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2015-04-28

Valartis Group AG : 2014 Valartis Group Consolidated Financial Statements

Valartis Group AG / 2014 Valartis Group Consolidated Financial Statements.
Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is
solely responsible for the content of this announcement.
The 2014 Valartis Group Consolidated Financial Statements, in accordance with
International Financial Reporting Standards (IFRS), show a Group loss of CHF
73.3 m for continued operations and discontinued operations, taking into
consideration non-recurring, exceptional factors (2013 on a comparable basis:
Group profit of CHF 0.4 m). This is made up of the loss of CHF 19.6 m from
discontinued operations resulting from divestment of Valartis Bank AG,
Switzerland and Valartis Wealth Management S.A. plus a loss from continued
operations of CHF 53.7 m. The loss from continued operations of CHF 53.7 m is
mainly attributable to the following factors: necessary value adjustments on
receivables from the 2012 sale of Eastern Property Holdings Ltd., impairment
of goodwill positions, a decrease in income from interest and a significantly
lower trading result in 2014 due to lower rouble valuations on private equity
holdings and losses on the ENR Russia Invest S.A. bond portfolio.

Due to divestment of Valartis Bank AG, Switzerland and Valartis Wealth
Management S.A., the provisions of the International Reporting Standards
(IFRS) for continued and discontinued operations (IFRS 5) apply for the
Valartis Group 2014 Annual Report. The activities of these two companies are
allocated to discontinued operations in 2014.

Overview of continued operations

The Group loss from continued operations amounting to CHF 53.7 m is mainly
attributable to the following factors:

* value adjustments which became necessary in 2014 on receivables from the
2012 sale of Eastern Property Holdings Ltd. amounting to CHF 27.5 m due to
substantial value adjustments on real estate projects effected by that
company as a result of the current economic situation in Russia on the back
of international sanctions;
* impairment of goodwill positions amounting to CHF 10.6 m;
* a significant decrease in income from interest for continued operations
amounting to CHF 8.3 m due to declining market interest rates and the lack
of reinvestment in bonds in FY 2014;
* a significantly lower 2014 trading result due to lower rouble valuations on
private equity holdings and losses on the ENR Russia Invest SA bonds
portfolio amounting to CHF 8.1 m.

Continued operations from an operational viewpoint

Valartis Group's continued operations comprise the Private Clients and
Institutional Clients segments which include the Private Banking and Wealth
Management units together with Asset Management, Private Equity, Corporate
Finance, and Real Estate Management.

From a purely operational viewpoint, i.e. without taking non-recurring,
exceptional factors into consideration, income from commission and services
for continued operations remained stable at CHF 47.2 m (2013: CHF 47.1 m) in
comparison with the previous year. In the Private Clients segment, the
Valartis private banks performed very nicely. Income from commission and
services was up by 19 percent to CHF 40.7 m (2013: CHF 34.3 m). In
particular, the bank in Liechtenstein posted a robust annual profit for 2014.

Despite the challenging environment, continued operations achieved a net new
money inflow of CHF 285 m (2013: CHF 438 m) and client assets rose by 9
percent to CHF 6.5 bn (2013: CHF 6.0 bn). This was largely attributable to
the Private Clients segment which achieved a net new money inflow of CHF 530
m (2013: CHF 508 m) and a rise in client assets under management of 15
percent to CHF 6.1 bn (2013: CHF 5.3 bn). Valartis Bank (Liechtenstein) AG
made the greatest contribution to this satisfactory result.

Despite the costs arising out of implementation of new regulatory requirements
in 2014, overall costs for the financial year only rose by 2 percent to CHF
53.0 m (2013: CHF 52.0 m).

Equity capital base

In summer 2014 Valartis Group incorporated Valartis Finance Holding AG in
Liechtenstein in which the relevant operating activities of the Private
Banking, Wealth Management and Private Equity units, together with financial
holdings, are combined. Valartis Finance Holding AG is subject to the
consolidated banking supervision by the Financial Market Authority in
Liechtenstein (FMA). In Liechtenstein, as of 31 December 2014, risks are
assessed using Basel II approaches. As at 31 December 2014, the hard core
capital ratio according to Basel II for Valartis Finance Holding AG was 15
percent and the overall capital ratio in accordance with Basel III for
Valartis Group was 16 percent. This equity capital base and the risk-bearing
capacity thus cushion the above-mentioned business risks - primarily
evaluation adjustments which are not cash-effective, or market movements -
which have led to the overall Group loss.

