Bellevue Group AG

EQS-News: Bellevue Group increases client assets to CHF 11.8 bn and triples consolidated net profit


EQS Group-News: Bellevue Group AG / Key word(s): Half Year Results
Bellevue Group increases client assets to CHF 11.8 bn and triples consolidated
net profit

28.07.2017 / 07:00
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Media Release

Küsnacht, July 28, 2017
 

Bellevue Group increases client assets to CHF 11.8 bn and triples consolidated
net profit
 
Group operating profit surges 73% to CHF 11.7 mnGroup profit after tax of CHF
9.8 mn including restructuring chargesClient assets increased 12% to CHF 11.8
bnNet new money of CHF 574 mn, of which CHF 325 mn from new private clientsAsset
Management generates CHF 13.7 mn in operating profit due to stronger business
platformBank am Bellevue nearly reached the breakeven point despite
restructuringStrengthening of Executive Board and Board of Directors
During the first half of 2017, Bellevue Group focused its profile as an
innovative investment management boutique. Its focus on asset and wealth
management services is generating a steady payback. The positive market trends
since the beginning of the year, fanned by a moderate global economic upturn,
persisting low interest rates and relatively firm oil prices and the generous
flow of liquidity from major central banks, provided the Group's good operating
performance in the first half an additional boost. Financial markets around the
world were buoyed by this general environment and the key healthcare sector,
biotechnology stocks in particular, staged a recovery.

Bellevue Group focused on asset and wealth management business

With the restructuring of Bank am Bellevue and the ensuing discontinuation of
the brokerage and corporate finance business in the first half of 2017, Bellevue
Group is now clearly focused on asset management and wealth management. The bank
has largely concluded its realignment due to constructive collaboration between
all parties involved. Non-recurring restructuring expenses of CHF 5.5 mn (gross)
were charged to the first-half accounts. Bank am Bellevue's strategic focus is
on wealth management going forward. Bellevue Investment Partners, a unit of Bank
am Bellevue, provides classic portfolio management services, comprehensive asset
structuring and consolidation solutions and family office services for
entrepreneurial private clients. Bank am Bellevue still offers custody, trading
execution and market-making services.

Client assets at new record high - substantial inflow of net new money

Bellevue Group's diverse investment expertise, enlarged product range and
greater presence in key markets have made the firm even more attractive to
clients in its domestic and international markets. Client assets at Bellevue
Group rose by 12% to a new record high of CHF 11.8 bn during the first half.
About CHF 8.6 bn of this sum was related to the Asset Management segment and CHF
3.2 bn (incl. custody assets of CHF 1.4 bn) to Bank am Bellevue. This positive
growth is attributed to market developments and investment performance (CHF 653
mn) and to a significant increase in net new money of CHF 574 mn, which
corresponds to an annualized net new money growth rate of 10.9%. That rate is
within the targeted annual organic asset growth of 5% to 10%.

Asset Management (including StarCapital) and Bank am Bellevue contributed almost
equally to the newly acquired client assets. Led by the BB Global Macro Fund,
which continues to attract substantial amounts of new money from clients in and
outside Switzerland, new money growth was broad-based and underpinned by the
broad range of available investment products. There was also strong demand for
Bellevue's healthcare and entrepreneur equity strategies, and for StarCapital's
fixed-income and multi-asset investment solutions. BB Healthcare Trust, an
investment trust listed in London in December 2016, witnessed sustained inflows
as well. Although Bellevue Investment Partners was still preoccupied with the
establishment of its wealth management services during its initial months of
operation, clients already entrusted the team with assets of about CHF 325 mn.

Increase in client assets fueled by profit growth - earnings sustainability
improves further

A slight pick-up in economic activity, the general trends on financial markets
and the increase in assets under management contributed to Bellevue Group's
growing profits during the first half of 2017. Supported by a sharp rise of the
income from commissions and fees, the main source of Group income, operating
profit increased significantly by 50% to CHF 46.8 mn. Recurring revenues as a
percent of total revenues rose year-on-year and now stands at 78%, a level that
is likely to be sustained going forward. As for transaction-driven income, the
trading operations, which have been retained, showed a promising trend. Income
from the Brokerage and Corporate Finance units, which contributed around CHF 5
mn to the bank's revenues thanks to the successful conclusion of the final
capital market transactions, will be absent in future reporting periods, though.

Gross restructuring charges of CHF 5.5 mn (offset by CHF 1.5 mn in past service
cost including effects of curtailment and loss from non-routine pension plan
settlements) at the bank and the increase in personnel expenses at Asset
Management, which reflects the acquisition of StarCapital and performance-based
compensation, stand out on the cost side. Total operating income at Bellevue
Group amounted to CHF 11.7 mn, a substantial increase of 73% compared to the
previous year. Profit after tax amounted to CHF 9.8 mn, which is almost three
times the figure reported for the prior-year period. After the completion of its
restructuring, Bellevue Group's work force ended up at 93 at the end of June
2017 (full-time equivalents, end 2016: 111).

