 13 E-28006 Madrid L-2955 Luxembourg L-8030 Strassen CH-8001 Zurich Luxembourg Luxembourg Switzerland www.quintet.com/es-es www.quintet.com/lu www.puilaetco.lu www.quintet.com/ch CONTENTS

4 MESSAGE FROM THE CHAIRMAN

5 WELCOME TO QUINTET

10 DIRECTORS & MANAGEMENT

14 2019 IN REVIEW

16 KEY CONSOLIDATED FIGURES

19 CONSOLIDATED MANAGEMENT REPORT

27 2019 IN REVIEW: AFFILIATES

33 NON-FINANCIAL & DIVERSITY INFORMATION

39 NON-CONSOLIDATED MANAGEMENT REPORT

40 APPENDICES

48 CONTACT INFORMATION 4 2019 Annual report Jürg Zeltner, Group CEOandamemberofthe THE CHAIRMAN THE MESSAGE FROM early December2019,afterbeingnamedWealth deepest sympathiestoJürg’s family. We misshis continues topursueitsstrategicplans–which approval, Jakobisensuring thatQuintet a visionaryleader, aninspiringcolleagueanda approved thenominationofJakobStottasJürg’s and twochildren. successor. Jakobhadalready ledthebanksince Management CEOinthesummerof2019. the Board ofDirectors, subjecttoregulatory Board ofDirectors, passedawayfartoosoon,at On March 22,2020,QuintetPrivateBanklost On March 23,2020,theBoard ofDirectors Quintet’s Board ofDirectors, shareholders, the ageof52.Heissurvivedbyhisbelovedwife remain unchangedand endorsedbytheBoard presence asapartner, colleagueandfriend,who man ofgreat intelligence,integrityandhonor. In hiscapacityasGroup CEOandmemberof management and2,000employeesextendour made aninvaluablecontributionindefininga with hisseniorcolleagues. long-term growth togetherlong-term strategyforourfirm, Jan MaartendeJong enduring focusondoingtherightthingfor and Quintet’s shareholders –andmaintainsits activities. and clients,withnointerruptiontoourbusiness challenges, thatfocusremains steadfast.Asthe steps toensure thehealthandsafetyofourstaff Chairman oftheBoardChairman ofDirectors to stayandgrowwithourclients. –asa firm Extremely wellpositioned from acapitaland Even astheworldgrappleswithunprecedented individuals andfamiliesitserves. pandemic spread,tookallnecessary ourfirm which combinesagilityandstability. We are here liquidity perspective,Quintetisasecure partner, Jürg Zeltner Thank youforyourinterest inQuintetPrivateBank. Yet weknowtheworlddoesnotneedanotherbank;it Jürg drivenperson. wasanintelligentandenormously WELCOME At Quintet–knownuntilrecently as“KBLEuropean At thetimeofwritingthisletter, inlateMarch, our At thatsamemoment,our2,000peoplewere At thisunprecedented momentinhistory, lifehas one firm, toservepeoplewithanentrepreneurialone firm, generations, across goodtimesandbad.Iamproud of Jürg Zeltner, mypredecessor asGroup CEO–and followingtheuntimelypassing wasinmourning firm demonstrates howouremployeesworktogether, as circumstances, wefocuson theinterests ofourclients come from. Andthat,even inthemostextraordinary How willwebebetter? Our initialresponse totheglobalpandemic Private Bankers” – we have been serving families for Private Bankers”–wehavebeenservingfamiliesfor He hadincredible charisma.Hewasfun.lovedhis their existing clients and earn the trust of new ones. thetrust ofnewones. their existingclientsandearn withsomanytrulydedicatedcolleagues, to leadafirm teams –furtherapartthanatanytimeinQuintet’s SIMPLICITY needs abetterbank. mindset –nomatterwhattheydoorwhere they my longtimefriendandpartner. never beenmore complex.We are committed to who worktirelessly tonurture deeprelationships with working from home,atcontingencysites,insplit family. Helovedlife.Ishallmisshimterribly. history butalsoclosertogetherthaneverbefore. being abetterbankbycutting through complexity reflecting theircore valuesandourown.That’s – That iswhy, forexample,wehaveprioritizedESG That doesnotmeanweplumpforsimpleanswers; AGILITY governance factorsinallourinvestmentpractices,governance generations. Byrefusing tosettleforold-fashioned complexity ontheirbehalf. and creating simplicity. Simplicityforeveryclient We are convincedthatthisistherightapproach stronger portfoliosand fosterbeneficialchange service. Betweensecurityandgrowth. Between We believethatnooneshouldhavetochoose Responsible Investment. Or betweenbeingadvisedandheard. Changes inourindustrysince thefinancialcrisis, trade-offs andtakingabroader viewofpotential the UnitedNations-supportedPrinciplesfor technological efficiency andhumanunderstanding. risks andopportunities,wehelpourclientsbuild in linewithourcommitmentasasignatoryto investing, incorporatingenvironmental, socialand including theemergence ofverylarge , part ofbeingabetterbank. planet. Betweenglobalinsightandpersonalized instead, westrivetomeettheneedsofpeople in thewaytheyare servedbyus–managing for ourclients,thecommunityandfuture who refuse tosettleforold-fashionedtrade-offs. between banksandbankers vis-à-vis theirclients. have attimescreated anunhealthydistance between pursuingprofit andprotecting the 5 2019 Annual report 6 2019 Annual report The bigger the firm, themoreThe biggerthefirm, difficult itcanbeto At Quintet,weaimtobeabetterbankbystriking At large organizations, energy isoftenwastedon enough togiveourclientsaccesstheworld.We of theorganization itself. gets inthewayofcollaboration.Time thatcouldbe service-levelagreements.over internal Bureaucracy devoted toclientsislostmanagingthecomplexity debates aboutrevenue sharingandnegotiations disadvantages, too. combine alocalpresence in50citiesacross Europe and broad capabilities.Butsizehasits Such large institutionshavemanyadvantages, the rightbalance:smallenoughtobeagilebutlarge including large workforces, capital,infrastructure make theirwealthgrow. maintain clientfocus. with trulyglobalinsight,andprovide objectiveadvice liquidity, securing alegacyorembracingnewideasto life goals–whetherthatmeansefficient accessto based oneachclient’s personalcircumstances and “Quintet” speakstowhoweare andhow asafirm “Quintet,” ournewname,standsfortheideathat And where thewayweorganize ourselves–withless departments andmarkets–sowecanmeetour complexity andgreater agility–helpsusfocuson are basednotjustonfinancialfigures butalsoto actions reflect ourwords. Compensationdecisions clients’ needsanddeliverperformance. common purpose. and trueharmony, when theyalignbehinda We seektobethebankwhere everyoneisnotonly Our managementprocesses furtherensure thatour perspectives –workingtogetheracross functions, what mattersmost:theinterests ofourclients. focused on,butisobsessedwith,clientexperience. what extenteachQuintetemployee livesuptoour we delivervalue:Likeamusicalensemble, PURPOSE bring togetherdifferent viewpointsanddiverse human beingscanachieveextraordinary things, – wehaveasubstantialopportunitytowinthetrust of theclient–buildingbridgesbetweentheir of agreater numberofindividualsandfamilies. agility and decisiveness that come with smaller size. agility anddecisivenessthatcomewithsmallersize. client” andnot“whichproducts weprefer tooffer” We gainacompetitive edgebyensuringthatour such collaboration – internally and withexternal such collaboration–internally same question:Howwilltheexperienceofourclients shared values.Andeverymeetingstartswiththe Quintet can be a better bank, benefitting from the speed, Quintet canbeabetterbank,benefittingfrom thespeed, people alwaysworktogetherinthebestinterests impossible possible. people cometogethertomake theseemingly parties, withanopen-architecture approach and improve asaresult ofthisdiscussion? In short,wewanttobecomethebankwhere If, atQuintet,wecanbethebankthatisbetter financial planning. where thefocusisalwayson“whatbestfor both expertinvestmentexpertiseandlong-term business, familyandwealthneeds,extending They listentoeachotherwithempathyandnot At theWest-EasternDivanOrchestra, musicians own. only acceptbutembracetheirdifferences. other, againstallodds. of thehighestquality–collaboratingwitheach course, drawsinspirationfrom classicalmusic, ambassadors ofourfirm. and Maestro DanielBarenboim are partners and West-Eastern DivanOrchestra, whichhas,overthe So weare proudapartnershipwiththe toform We are veryproud thatthiswonderfulorchestra Our namespeakstothisidea:“Quintet,”of past 20years,cometorepresent thismindset.We produce great music.Ashumanbeings,they musicians, however, theyunitetoproduce music where harmony is born fromwhere isborn collaboration. harmony from across theMiddleEastcometogetherto have takentheirphilosophyandfuseditwithour have reasons todisagree aboutmanythings.As Photo: MonikaRitterhaus 7 2019 Annual report 8 2019 Annual report Asia, whilegrowing ourexistingbusinesses. our people,whethercurrent orfuture colleagues, driver ofoursuccess. access opportunitiesinemerging marketsandin acquired BankamBellevueinSwitzerlandandlook as lendingandonboarding –thatalsohelpus culture, ahugepartof althoughweknowitforms commitment ofourpeopleisthemostimportant We are alsoexpandinggeographically. We have We are makingmajorinvestmentsinnewproducts, Most importantly, wewillcontinuetoinvestin the backboneofeverythingwedo. isofcoursenotonlyaboutOur transformation than transactions–andthatthequality region, subjecttoregulatory approval. We will in theareas thatmattermosttoourclients–such in ourinvestmentprocesses, andindigitalsolutions INVESTING INTHEFUTURE forward tolaunchingour businessintheNordic become anevenmore agile organization. because weknowthatrelationships mattermore PRODUCTS, PROCESSES WE AREINVESTINGIN AND, MOSTOFALL, OUR PEOPLE

Jakob Stott of ourBoard ofDirectors andshareholders. our ideascansupportambitiontobecomethe on whatreally matterstoyouandyourfamily. differentiated approach. Andweare convinced and aseatatyourkitchentable,where life’s most So youcanfocusahead anddeliversperformance. contacting usatanyofour50offices. We believethatwecanbeabetterbankwith We are fortunatetohaveastrong management Backed bysuchsupport,wewillimplementour Equally, weare gratefulforthecommitment For aricherlife,howevertheydefineit. Sincerely, transformation overthenextfew years, whiletransformation team thatisunifiedbehindtheQuintetphilosophy. the lifetheywantforthemselvesandtheirfamilies. Group CEOandmember oftheBoard ofDirectors Find outmore byvisitingwww.quintet.com orby to discoverabankthatlistenscarefully, thinks remaining financiallystrong. important decisionsare made Discover a partner that strives to earn yourtrust–Discover apartnerthatstrivestoearn most trustedpartner, helpingclientstoinvestin I hopeourideasresonate withyou,andinviteyou most importantdecisionsare made. we earntheirtrust–andaseatatkitchentable,where life’s By listeningcarefully, thinkingaheadanddeliveringperformance, wealth. Thatiswhyweare inbusinessandwhatdrivesuseachday. what isrightforourclientsandtheirfamilies,whoentrustuswith Nothing ismore important thanourfiduciary responsibility todo FIDUCIARY OF FAMILYFIDUCIARY OF WEALTH TO DOING THE RIGHT THING WE ARE THE MOST TRUSTED UNWAVERING COMMITMENT AND TRUST EARN BY AN 9 2019 Annual report 10 2019 Annual report S MANAGEMENT& R O T C E R I D 2 1 BOARD OFDIRECTORS As of January 19, January of 2020 As As of March 23, 2020, subject to regulatory approval to regulatory subject 23, 2020, March of As Director ANNE RUTH HERKES Director ALFRED BOUCKAERT Chairman Vice GEORGE NASRA Chairman DEJAN JONG MAARTEN Director Director ANTOINE MARCOLIN 1 YVES FRANCIS YVES

