Bondpartners SA: Income and expenses in line with previous half-year accounts. Interim net profit declined following allocation to provisions
The first half of the year under review was again contrasted. Since the middle of May, financial markets returned to a clear negative trend, perpetuated by the Chinese economic slowdown and the breathlessness of emerging countries, as well as by the uncertain future of the US quantitative easing and renewed fever outbreaks in the euro area. Although dealing turnover increased by 25%, the recent evolution of markets had unfavorable repercussions on securities and currencies positions held for own account. The gross profit grew 16% and the net profit was about 20% lower after new attribution to valuation adjustments and provisions. The balance sheet’s structure remained stable, the shareholders’ equity and reserves have expanded.
The parent Company publishes a half-yearly net profit which reached CHF 1,1million (vs. a CHF 1,4million profit by the end of June 2012).
The statutory balance sheet’s total reached CHF 172,76million (+26% compared to closing of 2012), current assets representing 94% of the latter, namely liquidities and receivables from banks (CHF 93,9million), loans and advances to customers (CHF 9,6million) and securities portfolios (CHF 59,6million).
Individual shareholders’ equity amounted to CHF 53,6million (+3%) after dividend payment of 35% last May. Valuation adjustments and provisions, for their part, increased by 2.5% to CHF 30,16million compared to Dec. 31st 2012.
The adequacy of the basic individual shareholders’ equity (Tier 1) and that of the additional shareholders’ equity (Tier 1+2), respectively, reached 31.5% and 47.4%, an increase compared to previous deadlines and reports to SNB.
On the subject of individual profit and loss accounts, net income from interest differential business posted CHF 1,1million (+9% with regard to June 2012) and net income from commission business came to CHF 0,63million (+52%). Income from securities transactions (dealing and financial investments) as well as results from currency exchange and valuation of equities held on our proprietary accounts lost some ground (CHF 2,8million vs. CHF 3,4million end of June 2012), in part through the strengthening of Swiss franc and the decline of stock markets following the FOMC Meeting Minutes in May which left serious uncertainties about the US monetary policy, the increase in long-term interest rates having a less significant impact. Gross income from trading transactions grew 3% for its part.
Operating expenses have remained unchanged at CHF 3,2million. The gross profit, before extraordinary income and expenses, thus came in at CHF 1,95million (vs. CHF 1,68million).
Although BPL’s half-year results were balanced, the outlook for the next few months prompts us to remain still cautious, whether on the currencies and market level, or on the economic situation and geopolitical developments’ front. The economic and financial crisis is not totally solved, the real economy suffers a persistent and extended slowdown, and emerging countries are marking time. The environment remaining uncertain, the Company is ready to adjust its risk and commitment levels in time of need, if turbulence arises, and has set apart adequate reserves in order to address these challenges.
Nota Bene: for detailed version and figures, please refer to French text (see “Communiqué de presse No 106” also published in this website).
Note to the Edit : This press release is broadcast on 12.07.13, 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.