Valartis Group with net income of CHF 7.0 million in the first half of 2010
(Thomson Reuters ONE) -
Valartis Group AG / Valartis Group with net income of CHF 7.0 million in the first half of 2010 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Valartis Group's Net Income for the first six months of 2010 was CHF 7.0
million, with Operating Income of CHF 56.7 million. In all three business
segments, Private Banking, Asset Management and Investment Banking, progress has
been made towards the goal of increasing the recurring income stream. The
Group's shareholders' equity is CHF 341.2 million and its equity ratio is 13%.
Inflows of new assets in the first half of 2010 stood at CHF 202 million, while
assets under management climbed to approximately CHF 6.5 billion.
Stronger interest and commission business
Following the boost given to Private Banking through the acquisition of Valartis
Bank (Liechtenstein) AG at the end of last year, the earnings structure of the
Valartis Group continued to move in line with the defined strategy towards that
of the interest margin and commission business. Interest income of CHF 26.9
million in the first half of the year (prior year: CHF 8.4 million) demonstrates
that the targeted efforts made to build up a high-quality bond portfolio in the
first six months of 2009 are starting to pay off. Figures are also slowly
picking up in the commission and service fee business as clients gradually start
to regain confidence and return to the markets, albeit at still modest levels.
The Valartis Group recorded net commission income of CHF 22.6 million in the
first half of the year, up 13% on the result achieved in the same period the
previous year (CHF 20.0 million).
Difficult trading environment
In spite of slowly improving economic data, the volatility on the financial
markets persisted in the first half of 2010. The loss of confidence in the Euro
and in the more indebted countries of the European Community caused the single
European currency to plummet in value, interest rates to fall sharply, and risk
premiums on sovereign and corporate borrowers to widen once more. Whereas in
2009 we were able to benefit from the narrower credit spreads (income from
trading for the 1st semester 2009 of CHF 29.4 million), the renewed rise
generated a trading loss of CHF 17.0 million this year. Both on a fundamental
and historical basis, however, we still regard credit spreads as very
attractive. We are therefore sticking to our strategy of investing a proportion
of our liquidity in a broad range of investment-grade corporate, sovereign and
financial borrowers, and hedging our portfolio against a general increase in
market interest rates. In a volatile financial market environment with
historically low interest rates, this type of diversification continues to be
the most attractive method of cash management.
After already posting large inflows of funds in Private Banking last year, this
trend continued in a more muted fashion in the first half of 2010, with assets
under management in Private Banking rising by CHF 287 million. Additional
inflows of funds are expected in the coming months due to the recruitment of new
relationship managers in Austria, Liechtenstein and Switzerland.
Following last year's reorganisation of the Investment Banking segment, the
focus in the equities, fixed income and currencies divisions is now
predominantly on settlement services for our private banks and in brokerage.
Asset Management also continues to perform in a difficult environment. The
Valartis Russian and Swiss specialty funds showed a sharp outperformance during
2009 and the funds are positioned once again in the upper most quartile in 2010
compared with its peers.
The Valartis Group acquired a 72.5% stake in Jelmoli Bonus Card AG in May 2010
and now holds 100% of Jelmoli Bonus Card AG. The company issues both the free
Visa Bonus Card and the SBB Visa Card in combination with a SBB Half-Fare
travelcard. With card revenues totalling CHF 700 million, Jelmoli Bonus Card AG
has a strong footing in the Swiss credit card market. The cornerstone of the
company's growth strategy remains client acquisitions coupled with the launch of
innovative card products and client loyalty programs.
Controlled cost increases
On the cost side, increases were recorded in relation both to acquisitions as
well as to other factors. In the first half of 2010 the Group recorded total
personnel and general expenses of CHF 45.9 million, with an increased
cost/income ratio of 81%. A year ago we informed that we would not be able to
keep the then cost/income ratio below the level of 50%. The growth of the Group
meant that we had to expand in several areas, not least in terms of our support
units.
Solid capital base
The Group's shareholders' equity was CHF 341.2 million as at end-June. With an
equity ratio of 13%, the Group has a solid capital and financing base. This
resulted in an equity of the shareholders of Valartis Group AG after minority
interests of CHF 280.7 million or CHF 59 per outstanding bearer share at the
middle of the year.
The 2010 Half-Year Report can be downloaded in PDF format from our website at
www.valartis.ch
If you have any questions, please contact:
Gustav Stenbolt, CEO Valartis Group
Tel. +41 43 336 81 11
[HUG#1441389]
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Valartis Group AG
Sihlstrasse 24 Zürich null
Media release including key figures (PDF):
http://hugin.info/143135/R/1441389/385678.pdf
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Source: Valartis Group AG via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 31.08.2010 - 07:01 Uhr
Sprache: Deutsch
News-ID 40492
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Town:
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