Half-year operating result from Bellevue Group just positive

7/22/2011, 7:00 AM (Source: GlobeNewswire)
Bellevue Group AG /
Half-year operating result from Bellevue Group just positive
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Report on the first half of 2011

* Bellevue Group achieves half-year operating profit of CHF 0.9 million
* Bank am Bellevue still profitable
* Operating loss (mainly currency-related) outweighs net new money flow at
Bellevue Asset Management
* Pre-announced impairments, depreciation and amortisation causes negative
consolidated result of CHF 53.5 million after tax
* Ongoing strong liquidity and solid equity base

Market conditions were difficult in the first half of 2011. Stock market trading
continued its decline from last year's levels. Asset Management was confronted
with the decline of market valuations and, above all, the strong Swiss franc.
Overall, as already announced, Bellevue Group suffered a consolidated loss of
CHF 53.5 million in the first half-year (previous year: profit of CHF 1.6
million), following an extraordinary write-down of goodwill and amortisation of
intangible assets.

Bellevue Group's operating income amounts to CHF 23.1 million (previous year:
CHF 27.5 million) and operating expenses at CHF 22.2 million (previous year: CHF
23.3 million). The result shows a consolidated operating profit of CHF 0.9
million (previous year: CHF 4.2 million). After result on seed capital, result
on associated companies, depreciation, amortisation, value adjustments and
taxes, it adds up to a consolidated loss of CHF 53.5 million (previous year:
profit of CHF 1.6 million). As of 30 June 2011, Bellevue Group shows a
consolidated balance-sheet total of CHF 509 million (end of 2010: CHF 578
million). The firm's equity base is still solid and amounts to CHF 201 million
(end of 2010: CHF 295 million), while liquidity remains strong at CHF 65 million
(end of 2010: CHF 127 million). At mid-year, the Group has 95 employees (full-
time equivalents) compared to 99 at the end of 2010.

Bank am Bellevue

The main revenue source for Bank am Bellevue is brokerage, focused primarily on
trading in Swiss equities. Based on its primary research, the Bank advises
mainly institutional investors and offers corporate finance services such as
capital market transactions and M&A.

Low trading volumes, the strong Swiss franc and a fragile macro-environment
posed challenges. Nevertheless, Bank am Bellevue was able to achieve a positive
operating result of CHF 5.0 million (previous year: CHF 6.6 million).

Bank am Bellevue's operating income fell to CHF 14.9 million (previous year: CHF
17.5 million) in the first half of 2011. Operating expenses of CHF 9.9 million
are also lower than last year (CHF 10.9 million), due to reduced personnel
expenses (variable salaries) and legal costs. After depreciation, amortisation,
value adjustments and tax, the result for this business division accumulated to
a loss of CHF 25.4 million (previous year: profit of CHF 5.4 million).

The actions taken by the Board of Directors in the case of sia Abrasives are
being implemented in close consultation with the Swiss Financial Market
Supervisory Authority, FINMA. An external auditing company will review the
implementation later this year.

Bellevue Asset Management

The reorientation, introduced over two years ago, continues to show promise,
though at a lower level due to market conditions. In the first half of 2011, for
the first time, acquisitions of new money for newly introduced products exceeded
withdrawals from traditional products. Especially the European product offering
showed a very strong and competitive performance. The quality of these products,
combined with the increased client penetration, builds confidence for future

Like other international providers, Bellevue Asset Management could not avoid
exposure to trends on the financial markets, especially currency fluctuations.
Most assets under management (more than 80% of the total volume) are denominated
in US dollars or euros. These suffered from the massive rise in the currency of
accounting, the Swiss franc. The negative impact on the revenue base by nearly
CHF 1 million, could not be recovered, despite a positive increase in net new
money. With little change in the cost base this ultimately resulted in an
operating loss for the half-year. Given these circumstances, the management has
already taken appropriate actions to reduce the cost base and return to profit.

In the first half of 2011, Bellevue Asset Management recorded operating income
of CHF 8.2 million (previous year: CHF 9.4 million). This consists mainly of
management fees of CHF 8.1 million (previous year: CHF 9.4 million) for assets
under management. At CHF 10.1 million, operating expenses remained at the same
level as last year (CHF 9.9 million). The operating result amounts to CHF -2.0
million (previous year: CHF -0.5 million). Taking into account the returns on
seed capital, depreciation, amortisation, value adjustments of goodwill and tax,
the division recorded a loss of CHF 23.5 million (previous year: loss CHF 0.9

Agenda 2012:

Consolidated financial statements for 2011       27 February 2012

Annual general meeting 2012                             19 March 2012

The full version of the report is available at www.bellevue.ch.

For further information:

Media/Investor Relations: Daniel Koller, CFO

Tel. +41 44 267 67 00, fax +41 44 267 67 01, e-mail info@bellevue.ch

Bellevue Group

Bellevue Group is an independent Swiss financial group domiciled in Küsnacht.
The parent company, Bellevue Group AG, is listed on the SIX Swiss Exchange.

Bank am Bellevue is a provider of research and brokerage services in Swiss
equities and selected international stocks as well as corporate finance

Bellevue Asset Management manages specialised investment products. It focuses on
equity investments in selected sector and regional strategies and provides
selected institutional asset management services.

--- End of Message ---

Bellevue Group AG
Seestrasse 16; Postfach Küsnacht/Zürich Switzerland

WKN: A0LG3Z;ISIN: CH0028422100;

Media Release_Bellevue Group_22.07.2011 (PDF):

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