2 Group CEO Group Director ANNE REULAND Director MAZZUCCHELLI MARCO Director WILDGEN ALBERT Director PETER VANDEKERCKHOVE JAKOB STOTT JAKOB STOTT

AUTHORIZED AFFILIATE CEOS 2 1 1 MANAGEMENT COMMITTEE As of March 23, 2020, subject to regulatory approval to regulatory subject 23, 2020, March of As approval to regulatory subject 23, 2020, March of As As of March 23, 2020 March of As Group COO COLIN PRICE Grouo CEO Grouo 1 2 Luxembourg Puilaetco MEUX DE JAMBLINNE DE OLIVIER Group CFO Group HARVEY NICHOLAS 1 Quintet Luxembourg Quintet Switzerland Quintet Quintet España RAFAEL GRAU EMMANUEL FIEVET JAKOB STOTT JAKOB STOTT SØREN KJAER

InsingerGilissen SIERADZKI PETER Group Chief Risk Officer ANTHONY SWINGS General Secretary SIEGFRIED MARISSENS Merck Finck MATTHIAS SCHELLENBERG Puilaetco LUDIVINE PILATE Shipley Brown MATHEWSONALAN Officer Legal Chief Group MARIA LEISTNER

11 2019 Annual report 12 2019 Annual report Group Chief Information Technology & Officer Operations ÉRIC MANSUY Group Head of Project Management Office QUENTIN LIMBOURG Tax of Head Group OLIVIER HUBERT Office Family Head, Group PHILIP HIGSON &Solutions Products Global of Head Co-Group CRAWFORD BRYAN Resources Human of Head Group DONNA BURNS &Treasury Management Liability Asset of Head Group PAULO BRUGGER Finance of Head Group BABBMELANIE 1 GROUP MANAGEMENT Independent auditors responsible for external audit: Ernst &Young S.A. Ernst audit: external for responsible auditors Independent As of March 16,2020, subject to regulatory approval to regulatory subject 16,2020, March of As

Group Head of Strategy and M&A and Strategy of Head Group VICEDOM SEBASTIAN Audit Internal of Head Group THIERRY THOUVENOT Group Chief Investment Officer BILL STREET Compliance of Head Group 1 Group Head of Communications Corporate NESSON NICHOLAS &Procurement MIS of Head Group FRANÇOIS MONMIGNAUT Marketing of Head Group OLGA MILER Group Head of Financial Intermediaries MATTI STEPHAN JAN JOOST MAAS JOOST JAN OUR PURPOSE

TO BE THE MOST TRUSTED FIDUCIARY OF FAMILY WEALTH.

WE EARN YOUR TRUST BY AN UNWAVERING COMMITMENT TO DOING THE RIGHT THING.

WE GROW AND PROTECT YOUR WEALTH AS WE WOULD OUR OWN. OUR WORTH IS MEASURED BY THE IMPACT WE DELIVER.

WE ADD INSIGHT AND REDUCE COMPLEXITY. WE ADD SECURITY AND REDUCE WORRY. 2 0 1 9 IN REVIEW

JANUARY APRIL

Quintet unveils its 2019 global investment Quintet announces its 2018 financial results outlook at a series of press and client events Quintet Luxembourg sponsors the Wonderfair across its network 2019 luxury exhibition in Luxembourg Merck Finck announces the hiring of 12 private Brown Shipley is named the “Best UK Private bankers Bank – Credit Provider” at the WealthBriefing Quintet Luxembourg organizes a charity drive European Awards for the Luxembourg non-profit Stëmm vun der Stroos

Brown Shipley is named one of the Wealth Net’s Top Financial Planning Companies MAY

Puilaetco celebrates the 150th anniversary of its 14 Quintet celebrates the 70th anniversary of its founding, hosting over 1,500 clients at a series of founding in Luxembourg high-profile events in Brussels Quintet announces the appointment of Jürg Zeltner as Group CEO and Jakob Stott as CEO, Wealth Management

FEBRUARY The Richelieu Equity Family SC fund ranked by the French newspaper Le Monde among the top 2019 Annual report 2019 Annual Quintet participates in a mission to Spain led by 5 “family” funds the Luxembourg government For the second year in a row, Puilaetco ranks Merck Finck announces a strategic partnership second in the Extel Award as Best Asset with DSER GmbH for digital projects Manager; three of its asset managers are ranked in the top five

MARCH JUNE Brown Shipley hires Nick Cringle for the newly created role of Northwest Region Manager Quintet expands in the United Kingdom with the acquisition of NW Brown Quintet España launches the Precision Absolute instrument in Spain Quintet unveils its midyear global investment outlook

Brown Shipley appoints Rory Tapner as Chairman of its Board of Directors

Ludivine Pilate is appointed CEO of Puilaetco

InsingerGilissen receives PWM’s “Best Private Bank for Digital Culture – Europe” award JULY NOVEMBER

Merck Finck strengthens its presence throughout Quintet Luxembourg organizes a charitable Germany by hiring 15 new private bankers donation drive for the Luxembourg Red Cross

Puilaetco Luxembourg sponsors Luxembourg Art Week for the fifth consecutive year AUGUST Shanti Kelemen is appointed Investment Director at Brown Shipley

Quintet signs an agreement to acquire Bank am Puilaetco signs the Women in Finance Charter, Bellevue in Zurich promoting diversity and inclusion in the financial sector Robert Farnworth is appointed Client Director in the Court of Protection & Personal Injury InsingerGilissen is named the best private bank in specialist team at Brown Shipley the Netherlands at the IEX Gouden Stier awards 15

SEPTEMBER DECEMBER

Colin Price is appointed Group Chief Operating Mike Davis and Daniel Cordery are appointed to Officer Brown Shipley’s London office 2019 Annual report 2019 Annual Bill Street is appointed Group Chief Investment Stephan Matti is appointed Group Head of Officer Financial Intermediaries

Quintet Luxembourg sponsors the World Tennis Legends Tournament

Quintet Luxembourg participates in the Lëtz Go Gold solidarity race organized by the Fondatioun Kriibskrank Kanner

OCTOBER

Kris Tegg is appointed Head of Offering and Distribution

Emmanuel Fievet is appointed CEO of Quintet Luxembourg

Olga Miler is appointed Group Head of Marketing

Søren Kjaer is appointed CEO, Nordics, as the group unveils plans to expand to the Nordic region

Brown Shipley successfully closes the acquisition of NW Brown KEY CONSOLIDATED FIGURES

(Consolidated figures as of December 31) 2016 2017 2018 2019

RESULTS (in € million)

Operating income 465.9 4 87.9 444.8 443.1

Operating expenses -451.1 -446.1 -433.6 -470.5

Impairments 0.2 1.0 -1.7 -13.3

Share in results of associated companies 1.1 0.1 -0.1 -1.5

Gains/(losses) on non-current assets held-for-sale, - - -2.5(4) - not qualifying as discontinued operations

Pre-tax profit (from continuing operations) 16.1 42.9 7.0 -42.2

16 Income taxes -10.1 -4.2 -6.2 -1.5 Discontinued operations, net of tax - -3.6(2) - -

Net consolidated profit, group share 6.0 35.2 0.8 -43.7

FINANCIAL RATIOS (in %) 2019 Annual report 2019 Annual Common equity tier one ratio 16.0%(1) 17.2% 17.2% 18.0%

Tier one ratio 16.0%(1) 17.2% 17.2% 18.0%

Solvency ratio 16.0%(1) 17.2% 17.2% 18.0%

Regulatory capital/balance sheet total 5.9% 5.3% 4.6% 4.7%

Loan-to-deposit ratio 27.2% 29.3% 24.7% 32.8%

ROAE 0.6% 3.2% 0.1% -4.1%

ROAA 0.1% 0.3% 0.0% -0.3%

ROA 0.1% 0.3% 0.0% -0.4%

Cost/income ratio 96.8% 91.4% 97.5% 106.2% (Consolidated figures as of December 31) 2016 2017 2018 2019

BALANCE SHEET TOTAL (in € billion) 11.0 11.5 13.0 12.2

ASSETS

Loans and advances to credit institutions (incl. on demand) 1.5 0.7 1.0 1.5

Loans and advances to others than credit institutions 2.1 2.5 2.6 3.2

Equity and debt instruments 5.4 4.3 4.4 4.7

LIABILITIES

Deposits from credit institutions 1.1 0.6 0.7 0.6

Deposits from others than credit institutions 8.1 8.6 10.5 9.8 17 of which, subordinated debt 0.0 0.0 0.0 0.0

Total equity 1.1 1.1 1.1 1.1

PRIVATE BANKING ASSETS UNDER MANAGEMENT 36.4 45.3 39.5 45.9 (in € billion) 2019 Annual report 2019 Annual Volume impact +1.1% +0.7% -0.9%(3) -0.7%

Price impact +2.4% +4.3% -6.8%(3) +15.7%

ASSETS UNDER CUSTODY (in € billion) 26.2 27.5 26.5 31.4

INSTITUTIONAL ASSETS UNDER MANAGEMENT 5.1 8.6 6.6 4.2 (in € billion)

(1) Simulated ratio including Bank Insinger de Beaufort (see note 44 of the 2016 Consolidated Accounts). (2) IFRS 5 “Non current Assets Held for Sale and Discontinued Operations” application on former KBL Monaco, KBL Richelieu, S.C.I. KBL Immo I and S.C.I. KBL Immo III (see note 1 and 2d of the 2017 Financial Statements). (3) Volume/price impact excluding divestment of KBL Richelieu/KBL Monaco. (4) Please refer to note 1 of the 2018 Financial Statements.

