Bank Leu records another sharp jump in earnings
Ein Dokument
Zurich (ots)
Bank Leu recorded a sharp jump in profits for the third time in succession in the financial year 2005. The old-established Swiss bank increased its net profit from CHF 137 million to CHF 179 million, beating the very good result achieved in 2004 by 30 percent. The cost/income ratio - the key indicator of profitability - was improved further to 48% (54% the previous year).
Bank Leu is in better health than ever before. The old-established Swiss bank showed outstanding dynamism and posted a very strong performance in 2005, its 250th anniversary year. Hans Nützi, CEO of Bank Leu, feels vindicated by these results: 'We have proved that we have what it takes to succeed in a very competitive market. Reported net profit before extraordinary items and tax is CHF 217 million, 31% higher than last year.'
The pleasing overall result can partly be attributed to strict cost control. Operating expense increased by only 2% during the year under review, to CHF 201 million (2004: CHF 196 million). While administrative expense came in the same as the previous year at CHF 78 million, personnel expense rose slightly from CHF 118 million to CHF 122 million (+4%). Headcount increased over the course of the year from 579 (2004) to 583 (2005). The cost/income ratio was improved further to 48% (54% the previous year).
Increased commission and fee income
Commission and fee income - the bank's major source of revenues - was up 6% to CHF 218 million (2004: CHF 205 million). Transaction-related commission income also saw a marked rise in 2005 thanks to a very good year on the stock markets.
Strong income from trading
Income from trading posted an extremely positive performance alongside income from interest operations and commissions, up 22% to CHF 74 million compared with CHF 60 million the previous year. This marked increase in earnings can primarily be attributed to securities trading, which - in addition to principal trading - generated its most significant returns from the management of in-house structured derivative products.
Increased client assets
Clients assets stood at CHF 34.1 billion as of 31 December 2005 (+20%). The bank was able to further expand its asset base during the year under review thanks to new money totalling CHF 1,358 million.
Increased volumes in mortgage and securities-backed loan business Volumes in the mortgage business increased by 7% to CHF 2 billion, while securities-backed loan activities were up 11% to CHF 1.5 billion.
Growth through innovation
The bank wants to go from strength to strength in 2006. With this in mind, the private banking subsidiary of Credit Suisse will continue to concentrate on systematic, end-to-end client advisory services as part of the Leu Investment Advisory Process (LIAP) and pursue a strategy focusing on special products such as Cat Bond Funds, Insurance Linked Securities and structured derivative products. Hans Nützi sees a bright future for Bank Leu: 'We still have lots of untapped potential and we will continue to make the most of the opportunities presented to us in the interests of our clients.'
Enclosure Income Statement' under http://www.presseportal.ch/de/story.htx?firmaid=100009306&lang=2:
Contact:
Bank Leu AG
Communications/Media Relations
Tel: +41/44/219'26'36
E-mail: reto.giudicetti@leu.com
Tel: +41/44/219'34'44
E-mail: thomas.ackermann.2@leu.com