Lugano (ots) - The Banca del Gottardo Group posted a consolidated
net profit of CHF 82.8 million in 2005, a 17.3% increase on the prior
year. Operating profit - before extraordinary items and taxes - rose
by 17%, from CHF 78.2 million to CHF 91.6 million. Assets under
management grew by 12.5%, from CHF 34.4 billion to CHF 38.7 billion.
Following a major expansion of the custody business, total client
assets under control rose from CHF 41.1 billion in 2004 to CHF 76.7
billion. The sale of Banque du Gothard (Monaco) and Dreieck Industrie
Leasing will not be reflected in the income statement until the 2006
financial year. With Roberto Botta and Franco Polloni two experienced
executives will head the business lines Private Banking South and
Products & Services.
The pleasing results at Banca del Gottardo in 2005 are
attributable to further improvements in operations at the bank and
the extremely good conditions prevailing on financial markets. The
reporting year was also marked by a number of decisions with
far-reaching implications for Banca del Gottardo, which is part of
the Swiss Life Group. In the first half of 2005, the decision was
taken to outsource the majority of the bank's IT and back office
services, while a number of measures necessary to the medium to
long-term development of Banca del Gottardo were initiated in
October. As part of the focusing strategy adopted, Banque du Gothard
(Monaco) was sold at the end of 2005, followed by Dreieck Industrie
Leasing in January 2006. Felix R. Ehrat, Chairman of the Board said:
"The very pleasing operating result confirms that our bank has a
solid base. Our former CEO, Marco Netzer, played a key role in laying
the foundations. We now need to build on them and systematically
implement the strategic decisions we have taken, in order to create
the conditions for continued sustained growth of the Group."
Sharp rise in client assets
The Banca del Gottardo Group recorded a 12.5% rise in client
assets under management (excluding custody services), from CHF 34.4
billion a year ago to CHF 38.7 billion at the end of December 2005.
The performance-related increase contributed CHF 2.3 billion to this
increase. Net new money in the Private Banking business line was CHF
440 million. Rolf W. Aeberli, CEO of Banca del Gottardo: "The net new
money inflow in Private Banking is a move in the right direction. It
reinforces my conviction that we are on course to achieve our
medium-term goals." The remaining CHF 1.6 billion are due to the
growth of new client money in other business areas. The volume of
custody business, which is not counted as part of client assets under
management, rose by an impressive CHF 31.3 billion during the
reporting period, to stand at CHF 38 billion on 31 December 2005.
"The overwhelming majority of this money is held in custody at Banca
del Gottardo on behalf of Swiss Life - a further indication that the
interests of parent company and subsidiary coincide," added Rolf W.
Aeberli. Total client assets thus reached CHF 76.7 billion at
year-end (end-2004: CHF 41.1 billion).
Higher commission income, very good trading result
Client assets under management are the most important revenue base
for the sustainable business development of the Banca del Gottardo
Group. During the reporting period, the Bank generated consolidated
net revenues of CHF 492.9 million, an increase of 9.5% over the prior
year (2004: CHF 450.3 million). Of this, fee and commission income
accounted for CHF 262 million, up 7% on the year-back figure. At CHF
145.8 million (+1.2%), interest activities were a stable source of
revenue. The results from trading operations were particularly
notable, rising 47.5% year-on-year to CHF 76.2 million.
Further improvement in cost structure
Operating expenses amounted to CHF 335.5 million, an increase of
8.4% on the previous year. This was primarily due to one-off costs
associated with the outsourcing of the majority of IT and back office
services, as well as ongoing projects forming part of the Bank's
strategic realignment. The cost/income ratio stood at 68%. "The
planned expansion of our earnings base will lead to a further
improvement in the cost/income ratio", explained Rolf W. Aeberli.
Group net profit was CHF 82.8 million, a rise of 17.3% compared
with 2004. Banca del Gottardo Italia made a CHF 1.4 million (EUR 0.9
million) contribution to this welcome result. The figure is better
than expected and confirms the importance of the fledgling Italian
onshore business within the strategy pursued by the Banca del
Healthy capital base
The consolidated balance sheet total rose by 43.4% year-on-year,
to CHF 15.2 billion. This sharp rise is mainly due to the high level
of client sight deposits on the balance sheet date. Consolidated
shareholders' equity before distribution of earnings was CHF 1,031
million, an increase of 2.8% over the prior year.
Personnel and organisational changes in management
As announced in October 2005 at the time the new strategy was made
public, a new organisational structure will be introduced on 1 July
2006. On this date, Roberto Botta will assume responsibility for the
Private Banking South business line. He joins Banca del Gottardo from
BNP Paribas, where he currently is head of private banking for
Central and Southern Europe. The newly created Products & Services
area will be headed by Franco Polloni, who has held a number of
management positions within the Banca del Gottardo Group over the
years. This business unit brings together a range of specialist teams
that will provide support to client-facing staff with a competitive
service offering and a targeted marketing strategy. This area will
also assume responsibility for all credit activities of the Bank.
Private Banking North will be managed pro tem by Rolf W. Aeberli
until further notice.
The Banca del Gottardo Group's interim financial statements will
be published on 10 August 2006.
Banca del Gottardo, with head office in Lugano (Switzerland), is a
company of the Swiss Life Group, a leading provider of pensions and
life insurance in Europe. The Bank has a well expanded national and
international network. With subsidiaries, branches and representative
offices in Zurich, Geneva, Lausanne, Bellinzona, Chiasso, Locarno,
Bergamo, Milan, Rome, Treviso, Turin, Athens, Luxembourg, Madrid,
Paris, Hong Kong and Nassau (Bahamas). Banca del Gottardo is
positioned to offer top-of-the-line global financial services,
delivered by a team of highly qualified specialists to its local and