The complete financial statements of Quintet and Quintet Luxembourg are available on the company’s website. The Pillar III disclosures report will be published in first half of 2020 on the website of Quintet. www.quintet.com 18 2019 Annual report our own,alwaysputtingtheirwell-beingfirst. on theirbehalf.Thatiswhywesafeguard theirwealthaswewould responsibility –toprotect andgrow ourclients’assetsbyinvesting and theirfamilies. We recognize thatitisaprivilege–andgreat partner with people to help them live the life they want for themselves We do more than manage wealth and make investment calls; we WORTH IS MEASURED BY THE WE WOULD OWN. OUR OUR OUR CLIENTS’OUR WEALTH AS WE GROW AND PROTECT IMPACT DELIVER WE The netinterest margin improved by10%to€82.1 The group hasdevelopedacleargrowth strategy The group’s solvencyratioissolid,andremains €0.8 millionin2018).Suchinvestmentsthe MANAGEMENT REPORT CONSOLIDATED At theendof2019,Quintet’s consolidated Against avolatileandadverse macroeconomic organizational projects thataccountformostof of Quintet’s majorityshareholder strong support of 2018). environment, Quintetmaintainedthelevelofnet opportunities onthesecured interbankmarket. deposited ontheassetsideatcentralbanks, assets undermanagement,aswellsignificantly areas suchasnetnew money generationand and geographicexpansiontosupportthefirm’s all group entities.Despitethiscontraction,which compared to2018(€13billion)isprimarilydue at theendof2019versus€296 millionattheend commissions oftheprevious year(€292.7million GENERAL COMMENTS ONTHE strategy –andthegroup’s 2019financialresults year, whentheTreasury desktookadvantageof the year-end lossof€-43.7million(netprofit of Quintet’s strong capitalposition isareflection year. structure ofthefirm’s financialpositionremains Quintet PrivateBankismakingverysignificant to Quintet’s growth ambitionsthrough capital the European CentralBankat18%(2018:17.2%). reflect that. improved overtime. bottom-line performance injections of€62millionin2019,followedbya people, product development,salesmarketing investments inthefuture –includingingreat million against€74.7fortheprevious mainly impactedtheportionofexcessliquidity firm’s future growth willsupportlong-term in with thelaunchofarangecommercial and further €50millioninthefirstquarterof2020. well abovetheregulatory threshold imposedby RESULTS ANDTHEBALANCE SHEET long-term growth,long-term inlinewithitsambitious lower interbankandcustomerdepositsatalmost balance sheettotaled€12.2billion.Thisdecrease healthy andlargely comparabletotheprevious – are contributingtoourabilitybetterserve That’s whyweinvestintheskillsand Training anddevelopmentare centraltofurther TRAINING &DEVELOPMENT At Quintet,webelieveindoing wellforour Annual-reports Across thegroup’s footprint,Quintetpromotes overall clientexperience. enhancing ourclientservicesandimproving our clients,nomatterwhere theyare based. experienced professional staff. Indeed,allour each individualclient. development ofourpeopleandrecruit and consultancyfees,aswellinstaff expenses. clients anddoinggoodinour communities. corporate socialresponsibility, supporting various cities, ourgroup hasaunique opportunityto consolidated financialstatements. cooperation, organizing eventsthatbringtogether (€433.6 millionin2018),especiallyprofessional With some2,000employees across 50EuropeanWith Finally, Quintetimpaired certainloansand staff from multiplemarkets.Suchmeetingsfacilitate By contributing resources, timeand capitalto Operating expenses,markedbyongoingstrategic For detailedfigures, pleaserefer tothe Likewise, westrongly encourage cross-border the creation ofshared strategiestobetterserveall the sharingoflocalexperienceandinsight– SOCIAL COMMITMENT relevant staff totransfertheirknowledgeandskills projects, increased byalmost9%to€470.5million people –from themailroom totheboardroom internal mobility,internal creating opportunitiesfor million intheprevious year). make adifference inlocalcommunities.Today, financial assetsfor€13.3millionin2019(€1.7 worthy causesthroughout Europe. we continuetoreinforce ourcommitmentto within theorganization. https://www.quintet.com/en-GL/Pages/ 19 2019 Annual report 20 2019 Annual report organizations suchas: ongoing fundingforabroad rangeofnon-profit an agentofpositivesocialchange. and deprivedchildren. Quintetalsoprovides and Germany, wesupportmultipleorganizations across thecommunitiesweserve.InBelgium We furthersupportvariousstaff-nominated causes Our current CSRcommitmentsincludesupportfor that work with terminally ill,sick,handicappedthat workwithterminally laudable causesandimportantideas,weserveas • • • The Wood Street Mission in the UK the in Mission Street Wood The Autism Foundation in Luxembourg Goods to Give in Belgium in Give to Goods As of 31 December 2019, Quintet employed 1,976 staff, As of31December2019,Quintetemployed1,976staff, employees tookpartinthis24-hourrelay racein compared to 1,898 at the end of 2018. Of those 1,976 compared to1,898attheendof2018.Ofthose1,976 cultural organizations suchastheLuxembourg GROUP EMPLOYEES Luxembourg toraisefundsforcancerresearch strongly encouragesstaff toparticipateininitiatives staff, approximately 65%workinsubsidiariesoutside Luxembourg. Luxembourg. that benefitlocalcommunities.Suchstaff-supported Luxembourg. andtheSolistesEuropéens,Philharmonic initiatives includeRelayForLife,where some50 In additiontodirect financialsupport,ourgroup G L O B A L INSTITUTIONAL SOLUTIONS

Services to professional and institutional clients asset manager or family office. A team of 11 Client have been a pillar of our business for many years. Relationship Managers is responsible for day-to-day While the institutional and professional segment in relationship management and operational support Luxembourg is of course especially substantial, our for existing institutional and professional clients, reach extends far beyond the fund industry and the effectively assisted by a back-office known for its borders of the Grand Duchy. Overall, the institutional experience and competence. Their ability to meet and professional services segment is vitally important client needs completes the wealth management to our medium and long-term success. value chain by positioning Quintet Luxembourg as a true “one-stop shop.” Today, Client Relationship Two years ago, Quintet Luxembourg upgraded Managers serve more than 350 institutional and its organizational structure in order to strengthen professional clients representing more than 8,000 its institutional and professional business model. structures and portfolios. It has more than €24 billion Since then, this business line, Global Institutional in assets under custody. Solutions (GIS) has been uniting, under the same roof, all the marketing and support functions The Client Support & Monitoring team, focused on providing full, high-quality custodian responsible in particular for monitoring and execution services to a sophisticated client investment restrictions on the UCI for which 21 base seeking customized solutions. Quintet Luxembourg is the custodian bank and for supervising the creation and execution of The GIS business line includes all activities and operational workflows, also responds to any services for non-private clients and consists of operational questions from the client in close several desks and entities which operate together collaboration with the operational production lines. in a highly competitive environment, dominated

by the international British and American players Our offering is not limited to the fund industry. report 2019 Annual and marked by ever more stringent regulatory It also includes all the private banking support constraints, such as increased supervision of the services and provides external asset managers sub-custodian networks for custodian banks and and family offices with cutting-edge tools such enhanced monitoring of the activities delegated to as customised reporting available on a specially management companies. developed IT platform. In addition, we provide small and medium-sized banks with access to the Throughout the year, GIS, thanks to its client- financial markets, financial intermediation and focused organizational structure, worked hard to global custody services, with recognized excellence provide a comprehensive offering of impeccable in third-party funds and precious metals. and tailor-made services to meet the needs of small and medium-sized management companies, To succeed in a rapidly changing legal environment private banks, insurance and life-insurance to which fund promoters must adapt constantly, our companies, as well as external asset managers Legal Support team provides high-quality assistance and family offices, whether they are based in in setting up investment structures and updating legal Luxembourg or elsewhere in the world. Since documentation (full and simplified prospectus, KIID, the beginning of 2018, GIS has acquired almost articles of association, etc.) throughout the entire life €5 billion in new assets under custody from new cycle of the fund. The team provides the client with relationships and existing clients. its extensive experience and knowledge of the fund industry and helps with the legal analysis of any new Within GIS, our Business Development team is product. As a full member of GIS, the Legal Support the first point of contact for our future institutional team has a comprehensive understanding of the legal and professional clients, with its three desks of needs and constraints facing external asset managers, multilingual, highly experienced specialists who family offices and banks. It is therefore able to offer have in-depth knowledge of client needs, whether assistance that often goes beyond the purely legal the client is a fund promoter, insurer, external framework. 22 2019 Annual report TREASURY, FXANDBULLION over execution forafullrangeofproducts GLOBAL MARKETS, and institutionalclients.We offer ourclientsa a keyinflectionpointwithourprivate and institutionalclientsin2019, With our expertise, wecompleted With solutions tomeetthefinancialmarketneedsof Global Markets,aGroup CompetenceCenter, is HNWI and UHNWI private clients to external assetHNWI andUHNWIprivateclientstoexternal Quintet clientsacross allsegments:from affluent, tasked withproviding integratedone-stop-shop 500 transferagents.In2019,wehandledmore Our fund-executionbusinessremains transactions on behalf of private through ourcare-order service.We executedalmost than 100,000tradesforavolumeofmore than€8 universe ofmore than35,000funds,managedby position asabuy-side client with managers, familyoffices andinstitutions. In linewiththis,GlobalMarketsoffers while alsoconsolidatingour listed andtradedoverthecounter. billion. Inaddition,wemanagehighvolumesinETF keenly monitored marketpricing. 27,000 fixed-income

TRANSACTIONS IN2019 27,000 FIXED-INCOME COMPLETED OVER GLOBAL MARKETS As ourassetallocationteamsconstantlyadjusttheir deliver efficient andaccurateexecutionthrough and coins)inforward contracts.We alsooffer 65,000 equityandderivativeorders foravolumeof secure custodyservices. Global Marketshaslong-standingexpertisein platinum andpalladium,bothphysically(bars precious metals.We activelytradegold,silver, more than€6.5billion. fund recommendations, GlobalMarketsseeksto enhanced technologyandconnectivity. institutional clients. non-deliverable, forbothprivateand The Treasury teamoffers ourclients on allcurrencies, deliverableand deposit ratesonthemoneymarkets spot, forward andswapsolutions in awiderangeofcurrencies. nevertheless offer afullrangeof Markets’ clientsmainlytrade On thecurrency front, Global in theG7currencies. We “Zephyr’07-S.A. SICAV-SIF.” THIRD-PARTY MANAGEMENT ASSET MANAGEMENT delegated fundsoffered underthename“Essential a diversifiedmodel,KTLisparticularlyactivein among othersthrough LuxUCITSRivertree Bond, and itsaffiliates. Thefundrangeconsistsofsub- MANAGEMENT ACTIVITIES ASSETKTL: COMPANY three areas: Luxembourg (KTL)isthe100%-ownedasset Established inLuxembourg in1987,Kredietrust Portfolio Selection” and alternative fundsunderPortfolio Selection”andalternative Rivertree InvestmentFundsisthecommercial brand Rivertree EquityandRivertree Fd.Inaddition,there that englobesthein-housefundrangeofQuintet is alimitedfundrangeofmulti-managementand management subsidiaryofQuintet.Basedon INVESTMENT FUND SERVICES funds coveringequity, mixedandratestrategies • • • • • • • • • Assistance with fund governance fund with Assistance commercial “Rivertree” brand Management of investment funds under the the under funds investment of Management Provision of customized solutions solutions customized of Provision management Risk Fund registration Fund creation recommendations Domiciliation services Investment research, analysis and analysis research, Investment services fund Investment

