Bellevue Group's balance sheet remains sound despite lower income
(Thomson Reuters ONE) -
Bellevue Group AG / Bellevue Group's balance sheet remains sound despite lower income processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
Küsnacht, 2 March 2010
- Result nearly balanced excluding extraordinary effects
- Extraordinary depreciation and value adjustments result in Group net loss of
CHF 95.1 million
- Liquidity remains sound with a strong equity base (tier 1 ratio: 56.5%)
- Dividend of CHF 4 per registered share recommended again - dividend yield of
12.1%
- Serge Monnerat new CEO at Bank am Bellevue
Bellevue Group is closing financial year 2009 with a loss of CHF 95.1 million.
This result compares with the previous year's profit of CHF 24.5 million. The
Group's operating result before depreciation, value adjustments and reserves
amounts to CHF 8.5 million (previous year: CHF 40.8 million). The Group's Bank
am Bellevue segment has earned a gross profit of CHF 12.7 million, in a market
environment which has remained difficult. In the Asset Management segment, on
the other hand, extraordinary provisions for liabilities and charges led to a
loss of CHF 1.4 million.
Given the Group's stable financial and liquidity situation, the Board of
Directors will propose an unaltered dividend of CHF 4 per registered share at
the Annual General Meeting on 29 March 2010, with a view to capital
optimisation. With the share price at CHF 33 (as of 1 March 2010), this
corresponds to a dividend yield of 12.1% p.a.
Serge Monnerat takes over as CEO at Bank am Bellevue from April 2010. Jürg
Schäppi, who has served as the Bank's CEO for ten years, thus hands over the
reins of management to the next generation, but will continue to work full-time
for the bank.
"Overall, the past year has fallen below our expectations," summarises Martin
Bisang, Bellevue Group CEO. The Group had expected more incoming new money and a
higher volume of share trading.
As announced at the end of 2009, in response to lower transaction volumes and
earning capacity, Bellevue Group has taken measures which focus on optimising
the deployment of capital. Bank am Bellevue AG and Bellevue Asset Management AG,
whose capital bases were deliberately kept at a very high level during the
financial crisis, expect to need less equity in future. Thus Bellevue Group AG
will pursue its adopted dividend policy further.
On the other hand, the Group holds on to its anti-cyclical approach by
maintaining the human resources it has built up. Bellevue Group is convinced
that it should remain firmly on its chosen course of increasing recurring
revenues by expansion of its Asset Management, even if it only reaps the full
returns from these initiatives in the future.
Given this background, the forecast of profits achievable in future has been
adjusted. As a result, as announced on 4 December 2009, the item of goodwill and
other intangible assets has been written down by CHF 101.8 million, i.e. its
value has been adjusted. This does not affect the Group's sound liquidity
position and equity base, which complies comfortably with the regulations (tier
1 ratio: 56.5%; previous year: 80.8%). In this regard, the unaltered dividend
represents an optimisation of capital, since equity which is no longer needed
will be repaid to shareholders.
In 2009 Bellevue Group generated operating income of CHF 61.1 million (previous
year: CHF 78.7 million), representing a 22% fall. Personnel expenses rose by CHF
6.1 million to CHF 28.4 million due to further recruitment of qualified staff,
while operating expenses rose from CHF 18.2 million to CHF 20.4 million. At the
end of 2009, Bellevue Group had 103 employees on a full-time equivalent basis
(previous year: 93.4, +10%).
Bank am Bellevue
Bank am Bellevue reported operating income of CHF 38.3 million in 2009 (previous
year: CHF 61.1 million, -37%). Fee and commission income remained the Bank's
main income source, at CHF 32.4 million (previous year: CHF 53.6 million, -40%).
Reflecting the low trading volume on the stock markets and pressure on margins,
income was again reduced. The overall result is a gross profit of CHF 12.7
million (previous year: CHF 33.7 million, -62%). Personnel expenses rose by 27%
to CHF 13.0 million (previous year: CHF 10.2 million), while operating expenses
are also up, at CHF 9.8 million (previous year: CHF 9.5 million).
Bellevue Asset Management
Asset Management reported operating income of CHF 22.6 million in 2009 (previous
year: CHF 10.5 million). Fee and commission income amounted to CHF 18.2 million
(previous year: CHF 17.4 million, +5%). This consisted mostly of management
fees. The other ordinary income of CHF 4.2 million (previous year: - CHF 8.5
million) reflects profit on investments in the company's own products. Ordinary
operating expenses also rose from CHF 15.0 million to CHF 20.0 million (+34%),
attributable to new recruitment of qualified staff. Taking account of
extraordinary value adjustments and reserves, amounting to CHF 4.8 million, the
result is a loss of CHF 1.4 million (previous year's loss: CHF 6.1 million). The
extended product range succeeded in attracting new money, but market uptake has
so far been well below expectation, partly because of continued risk aversion.
Assets under management
Overall, assets under management remained at the previous year's level. As of
31 December 2009, Bellevue Group AG was managing assets worth CHF 5,500 million
(before deduction of double counts). At the end of 2008, assets under management
stood at CHF 5,534 million.
New CEO for Bank am Bellevue
Serge Monnerat takes over as CEO at Bank am Bellevue with effect of March
30, 2010. Jürg Schäppi, a founding partner of Bank am Bellevue, is handing the
position over to "the next generation" after ten years in office. Serge Monnerat
joined the Bank in June 2001, where he has served in the area of sales, as Head
of Research and most recently Deputy CEO. Jürg Schäppi will continue to work for
the Bank full-time, and will fulfil his long-cherished wish to return
exclusively to advising clients.
Facing the future with confidence
The Board of Directors and Executive Board of Bellevue Group believe that the
measures they have taken, in response to the changed conditions, will help the
Group to achieve new growth and restore its customary profitability. The clear
preference is to achieve this through internal growth, rather than through
acquisitions. Equity which thereby becomes surplus to requirements will flow
back to shareholders. Bellevue Group's balance sheet shows a firm financial
structure, with hardly any risk exposure.
A press conference on the financial statements is being held at 9.30 a.m. today
at the SIX Swiss Exchange Convention Point (Selnaustrasse 30, 8021 Zurich).
Agenda 2010:
Monday, 29 March 2010: Annual General Meeting 2010
Friday, 23 July 2010: Interim results 2010
The full version of the financial statements is available at
www.bellevue.ch
For further information:
Media / Investor Relations: Daniel Koller, CFO
Tel. +41 (0)44 267 67 77, fax +41 (0)44 267 67 78, dak(at)bellevue.ch
Bellevue Group
Bellevue Group is an independent Swiss financial group domiciled in Küsnacht.
The parent company, Bellevue Group AG, is listed on the SIX Swiss Exchange.
Bank am Bellevue focuses its business activity on research and brokerage in
Swiss and selected international equities, and on corporate finance.
Bellevue Asset Management manages specialty investment products, focusing on
equity investments in selected regional and sector strategies. It also manages
selected institutional assets.
[HUG#1389782]
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Bellevue Group AG
Seestrasse 16; Postfach Küsnacht/Zürich Switzerland
WKN: A0LG3Z;ISIN: CH0028422100;
Media Release AR 2009 (PDF): http://hugin.info/137269/R/1389782/347997.pdf
Unternehmensinformation / Kurzprofil:
Datum: 02.03.2010 - 07:01 Uhr
Sprache: Deutsch
News-ID 13029
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contact information:
Town:
Küsnacht/Zürich
Kategorie:
Business News
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