Quintet Private Bank Europe S A : 2022 half-year report

PILLAR III GROUP REPORT - HALF-YEAR 2022

Half-Year Highlights ..............................................................................................................................................	3
I.	Half-Year Statement...................................................................................................................................	4
II.	Prudential Requirements............................................................................................................................	5
	2.1.	Available own funds ......................................................................................................................................	5
	2.2.	Risk Weighted Assets.....................................................................................................................................	6
	2.3.	Capital Ratios .................................................................................................................................................	6
	2.4.	Additional own funds requirement to address risks other than the risk of excessive leverage...................	6
	2.5.	Combined buffer and overall capital requirement .......................................................................................	7
	2.6.	Leverage Ratio ...............................................................................................................................................	7
	2.7.	Additional own funds requirement to address the risk of excessive leverage .............................................	7
	2.8.	Leverage ratio buffer and overall leverage ratio requirement .....................................................................	8
	2.9.	Liquidity Coverage Ratio................................................................................................................................	8
	2.10.	Net Stable Funding Ratio ...............................................................................................................................	8
III.	Final Remark..............................................................................................................................................	9
Annex I - Declaration of the Management............................................................................................................	10
Annex II - Information on loans and advances subject to legislative and non-legislative moratoria.........................	11

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June 2022

PILLAR III GROUP REPORT - HALF-YEAR 2022

HALF-YEAR HIGHLIGHTS

Common Equity	Risk weighted	Leverage ratio
Tier 1 ratio (CET1)	assets (RWA)

15.4%	€3.4bn		4.1%
2021.12 : 18.0%	2021.12 : €3.1bn	2021.12 : 4.8%
(see pages 5&6)	(see page 5)		(see page 7)
Liquidity coverage	Net Stable Funding
ratio (LCR)		ratio (NSFR)

140% 131%

2021.12 : 138% 2021.12 : 137%

(see page 8)

(see page 8)

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June 2022

PILLAR III GROUP REPORT - HALF-YEAR 2022

1. HALF-YEARSTATEMENT

Against the backdrop of the global pandemic and Russia's invasion of Ukraine, Quintet Private Bank has continued to strengthen its core operations. In May, the European wealth manager announced the appointment of Chris Allen as Group CEO. Allen, who brings 30 years of financial services experience to the bank, assumed his new role on July 1. Replacing Jakob Stott, who has decided to step down, he will lead Quintet into next stage of its long-term growth - further strengthening the firm's fundamentals and driving the business forward.

We continue to pursue our long-term strategy as endorsed by the Board of Directors and fully supported by our shareholder. Our strategic plan is on track, our fundamentals are strong and our investments in the future are bearing fruit - evidenced by ongoing revenue growth, supported by higher client assets and increased lending.

In a world characterized by lower growth and higher inflation - fuelled by factors such as the war in Ukraine, ongoing supply chain disruptions and lingering COVID risks - investors will continue to grapple with uncertainty. That includes downside risks such as a potential recession in Europe, and possibly excessive US Federal Reserve tightening, which would put the brakes on the world's largest economy. Against this challenging macroeconomic background, investors are understandably nervous about the outlook for corporate profitability and investment returns.

However, across Europe and in the UK, our ability to grow sustainably has been proven and the long-term opportunity is clear. Our 2022 financial targets are ambitious but achievable, and we are delivering the objectives defined in our business plan by focusing on client engagement and approaching each day with a growth mindset.

The consolidated figures presented in this half-year Pillar 3 report of Quintet Group are prepared in accordance with Regulation (EU) 2019/876 amending Regulation (EU) No 575/2013 as from June 2021, known as "CRR II", as well as by (EU) 2021/637 laying down implementing technical standards with regard to public disclosures.

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June 2022

PILLAR III GROUP REPORT - HALF-YEAR 2022

1. PRUDENTIAL REQUIREMENTS

2.1. Available own funds

In 2020, Quintet has placed EUR 125 million nominal in additional tier-1 (AT1) notes, which are listed on the Luxembourg Stock Exchange (Euro MTF). The placement of these AT1 notes, which qualify as additional tier-1 capital, complements the significant equity capital commitments already made and foreseen in future by Precision Capital, Quintet's shareholder. Quintet's AT1 notes, which are denominated in euros and are paid semi-annually, are perpetual instruments with a first call date in 2026.

The decrease of available own funds during the first half of 2022 is largely driven by the abrupt increase in interest rates which weighs on own funds through the Other Comprehensive Income (OCI) reserve (EUR -41 million gross). This unexpected interest rate increase impacting fixed rate positions and the increased credit spread generalized to the overall security portfolio are the result of the end of low rates raised by central banks, higher inflation and the fear of an economic slowdown further fuelled by the tense geopolitical situation in Ukraine. While the immediate impact of rising interest rates on the bank's capital is negative, the structural changes to interest rates in all major currencies is expected to be materially beneficial to the bank's income in the short term.

Current sources of funding and liquidity remain extremely stable. Quintet's shareholders are fully committed to supporting the bank's long-term growth strategy and unlocking its full potential. That commitment remains unwavering. In that regard, it is worth noting that Quintet's shareholders have injected over EUR 300 million in additional capital since acquiring the firm in 2012. That is in line with our fully funded long-term growth strategy, supporting the significant investments we are making in the future.

Own Funds in EUR million	30/06/2022	31/12/2021	30/06/2021
Common Equity Tier 1 (CET1)	523.5	564.8	587.4
Additional Tier 1 (AT1)	123.5	123.5	123.5
Tier 1 Capital	647.0	688.4	710.9
Tier 2 (T2) Capital	0.1	0.1	0.1
Total Capital	647.1	688.4	711.0

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June 2022