Bondpartners SA : interim net profit on the increase in a still challenging environment

The first half of the year under review was contrasted. Since mid-March, financial markets returned to a clear negative trend, perpetuated by the breathlessness of global economy and renewed fever outbreaks in the euro area. While dealing turnover posted a setback and markets performance has been erratic at best, most of operating results increased within a domestic situation which was less perturbed by exchange rates. The balance sheet structure together with shareholders’ equity and reserves remained stable.

The parent Company publishes a half-yearly net profit which almost doubled at CHF 1,38million (vs. a CHF 0,71million profit by the end of June 2011) and the Group registers a CHF 1,56million gain (vs. CHF +0,81million).

The statutory balance sheet total reaches CHF 158,6million (+9%), current assets representing 94% of the latter, namely liquidities and receivables from banks (CHF 77million), loans and advances to customers (CHF 19million) and securities portfolios (CHF 52,8million).
Individual shareholders’ equity amounts to CHF 53million (+3%). Valuation adjustments and provisions, for their part, slightly increased by 1.5% to CHF 20,6million.
The adequacy of the basic individual shareholders’ equity (Tier 1) and that of the additional shareholders’ equity (Tier 1+2), respectively, reach 24% and 34.5%, in line with previous deadlines and reports to SNB.

On a consolidated basis, the balance sheet total reaches CHF 158million (+9.5%), current assets totaling CHF 149,5million. The Group’s equity, for its part, comes in at CHF 73million (+5%). On this subject, the reserves for general banking risks have grown by 3.5% to CHF 26,3million, while revenue reserves amounted to CHF 39,4million (+4.5%). From a regulatory perspective (Basel II), the total of consolidated eligible capital is CHF 73million, while the total of required capital reaches CHF 17million.

On the subject of individual profit and loss accounts, net income from interest differential business posts CHF 1million (-4.5%) and net income from commission business came to CHF 0,4million (- 57%). Income from securities transactions (dealing and financial investments) as well as results from currency exchange and valuation of equities held on our proprietary accounts improved significantly, in part through the stabilization of the euro (floor price vs. Swiss franc) as well as the subsequent strengthening of foreign rates against our national currency, and thanks to a better performance of financial markets, at least during the first quarter. Trading income therefore reached nearly CHF 3,4million (vs. CHF -1,2million in June 2011).
Operating expenses rose by 9% to CHF 3,2million, because of greater allocations to provisions. The gross profit, before extraordinary income and expenses, thus comes in at CHF 1,7million (vs. CHF – 2million).

Although half-year results were encouraging, the outlook for the next few months prompts us to remain cautious, whether on the currencies and market level, or on the economic situation and geopolitical developments’ front. Disillusions and uncertainties build up, volatility increases, market operators have lost their bearings and favor a wait-and-see stance.
Unless a concerted and massive intervention is taken, accompanied by a sustainable balancing of budgets and public finances, the second half of 2012 does not appear in a good light and may trigger renewed strains and large-scale turbulence in global financial markets.

Nota Bene: for detailed version and figures, please refer to French text (see “Communiqué de presse No 102” also published in this website)

Note to the Edit : This press release is broadcast on 19.07.12, out of the Swiss Stock Exchange’s opening hours, in order to comply with the ad hoc publicity principles of its listing Rules. In addition, it has been sent one working day prior to SIX Swiss Exchange.

About Bondpartners: BPL is a Swiss financial company founded in 1972 in Lausanne, whose business hinges on three main axes: the inter-professional dealing of securities, the market making and market keeping, and the execution of orders issued by independent managers. It is authorized and supervised by the Swiss Financial Market Supervisory Authority (FINMA) as a dealer in securities.

Christian Plomb
Tel. +41 021 613 43 43