Bellevue Group with half-year operating profit of CHF 6.8 mn - increase of assets under management to new high of close to CHF 7 bn - Seite 2

Solid results in a challenging environment 

Like all other financial services companies, Bellevue Group was challenged by the high level of market volatility witnessed during the first six months of the year, particularly in the biotech and healthcare sectors. The Group's most important source of income - commissions and fees - declined by 18% from the prior-year level. The percentage of recurring revenues increased to approximately 80% (71% at the end of 2015). Operating costs declined by 11% because of the significant decrease in  performance-based employee compensation, but that could not offset the entire drop in income. Bellevue Group's operating profit for the first half of the year therefore declined 32% y-o-y to CHF 6.8 mn. Taking into account investment loss of approximately CHF 2.5 mn on seed capital as well as depreciation, amortization, valuation adjustments and taxes, Group net profit for the period amounted to CHF 2.8 mn.

The acquisition of StarCapital was closed on June 6, 2016 with retroactive effect from January 1, 2016. StarCapital's profit for the period from January 1, 2016 to the closing date in the amount of CHF 2.5 mn was recognized in the net asset value and the profit for the period from the closing date to the end of June 2016 in the amount of CHF 0.4 mn was recognized in the Group's profit and loss statement. StarCapital's full earnings power will therefore become visible in the income statement for the second half of the year.

CEO André Rüegg's comments on the first half results for 2016: "Bellevue Group made further progress in an extremely challenging environment by broadening its revenue flows and investment competence through the acquisition of StarCapital. We have also begun to strengthen our Group's presence in Germany from our new base in Oberursel near Frankfurt and have deployed additional resources to intensify our sales and distribution activity in this key market. Meanwhile at the bank we are in the process of setting up a wealth management unit for entrepreneurial private clients that will bolster its income capability. The very first capital increase in the history of our Group underscored investors' confidence in our company and emboldens us in the pursuit of our growth strategy."