Bellevue Group remains profitable despite low turnovers

7/26/2013, 7:00 AM (Source: GlobeNewswire)

Bellevue Group AG / Bellevue Group remains profitable despite low turnovers . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

  • Bellevue Group reports a net profit of CHF 6.5 million for the first half of 2013
  • Both Bank am Bellevue and Bellevue Asset Management close the period with a profit
  • Shareholder's equity still strong with a Tier 1 ratio of 39%

The uptrend on stock markets around the world was largely sustained during the first quarter of 2013 but the last two months of the second quarter has seen some corrections. No immediate improvement in the economic environment has been discernible. Against this background many investors are still reluctant to invest in stocks. The turnover on the SIX Swiss Exchange rose above the record lows from the previous year, but is still far below historical average levels. The expected rotation into equities, which would have a positive effect on Bellevue Group in its three business areas of asset management as well as brokerage and corporate finance, has not yet transpired.
                                        
Stable course of business in a challenging environment 

Bellevue Group generated operating income of CHF 24.8 million (previous year: CHF 25.3 million) during the first half of 2013. Fee and commission-based business remained the Group's top revenue driver, contributing income of CHF 19.6 million (previous year: CHF 20.7 million). Operating expense declined by 4.6% from the prior-year period to CHF 18.1 million (previous year: CHF 18.9 million). This resulted in consolidated operating profit of CHF 6.7 million (previous year: CHF 6.4 million). After net profit on seed capital, depreciation and taxes, bottom-line profit amounted to CHF 6.5 million (previous year. CHF 8.1 million). Bellevue Group's headcount in the first half averaged 80 on a FTE basis (previous year: 82).

"Investors are still cautious in view of the market's development. Nevertheless, we were successful in our effort to stabilize the business amid this challenging environment. Our results for the first half are in line with our expectations, although we are pursuing more ambitious mid-term targets," says CEO Urs Baumann with regard to the interim results for 2013.

Bank am Bellevue: Research recommendations beat the market again 

Despite the advancing stock markets, institutional investment activity and capital market transactions in Switzerland remained at relatively low levels. In the face of these prevailing headwinds, Bank am Bellevue's operating income rose to CHF 13.1 million (previous year: CHF 11.5 million). An extraordinary dividend from SIX Group in the amount of CHF 3.4 million (previous year: CHF 1.1 million) contributed to the y-o-y growth. Personnel and general operating expenses amounted to CHF 8.2 million (previous year: CHF 8.6 million). After depreciation and taxes, the bank's first-half profit came in at CHF 4.0 million (previous year: CHF 1.9 million).

The Research Team achieved a performance of 18.7% during the period under review with its original investment ideas and clearly beat the SMI (12.9%). Bank am Bellevue's top 5 recommendations achieved a performance of 20.8%.

Bellevue Asset Management: Increase in assets under management

Recurring revenues (management fees) were stable at CHF 10.4 million (previous year: CHF 11.1 million) despite further product streamlining. Operating income declined to CHF 12.1 million (previous year: CHF 16.2 million), however, owing to the normalization of other revenue items. Operating expenses of CHF 8.7 million were roughly unchanged from the prior-year figure. Bellevue Asset Management's profit for the first half amounted to CHF 2.6 million (previous year: CHF 7.9 million), which was in line with expectations.

Assets under management grew 14% to more than CHF 2.2 billion (12/31/2012: CHF 2.0 billion) thanks to a strong investment performance and the new money attracted by the investment funds. The net new money inflow of CHF 77 million, largely due to the strong interest in the BB Entrepreneur Europe and BB African Opportunities Funds, was more than offset by the CHF 95 million share buy-back program at BB Biotech and the final adjustments to the investment product range, which resulted in an outflow of CHF 44 million.

Bellevue Asset Management created substantial value for investors with most of its investment strategies during the period under review. The top performer was BB Biotech AG, which ended the first half with a total gain of 33.8% in CHF (including 4%-plus from cash payout).

Good platform for future growth 

A focused business model combined with a strong capital base and clearly contained risks gives Bellevue Group attractive growth prospects. Moreover, Bellevue Group can focus entirely on its business operations going forward. Referring to the company's growth prospects, CEO Urs Baumann comments: "With our proven research and investment competence we can respond quickly to any increase in investor appetite for risk. We will also take advantage of opportunities to expand our business model on a selective basis."

The full version of the Half-year report 2013 is available at www.bellevue.ch

Agenda 2014:

Consolidated financial statements for 2013       24 February 2014

Annual general meeting 2014                            17 March 2014

Contact:

Media / Investor Relations: Daniel Koller, CFO

Telephone +41 44 267 67 00, Fax +41 44 267 67 01, ir@bellevue.ch

Bellevue Group

Bellevue Group is an independent Swiss financial boutique listed on the SIX Swiss Exchange. Established in 1993, the company and its approximately 80 employees are specialists in the fields of Brokerage, Corporate Finance and Asset Management. Bellevue Group includes the two subsidiaries Bank am Bellevue and Bellevue Asset Management. The bank boasts superb knowledge of the Swiss stock and bond market and offers independent research opinions and recommendations as well as viable solutions for capital market transactions. Bellevue Asset Management is focused on selected active equity investment strategies in growing markets, in healthcare industries as well as in other special themes such as entrepreneur-led companies.

  




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Source: Bellevue Group AG via Thomson Reuters ONE

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Bellevue Group AG
Seestrasse 16; Postfach Küsnacht/Zürich Switzerland

WKN: A0LG3Z;ISIN: CH0028422100;


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