The interim net profit published by Bondpartners showed a significant increase
The Company posts a half-yearly net profit which reached CHF 1,7million (vs. a CHF 1,1million profit by the end of June 2013), an increase of 54,5%.
The statutory balance sheet’s total reached CHF 180,12million (+22% compared to closing of 2013), current assets representing 95% of the latter, namely liquidities and receivables from banks (CHF 88,4million), loans and advances to customers (CHF 20,2million) and securities portfolios (CHF 62million).
Individual shareholders’ equity amounted to CHF 55,2million after dividend payment of 30% last May. Valuation adjustments and provisions, for their part, decreased by 1.5% to CHF 30,5million compared to Dec. 31st 2013.
The adequacy of the basic individual shareholders’ equity (Tier 1) and that of the additional shareholders’ equity (Tier 1+2), respectively, reached 27% and 40.5%, these figures remaining stable compared to previous deadlines and reports to SNB.
On the subject of profit and loss accounts, net income from interest differential business posted CHF 1,1million (unchanged with regard to June 2013) and net income from commission business came to CHF 0,73million (+15.5%). Income from securities transactions (dealing and financial investments) as well as results from currency exchange and valuation of equities held on our proprietary accounts contributed to the improvement (CHF 3,6million vs. CHF 2,8million as at end of June 2013), in part through the weakening of Swiss franc against some currencies and because of the good performances of some stock exchanges. Gross income from trading transactions grew 12% for its part, while turnover increased by 50%.
Operating expenses rose 6% to CHF 3,2million. The gross profit, before extraordinary income and expenses, thus came in at CHF 2,1million, up 6% (vs. CHF 1,95million).
As a reminder, it should be noted that at the end of 2012, BPL engaged in the resizing of its activities abroad, by repatriating the assets of its subsidiary based in Gibraltar and by leaving in dormancy the latter, so going out of the consolidated monitoring of the supervisory authority.
The Company is satisfied with the business development seen during the first part of the year, it remains however careful in view of the renewal nervousness noticed recently, the markets being probably inclined to some correction given the economical and geopolitical environment. If the situation on the interest rates front remains globally and relatively steady, that of currencies is more turbulent. As far as trading activity is concerned, the increase in volumes came along with a certain pressure on the margins, related to institutional positioning on short maturities, the liquidity and offer, as for them, remaining limited.
As in the past, Bondpartners is ready to adjust its risk and commitment levels in time of need, if volatility 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. 109” also published in this website).
Note to the Edit : This press release is broadcast on 17.07.14, 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.