The preliminary figures are roughly in line with those of the previous year. Increase of turnover within slightly lower margins. Stable performance of portfolios for own account. Solvency ratios largely respected.
For the fiscal year ended 31st December 2014, Bondpartners SA hereby announces a preliminary and non-audited individual profit of CHF 2.84m, or an increase of 14,5% of the net result when compared with 2013. The gross income, excluding proceeds from investments (dividends paid by Bondpartners Gibraltar in 2012 and 2013) amounted to CHF 3.1m (vs 4.1m in 2013). A write-back of CHF 0.7m credited to income statement took place during the financial year under review, while a new creation of value adjustments and provisions of CHF 1.5m occurred during the previous financial year.
Including currency effects, the turnover increased by 12%. Ordinary results generally climbed across the board (net interest income: +1,5%, net income from commissions: +5%, result from trading transactions incl. currency exchange: +19%) with the exception of result from disposal of financial investments which reached CHF 1.9m vs CHF 3.4m in 2013. Operating expenses rose 4% with a total of CHF 6.6m. The statutory balance sheet gained 6,6% to CHF 157.5m, with current assets making up 94% of the latter (namely, liquidity with first grade institutions: 2,3%, due from customers and nonbank financial institutions: 4,7%, due from banks: 48%, securities portfolio: 39% of the balance sheet). With regard to liabilities, due to banks amounted to CHF 9.3m (+13%) and due to customers and nonbank financial institutions reached CHF 60.1m (+15,5%). Value adjustments and provisions decreased by 2,3% to CHF 30.2m and non-consolidated shareholders’ equity rose 2,5% to CHF 56.4m. The parent company’s solvency ratio (Tier One, according to Basel III principles) remains stable and stands at 26,5% (incl. Tier Two: 39,5%). Eligible and required capitals respectively reach CHF 72.2m and CHF 14.6m, giving a net free equity of 57.5m.
On a consolidated basis, the net profit reached CHF 3.2m (+64%), the gross income was CHF 3.5m (- 17,5%) while the balance sheet increased by 7% to CHF 152.5m. The Group’s shareholders’ equity came nearly to CHF 78m (+1,7%), after deduction of the reserve for own shares (CHF 3.9m) and that for latent taxes (CHF 6.5m).
It is indeed clear that the recent SNB’s decision to scrap its currency ceiling against euro and to lower further the negative interest rate on deposits had, and probably will have, a major impact on currency exchange rates’ evolution, on proprietary positions’ evaluation and on the Company’s transaction activity during the next months. From then on, a serious uncertainty prevails at this early stage and the forecasts for the 2015 financial year are particularly difficult.
Note to the Edit: This press release is broadcast on 22.01.15, 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.