PRESS RELEASE (N° 108)

Bondpartners : Net profit in line with that of 2012 and increasing ordinary dividend will be proposed to the shareholders

Again, the year under review was characterized by an amplification of turnover and an improvement of most revenues (except for results from currency exchange), as well as by a increase in value of own-account securities portfolios. Regarding individual accounts, the finalisation of the repatriation process relating to the subsidiary’s assets based in Gibraltar released an investment income which was much more modest than in 2012, while transactional gains advanced nearly 7%. In respect of consolidation, the net operating result is notably higher than previous year, taking into account the elimination of intercompany dividend. The shareholders’ equity increased.

The parent company’s net profit showed a slight decline of 4% at CHF 2.5 million (vs CHF 2.6 million in 2012) and the Group records a CHF 2.0 million gain (vs -4.7 million in 2012). An ordinary 30% dividend (2012: 25%) will be proposed to the shareholders.

The statutory balance sheet total has grown 8% to CHF 147.8 million, mainly due to the increase of cash and credit balances with banks. The balance sheet is composed by 93,5% of current assets, namely cash and due from banks (CHF 73.1 million), due from customers (CHF 3.9 million) and trading portfolios (CHF 61.1 million). Total liabilities nearly amount to CHF 60.3 million (+17%).
With regard to individual shareholders’ equity, its total comes to CHF 55 million (+1.5%). As for valuation adjustments and provisions, they were up 5% to CHF 31 million due to a new creation charged to the income statement.

On a consolidated basis, current assets reach CHF 134 million and total liabilities CHF 57.5 million. As far as Group’s equity is concerned, it comes in at CHF 76.6 million (+1.5%). Reserves and provisions for own shares (CHF 4.3m) and for deferred taxes (CHF 6.7m) were duly deducted. In this regard, the reserves for general banking risks rose 3% to CHF 35.3 million, while profit reserves posted CHF 33.9 million (-16%, due to accounting elimination of intercompany dividend).

The capital adequacy of basic individual shareholders’ equity (Tier 1) and that of additional equity (Tier 1+2) respectively reach 29% and 43.5%.

In terms of profit and loss accounts, global gross income from interest differential business posts CHF 2.4 million (+3%) and income from commission business comes to CHF 1.8 million (+28%). Income on securities transactions (dealing and financial investments) as well as valuation of own-account equities again progressed, thanks to trading activities and to the good performance of financial markets (CHF 8.2 million), despite negative currency effects. As for income from investments, a sharp decline occurred, the repatriation finalisation of Bondpartners International’s assets having generated a final dividend which was much smaller (0.6m vs 7.9m) than previous year. Finally, consolidated operating expenses remained under control at CHF 6.4 million (-2.5%).

Although 2014 generally began under good trading conditions, it should be noted that the volatility in equity markets increased during the period considered and that the geopolitical and geostrategic environment worsened. Furthermore, the Swiss franc experienced some renewed strengthening, whilst dealing operations nevertheless pursued their expansion at this time. From a regulatory perspective, fiscal pressures, among others, encourage some business caution and will greatly complicate the professional and customer obligations.

Nota Bene: for detailed version and figures, please refer to French text (cf “Communiqué de presse No 108” also published in this website)

Note to the Edit : This press release is broadcast on 13.03.14, outside of The Swiss Bourse’s office hours, in order to comply with the ad hoc publicity principles of the listing Rules. In addition, it has been sent one working day prior to SIX Swiss Exchange.