euro adhoc: Swissfirst AG
Financial Figures/Balance Sheet
swissfirst: Third
quarter and nine-month results 2005
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
25.11.2005
- Total operating income up by 66.3% to CHF 32 million in the third quarter
of 2005
- Solid improvement in operating profit of CHF 10.593 million to CHF 24.13
million in the third quarter
- Net profit after minorities up by 78% to CHF 16.2 million in the third
quarter of 2005
- Assets under management reach all-time high of CHF 5.586 billion
- First time consolidation of Bellevue units as of October 1, 2005swissfirst Group, active in investment banking, asset management and private banking, generated total operating income of CHF 32.0 million in the third quarter of 2005. This is a 66.3% increase over last year's result of CHF 19.242 million. After nine months, total operating income rose by 14.8% to CHF 78.641 million. In comparison to the previous year, total expenses in the third quarter fell by 9% to CHF 7.872 million. This resulted in an increase in operating profit of CHF 10.593 million to CHF 24.13 million, representing a rise of 29.4% to CHF 52.465 million for the first nine months of 2005. Net profit after minorities for the third quarter of 2005 was CHF 16.2 million which is 78% higher than the figure of last year. swissfirst closed the first nine months of 2005 with a net profit of CHF 38.148 million. This represents an increase of 18.2%. swissfirst Structured Bonds AG was sold to management effective on July 1, 2005 and is no longer consolidated. The results for this reporting period are the last swissfirst results without the operational units of the Bellevue Group.
Higher commission income Commission income rose by 23% to CHF 18.526 million in the third quarter of 2005, resulting in commission income of CHF 49.659 million for the nine months ending September 2005. Net income from portfolio management activities for the first nine months of 2005 was CHF 37.551 million, being 10.2% higher than the same period last year.
Improved interest income Interest income advanced by 27.2% to CHF 3.402 million due to the increased return on financial assets and good credit demand. An increase in interest income of 27.8% to CHF 11.147 million was achieved for the first nine months.
Good trading income Trading income in the first months of 2005 improved from CHF 7.337 million to CHF 10.069 million due to good results in the third quarter (CHF 4.184 million).
Lower cost base swissfirst lowered its total costs by 9% to CHF 7.872 million in the third quarter of 2005. For the first nine months of the year, total costs were reduced by 6.4% to CHF 26.176 million. Consequently, the cost-to-income ratio improved from 40.8% to 33.3%.
Substantial increase in shareholders' equity compared to the end of 2004 At CHF 299.103 million, swissfirst's equity (excluding minorities) at the end of September 2005 was substantially higher than at the start of the year (CHF 238.656 million). The nominal share reduction and dividend paid at the end of September 2005 amounted to CHF 54 million and have already been deducted. The annualized return on equity at the end of September 2005 was 19.1% (2004: 16.1%).
Continued high net inflow of new client assets in asset management business swissfirst enjoyed a strong increase in client assets under management of CHF 692 million to CHF 5.586 billion during the first nine months of the year. Asset management activities accounted for CHF 4.619 billion of this total. Assets under management in this segment have increased by CHF 828 million since the beginning of the year, of which about CHF 450 million is attributable to a positive market performance.
Integration of Bank am Bellevue AG/Bellevue Asset Management AG The integration of the operational units of Bank am Bellevue AG and Bellevue Asset Management AG in the swissfirst Group is proceeding faster than originally planned. The transfer of Bank am Bellevue AG and Bellevue Asset Management AG was finalized at a price of CHF 276 million on November 22, 2005. The first time consolidation of these units commences on October 1, 2005. Applicable integration costs will be included in the current account for the fourth quarter.
The designated members of the Board of Directors - Martin Bisang (Chairman), Thomas Matter (Delegate) and Daniel Schlatter - will be proposed to the shareholders for election at the forthcoming ordinary general meeting on May 6, 2006. The current Board of Directors will step down as of this date.
Corporate organization from January 1, 2006 The company, under the leadership of Thomas Matter (CEO) will be structured into the following business units from January 1, 2006: Investment Banking, Asset Management, Private Banking and Services. Daniel Hefti continues as Chief Financial Officer.
Investment Banking includes Bank am Bellevue, which operates the brokerage for Swiss equities under the management of Jürg Schäppi, and Corporate Finance, under the management of Gregor Greber. This unit also encompasses swissfirst Derivatives AG, which offers tailored solutions in the area of derivatives. The asset management activities of both groups will be amalgamated into swissfirst Asset Management AG. The Mandates section, under the management of Mirko Sangiorgio, will provide individualized asset management with absolute returns and comprehensive solutions for pension funds. The BB Biotech, BB Medtech and BB Biotech Ventures II investment companies remain the responsibility of Stephan Meier. The private banking business, managed by Urs Kaufmann, will be concentrated in the swissfirst Bank AG. swissfirst Services AG incorporates the back office services for the swissfirst Group and for external companies, and is managed by Peter Kaszuba.