2014 - A year of continued adjustment

In financial year 2014, Valartis Group concentrated on implementation of the
strategic decisions taken in 2013 and 2014. The main focus was on the sale of
Valartis Bank AG, Switzerland to Banque Cramer&Cie S.A. at end-August 2014
and the reorganisation of Valartis Group AG with the incorporation of
Valartis Finance Holding AG in Liechtenstein in summer 2014.

A look back

In 2007, Valartis Group was realigned in order to focus strategically on the
wealth management business with wealthy private clients and institutional
investors. Despite the financial crisis which started in 2008, Valartis Group
was able to further develop its private banking activities over the following
three years through targeted acquisitions in that segment. Valartis Group
intensified concentration on private banking by means of tactical divestments
of non-private banking activities in 2011 and 2012 and, at the same time, by
tightening its organisation in 2012 and 2013 by means of cost reduction
measures.

After it had become apparent that the acquisition capacity of Valartis Bank
AG, Switzerland could not be enhanced at the planned rate despite the 2012
newly aligned front-office organisation, and that the bank would not attain
the appropriate critical mass within the foreseen timeframe, in 2013,
Valartis Group decided to divest the Swiss 100-percent subsidiary. By
retaining a 25-percent holding in Norinvest Holding S.A., the listed parent
company of Banque Cramer&Cie S.A., the purchaser of the Swiss bank, Valartis
Group maintains in 2014 its presence in the private banking market in
Switzerland to a lesser extent.

A look to the future

Since the financial crisis, wealth management banks have found themselves in a
difficult macroeconomic environment with record low interest rates and a
challenging investment situation. In addition, implementation of a range of
complex, national and international regulatory requirements is affecting
banks' cost structures and margins. And these trends did not by-pass Valartis
Group. This environment makes it increasingly difficult for the Group to
generate sustainable operating profits. The critical mass for Valartis
Group's private banking activities as a whole has not been enhanced in spite
of the sale of the Swiss unit. The Group's results in the last few years were
also influenced by the very volatile results from non-private banking
activities.

Against this background, the Board of Directors of Valartis Group is now
carefully examining the Group's strategy, business model, and structure in
order to align it more expediently to the challenging environment with the
aim of generating sustainable, appropriate yields from invested capital. In
this context, the Board of Directors will implement the corresponding
measures by summer 2015.

The 2014 Annual Report is available on the websitewww.valartisgroup.chand can
also be ordered in printed form fromcorporate.communications@valartis.ch.

-----------------------------------------------------------------------------
| Agenda |
| Results media conference 2015 28 April 2015 |
| Registration: corporate.communications@valartis.ch |
| |
| General meeting 2015 2 June 2015 |
| SIX Exchange, SIX Convention Point, Zurich |
| |
| Half-year report 2015 25 August 2015 |
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For further information, please contact:

Kim-My Schefer, Head Corporate Communications&Marketing
Tel. +41 44 503 54 02,corporate.communications@valartis.ch

Key Figures 2014

Valartis Group

Valartis Group is an international banking and finance group represented today
with offices in Liechtenstein, Austria, Switzerland as well as Luxembourg and
Moscow. The Group's holding company is domiciled in Switzerland and is listed
on the SIX Swiss Exchange. Valartis Finance Holding AG in Liechtenstein
comprises the operations of the private banking and wealth management
divisions, together with the private equity operations of ENR Russia Invest.
Valartis Finance Holding AG is subject to the consolidated banking
supervision by the Financial Market Authority Liechtenstein (FMA). Valartis
Group focuses on the wealth management business for wealthy private clients
and institutional investors in addition to traditional wealth management and
investment advisory, it develops, manages and markets innovative niche
investment products and offers specialized product packages. In doing so,
Valartis Group combines a wide range of traditional private banking services
with specialized advisory and classical banking services in the fields of
Asset Management, Corporate Finance and Private Equity together with
innovative investment products in the categories Stocks, Fixed Income,
Alternative Investments and Real Estate. Valartis Group's core markets
include Central and Eastern Europe, the Middle East and certain countries in
North and South America and Asia.
www.valartisgroup.ch

Press release (PDF)
http://hugin.info/143135/R/1915512/684720.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Valartis Group AG via Globenewswire

HUG#1915512

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