Bellevue Group returns to profitability - impressive investment performance

Bellevue Group AG / Bellevue Group returns to profitability - impressive investment performance . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

  

• Bellevue Group earned a net profit of CHF 6.5 million in 2012, after a year of extraordinary write-downs and impairments in 2011.
• The two operating units Bank am Bellevue and Bellevue Asset Management performed well despite the adverse environment and achieved operating profits of CHF 1.6 million and CHF 6.9 million.
• Measures taken to reduce personnel and operating expenses have led to sustainably lower operating costs.
• Bellevue Group has established an impressive track record with its sound Swiss stock recommendations and equity-based investment strategies and earned double-digit returns for its clientele. The company's investment recommendations and two-thirds of its investment products have outperformed their respective benchmarks.
• Total shareholders' equity of CHF 161 million provides Bellevue Group with a solid basis for executing its business model, even in an ongoing challenging environment.
• The Board of Directors will propose a dividend of CHF 2.00 per share at the general meeting of shareholders. It will also submit a proposal to create authorized capital equivalent to approximately 15% of paid-up share capital.
   

Global stock markets performed very well during the past year, even surprising many experts, but private and institutional investors nevertheless remained on the sidelines and maintained high cash positions in their portfolios. That is evident in the historically low stock-market trading volumes. On the SIX Swiss Exchange, for example, trading turnover was down another 30% in 2012 compared to the previous year. This had a major impact on Bellevue Group's business in its three segments of Asset Management, Brokerage and Corporate Finance.
                                        
Steady operating performance with sustained reduction in personnel and operating expense
Bellevue Group generated operating income of CHF 43.0 million (previous year: CHF 40.1 million) despite the ongoing challenging environment. Fee and commission income, the Group's main source of income, was steady at CHF 37.7 million (previous year: CHF 37.4 million). On the expense side, the impact of past restructuring is becoming more visible, as reflected in the 9% reduction in personnel expense and the 15% reduction in general operating expenses, which lowered total operating expenses by CHF 4.7 million to CHF 37.3 million (previous year: CHF 42.1 million). This resulted in a consolidated operating profit of CHF 5.6 million and net profit of CHF 6.5 million. Bellevue Group's average FTE headcount in 2012 was 82 (previous year: 93).