Investor calendar:
Press conference for 2005 annual financial report: March 31, 2006 Annual general meeting 2005: May 6, 2006
The complete report on the third quarter and first nine months of 2005 can be downloaded at our website: www.swissfirst.ch. The documents referred to at the media and analysts conferences are also available at our website.
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 Q3 2004 Q3 2005 +/- % 2004 2005 '+ / - %
3 months 3 months 9 months 9 months 9m '04/05
CHF mn CHF mn CHF mn CHF mn
Net interest income 2.673 3.402 27.2% 8.722 11.147 27.8%
Net fee and commission
income 15.060 18.526 23.0% 49.021 49.659 1.3%
Net trading income 1.304 4.184 n.m. 7.337 10.069 37.2%
Other income 0.204 5.890 n.m. 3.421 7.766 127.0%
Total operating
income 19.242 32.002 66.3% 68.501 78.641 14.8%
Personnel expenses -6.019 -5.532 -8.1% -18.411 -17.048 -7.4%
Other operating
expenses -2.629 -2.340 -11.0% -9.550 -9.128 -4.4%
Total expenses -8.649 -7.872 -9.0% -27.961 -26.176 -6.4%
Gross operating
profit 10.593 24.130 127.8% 40.540 52.465 29.4%
Depreciation of fixed
/tangible assets -0.492 -0.431 -12.4% -1.358 -1.299 -4.3%
Amortisation of
goodwill 0.000 0.000 n.m. 0.000 0.000 n.m.
Valuation adjustments,-0.462 -0.002 n.m. -0.476 -1.339 n.m.
provisions and losses
Taxes -0.116 -6.202 n.m. -4.536 -8.544 88.4%
Net profit before
minorities 9.524 17.495 83.7% 34.169 41.282 20.8%
Minorities -0.420 -1.295 n.m. -1.887 -3.134 66.1%
Net profit after
minorities 9.104 16.200 78.0% 32.283 38.148 18.2%
Earnings per share 1.82 1.62 n.m. 6.46 3.81 n.m.
Number of shares
f.d.) 5'000'000 10'000'000 5'000'000 10'000'000
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 30.9.04 30.9.05 31.12.04
CHF mn CHF mn CHF mn
Equity
(excl. minorities) 238.656 252.089 299.103 25.3%
Balance sheet total 916 1'071 1'348
Assets under
Management 4'894 4'902 5'586 14.1%
Private Banking 2'036 1'937 2'642 29.8%
Asset Management 1'755 1'801 1'977 12.6%
Investment Banking 1'039 1'130 911 -12.3%
Corporate Items 64 34 56 -12.5%
Staff
(full-time equivalents) 112.8 110 111 -1.6%Income swissfirst BaB and BAM * pro forma**
(in mn CHF), not audited
2004 as of 30.9.05 2004 as of 30.9.05 2004 as of 30.9.05
Interest
income 11.3 11.1 3.2 1.8 14.5 12.9
Commission
income 62.5 49.7 40.4 36.1 *** 102.9 85.7 ***
Trading
income 7.1 10.1 1.3 3.6 8.4 13.7
Others 3.0 7.76 0.0 2.8 3.0 10.6
Total
income 83.9 78.6 44.9 44.2 128.8 122.9
Personnel
expenses -23.9 -17.1 -9.5 -7.2 -33.4 -24.3
Other
operating
expenses -12.1 -9.1 -8.0 -6.0 -20.1 -15.1
Total
expenses -36.0 -26.2 -17.5 -13.3 -53.5 -39.5
Gross
operating
profit 47.9 52.4 27.5 31.0 75.4 83.4
Depreciation/
Valuation
adjustments
-2.4 -2.6 -0.3 -0.3 -2.7 -2.9
Extraordinary Result 0.0 **** ****
Taxes -4.2 -8.5 -4.0 -5.7 -8.2 -14.2
Net profit
(bef. minorities)
41.3 41.3 23.2 25.0 64.5 66.3
Minorities-2.9 -3.1 0.0 0.0 -2.9 -3.1
Net profit
(excl. minorities
38.4 38.2 23.2 25.0 61.6 63.2
(in mn CHF),
not audited
2004 as of 30.9.05 2004 as of 30.9.05 2004 as of 30.9.05
Asset under Management
4'894 5'586 4'403 5'404 9'297 10'990
Equity (incl. minorities)
238.7 299.1 90.7 51.1 n/a n/a
Staff 113 111 49 50 162 161
* Bank am Bellevue AG and Bellevue Asset Management AG
** not audited
*** Adjusted by the Performance Fee of CHF 15,1 mn
**** Extraordinary profit of CHF 4,2mn not includedend of announcement euro adhoc 25.11.2005 05:30:00
Further inquiry note:
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