Net profit in line with that of 2013, soundness of figures showed in the balance sheet. Increase of the dividend which will be proposed to shareholders.
Again, the year under review was characterized by an amplification of turnover, while margins shrunk somewhat and the liquidity shortage, which has been affecting bond markets, continued or even increased. With regard to stockexchanges, volatility made a stronger comeback, given the geopolitical situation and magnitude of international crises. Global economy, for its part, was further facing a flagging growth in the euro area, when oil prices in turn collapsed.
Bondpartners’ balance sheet position remained extremely solid, the financial equity and reserves having regularly increased. Revenues have presented a more contrasting picture, although the net reported income was higher, at both individual and consolidated levels.
The parent company’s net profit showed for 2014 an increase of 14.5% at CHF 2.84 million (vs CHF 2.48 million in 2013) and the group recorded, for the same period, a gain of CHF 3.23 million (vs a gain of 1.97 million in 2013). An ordinary 35% (+5%) dividend will be proposed to the shareholders.
The statutory balance sheet total has grown 6.6% to CHF 157.56 million, mainly due to the increase of cash and credit balances with banks. The balance sheet was composed by 94% of current assets, namely cash and due from banks (CHF 79.16 million), due from customers (CHF 7.37 million) and investment/trading portfolios (CHF 61.55 million). Total liabilities nearly amounted to CHF 69.47 million (+15%).
With regard to individual shareholders’ equity, its total came to CHF 56.37 million (+2.5%). As for valuation adjustments and provisions, they were down 2.3% to CHF 30.24 million due to a release of reserves (CHF 0.7m) in favour of the income statement.
On a consolidated basis, current assets reached CHF 144.15 million and total liabilities CHF 66.64 million. As far as the group’s equity is concerned, it came in at CHF 77.93 million (+1.7%). Accordingly, reserves and provisions for own shares (CHF 3.94m) and for deferred taxes (CHF 6.5m) were duly deducted. In this regard, the reserves for general banking risks slightly declined 1.4% to CHF 34.82 million, while profit reserves posted CHF 34.33 million (+1.25%).
The capital adequacy of basic individual shareholders’ equity (Tier 1) and that of additional equity (Tier 1+2) respectively reached 25.4% and 37.8%.
In terms of profit and loss accounts, global gross income from interest differential business posted CHF 2.46 million (+1%) and income from commission business came to CHF 1.8 million (+2%). Income on securities transactions (dealing and financial investments) as well as valuation of own-account equities have declined by one third to CHF 5.49 million, while foreign exchange result showed a positive figure of CHF 0.57 million (vs a loss of CHF 1.28m in 2013). As previously mentioned, an extraordinary income of CHF 0.7 million was generated by a release of reserves, whereas in 2013, a new constitution of reserves, amounting to CHF 1.48 million was charged to the income statement. Finally, operating expenses remained under control at CHF 6.63 million (+4%).
As already announced, Bondpartners’ bearer shares will be delisted from SIX’s “domestic standard” segment on July 8th 2015 and will be transferred for quotation to BEKB’s OTC-X trading. Shareholders will be previously convened to the AGM which will take place on June 22nd 2015.
Of course, the performance of the first quarter of 2015 was strongly dominated by the BNS’ decision to abandon the floor rate against euro and to intensify its policy regarding negative interest rates. Shortly after, this performance was also significantly influenced by the ECB’s announce to trigger its quantitative easing program. Therefore, except for geopolitical events which have continued to cause disturbances since the beginning of the year, the central banks’ interventionism has have and will surely have wide impacts on exchange rate issues as well as repercussions on BPL’s investment positions and transactional activities, even though currency overlay operations have been duly adapted and even if markets, at least for some, have regained momentum. These are the circumstances in which the substantial reserves available to the Company are greatly valued.
Nota Bene: for detailed version and figures, please refer to French text (cf “Communiqué de presse No 115” also published in this website).
Note to the Edit: This press release is broadcast on 26.03.15, 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.