TRANSFER AGENT ADMINISTRATIVE AGENT NAV calculationandverification • • • • • • • Transfer of ownership between registrars registrars Transfer between of ownership amounts receivedamounts confirmation of execution, estimation of the of estimation execution, confirmation Settlement of amounts confirmed and confirmed amounts of Settlement Booking of corporate actions on funds, funds, on actions corporate of Booking Booking of and subscriptions redemptions, KYC documentation, AML procedures, managing opening, account for Register Productions of UCITS-KIIDs/PRIIPs-KID Productions data fiscal of verification and Production transaction monitoringtransaction recorded management of entry and exit fees fees exit and entry of management balance of subscriptions and redemptions balance of subscriptions 23 2019 Annual report 24 2019 Annual report The followingteams,overseenbytheGroup Chief STRATEGY ANDRECOMMENDATIONS INVESTMENT RESEARCH, ANALYSIS, across affiliates): specific missionstosupportQuintetinvestment research activities(membersoftheteamsare split Investment Officer, are focusedon carryingout • • • • • outsourced to expert external providers providers external to expert outsourced group defining the group investment universe universe investment group the defining and US large-cap stock selection has been been has selection stock large-cap US and preferred of alist issues and analyzes activities throughout theactivities group, including forcoordinating investment research entity Group Corporate Team (GCOR), which Corporate Group GAAC on macroeconomic trends Group Macroeconomic Team (GMAT), the European mid-caps; and small European Group Equity Research Team (GERT), which Team which (GERT), Research Equity Group Group Allocation Asset Committee (GAAC), Group Investment Research (GIR), the the (GIR), Research Investment Group provides bottom-up fixed-income analysis, analysis, fixed-income bottom-up provides the to insight and input of provider internal process for managed portfolios within the the within portfolios managed for process with a focus on credit credit on afocus with which oversees the tactical asset allocation allocation asset tactical the oversees which management servicesforinstitutionalclients. In additiontotheseservices,KTLprovides portfolio • • • • equity market analysis and overall styles styles overall and analysis market equity currencies and commodi currencies category in ordercategory a “pivot” in the conviction chain that ensures ensures that chain conviction the a “pivot” in (GFST), clients which clients (GFST), (GFOX), a provider of aprovider (GFOX), Group Thematic Ideas Team key (GTI), the Ideas Thematic Group Group Investment Advisory Team (GIAT), Advisory Investment Group Group Fund Selection Team Selection Fund Group Commodities Team and Forex Group to meet clients’ meet to the optimal external external optimal the that ideas and insight are cascaded and cascaded are insight and ideas that ties research, such as thematic ideas, regional regional ideas, thematic as such research, internal provider of broad, equity top-down research and insight on insight and research incorporated by Group Investment Research Research Investment Group by incorporated investment needs focuses onfocuses identifying funds within their within funds - TOGETHER ACROSSOUR SHARE THEIREXPERTISE 50-CITY NETWORKTO OUR INVESTMENT EXPERTS COMEEXPERTS

This continuoussuccessisexplainedbythefact To thiscanbeaddedtheReservedAlternative The numberofUCIstructures andsub-fundsfell

