GOOD SIGNS IN TOUGH MARKETS
Written on the 10 October 2012
KEEPING overheads low and maintaining a hawk-eye on profitability has helped lessen any local impact resulting from global financial volatility.
In a world of fiscal turbulence, RBS Morgans has emerged fighting-fit.
While the European Union contends with multiple sovereign debt crises and the United States tries to stomach its US$16 trillion national deficit, RBS Morgans’ managing partner Brian Sheahan (pictured) is in high spirits.
RBS Morgans is ranked 40th Top Private Company in 2012.
“We are very happy of our sustainability of our business. We maintained profitability in our market and continue to grow,” says Sheahan.
“Our figures show we have several hundred thousands of clients whose cash holdings and managed funds are growing. This is a good sign even in tough markets.”
Sheahan credits the financial services group’s sustainable business model for helping the firm ride-out global financial uncertainty.
“Our strategy is not to employ lots of people in a good market and then lay them off in bad markets. We are flat in terms of employee numbers and have not been recruiting a lot,” he says.
“We have kept very active in the corporate funds space and raised capital for Cardno, Senex Energy and Maverick Drilling and Exploration.
“Our business in Melbourne has also picked up a large team of senior brokers from JM Equities who wanted to join us.”
The Royal Bank of Scotland is a 50 per cent shareholder of RBS Morgans.
Sheahan told Brisbane Business News that the investment bank plans to exit all of its overseas stockbroking ventures including Australia.
“They are running a process to dispose that shareholding. The sale process is still being finalised, but they have already sold their Asia Pacific share to the Malaysiabased CIMB Group Holdings,” he says.
“There is no closure date defined, but the bank and CIMB are in discussions.”
Sheahan is excited about the proposed stake sale to CIMB.
“When CIMB merged and bought the Asia pacific business of RBS, it established a truly Asian stockbroking service,” he says.
“They have a strong business base in Singapore, Malaysia and the Philippines, while RBS is strong in India, HK, China and Australia. Putting them together creates a strong Asian presence."