Bellevue Group back in the profit zone
Bellevue Group AG /
Bellevue Group back in the profit zone
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Report on the first half of 2012
* Bellevue Group closes first half of 2012 with a net profit of CHF 8.3
* Personnel and other operating expenses reduced by 16% thanks to
* Both Bank am Bellevue and Bellevue Asset Management operating at a profit
* Financial strength the basis for the company's reorientation
Uncertainty about the world economy remained a dominant theme in the first half
of 2012. Individuals and institutionals were extremely reluctant to invest in
the stock market and trading turnover dropped to record lows. In this adverse
environment, Bellevue Group displayed a good performance at its brokerage,
corporate finance and asset management operations and achieved a consolidated
net profit of CHF 8.3 million (previous year: CHF -53.5 million). Bellevue
Group's satisfying operating results were not distorted by any extraordinary
impairments or write-offs.
Bellevue Group reported a slight reduction in income from fees and commissions,
the Group's most important source of income, to CHF 20.7 million for the first
six months of 2012 compared to the prior-year period (CHF 21.9 million). Thanks
to the timely implementation of restructuring measures, personnel and other
operating expenses were reduced by 16% to CHF 18.7 million (previous year: CHF
22.2 million). At the bottom line the Group earned a net profit of CHF 8.3
million (previous year: CHF -53.5 million). Despite the dividend and cash payout
of CHF 34.6 million during the period under review, Bellevue Group maintained a
solid capital base of CHF 161 million at mid-year (end 2011: CHF 191 million)
and employed a workforce of 81 (full-time equivalents; end 2011: 85).
"The restructuring measures at Bellevue Group have been effective. We have
achieved satisfying operating results in a challenging environment but we expect
the second half to be much weaker as investors continue to stand on the
sidelines, keeping trading turnover at low levels, and due to the absence of
certain factors that had an impact in the first half. We will further optimize
and build out our business model. In the current environment, however, more time
is needed before the full impact of these efforts feeds through to the income
statement," CEO Urs Baumann says in summarizing the company's situation at the
Bank am Bellevue - profitable even in an adverse environment
Historically low trading turning due to the lack of demand from institutional
investors had a notable impact on brokerage activity. In corporate finance, Bank
am Bellevue acted as lead manager for the rights issue conducted by LeclanchÃ©
S.A. There were few capital market transactions in Switzerland because of the
widespread uncertainty in financial markets. Against this backdrop the bank's
operating income declined 23% to CHF 11.5 million (previous year: CHF 14.9
million). Thanks primarily to a reduction in personnel expense, total operating
expenses amounted to CHF 8.3 million (previous year: CHF 9.8 million, -15%).
The decrease in income was partially offset, allowing Bank am Bellevue to report
a net profit of CHF 2.0 million for the first half (previous year: CHF -25.4
million). Bank am Bellevue thus managed to operate at a profit even in the
current market environment with record-low trading volumes.
Bellevue Asset Management - measures to improve profitability pay off
Bellevue Asset Management's focus on healthcare investing, regional niche
strategies and innovative investment strategies for owner-managed companies has
given it a distinct profile in the marketplace. These optimizations and the
various measures taken to improve profitability are reflected in its interim
results for 2012.Â Bellevue Asset Management increased its net fee and
commission income for the first half to CHF 11.1 million (previous year: CHF
8.0 million). Personnel and other operating expenses were 15% lower y-o-y at CHF
8.7 million (previous year: CHF 10.3 million). After other income, which
includes the result from seed capital, and the release of provisions,
depreciation, amortization and taxes, profit for the period amounted to CHF 8.0
million (previous year: CHF -23.5 million). The BB Entrepreneur Europe and BB
African Opportunities funds achieved top ratings in international performance
rankings during the period under review. Marketing activities were initiated in
the United Kingdom at the beginning of June as part of this unit's strategy to
address new customer segments and expand its regional footprint.
Slight decline in assets under management despite good investment performance
Assets under management declined slightly by 3% to CHF 3.5 billion (end 2011:
CHF 3.6 billion) due to the general restraint among investors in the stock
market. The good to very good investment performance by several investment
products offset nearly all of the asset outflows.
Consolidated financial statements for 2012Â Â Â Â Â Â 25 February 2013
Annual general meeting 2013Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 18 March 2013
The full version of the half year report is available at www.bellevue.ch.
Media / Investor Relations: Daniel Koller, CFO
Telephone +41 44 267 67 00, Fax +41 44 267 67 01, email@example.com
The Bellevue Group is an independent Swiss financial group domiciled in
KÃ¼snacht. The parent company Bellevue Group AG is listed on the SIX Swiss
Bank am Bellevue is a provider of research and brokerage services in Swiss
equities and selected international stocks as well as corporate finance
Bellevue Asset Management manages specialized equity investment vehicles focused
on selected sector and regional strategies and provides selected institutional
asset management services.
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Source: Bellevue Group AG via Thomson Reuters ONE