At theendof2016,sixmonthsafterlaunch,there every investmentfundpromoter hashadthechoice enriched theLuxembourg landscape.Sincelaunch, of collectiveinvestmentundertakingsand CENTRAL UCIADMINISTRATION domicile (aftertheUnitedStates),bothinassets double levelofregulation, i.e.regulation ofthe assets rose by14.23%compared toNovember2018. center’s netassetswas€478billion. and theworld’s second-largest investmentfund (see above)andvehicleswith atotalof3,779 structures and14,827sub-funds. Specialized Investment Funds (SIF) attracted fewer new Specialized InvestmentFunds(SIF)attractedfewernew specialized investmentfundsamountedto€4,670 Luxembourg remains Europe’s unrivalledleader RAIF hasalmostdoubled,totaling885structures. November 2018.Oneyearlater, thenumberof Over thesameperiod,increase inthefinancial November 2018,asubstantialincrease of11.4%. this type of alternative investmentvehicle hasthis typeofalternative On 30November2019,thetotalnetassets vehicle (AIF)andofthemanager(AIFM). that theinitiatorofvehicledoesnotneeda the endof2017andreached 575attheendof in 2019,by157and125respectively. Likein2018, UNRIVALLED LEADER Investment Funds(RAIF).LaunchedinJuly2016, fund promoters toLuxembourg (-4.73%)whiletheir net were 28RAIF, anumberthathadrisento294at which isregulated andsupervisedindirectly. LUXEMBOURG, EUROPE’S by theCSSF(SIF, SICAR,PartIIfunds)ortheRAIF, between aninvestmentvehicledirectly regulated billion compared to€4,192billionattheendof Thanks tothepromotional supportofits The topthree countriesoforiginfund €10.04 billion,upslightlyontheendof2018. ADMINISTERED BY KTL As of31December2019,thenetassets72 American countriesrecognize UCITSasastable, governmental agencyforthedevelopment ofthegovernmental distribution ofinvestmentfunds,withmore than defined globaldistributionstrategy. alternative fundscontinuetogrowalternative byoffering domiciled60% ofUCITSdistributedinternationally and managershavechosenLuxembourg asabase (18.4%) and Germany (14%)followedveryclosely(18.4%) andGermany (market share asapercentage oftotalnetassets): socially responsible investment, etc. Over thesameperiod,asignificantnumberof Capitalizing upontheintroduction oftheAIFMD, Moreover, agrowing numberof Asian andLatin the UnitedStates(20.5%),Kingdom to domicileormanagetheirUCITS,withaclearly result, theworld’s most-renowned fundpromoters positioned itselfastheleaderforcross-border professional association(ALFI)andthe promoters remain thesameasprevious year including non-listedcompanies,real estate,hedge investment strategiesinthebroader sense, in Luxembourg. UCI structures totaling 224 sub-fundswere worth new relationships were establishedwithpromoters financial center(LFF),Luxembourg hassuccessfully worldwide. funds, microfinance,e alternativ with significantlevelsofinvestorprotection. Asa EVOLUTION OFASSETS by Switzerland(13.9%). high-quality, well-regulated investmentproduct energy and 25 2019 Annual report 26 2019 Annual report At theendof2019,EFA wasadministering Administration (EFA), ofwhichQuintetisone 2007, EFA launchedEFA PrivateEquity, abusiness and alsoproviding taxandreporting solutionsfor calculating theNAV, accountingandvaluationof a sophisticatedclientele.Theseservicesinclude countries. assets of€138billionfor167clientsfrom 22 accounting, registrar andtransferagentfunctions EUROPEAN FUND ADMINISTRATION S.A. Since 1998,KTLhassubcontracteditsfund For more than20years, EFA hasbeenthe the foundingshareholders. to aspecialistcompanycalledEuropean Fund portfolios, actingastransferagentandregistrar provide awiderangeoftailor-made servicesto private equity-typefunds. UCITS, UCI and alternative investment funds.InUCITS, UCIandalternative more than2,400fundscontainingtotalnet leader infundadministration.Itsmissionisto line dedicatedtoreal estateandventure capital/ of ateamexpertswithexperienceacquired in of complexstructures. EFA aimstobecomethe and otherstructures, regulated ornon-regulated, classes, suchasprivateequityfunds,real estate services for alternative investmentfundequityservices foralternative skills underoneroof byfocusingonleading-edge sector ofprivateassetsbycreating real added EFA Private AssetServicesoffers middle-and this entityisexpandingandconcentratingits various majorbanksinLuxembourg. Inaddition, value thatwillnecessarilyrequire investingin in Luxembourg andinanyotherjurisdiction. is specializedinalltypesofprivateassets,funds people andtechnology. In 2018,EFA strengthened thisdepartment(now funds anddebtfunds.Thisdedicatedbusinessline known asPrivateAssetServices)withthearrival benchmark forservicesoffered inthegrowth back-office outsourcing solutionsforalarge range Throughout 2019,wesuccessfullycontinued enhancing ourlevelofclientservice,including growth strategytoaddfurtherscaleandunlock B planning, investmen focused onprovidingcl with astrongheritagedatingbackto18 wealth managements development ofnewandexistingclient additional regional opportunities.Thisacquisition called “MyBrown Shipley.” complement thehighlevelofpersonalservice 2019 INREVIEW: AFFILIATES Significant corporatedevelopmentsin2019 Chairman oftheBoardChairman ofDirectors. Tapner and Chief ExecutiveofCoutts,withover20years NW Brown &CoLimited,awealthmanagerbased to grow assetsundermanagementviathe the Board closelyadviseonthegrowth ofthe BROWN SHIPLEY relationships. We maintainedastrong focuson increased totalBrown ShipleyAuMtoGBP9 included theappointmentofRoryTapner –former investment managementandlendingservices, partnership withLombard Odiertomanageour in CambridgeandNorwich.Thisispartofour In October2019,wecompletedtheacquisitionof which includesadedicatedclientapplication we deliver. ThisincludedamajorITupgradein by leveragingtechnologicaldevelopmentsto billion. business. board –as experienceatfinancialservicesfirms rown ShipleyisaUK-au t management andlen e rvices incorporatin ients withfullyint thorized private 1 bank, e 0 g grated , di wealth ng. “Best PrivateBankintheNetherlands”atIEX Throughout theyear, ourInnovationLabapproach As aleadingprivateandcustodianbank, At thesametime,weintroduced anewapproach guides clientsinmakingimportantfinancial delivering refreshing financialsolutionsandgreat decisions duringeveryphaseoftheirlife.By at eachimportantsteptheytakeintheirlife.In cost advantagesandabetterdigitalexperience. clients furtherinstitutionalinvestmentoptions, customer journey, includinganewappanduser- average privateclientsatisfactionin2019stoodat a riseinAuM.We were delightedtobenamed and TheodoorGilissen,2019wasthesecond standards, stepby andoveragain. shaping theirownfuture, creating newbeginnings service, thebankactivelysupportsclientsin INSINGERGILISSEN Based onongoingclientfeedbackmonitoring, Gouden StierAwards forthesecondyearinarow. Following the2017merger ofInsingerdeBeaufort this endeavor, InsingerGilissenhelpsraiseindustry to discretionary asset management, offering such Promotor Score rose to28,compared to16in2018. to executeourstrategyasplannedandgenerate us “BestPrivateBankforDigitalCulture –Europe.” 8 outof10andpersonalserviceat8.8.OurNet meetings. Basedonthisapproach, PWMnamed notably, wewelcomedmanynewclientsandsaw InsingerGilissen effectively andindependently friendly waytoeffectively prepare annualreview financial results inlinewithexpectations.Most full calendaryearofoperationsforAmsterdam- led totangibleimprovements inthedigital headquartered InsingerGilissen.We were able 27 2019 Annual report 28 2019 Annual report The qualityofourworkwasagainrecognized with offices andsome300employeesacross Germany, 2019 wasalsoayearofgrowth, withover30 office inareas suchasriskmanagement. digital infrastructure helpustoachievethis. and EAOP. Inparallel,weintroduced anewwebsite and auditorsRödl&Partnerforour“Investor- awards suchasonefrom attorneys international We are pursuingahybridbusinessmodel.Our services forourclients.We offer ourclientsadigital Munich-headquartered Merck Finckoffers awide Michael Krume,memberofthemanagement range of solutions for its HNWI clients. With 16range ofsolutionsforitsHNWIclients.With MERCK FINCK relationship managersappointedacross our investments inenhancedandcustomer-oriented usedbytheclientadvisor,platform, todiversifytheir implemented incustomerrelationship management improvement process toenhanceprocesses including digitalsignature. We startedacontinuous mutual trustand150yearsofexperience. In 2019,Merck Finckimplementedamajormilestone we havebuiltstrong relationships foundedupon with additionalcapabilitiesandupdatedebanking with anElectronic AccountOpeningProcess (EAOP) friendly transparency policy2020.” and information liquidity atdifferent banks. board, retired attheendof2019. branches, andnewcolleaguesjoiningourhead A client-focusedorganization withover€10billion A trustedpartnerforfourgenerations,ourprivate offering itsclientsaholisticinvestmentapproach. other citiesinBelgium,Puilaetcoiscommittedto open-architecture investmentsolutionsforour constantly evolvingenvironment, includingby attracting newclientsandlookingtothefuture Building uponacommitmenttoexcellenceand Headquartered inBrussels,withoffices inseven HNWI clients,whobenefitfrom awiderangeof Our more than200staff provide long-term, Belgian privatebank,closetoitsclientsthanks Puilaetco aimstobecomethebest-known to develop,strengthening existingrelationships, the-art technology. today, tomorrow andforgenerationstocome. PUILAETCO (BELGIUM) in assetsundermanagement,Puilaetcocontinues partnership withTriodos Bank. investment management;credit; fineartcollection personalized services,includingwealthplanning; passionate professionals supportedbystate-of- preserve andgrow thewealthofourclients– investing indigitalsolutions. management; andsustainableinvesting,through a In thisandeverythingwedo,ourgoalisto we embracethespiritofchangerequired bya wealth managementsolutions. with confidence. high-added-value servicesthatbeganin1868, bank offers efficient personalizedandresponsible holistic wealthmanagementservicesand The results ofclientportfoliomanagementwere very All majorequitymarketswere veryprofitable in environment ofevolvingregulations. 2019, especiallyEurope andtheUS,where Puilaetco clients. InOctober, anewHeadofCompliance core business,managingthewealthofitsprivate continued in2019,suchassocialupheaval changes thattookplaceintheworld2018,and commercial brand. changed itsnametoQuintetinJanuary2020.At France, are examplesofthisphenomenon. satisfactory ineveryinvestmentstrategyandmore However, thebankremained cautiouswhen than compensated for performance in2018. than compensatedforperformance Luxembourg investedmostofitsclients’assetsinlong KBL the sametime,PuilaetcoDewaayLuxembourg PUILAETCO LUXEMBOURG investing inachangingworld.Theprofound During theyear, thebankcontinuedtofocus on its positions (thebankdoesnotpracticeshortselling). was appointedtomaintainandadaptthebank’s high levelofcompliancetothischallenging became PuilaetcoLuxembourg, itsnew epb , thebank’s shareholder andparent, The bankreturnedtotheproprietary credit €2.8 million(down15%compared to2018)due granting Lombard credits ofupto€3millionon 2017). arranged directly byitsshareholder. (up 3%compared to2018),whilenetincomewas Loans thatare notonthebank’s ownbooksare October 2018supportedthisprocess, withaview to theprevious year, mainlyduetothemarkets to prudentlymanagingthebank’s balancesheet. income attheendofyearwas€3.4million parent company. TheHeadofRiskappointedin its ownandupto€10millionwiththehelpof income ratioof69%(asin2018andbetterthan prudent restructuring costs.Effective costcontrol Deposits grew bysome18%in2019compared business andrecorded verygoodresults, but alsoasubstantialvolumeeffect. Operating helped thebanktocloseyearwithacost-to- 29 2019 Annual report 30 2019 Annual report 2019 wasayearofconsolidationintheSpanish QUINTET ESPAÑA clients withbothdeepinsightintotheSpanish collaboration, enhancingourabilitytoprovide and strengthening ourpositionforthefuture. and improved ourservicetoclientsbydeveloping acquisition ofclientswithaclearprivatebanking client’s completeprofile inorder tooffer aholistic Within acompetitivesectorlikeours,wehaveWithin We offer clientstheflexibilityofdeveloping Working closelywithourcolleaguesin significant growth potentialinprivatebanking. Spain withtheabilitytodomicileassetsin Bank, QuintetEspañaisheadquartered inMadrid Established in2010asabranchofQuintetPrivate services withtheobjectiveofanalyzingeach Luxembourg andacross Europe, wecontinueto Our clientsare highnetworthindividualsfor Quintet marketoftheirchoice. identify furtheropportunitiesforcross-border profile. We haveincreased ourcontactnetwork market andabroaderperspective. international managed toexpandourbusinessthrough the market withahighlevelofopportunitiesand more thanpurely financialfactors. wealth managementrelationships managedfrom with offices inMurcia, LasPalmasandValencia. wealth managementsolutionsthattakeaccountof whom weprovide customizedassetmanagement of servicesare alsoavailable viamyQuintetand global marketaccess,andinstitutional generations tocome. QUINTET LUXEMBOURG quality from asinglepointofentry:theirrelationship a widerangeofholisticservices,includingwealth and anetworkofsub-custodianbanksthehighest class dealingroom, independentassetmanagement While clientscanalwayscountonapersonal We offer deeplocalinsightand–through Quintet’s structured tomeettheirindividualrequirements. For more than70years,wehaveservedasatrusted 50 privatebankers. Grand Duchy, staffed by300professionals, including Quintet Luxembourg isaleadingprivatebankinthe Each privateclientbenefitsfromone- along-term, 50-city networkofboutiqueprivatebanks–global the evolvingneedsofourclientseachdayandfor to theirneedsandunderstandsexperience to-one relationship with a privatebankerwholistens relationship withtheirprivate banker, arange perspective. planning andstructuring,credit, assetmanagement, professional services. Under theleadershipofCEOSøren Kjaer, weprovide myQuintetpro, thebank’s onlineplatforms. manager. Institutional andprofessionalbenefit clients,inturn, wealth managementpartnerthatstrivestomeet from accesstotailored investmentvehicles,aworld- before proposing open-architecture solutions thatare The launchofQuintetSwitzerland,subjectto Zurich’s financialcenter, willexpandBankam of QuintetPrivateBank,serveswealthyindividuals QUINTET SWITZERLAND clients, leveragingthecountry’s statusasaglobal acquisition ofZurich-basedBankamBellevue,the needs. and familieswithdiverselong-term comes withsmallersizeandthegroup’s financial competitive spacebycombiningtheagilitythat and withsome40staff atlaunch,halfofwhom Switzerland aimstocarveanicheinthishighly Bellevue’s baseofdomesticandinternational Quintet Switzerland,locatedintheheartof Quintet PrivateBank(Switzerland)AG,amember regulatory approval, willfollowtheclosingof resources andreach. Under theleadershipofCEOEmmanuelFievet network ofleadingEuropean privatebanks. wealth managementhubandQuintet’s own wealth managementbusinessoftheBellevueGroup. formerly servedatBankamBellevue, Quintetformerly The Swiss firm isactivelyrecruitingThe Swissfirm additionalstaff of convenienceinprivatebankingbycombining decisions are made. convictions andopenarchitecture, clientsalways in-houseinvestment firm art digitalservices.With a highlypersonalizedapproach withstate-of-the- at theirkitchentable,where life’s mostimportant and intendstodoubleitscurrent headcountby Quintet Switzerlandaimstodefineanewstandard them. the individualsandfamiliesitserves–aseat the endof2020,placingparticularemphasison identifying experiencedrelationship managers who sharethetrustof itscommitmenttoearning have accesstothesolutionsthatare rightfor 31 2019 Annual report 32 2019 Annual report focus onmeetingtheneedsofindividualsandfamiliesweserve. advice and organizational agility, wecut through complexity and solutions thatare rightfor them.Through suchobjectiveinvestment architecture approach –ensuringthateachclienthasaccesstothe experienced professionals who balance firm convictions andan open- Our clientscountonourexpertinsight,provided byadiverseteamof WE ADD INSIGHT AND REDUCE COMPLEXITYREDUCE initiatives andimpactsintheGrandDuchy. environmental, socialandgovernance-related based, particularemphasisisplacedonQuintet’s Luxembourg, where some35%ofitsstaff is Given thatthegroup’s headquartersare in of thegroup asawhole. contained inthisreport encompasstheactivities anddataWhenever possible,theinformation reporting. group’s 2019consolidatedandnon-consolidated providedcomplementing theinformation in and governance-related initiativesandimpacts, provide itsannualreport ofenvironmental, social Quintetispleasedtoand diversityinformation, 2014/95/EU onthedisclosure ofnon-financial In linewithEuropean CommissionDirective INFORMATIONDIVERSITY &NON-FINANCIAL therefore pleasedtoreport, for thethird time,our times tobringthatcommitment tolife.We are that ourgroup mustcontinuetochangewiththe and withcenturiesofcollective heritage,weknow Founded inLuxembourg more than70yearsago in ourcommunities. committed partnerforourclients,trulyintegrated we ensure thatweare asustainable,trustedand European cities.Asafully compliantcompany, brought tolifeour2,000 staff basedinsome50 That commitmentisshared across ourgroup and well inthecommunitieswhichweoperate. our clients,doingrightbypeopleand At Quintet,weare committed todoingwellfor act responsibly. employees andthecommunityatlarge) thatthey stakeholders (includingbutnotlimitedtoclients, have auniqueopportunitytodemonstratetheir the wakeofglobalfinancialcrisis–suchfirms services organization, in particular–especially Given thelowlevelofpublictrustinfinancial activity. matter where theyare basedortheirsector more importantforcompanieseverywhere, no – ineverysenseoftheword –hasneverbeen deepening environmentalsustainability concerns, In aperiodmarkedbyrapidsocialchangeand SUSTAINABILITY &RESPONSIBILITY reporting canandmustgrow richerovertime. initiatives andimpacts–recognizing thatsuch environmental, related socialandgovernance- such asBelgiumandFrance. ees inneighboringcountries Luxembourg-based employ- the “M-Pass”program for tation through, forexample opt forsuchpublictranspor commuting foremployeeswho by subsidizingthecostofdaily occasions carpooling), including tation (includingtrain,busandsome promote business-related travelbypublictranspor At thesametime,ourpolicyistofavorandactively footprint atgroup levelandateachaffiliate. able totrack,traceandseekreduce ourcarbon travel solutionsprovider. Consequently, weare now entered intoapartnershipwithEgencia,business Carbon footprint:InSeptember2016,thegroup the supervisionofGroup COO. such environmental impactinitiatives,actingunder department develops,executesandfollowsupon In Luxembourg, theRealEstate&Logistics seeking localsolutionsinsofaraspossible. other waste,privilegingpublictransportationand usage, maximizingtherecycling ofpaperand footprint, includingbyminimizingelectricity making asustainedeffort toreduce itscarbon In everymarketinwhichweoperate,Quintetis ENVIRONMENTAL IMPACT Puilaetco (Belgium) Puilaetco InsingerGilissen Shipley Brown Merck Finck Quintet Luxembourg EMISSIONS IN KG BY QUINTET ENTITY FLIGHT FOOTPRINT CARBON BY CO2 - 104,572 15,708 36,136 1,573 7,995 2019 -

33 2019 Annual report 34 2019 Annual report declined steadily. the consumptionofA4paper inLuxembourg at everygroup entityare preconfigured toprint Paper usage:Inlinewithbestpractices,printers Luxembourg andacross thegroup’s operation– impact ofelectricityconsumption,Quintet–in reflecting increasing awareness oftheenvironmental Electricity consumption:Overthepastseveralyears, QUINTET LUXEMBOURG (MILLIONS) CONSUMPTION, AT INELECTRICITY KWH, and/or excessiveprinting.Consequently, in blackandwhiterecto-verso, has putinplacemeasures toreduce campaign toreduce unnecessary reducing paperandink usage. reduction inthenumberofbuildings. consumption. InLuxembourg, for a long-term internal awareness internal a long-term All entitiesalsouseFSC- outsourcing ofdatacentersandthe example, electricityconsumption also developedandputinplace certified paper, ensuring controlled wood.Thegroup Luxembourg in2019isduetothe has beenreduced by47%since material, recycled material or product isfrom FSC-certified that thewoodwithin consumption at Quintet in consumption atQuintetin 2013. The decrease in electricity The decrease inelectricity reduction. organized toraiseemployee awareness ofwaste sorting bins.A“Zero Waste” conference was dispensers andimplementednewcentralized Box” fortakeaways,removed plasticbottlesfrom we setupareusable food containercalled“Eco and straws,forexample)inourcanteen.Likewise, of disposableplasticutensils(plates,cups,cutlery reduce waste.Thisproject ledtotheeradication abolish single-useplasticandatthesametimeto Use Plastic”charterofIMSLuxembourg inorder to In March 2019,Quintetsignedthe“Zero Single requirements ISO14024. ofthenorm companies withsuchcertificationintegratesthe treatment andrecycling ofwasteby ISO14024:2000.Thenorm according totheinternational Betriber statusiscertified SuperDrecksKëscht®fir standards. management ofwasteinlinewithenvironmental confers thisstatusbasedonthesustainable Administration, theChamberofCommerce, of industrialheating.Thecountry’s Environmental organic wasteisannuallyconvertedintoasource waste, includingthefactthatsome50tonsof commitment totheresponsible treatment of years ago,reflecting theorganization’s sustained SuperDrecksKëscht®firearned Betriberstatus11 Waste treatment: InLuxembourg, Quintet LUXEMBOURG IN 2019 AT QUINTET PAPER CONSUMPTION A4 FSC USE CHARTER PLASTIC” TO THE “ZERO SINGLE QUINTET IS A SIGNATORY Luxembourg Quintet 2017 4,300,000

