Bellevue Group's operating profit sharply higher at mid-year mark - assets under management at an all-time high of CHF 5.2 bn - bottom-line loss due to impairments and writedowns

Bellevue Group AG / Bellevue Group's operating profit sharply higher at mid-year mark - assets under management at an all-time high of CHF 5.2 bn - bottom-line loss due to impairments and writedowns . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

• Bellevue Group's first-half operating profits increase 76% to CHF 9.9 mn
• Asset Management generates a record operating profit of CHF 12.1 mn
• Further diversification of recurring earnings streams at Asset Management
• Operating profit at Bank am Bellevue declines to CHF 0.6 mn
• Assets under management jump 80% to new record high of CHF 5.2 bn
• Consolidated net loss of CHF 15.5 mn due to impairments and writedowns 

Global financial markets remain highly volatile, as was clearly evident during the final weeks of the first half of 2015. Economic and geopolitical uncertainties loom large. Meanwhile the global economy continues to grow at a tepid pace. The occasional slowdown in economic activity was outweighed by central banks' monetary action. A steady flow of liquidity from central banks remains a crucial factor for continued positive market trends. In this kind of an environment, cash allocations are high and investors are willing to bear the associated opportunity costs. Despite the persisting low rates of interest, many investors are not yet ready to shift their money into a higher risk asset class such as equities. 

Steady increase in recurring income streams the basis for higher profits

The interim results show that Bellevue Group's strategic focus on recurring income flows is paying off. During the past six months the Group strengthened the main source of its income and posted a 59% increase in net fee and commission income to CHF 36.3 mn (prior year: CHF 22.8 mn). Asset Management is credited with most of this improvement, having doubled its net income contribution, with largely recurring income streams. Commission income at Bank am Bellevue declined by about 21%. Operating expenses increased to CHF 27.4 mn (prior year: CHF 19.4 mn) in the wake of the growing business volumes at Asset Management and various investments in investment expertise. However, this 41% increase in expenses was less than the increase in operating income. As a result, Bellevue Group's operating profit increased by 76% to CHF 9.9 mn (prior year: CHF 5.6 mn).