Valartis Group posts profit for the first-half of 2012
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Valartis Group AG /
Valartis Group posts profit for the first-half of 2012
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Valartis Group generated a profit of CHF 3.9 million in the first half of 2012,
without any significant one-off effects, after posting a loss in the prior-year
period. In a continued challenging environment, client assets increased by 8 per
cent to CHF 7.4 billion. Net commission income was relatively stable with a
decrease of 10 per cent due to a downturn in transaction-based revenues, while
net interest income fell by 19 per cent year-on-year. Nevertheless, the lower
interest income is the result of an additional reduction in the overall risk
profile. The administrative expense, on the other hand, was reduced by more than
8 per cent on a year-on-year comparison.
Positive group result excluding any one-off effects
In a continuing and unusually challenging market environment marked by the
strength of the Swiss franc, uncertainty in the fixed-income business, a
deteriorating economic situation, and an increase in political instability,
Valartis Group posted a profit of CHF 3.9 million in the first half-year of
2012 compared with a loss of CHF 19.3 million in the first six months of 2011.
The "results of core operating activities" - that is net profit excluding non-
operational valuation adjustments and amortisation of intangible assets from
acquisitions - was stable compared with the first half of 2011 at CHF 7.4
million (30 June 2011: CHF 6.4 million). The non-operational value adjustments
on investments did not have any material impact on the 2012 half-year results
due in part to hedging transactions.
Growth in client assets under management continues on track
The Group's new strategic focus at the beginning of 2008 on the wealth
management business for private clients and institutional investors ("Private
Banking Plus") continues to develop in line with the mid-term financial plan.
Valartis Group saw a net new money inflow for the first-half of 2012 of CHF 491
million. Including performance, i.e. currency effects and financial market
developments, in the amount of 1.4 per cent or CHF 97 million, client assets
increased to CHF 7.4 billion, a gain of 8 per cent compared with the end of
2011. Client assets under management were distributed between the two business
segments as follows as at 30 June 2012: Private Clients CHF 6.2 billion or 84
per cent (same percentage as in the prior period) and Institutional Clients CHF
1.2 billion or 16 per cent. The Private Clients segment accounted for CHF 486
million of the total net new money inflows of CHF 491 million.
Stable results despite the modest drop in revenues
Due to the drop in transaction-based revenues, net commission income fell by 10
per cent year-on-year and as at 30 June 2012 amounted to CHF 26.0 million (30
June 2011: CHF 28.8 million). Net interest income was also lower year-on-year,
falling by 19 per cent to CHF 16.9 million (30 June 2011: CHF 20.9 million). The
collateralised interbank business left its mark in particular on the net
interest income, as this type of interbank placements within total receivables
from banks rose from 8 per cent at 31 December 2011 to 19 per cent at 30 June
2012. As a result, there was a considerable improvement in the risk profile,
although it came at the expense of net interest income. In contrast, the bond
portfolio performed within the forecast parameters due to active portfolio
management, although the return was somewhat below the prior-year period.
The administrative expense was reduced by more than 8 per cent to CHF 39.4
million compared with the prior-year period. The personnel expense was reduced
by 6 per cent to CHF 26.3 million and the general expense by 13 per cent to CHF
13.1 million. As at 30 June 2012 Valartis Group employed 302 people on a full-
time equivalent basis (up 1.7 per cent over the end of 2011; this increase is to
be attributed to the Private Clients business segment).
The business segment result before amortisation for Private Clients in the first
half of 2012 increased to CHF 5.5 million (30 June 2011: CHF 3.7 million) and
for Institutional Clients it was CHF 5.5 million (30 June 2011: a loss of CHF
21.0 million). The Corporate Center posted a result of CHF -2.2 million (30 June
2011: CHF -2.2 million).
Focus on Private Banking to continue
In addition to strict cost controls, the core of Valartis Group's growth
strategy going forward will be to increase the client assets under management in
the Private Clients segment. In June the Board of Directors was able to appoint
an experienced private banker, Vincenzo Di Pierri, as the new CEO of the Swiss
bank. Thanks to his strong client orientation, an extensive network of contacts,
and many years of senior management experience, Vincenzo Di Pierri will be able
to provide an important impetus to the expansion of our Private Banking
activities for both Valartis Bank AG, Switzerland, and for the Group.
If you have any questions, please contact:
Gustav Stenbolt, CEO Valartis Group, or
George M. Isliker, Group CFO/CRO
Phone +41 43 336 81 11
The 2012 Half-Year Report can be downloaded in PDF format from our homepage at
www.valartisgroup.ch.
Valartis Group - Private Banking Plus
Valartis Group is an internationally active banking and finance group with
offices in Zurich, Geneva, Vienna, Liechtenstein, Luxembourg, Singapore, Moscow,
and St Petersburg. The Group's holding company, Valartis Group AG, is domiciled
in Baar, canton of Zug, and is listed on the Swiss stock exchange SIX Swiss
Exchange.
Valartis Group focuses on the wealth management business for private clients and
institutional investors: "Private Banking Plus". In addition to traditional
wealth management and investment advisory, Valartis Group develops, manages and
markets innovative niche investment products and provides specialised advisory
and banking services within corporate and structured finance. The Group's core
markets include Central and Eastern Europe, the Middle East and selected
countries in North and South America as well as Asia.
Media release including key figures (PDF):
http://hugin.info/143135/R/1636376/525828.pdf
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originality of the information contained therein.
Source: Valartis Group AG via Thomson Reuters ONE
[HUG#1636376]
Unternehmensinformation / Kurzprofil:
Datum: 28.08.2012 - 07:00 Uhr
Sprache: Deutsch
News-ID 177956
Anzahl Zeichen: 7662
contact information:
Town:
Zürich
Kategorie:
Business News
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