2018 3,749,000

2019 2,668,455 European network,weplacespecialemphasison At thegroup’s headquartersandacross ourpan- respect thateveryonedeserves. andfairness skin ortheirphysicalabilities-istreated withthe age, theirsexualorientation,thecolorof every employee–nomattertheirgender, their employer, whichiscommittedtoensuringthat Diversity: allocated locally. established Group CSRPolicy. Suchbudgetsare to CSRactions,whichmustbeinlinewiththe senior managementand/oracommitteededicated and CorporateCommunications,withoversightby social responsibility activitiesare typicallyledbyHR and professional developmentactivities.Corporate and promote staff diversity, andleadsstaff training follows uponpoliciesandstrategiestomeasure supported byGroup HR,develops,executesand In eachofourmarkets,thelocalHRdepartment, well-being ofthelocalcommunity. of ourpeople,andcommitstocontributingthe invests inthelife-longprofessional development recognizes diversityasasource ofstrength, In everymarketinwhichweoperate,ourgroup SOCIAL RESPONSIBILITY for 11years. employees haveservedatthe group, onaverage, required forstaff inthissectorofactivity;our is 45,reflecting thelevelofexperiencetypically The averageageofaQuintet group employee affiliates employstaff of13different nationalities. Belgians (35%)andLuxembourgers (12%).Onaverage, including 28different nationalities,ledbyFrench (38%), and PuilaetcoLuxembourg) are highlymulticultural, female. Meanwhile,staff in Luxembourg (Quintet,KTL Quintet isanequal-opportunity average of36%staff at each affiliate are improving genderparity, overtime,at based staff are female,whilean all levelsoforganization. Approximately 50%ofLuxembourg- APPROXIMATELY 50% OF ARE FEMALE STAFFLUXEMBOURG-BASED sessions toequip managerswiththetoolsand Brown Shipleyintroduced leadershiptraining to theongoingdevelopment ofitsstaff. staff members.Thebankallocatedover€700,000 approximately 19,700traininghoursto745 In 2019,QuintetLuxembourg provided private bankinggroup. and professionally aspart ofaleading ongoing opportunitiestogrow personally sector. AtQuintet,weprovide ourpeoplewith rapid paceofchangeintheprivatebanking their ageorexperience,especiallygiventhe is animperativeforallQuintetstaff, nomatter Training, development&well-being:Training five participantshavingtakenpartin2019. produced generationsofexecutives,withsome program, initiatedmore than30yearsago,has understanding ofthefinancialservicessector. This of thebankandgainauniquelycomprehensive recent graduatestoexplore keydepartments integration program thatallowshigh-achieving “Kaleidoscope Program,” atwo-year, customized relevant actionsincludeaninitiativeknownasthe promote youngeremployees.InLuxembourg, The group activelyseekstohire, trainand Puilaetco Luxembourg Puilaetco InsingerGilissen Merck Finck Finck Merck Bank Private Quintet Quintet España Puilaetco Shipley Brown SENIORITY, GENDER & NATIONALITY COMPOSITION OF QUINTET ENTITIES BY AGE, PUILAETCO (2019) PUILAETCO AT EMPLOYEE, PER HOURS, NUMBER OF ANNUAL TRAINING 44.6 45.9 49.2 49.2 42.1 Age 48 48 41 Seniority 12.2 18.6 11.2 3.9 13 11 8 Men 335 226 252 169 119 20 24 Women 168 138 319 113 87 13 6 Nat. 20 20 28 12 4 1 6 35 2019 Annual report 36 2019 Annual report from managementandexplored theleadership understanding ofleadershipandhowitdiffers The trainingprovided participantswithan confidence tomanageandleadtheirteam. benchmark socially responsible financial institution difference inlocalcommunities andtobea Quintet hasauniqueopportunity tomakea employees basedinsome50 citiesinEurope, 2,000Corporate socialresponsibility: With their hard work,dedication andclient-centricity. holiday parties,thegroup rewards itspeoplefor and showers,regular staff movienightsorall-staff baskets offresh fruit,employee changingrooms space inLuxembourg. Whetheritisproviding significant enhancementstothephysicaloffice ongoing basisinemployeewell-being,including Across thegroup, investmentsare madeonan approximately 10,556hours by197staff members. Quintet Luxembourg, totalremote accessreached regardless oftheircountryresidence. In2019,at up to24daysperyear(forafull-timeemployee) eligiblestaffpolicy thatpermits toworkfrom home to thispilot,Quintetlaunchedaremote-access its remote accessprogram. InJuly2018,further month pilottoevaluateopportunitiesexpand To thatend,thebanklaunchedin2017athree- regulations –particularlyforworkingparents. solution –onaperiodicbasis,inlinewithrelevant and remote accessisincreasingly proposed asa more thanone-quarterofallstaff workpart-time, importance ofwork-lifebalance.InLuxembourg, Quintet promotes flexibilityandrecognizes the solutions. challenges andsupportsthemindeveloping works withstaff tohelpthemaddress personal cooperation withtheHRdepartment, behaviors thatwillstrengthen full-time SocialAssistant,who,in themselves andtheirteams. Luxembourg hasemployeda Since 2008,Quintet PERCENTAGE OF PART-TIME LUXEMBOURG (2019) IN STAFF AT QUINTET fundraisers tosupportlocalcharities(Brown Shipley). Finck, InsingerGilissenandPuilaetco),various initiatives (Puilaetco),cultural(Merck including bysponsoringchildren’s welfare likewise veryactiveintheirlocalcommunity, Outside theGrandDuchy, Quintetaffiliates are participate incharitableinitiatives. Quintet facilitatesopportunitiesforitsstaff to Européens, Luxembourg. Wheneverpossible, as theLuxembourgandSolistes Philharmonic range ofnon-profit culturalorganizations, such provides ongoingfinancialsupporttoabroad Luxembourg; andmanyothercauses.Quintetalso entrepreneurship; ALANmaladiesrares; UNICEF Jonk Entrepreneuren, whichfacilitatesyouth families; theLuxembourg AutismFoundation; a rare andlife-threatening diseaseandtheir which accompanieschildren fightingcanceror including theFondatiounKriibskrankKanner, to charitableassociationsinLuxembourg, In 2019,Quintetdonatedapproximately €50,000 as anagentofpositivesocialchange. capital toworthycausesandinitiatives,weserve local communities.Bycontributingresources and by actingasapositiveandeffective influencein believe wemeettheneedsofallourstakeholders everywhere weoperate.Moreover, atQuintet,we The ComplianceCharter: Committee andtheBoard ofDirectors. and approved bytheAuthorized Management Charter drawnupbytheCompliancedepartment and powers–are laiddown intheCompliance ofobjectives,responsibilitiesfunction –interms regulations. Theoperating procedures ofthis otherwise, duetoafailure tocomplywithexisting suffering damageorloss, whetherfinancialor all measures designed to prevent Quintetfrom Compliance isresponsible forimplementing As outlinedinAppendix2,ComplianceRisk, COMPLIANCE NORMS&POLICIES • • investigations into any of the bank’s activities open to Compliance of right the Recognizes bank’s organizational chart the in Compliance of position the Defines The core focusoftheCompliancefunctioncovers: • • • • • • • • • • • regulatory obligations regulatory their circumvent to parties third by sector financial the of use the of Prevention interest of conflicts of management and Avoidance Data protection, including banking secrecy protection Investor instruments financial in markets the of Integrity transactions personal and abuse market of Prevention financingterrorism and money-laundering against fight The CSSF the as well as Committee, Compliance the or Committee Audit the of members appropriate, or, where Directors of Board the of Chairman the initiative own his on and directly to contact Officer Compliance Chief the of right the Establishes experts external on calling for circumstances and conditions the applicable Defines Audit Internal and Management Risk with the relationships Describes Officer Compliance Chief the of lines and reporting the responsibilities Defines fight against money-laundering and terrorism financing. fight againstmoney-launderingandterrorism financing. employee hasbeenmadefullyaware oftheirrole in the variouscompulsorytrainingsessions,everyQuintet Via Quintet group: group’s Intranet–are applicableacross the guidelines andstandards –availableviathe The followingprimaryCompliancepolicies, • • • • • • • • • • • • • • by Employees Employees by Mandates of Exercise the to Relating Policy Policy Market Abuse Policy Protection Investor Group AML Standard Group PolicyCross-border Policy and Bribery Anti-corruption Code of Conduct Policy Business of Conduct Policy Interest of Conflict Blowers Whistle of Protection of Code Policy Compliance Compliance Charter against and fraud corruption fight the and etc.) manual, compliance conduct, of (codes ethics Professional activities cross-border to linked risks compliance of Management 37 2019 Annual report 38 2019 Annual report and acommitmenttodeliveringoneverypromise wemake. rock –withastrong shareholder, arobust capitalbase,ECBregulated peace ofmindthatcomeswithknowingtheirpartnerisassolida With thefreedom toseize aworldofopportunities,theyenjoythe that willmaketheir wealth grow and expertswho will guide them. Our clients prize efficient accesstoliquidity tofundtheir future, ideas AND REDUCE WORRY WE ADD SECURITY €48.2 millionagainst€44.7fortheprevious MANAGEMENT REPORT NON-CONSOLIDATED Although affected bytheimplementationofanew At theendof2019,QuintetLuxembourg’s balance opportunities onthesecured interbankmarket, excess liquiditydepositedatcentralbanksonthe compared toalossof€-23.0millionin2018. commercial andorganizational strategy, Quintet asset side,thestructure ofthefinancialposition contraction, whichmainlyaffected theportionof GENERAL COMMENTS ONTHE Solvency issolidandremains wellabovethe year, whentheTreasury desktookadvantageof year. Net interest margin improved byalmost8%to Luxembourg recorded a2019profit of€60.3million Central Bankat40.1%(2018:34.9%). sheet totaled€8.7billion.Thisdecrease compared to 2018(€9.3billion)ismainlyduelower regulatory threshold imposedbytheEuropean remains healthyandcomparabletotheprevious interbank andcustomerdeposits.Despitethis while netcommissionswere slightlydown(€40.5 RESULTS ANDTHEBALANCE SHEET €127.4 millionundertheheading“otherincome.” Annual-reports 2019 compared to€161.2millionin2018. dividend related toreal estatetransactionsin2018. consolidated financialstatements. (€2.9 millionintheprevious year). Finally, QuintetLuxembourg impaired certain Operating expenses,markedbyongoingstrategic Luxembourg. Thoseoperationsgeneratedaprofit of Quintet Luxembourg received fewerdividendsthan For detailedfigures, pleaserefer tothenon- transfers ofitsbuildingsownedoroccupiedin to €37.0millionin2018),partlydueaone-off the previous year(€9.0millionin2019compared the endof2018). projects in2019andaplantorightsizethe During 2019,thebankmadeseveralsalesand million attheendof2019versus€43.2 workforce in2018,amountedto€163.5million financial assetsandloansfor€25.2millionin2019 https://www.quintet.com/en-GL/Pages/ 39 2019 Annual report 40 2019 Annual report The purposeoftheFGDListoprotect clientsofthe APPENDICES APPENDIX 1 As forinvestorprotection, theLuxembourg View (SCV)fileincludingdataaboutalleligiblecashView garantie desdépôtsLuxembourg,” seethewebsite depositors alongwiththecustomerreferences. The depositors within7days. a systemwhichisabletoproduce aSingleCustomer Each year, QuintetLuxembourg paysacontribution Considering theamountpaidforFGDLduring Luxembourg ResolutionFund (2018:€2,496,595). scheme (DGS)isrepresented bytheFGDL(“Fondsde to theFGDLforitsfinancing. the bank’s failure. Quintet systemistestedtwiceayear. Thisset of the current year, thesameamountof€170,666 the FGDL(2018:€391,727)and€2,498,855for Quintet hassinceDecember31,2013,implemented Luxembourg andintheQuintet Spainbranchare Quintet isanFGDLmember. Asamember, account transposed intoLuxembourg lawbytheof18 reserves. information isrequested bytheCSSFinorderinformation to investor compensation scheme(SIIL:“Système place fortemporarydeposits,seetheFGDLwebsite per person/account(additionalguaranteesare in protected bytheFGDLuptoamaximumof€100,000 December 2015. Directive 2014/49/EUandDirective 2014/59/EUwere In 2019, Quintet Luxembourg paid €170,666 for In 2019,QuintetLuxembourg paid€170,666for member institutionsincaseabankgoesbankrupt. In order tobecompliantwiththislegislation, In caseoffailure, FGDLensures compensationof In Luxembourg, thenationaldepositguarantee facilitate thereimbursement ofdepositorsincase was transferred backfrom unavailabletoavailable for details). www.fgdl.lu). DEPOSIT GUARANTEE holders (naturalpersonsandlegalentities)inQuintet The tasksofGroup Complianceencompassthe €20,000. APPENDIX 2 2015). Theinvestmenttransactionsmadebythesame otherwise, duetoafailure tocomplywithexisting d’indemnisation desinvestisseursLuxembourg”) covered. covers investors(naturalpersonsandlegalentities) as welltheimplementationofanawareness- all measures designedtoprevent Quintetfrom COMPLIANCE RISK scope ofwhicheligibleinvestorsinQuintetare suffering damageorloss,whetherfinancial Quintet Luxembourg isalsoanSIILmember, inthe Public Prosecutor andtheCSSFinfieldofanti- Compliance isresponsible forimplementing raising policy. Itsmonitoringincludescorrective regulations. in thescopeoflegislation(law18December investor are covered uptoanamountequivalent identification andmanagementofcompliancerisks, money laundering.Itactivelysupportsmanagement measures, reporting, internal andliaisingwiththe Its core focusis: bodies inthecontrol andmanagementoftheserisks. • • • • • • Advice, prevention and control in the the in control and prevention Advice, obligations obligations compliance manual, etc.) and fraud conflicts of interest, etc.) interest, of conflicts of management and avoidance complaints, core work of Compliance, which also also which Compliance, of work core Staff and group adherence to regulatory regulatory to adherence group and Staff Professional ethics (codes of conduct, conduct, of (codes ethics Professional money abuse, market of Prevention Prevention and management of compliance various areas of intervention form the the form intervention of areas various risks linkedrisks business to cross-border prevention monitors compliance risks and their compliance risks monitors Investor protection (MiFID, customer protection Investor laundering and financing