euro adhoc: Swissfirst AG
Financial Figures/Balance Sheet
swissfirst:
Reporting on the second quarter
first half of 2005
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
26.08.2005
- Total operating income up 4.4% to CHF 24.3 million in the second quarter of 2005
- Good operating profit growth of 10.7% to CHF 15.247 million in the second quarter
- Strong inflow of new money increases assets under management from CHF 4,894 million to CHF 5,350 million
- Substantial increase in shareholders equity to CHF 282.242 million (end of 2004: CHF 238.656 million)
- Nominal share capital of CHF 0.40 and a special dividend of CHF 5.00 per bearer share will be paid out on September 30, 2005
swissfirst Group, active in investment banking, asset management and private banking, generated total operating income of CHF 24.3 million in the second quarter of 2005. This represents an increase of 4.4% compared to the prior-year figure of CHF 23.279 million and an 8.8% increase over the first-quarter figure of CHF 22.338 million. Due to the high comparison base in the first quarter of 2004, total operating income for the first half of 2005 was down 5.3% to CHF 46.639 million. Total expenses in the second quarter of 2005 were 4.8% lower at CHF 9.053 million. swissfirst thus increased operating profit by 10.7% to CHF 15.247 million. After valuation adjustments, depreciation and taxes, second-quarter net profit after minorities was unchanged at CHF 10.991 million (previous year CHF 11.008 million). Net profit after minorities for the first six months of 2005 was down 5.3% to CHF 21.947 million.
Asset management business still accounts for 50% of net operating income Net commission income in the second quarter of 2005 declined by 8.3% to CHF 15.292 million compared to Q2 2004, but was virtually unchanged versus the first quarter of 2005. This resulted in a decline of 8.3% to CHF 31.133 million for the entire first half. Brokerage transactions with derivatives and Swiss equities remained sluggish but it appears that the low point will be reached during the current year. On the one hand net income from portfolio management activities (Asset Management and Private Banking) for the first half of 2005 was virtually unchanged at CHF 21.346 million. On the other hand the gross operating profit for the same period increased from CHF 8.26 million to CHF 9.504 million.
Higher interest income Net interest income advanced 24.9% to CHF 4.632 million due to the increased return on financial assets and high credit demand. An increase in net interest income of 28% to CHF 7.746 million was achieved in the first half.
Trading income flat Net trading income for the first six months of the year was almost unchanged at CHF 5.886 million compared to the previous years figure of CHF 6.033 million.
Lower cost base swissfirst lowered its total costs by 4.8% to CHF 9.053 million in the second quarter of 2005. Despite the expansion of infrastructure during the first six months of the year (Zug and Lucerne offices), total costs were reduced by 5.2% to CHF 18.305 million in the first half. Compared to the end of 2004, the cost-to-income ratio improved from 42.9% to 39.2%.
Substantial increase in shareholders equity compared to the end of 2004 swissfirsts equity (excluding minorities) at mid-year 2005 amounted to CHF 282.242 million. The annualized return on equity at the mid-year mark was 16.9%. As already reported, the payment of CHF 0.40 in nominal share capital and a dividend (including special distribution) of CHF 5.00 per bearer share will be paid out on September 30, 2005, as resolved by the general meeting of shareholders in 2005. The total dividend payout of CHF 50 million has already been deducted in the statement of shareholders equity as of mid-year. Adjusted for this sum, shareholders equity on June 30, 2005 would have amounted to CHF 332.242 million.
Continued high net inflow of new client assets in asset management business swissfirst enjoyed a strong increase in client assets under management of CHF 456 million to CHF 5,350 million during the first half of the year. Asset management activities accounted for CHF 4,443 million of this total. Assets under management in these two units increased by CHF 652 million since the beginning of the year, of which about CHF 300 million is attributable to a positive market performance. Particularly pleasing is the 20.5% increase in assets at our Private Banking unit since the beginning of the year.
Sale of swissfirst Structured Bonds AG as of June 30, 2005 As already announced, swissfirst has sold its majority stake in swissfirst Structured Bonds AG as of June 30, 2005. This subsidiary will no longer be consolidated as of July 1, 2005. This transaction will close during the second half of the year. swissfirst Structured Bonds AG managed client assets of over CHF 400 million as of mid-year.
Investor calendar: Third-quarter 2005 results November 25, 2005
The complete report on the second quarter and first half of 2005 can be downloaded at our website www.swissfirst.ch.
swissfirst is an independent financial group listed on SWX Swiss Exchange that specializes in investment banking, private banking and asset management. Its business operations are especially geared toward portfolio management and investment advisory services for private and institutional clients and toward corporate finance business. swissfirst is focused on the Swiss market, Swiss products and Swiss know-how.
Profit and Loss Q2 2004 Q2 2005 +/- % H1 2004 H1 2005 '+ / - %
3 months 3 months Q2 '04/05 6 months 6 months H1 '04/05
CHF mn CHF mn CHF mn CHF mn
Net interest income 3.708 4.632 24.9% 6.049 7.746 28.0%
Net fee and 16.669 15.292 -8.3% 33.961 31.133 -8.3%
commission income
Net trading income 0.371 3.292 n.m. 6.033 5.886 -2.4%
Other income 2.532 1.084 -57.2% 3.216 1.875 -41.7%
Total operating 23.279 24.300 4.4% 49.259 46.639 -5.3%
income
Personnel expenses -6.077 -5.582 -8.2% -12.392 -11.516 -7.1%
Other operating -3.434 -3.471 1.1% -6.921 -6.789 -1.9%
expenses
Total expenses -9.511 -9.053 -4.8% -19.313 -18.305 -5.2%
Gross operating 13.768 15.247 10.7% 29.946 28.335 -5.4%
profit
Depreciation of -0.478 -0.434 -9.2% -0.866 -0.868 0.2%
fixed/tangible assets
Amortisation of 0.000 0.000 n.m. 0.000 0.000 n.m.
goodwill
Valuation -0.009 -1.239 n.m. -0.014 -1.337 n.m.
adjustments,
provisions and losses
Taxes -1.589 -1.749 10.0% -4.421 -2.343 -47.0%
Net profit before 11.692 11.825 1.1% 24.645 23.787 -3.5%
minorities
Minorities -0.684 -0.834 22.0% -1.467 -1.840 25.4%
Net profit after 11.008 10.991 -0.2% 23.179 21.947 -5.3%
minorities
Earnings per share 2.20 1.10 4.64 2.19 -52.7%
Number of shares 5'000'000 10'000'000 5'000'000 10'000'000
(f.d.) 1) 1)
1) Split of the shares May 17, 2005
n.m. = not meaningful
Balance sheet as of as of as of '+ / - %
31.12.04 30.6.04 30.6.05 31.12.04
CHF mn CHF mn CHF mn
Equity (excl. minorities) 238.656 298.812 282.242 18.3%
Balance sheet total 916 1'098 1'252
Assets under Management 4'894 4'997 5'350 9.3%
Private Banking 2'036 1'926 2'454 20.5%
Asset Management 1'755 1'820 1'989 13.3%
Investment Banking 1'039 1'216 850 -18.2%
Corporate Items 64 35 57 -10.9%
Staff (full-time equivalents) 112.8 114.6 111.3 -1.3%end of announcement euro adhoc 26.08.2005 05:45:00
Contact:
For further information please contact:
Mirko Sangiorgio, Tel. +41 (1) 204 82 21, mirko.sangiorgio@swissfirst.ch
Branche: Banking
ISIN: CH0003376818
WKN: 929068
Index: SPI
Börsen: SWX Swiss Exchange / official market