Rothschild bonuses surge as profits hit a record

The bonus pool for directors and staff at investment bank Rothschild soared to 153m (€225.9m) in the 12 months to March, double the previous year's amount, as profits doubled to a record 87m on the back of higher fees from mergers and acquisitions.

Profits before tax at NM Rothschild & Sons, the bank's London unit, climbed from 42m in the year to the end of March on a pro forma basis, as revenues from fees and commissions increased by one-fifth to 282.9m.

Rothschild worked on several large, high-profile M&A deals last year including advising UK ports group P&O on the takeover offer from Dubai Ports World and arranging the sale of Westinghouse, the US arm of British Nuclear Group.

It has started this year in a similar vein, winning roles on Spanish construction group Ferrovial's acquisition of UK airport operator BAA, the 1.1bn takeover of UK retirement home builder McCarthy & Stone and the 310.9m acquisition of Wyevale Garden Centres.

The bank is joint financial adviser to the Baugur-led consortium that has launched a bid for UK retailer House of Fraser, and is expected to build on its relationship with British Nuclear Group by arranging the disposal of some of the UK government-owned company's businesses.

Rothschild is also planning to increase its activity in private equity investment. Chairman Baron David de Rothschild said in the bank's annual report: "In the course of business and through our extensive network of relationships, opportunities arise for us to invest for our own account, often alongside clients and friends. In future we shall be doing more of this."