terrorism This program ismainlybaseduponasystematic This committeeisdelegatedbytheBoard and of subsidiaries,thegroup continuedtosupport entry intoforce ofMiFIDII. demonstrate thegroup’s zero toleranceforany design anAMLriskappetitestatementtoclearly and structured multi-annualapproach with across thewholeofQuintet. and provides theworkstreams withappropriate and term sheets,istoensureand term thatclientsunderstand client acceptanceandrevision procedure. commercial initiativesandthequestionsthatcanarise training sessions,depending on theperson’s the roll outoftheCompliance Awareness program the group-wide high-levelassessmentanalysis Compliance isalsoassociatedwithvarious Compliance continuestoadviseandsupportthe Committee (BCLC) is informed of,andregularlyCommittee (BCLC)isinformed Furthermore, theBoard Compliance&Legal the validatingofnewproducts andservicesfortheir regulations andsignificant timehasbeentakento requirements. In2019,Complianceplayeda regulatory dashboard consolidatingallapplicable regulatory roadmaps, aswellagroup regulatory projects. Complianceparticipatesin regulations. Thisprocess wasstrengthened bythe investment decisionswhichcomplywithexisting products andtheirrisksmakeinformed incorporates supportmaterialssuchasbrochures 2.1. ADVICE ANDPREVENTION major role inanchoring thesystemsdesigned In additiontoitsongoingmonitoringandsupport marketing toclients.Thegoalofthisprocess, which meets onaquarterlybasis. monitors, theadequacyofCompliancemeasures. It shouldbenotedthatCompliancetakespartin for conformity withtheMiFIDIIandPRIIPsfor conformity from them.Complianceisalsoinvolvedinthebank’s level ofexposure toCompliancerisks. The breach inthatmatter. bank’s variousbusinesslines.Itregularly supports Luxembourg-based teams through cooperation local between and management across the Quintet network network Quintet the across management This committeeadvisestheGroup Executive The GroupCommittee ComplianceNormative The correct executionof thesecontrols byour An external professionalAn external tool specializedinthe evaluating compliancerisktargets amore refined ensure thattheBestExecutionpolicyisadhered of thebank’s control generalinternal framework. drawn upbasedontheresults ofaCompliance detection ofmarketabuseand insidertradingisin listsofpersonssubjectdatabase andinternational current anti-moneylaunderingstandard andthe according orexternal). towhatistopical(internal all Quintetentities.Thesesolutionsimprove the anti-money launderingtoolsare nowinplaceat allocate complianceresources tothebiggestrisks. and betterdocumentedriskanalysisto are putforward. Since2016,theplanhasbeen (before andafter), by screening theclient (CMP). Thistoolmapscompliancerisksand subsidiaries ismonitored from Luxembourg, Compliance Officers inourEuropean network. Quintet through forumsandregular exchangeswith Compliance continuedtostrengthen practicesacross Committee. In2019,thissawtherevision ofthe Risk Assessmentexercise. Thismethodologyfor Compliance continuedtomaintainitsControl to whenprocessing clientorders. to legalactionorrestrictive measures. to overseeitsComplianceMonitoringProgramme tests, theComplianceMonitoringentitycontinued refresh oftheothercodesandpolicies. review processes forthegroup’s clients,whether regularly checksthattheserisksare undercontrol. program isaccompaniedbyregular information place whilealsobeingusedto automatechecksto 2.2. CONTROL 2.2. norms andstandards,norms ensuringbestpractices. meets regularly. Itgatherstogetheranumberof new orexisting,bothbyanalyzingclientbehavior If necessary, suggestionsforimproving theplan In additiontorefining andstrengthening certain for employeesandmanagersonCompliancerisks with supportprovided as necessary. Specialized function. Itssecond-levelcontrol frameworkispart local HeadsofCompliancetoexaminenewgroup 41 2019 Annual report 42 2019 Annual report These include theextensionofRiskControl APPENDIX 3 overall RiskControl FrameworkandkeyRisk guidelines aswellECBrecommendations. The dedicated Information RiskFramework(includingadedicated Information data-warehouse facilities (automation,data delivered thefollowingachievements: defense -workinginclosecollaborationwithIT development ofanindependentsecondline control infrastructure and(ii)regulatory-driven topics. axes: (i)thedevelopmentofcomputationalrisk clients. Group Compliancecarriesoutregular checks and reiterating tostaff theongoingneedtoprotect a modelfornon-maturitydeposits,andthe coverage andquality),thedevelopmentof (part) ofOperationstotheSwissprivatebank 3.1 MISSION&ACHIEVEMENTS Security andtheDataProtection Officer –was substantially improved followingnewregulatory Policies havealsobeenreviewed andvalidated. Finally, theGroup DataProtection programme Odier ITplatform. Lombard Odier–wasachievedwiththesuccessful On 1July2019,amajormilestoneintheUtopia Quintet isconstantlyadaptingitscontrol procedures Programme. Inparallel,the specificationsfor Risk andControl Self-Assessment (RCSA)and the designofanewoperationalrisktoolwere the launchofanOperationalRiskMonitoring proper riskappetite)isongoing. pursued in2019andthedevelopment ofa project –theoutsourcing ofQuintet’s IT& in thegroup’s varioussubsidiaries. in 2019were thefinalization ofthe roll-out ofthe implemented andtestsare ongoing. migration ofBrown ShipleyontotheLombard In 2019,quantitativedevelopmentshingedontwo In terms ofoperationalrisk,themain improvementsIn terms In 2019,theICAAP, ILAAPandRecoveryPlanwere In terms of Information Risk,thefurther ofInformation In terms formalization ofamodelriskframework. formalization RISK MANAGEMENT The The department(2.8FTEs)isincharge ofdeveloping The objectiveoftheGroup Risk Information At group level,thedepartment isincharge of As at31December2019,Group RiskControl in defense forcontrolling riskrelated todigitalassets. coordinating Group SecurityRisk Information RiskControl Framework, and maintainingtheInformation a totalof29.5full-timeemployees(FTEs). 3.2 STRUCTURE3.2 &ORGANIZATION Security & Risk Committee/Board Risk Committee). Security &RiskCommittee/Board RiskCommittee). Luxembourg wasorganized intofivedepartments with source ofrisk.Inthiscontext,theyensure thateach to implementrelated policies, tomonitorcontrol Risk Control entitiesfulfillasecondlineofdefense role, thefirstlinebeingassumedbyentitiesat its activities to dedicated instances (Group Information its activitiestodedicatedinstances(Group Information implementation andtoensure adequatereporting over Control departmentistoactasasecondlineof identified, measured, monitored and reported. management directions among the local representatives. was reinforced over 2019,andisincharge of: key riskthegroup maybeexposedtoisproperly • • • • • • Group DataProtection department(3FTEs) The consolidation of group data protection protection data group of consolidation The data anew of roll-out and selection The protection data new of execution The The reinforcement of the first line of defense defense of line first the of reinforcement The data (“GDPR”) within the group the (“GDPR”) within data controller activities based on CARPA on based activities controller as for third-party relationships third-party for as data new the data, personal containing Group Data Protection Controller Protection Data Group Enforcing the provisions of the European European the of provisions the Enforcing New governance for tagging MS files files MS tagging for governance New regulation on the protection of personal protection IT tool for the group group the for tool IT protection protection directives for HR training as well as training HR for directives protection methodology and risk exposure and risk methodology with a systematic functional reporting to reporting functional asystematic with heatmaps/key indicators for escalation to the Board the to escalation for indicators heatmaps/key The The The LendingManagementdepartment,with5.6 4.8 FTEs,hasthefollowingresponsibilities: Luxembourg andthegroup, whicharisesfrom the FTEs, isincharge ofmonitoring credit riskfor Lending Managementisincharge of: FTEs, reports totheHeadofCredit RiskControl. following activities: • • • • • • • • • • • Operational RiskControl department,with Credit RiskControl department,with4 The secretarial support for the Luxembourg and and Luxembourg the for support secretarial The company parent each of monitoring risk The the covers also department The The implementation of loans by the parent parent the by loans of implementation The Acting as the point of contact for the lead lead the for contact of point the as Acting Acting as the point of contact for data data for contact of point the as Acting group credit committees and act as secretary secretary as act and committees credit group granted to investment funds in support of support in funds investment to granted documentation, as well as the complete complete the as well as documentation, for criteria with complying and defining and functions entities group Quintet the to guidance and company (especially the drafting of the loan loan the of drafting the (especially company Credit Group the for secretary as acts and taken asaccepting collateral, securities private core bank’s the of support in clients supervisory authority (breaches, high-risk high-risk (breaches, authority supervisory subject right exercisessubject and complaints Provides group entities with a loss event aloss with entities group Provides setting up of the securities in accordance accordance in securities the of up setting Monitoring compliance with regulation compliance with Monitoring Global Institutional Solutions activity lines credit uncommitted and Committed Lombard & mortgage lending to private private to lending &mortgage Lombard Committee reporting tool forreporting recording operational monitoring of country risks, is involved in involved is risks, country of monitoring notification, projects, audit). projects, notification, Informing, advice providing independent for the Luxembourg credit committee. credit Luxembourg the for with the credit decision) credit the with loan facility during its lifetime during its loan facility banking activity The FTEs) coversvariousattributions: • • • • • • Financial Risk&Reportingdepartment(9.3 The department is also taking over: (i) the the (i) over: taking also is department The The department is in charge of risk risk of charge in is department The Trading activities to the different levels of levels different the to activities Trading Acts as member of various committees committees various of member as Acts Assessments others, the department participates to participates department the others, designs and implements all risk models models risk all implements and designs are taken in compliance with Group ALCO Group with compliance in taken are carried by the network of sub-custodians. of network the by carried and liquidity risks) carried by the entire entire the by carried risks) liquidity and (market, credit and operational VaRs, operational and credit (market, (interest rate, price, currency, real estate, estate, real currency, price, rate, (interest Committee, Risk Operational new (i.e. the subsidiaries, to ensure that local decisions decisions local that ensure to subsidiaries, senior management to the Board Risk Risk Board the to management senior Steers the insurances’ for program the group Policy. study analysis study the context of the reinvestment of excess excess of reinvestment the of context the different the of (ALCOs) Committees Risk & Reporting responsibilities.Risk & Among Reporting Risk,including Group Liquidity Committee. Conducts/reviews Risk Control Self the local Asset and Liability Management Management Liability and Asset local the the reporting and the interpretationthe and reporting Management Steering Committee) Committee, the Continuity Business Committee, the Group Information Security the New Product & Service Approval Approval &Service Product New the requirements, is also under the Financial Financial the under also is requirements, reporting, rootreporting, analysis cause and portfolios of fixed-income investments, in investments, fixed-income of portfolios implementation of the EU regulatory EU regulatory the of implementation involving discussions on operational risks risks operational on discussions involving incidents in a database: (i) challenge challenge (i) adatabase: in incidents modelling and quantitative analysis. It contracted transactions money-market management from Global Markets/ALM Global from management mitigating action plan and (ii) initiate case case initiate (ii) and plan action mitigating It monitors and escalates market risk risk market escalates and monitors It liquidity; (ii) counterparty risk linked to linked risk counterparty (ii) liquidity; banking counterparties; and (iii) credit risk risk credit (iii) and counterparties; banking of a and network Markets Global between balance sheet, including both ALM and ALM both including sheet, balance 43 2019 Annual report 44 2019 Annual report • The department covers transversal risk risk transversal covers department The etc.) and provides quantitative support department is as well responsible for the the for responsible well as is department to other group and local functions The The functions local and group other to risk reporting (i.e. monthly/quarterly risk risk (i.e. monthly/quarterly reporting risk tool.reporting and designing management, data risk internal stress test, product scoring, ECL, scoring, product test, stress internal matters, such as internal and regulatory regulatory and as internal such matters, and database risk efficient an maintaining Total resources inQuintetGroup RiskControl of theirresources are dedicatedtomanagingand controlling client,credit andoperationalrisks. controlled bytheroup; limitedliquidityrisk),most activities; ALMactivitiestightlyframedand certain risksinthesubsidiaries(absenceoftrading are 62FTEs.Inlightofthenon-materiality related projects through the group. the through projects related risk- the to addition in watch regulatory and etc.) Plan, ICAAP, Recovery reports, RESULT ALLOCATION PROPOSAL

