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BSI Group (Generali) - 2011 Annual results
Lugano (ots) - Considerable inflow of net new money: CHF 6.7 billion (+8.8%). CHF 77.7 billion in assets under management
- Considerable inflow of net new money: CHF 6.7 billion (+8.8%). Assets under management stood at CHF 77.7 billion, up 1.9% despite the appreciation of the Swiss franc and the continuing negative trend on the financial markets
- Continued successful expansion in fast-growing markets: Asia, Latin America, Eastern Europe, Russia and the Middle East.
- Growth in Swiss client base leveraging on new channels and segments
- Successful completion of the migration of the BSI Group to the new IT platform
- BSI Group results were affected by the costs related to investments made to fund international development, combined with the strength of the Swiss franc, the uncertain global economic environment and low interest rates: consolidated gross profit was CHF 165.6 million (2010: CHF 203.8 million), consolidated net income CHF 58.1 million (2010: CHF 57.1 million).
The BSI Group posted positive results for 2011 and is continuing its successful international expansion strategy. The Group accomplished this despite the heightened uncertainty in the global economy, greater volatility on the financial markets and the sweeping changes occurring in the wealth management sector.
Stefano Coduri, CEO of BSI AG, commented: "Despite the difficult global financial and economic conditions, the BSI Group achieved positive results in 2011. In times of great change we have made further investments in the fastest growing markets, particularly in Asia which, together with Latin America, Central and Eastern Europe and the Middle East, is making a significant contribution to the acquisition of new assets, confirming the effectiveness of our strategic decisions. Overall, however, the substantial increase in net new money has come from all the geographical areas where we operate. BSI is adjusting its business model and offering, with a significant impact on costs. We are thus adapting to the changes about to shape the competitive environment in private banking. We are satisfied with the financial results, especially given the strength of the Swiss franc and the investments we have made. Thanks to tight cost discipline, sound operational management and geographic diversification, we believe we have a solid foundation for further business growth."
Net new money stood at CHF 6.7 billion for 2011, representing a growth rate of 8.8% and confirming the Bank's excellent reputation, as well as the trust that clients place in BSI, both in Switzerland and internationally and the high quality of products and services provided by BSI. Assets under management reached CHF 77.7 billion, up 1.9% on 2010 despite the appreciation of the Swiss franc against the euro.
BSI continued to strengthen its position in faster growing markets: last December BSI was granted a banking licence in Hong Kong, and since March of this year it has been fully operational in that location, offering clients the full range of banking and investment services. In its traditional markets, particularly Switzerland, the Group further strengthened its position thanks to the multi-channel strategy that has delivered good results in Private Banking, the External Asset Managers segment, and through the use of the Genera product range developed in partnership with Generali Switzerland.
The Group's operating income came under pressure once again in 2011. Compared to 2010 it was down 6.4% to CHF 834.1 million, due to various factors such as low interest rates, the strength of the Swiss franc, which last summer reached parity with the euro, and the continuing cautious approach of clients with respect to the financial markets. Net interest income was CHF 217.9 million, up 7.1% on 2010, mainly as a result of an increase in client deposits. Commission and service fee income fell by 7% to CHF 430.4 million, while the result from trading operations amounted to CHF 140 million (-8.1% compared with 2010). Trading income was particularly affected by the cautious approach of clients due to the instability on the markets. Other ordinary income reached CHF 45.8 million. A careful management policy resulted in a 2.7% reduction in operating costs to CHF 668.6 million (2010: CHF 687.2 million) despite substantial investments to fund international expansion and to complete the migration to the new IT platform. The migration, performed simultaneously in all BSI Group locations worldwide, will improve the operational efficiency of the Bank and make the most of new technologies to provide clients with ever more flexible high- quality services and products. These investment-related costs impacted the BSI Group's gross profit, which fell to CHF 165.6 million (2010: CHF 203.8 million). Net profit rose slightly to CHF 58.1 million, compared with CHF 57.1 million in the previous year (+1.7%).
As at 31 December 2011, total assets of the BSI Group were CHF 32.2 billion, up 63.4% compared with 2010, primarily because of an increase in client deposits, as there is still scant inclination to invest. Amounts due from customers rose to CHF 9.4 billion, compared with CHF 7.6 billion in 2010, CHF 3.3 billion of which being mortgage loans (+8.9% compared with 2010). On 31 December 2011, the Group had shareholders' equity before appropriation of profit totalling CHF 2.5 billion. In view of the considerable growth in total assets in 2011, BSI adopted a correspondingly prudent risk management policy. As at 31 December 2011, the total capital ratio of the BSI Group stood at 14.6%.
Established in Lugano (Switzerland) in 1873, BSI SA is one of the oldest banks in Switzerland and specialises in private wealth management. Since 1998, the Bank has been wholly owned by the Generali Group, one of the most significant participants in the global insurance and financial products market. The bank places great emphasis on establishing and maintaining ongoing personal relationships with clients, while at the same time offering global asset management services with world-class products. It is present in the major financial markets worldwide, in Europe, Latin America, the Middle East and Asia.
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