André Rüegg, CEO of Bellevue Group, on the interim results for 2017: "The
half-year results confirm that Bellevue Group has reached a new performance
level as a highly focused asset management boutique. Our growing set of
investment skills and our innovative offering for entrepreneurial private
clients will enable us to address new client groups and strengthen our earnings
power. The substantial increase in assets under management and the Group's
greater appeal to institutional and private clients alike represent a strong
platform for Bellevue Group's future growth."

Broad range of first-rate portfolio management services and products

In addition to its flagship product BB Biotech AG, Bellevue Asset Management
offers a wide selection of healthcare and specialized regional strategies and,
thanks to the acquisition of StarCapital, a number of successful multi-asset,
global equity and global bond investment vehicles. All teams delivered another
convincing investment performance for investors, building on their active
management approach. Most of the investment products achieved double-digit
returns in absolute terms over the first half and outperformed their benchmarks
by a wide margin. Asset Management's operating revenues were again sharply
higher at CHF 36.0 mn (+49%). Despite a 53% increase in costs attributable to
the integration of StarCapital and performance-based compensation plans, the
segment's operating profit of CHF 13.7 mn topped the year-ago figure by no less
than 44%.

For Bank am Bellevue, the first half of 2017 was dominated by the
discontinuation of the Brokerage and Corporate Finance activities. A
constructive dialog between all parties and a good project management team
enabled the restructuring of the bank to be concluded on schedule. Commission
income from the Brokerage unit declined, as expected in light of the
restructuring project. Due to the successful conclusion of the remaining capital
market transactions, the solid performance of the continuing trading activities
for private and institutional clients, and initial income from the recently
launched private client business, the bank's running costs and the one-time
restructuring costs were well absorbed. Bank am Bellevue nearly reached the
breakeven point during this turning point in its development.

New members for future expansion of wealth management business recruited

Bellevue Group's investment management expertise is being further strengthened
by the strategic focus on the asset management and wealth management business.
The Board of Directors has appointed Thomas Pixner CEO of Bank am Bellevue and a
member of the Executive Board of Bellevue Group, effective February 1, 2018, at
latest. It will also recommend the election of Veit de Maddalena as a new member
of the Board of Directors at the Annual General Meeting in March 2018. Thomas
Pixner (55) has held various executive positions in international wealth
management over the past 20-plus years. He most recently served as a member of
the Executive Committee Wealth Management & Trust and Head Investments
Switzerland at Rothschild & Co. Veit de Maddalena headed for years the Wealth
Management & Trust division, was a member of the Group Management Committee of
Rothschild & Co. and served as Chief Executive Officer of Rothschild Bank AG,
Zurich. He most recently held of the position of Executive Vice Chairman of
Rothschild Bank AG, Zurich. Thanks to their extensive knowledge and experience
in international wealth management, both will promote the new strategy for Bank
am Bellevue and accelerate the extension of the wealth management activities for
entrepreneurial private clients in in a joint effort with the existing team.

Outlook

Bellevue Group has steadily realigned its operations over the past three years
to address the new reality in the financial industry. It now operates as a
pure-play asset and wealth manager. Bank am Bellevue's wealth management and
investment advisory services for entrepreneurial private clients were
successfully launched and business is gaining momentum. Nevertheless, more time
will be needed for the bank to produce the envisioned results under the new
strategy. The set goals will be pursued through both organic growth and
selective acquisitions. In Asset Management, Bellevue Group will introduce new
client groups to the potential offered by the enlargement of its investment and
product expertise and thereby attract more client assets.

The full report for the first half of 2017 is available atwww.bellevue.ch
 

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 100
professionals are largely active in the areas of asset management and wealth
management. The Asset Management segment offers a select range of active equity
strategies in fast-growing markets, the healthcare sector and in other special
themes such as owner-managed companies, as well as successful holistic
investment strategies across all traditional asset classes. Bank am Bellevue
offers first-class wealth and investment advisory services with a special focus
on entrepreneurial private clients. The Group's offering of investment-related
solutions is rounded out by other services. These include the establishment,
management and consultation of Investment Offices, trading and custody services,
and selected credit facilities for affluent private clients as well as
institutional clients.
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Additional features:

Document:http://n.eqs.com/c/fncls.ssp?u=VYXGGDSMQG
Document title: Media release

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End of Corporate News
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Language: English

Company:  Bellevue Group AG

          Seestraße 16

          8700 Küsnacht

          Switzerland

Phone:    +41 44 267 67 00

Fax:      +41 44 267 67 01

E-mail:info@bellevue.ch

Internet: www.bellevue.ch

ISIN:     CH0028422100

Valor:    A0LG3Z

Listed:   SIX Swiss Exchange



 

End of News EQS Group News Service

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596353  28.07.2017 
 



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