At its meeting on 26 March 2020, the Board of Directors proposes to allocate the 2019 net result of €60,292,959.78 as follows:

(i) Allocation of €1,185,725.60 to the legal reserve in order to reach 10% of the paid-up capital after the 2019 share capital increase

(ii) Allocation of €59,107,234.18 to the retained earnings

On 14 April 2020, this allocation will be submitted for approval at the Annual General Meeting

45 2019 Annual report 2019 Annual 46 2019 Annual report directors: The Ordinary GeneralMeetingofApril24,2019,approved therenewal ofthemandatesfollowing THE BOARD OF DIRECTORS COMPOSITION OF - - - - - Antoine Marcolin Maurice Lam Alfred Bouckaert Anne Reuland Anne-Ruth Herkes

Group CEO Jakob Stott Luxembourg; March 26,2020 principal risksanduncertaintiesthatthegroup faces. ofthebusinessandpositionQuintetgroupperformance togetherwithadescriptionofthe group, andthattheconsolidatedmanagementreport includesafairreview ofthedevelopmentand of theconsolidatedassets,liabilities,financialpositionandprofit orlossoftheQuintet FinancialReportingStandardsInternational asadoptedbytheEuropean Union,giveatrueandfairview best ofourknowledge,thattheconsolidatedaccounts,whichhavebeenprepared inaccordance with We, JakobStott,Group CEO,andNicholasHarvey, Group ChiefFinancialOfficer, tothe confirm, CONSOLIDATED ACCOUNTS CONFORMITY OF THE 2019 DECLARATION ON THE Group ChiefFinancialOfficer Nicholas Harvey 47 2019 Annual report C O N TA C T INFORMATION

QUINTET PRIVATE BANK (EUROPE) S.A.

43, boulevard Royal L-2955 Luxembourg T: +352 4797-1 F: +352 4797-73900 [email protected] www.quintet.com R.C. Luxembourg B 6395 48

PRIVATE BANKING

PRIVATE BANKING UHNWI SERVICES 43, boulevard Royal 43, boulevard Royal L-2955 Luxembourg L-2955 Luxembourg T: +352 4797-2099 T:+352 4797-3135 2019 Annual report 2019 Annual

GENERAL DEPARTMENTS

Corporate Center Support +352 4797-3453 Human Resources +352 4797-3412 Legal +352 4797-3113 Finance +352 4797-2987 Tax +352 4797-2987 Corporate Communications +352 4797-2658 Risk +352 4797-3886 PROFESSIONAL CLIENTS

GLOBAL MARKETS

Money Markets +352 2621-0311 Forex +352 2621-0333 Bullion +352 2621-0355 Repos & Securities Lending +352 2621-0322 Fiduciary Deposits +352 2621-0344 Execution Desk Money Market +352 2621-0144 49 Fixed Income +352 2621-0133 Listed Products (Equities, derivatives, ETFs) +352 2621-0211 Third-Party Funds +352 2621-0222 Group Structured Solutions +352 2621-0233 Business Management & Financial Institutions +352 4797-2551

GIS – BUSINESS DEVELOPMENT 2019 Annual report 2019 Annual Business Development Institutions Desk +352 4797-3839 Business Development Inter-Bank Desk +352 4797-4545 Business Development FO-EAM Desk +352 4797-2496

GIS – CLIENT RELATIONSHIP MANAGEMENT

Client Relationship Management +352 4797-2495

MISCELLANEOUS myQuintet +352 4797-2500

KREDIETRUST LUXEMBOURG S.A.

88, Grand Rue Asset Management +352 4797-4571 L-1660 Luxembourg Legal & Risk Management +352 4797-3615 T: +352 4797-3822 Fund structuring & Domiciliation +352 4797-4550 F: +352 4797-73930 Investment Research +352 4797-4565 R.C. Luxembourg B 65 896 Private Equity +352 4797-3459 For a richer For a richer life, however life, however you define it. you define it.

We’re here to help you invest in the We’re here to help you invest in the QUINTET PRIVATE BANK (EUROPE) S.A. things that matter most to you. things that matter most to you.

Quintet. ForGLOBAL a richer INSTITUTIONAL life. SOLUTIONS (GIS) FINANCIAL INSTITUTIONS Quintet. For a richer life. T: +352 4797-2316 Global Markets T: +352 4797-2551 [email protected]

SUBSIDIARIES 50 BELGIUM NETHERLANDS PUILAETCO INSINGERGILISSEN BANKIERS N.V 46, avenue Herrmann Debroux Herengracht 537 B-1160 Brussels NL-1017 BV Amsterdam T: +32 2 679 45 11 T: +31 20 521 5000 www.puilaetco.be www.insingergilissen.nl 2019 Annual report 2019 Annual GERMANY SPAIN MERCK FINCK PRIVATBANKIERS AG QUINTET ESPANA S.A. Pacellistrasse 16 SUCURSAL EN ESPAÑA D-80333 Munich Calle Serrano 57 sexta planta T: +49 89 21 04 16 52 E-28006 Madrid www.merckfinck.de T: +34 91 423 22 00 www.quintet.com/es-es LUXEMBOURG QUINTET LUXEMBOURG SWITZERLAND 43, bou levard Royal QUINTET PRIVATE BANK (SWITZERLAND) AG L-2955 Luxembourg Bahnhofstrasse 13 T: +352 47 97 1 CH-8001 Zurich www.quintet.com/lu T: +41 44 914 6000 www.quintet.com/ch BANQUE PUILAETCO LUXEMBOURG UNITED KINGDOM 163, rue du Kiem BROWN SHIPLEY & CO. LIMITED L-8030 Strassen 2 Moorgate T: +352 47 30 251 London For a richer life, www.puilaetco.lu EC2R 6AG T: +44 207 606 9833 www.brownshipley.com however you define it.

We’re here to help you invest in the things that matter most to you. Quintet. For a richer life. For a richer life, however you define it.

We’re here to help you invest in the things that matter most to you. Quintet. For a richer life.

For a richer life, however you define it.

We’re here to help you invest in the things that matter most to you. Quintet. For a richer life. ANNUAL REPORT QUINTET PRIVATE BANK 2019 ANNUAL REPORT

QUINTET PRIVATE BANK 43, BOULEVARD ROYAL L-2955 LUXEMBOURG T: +352 47 97-1 [email protected] WWW.QUINTET.COM