- Pressemitteilung BoxID 135833
Revenues affected by low stock market volumes
- Significant strengthening of human resources
- Growth strategy in Asset Management confirmed
- Optimization of equity capital
- Write-off of goodwill and intangible fixed assets
- Strong starting point for resumption of steady revenues
The Board of Directors and the Executive Board of Bellevue Group decided today to inform its shareholders, clients and employees of the following:
Three years ago a decision was made to invest the proceeds from the sale of the Private Banking operations in the expansion of the Asset Management segment. This strategy has been systematically pursued and, as a result, Bellevue Group's workforce has grown by approximately 50% and its operational capacity has increased accordingly. Meanwhile, however, the downturn in stock market turnover has had a greater than planned impact on company earnings. The inflow of new money has fallen short of expectations and performance fees will be modest. Bellevue Group did not suffer from any write-offs on its own books during the recent financial crisis. The Group is expected to break even in 2009, before any extraordinary amortization of goodwill and intangible assets (see below).
The measures that are being taken due to the lower level of business volumes and earnings center on the optimization of equity capital. Bank am Bellevue and Bellevue Asset Management had deliberately maintained a very high amount of equity capital in the midst of the financial crisis and, looking ahead, their required equity capital is expected to be lower. Bellevue Group will maintain its dividend policy and share buyback program.
There is no question that the anti-cyclical strategy will be maintained and the increased level of human resources will not be reduced. Bellevue Group will pursue the path of increasing recurring revenues with the expansion of Asset Management, even if the full payback of these investments will only come in a few years down the road.
Based on these recent developments we have adjusted our assessment of future revenues. As a result, the item "Goodwill and other intangible assets" will be written down by about CHF 100 million at the end of the reporting year in accordance with IFRS. This has no effect whatsoever on the company's solid cash position or its equity requirements as stipulated by Swiss law and regulations.
The Board of Directors and the Executive Board believe that these actions take into account today's changed environment and that these measures will help to lead Bellevue Group to renewed growth and earnings momentum. In this respect, internal growth is clearly favored over acquisition-led growth.
Bellevue Group AG
Bellevue Group is an independent financial group listed on the SWX Swiss Exchange that specializes in Investment Banking and Asset Management. In particular, its business operations include Asset Management and Investment Advisory services for institutional clients, Brokerage and Research on Swiss Stocks as well as Corporate Finance activities. Bellevue Asset Management, the world's largest financial investor in biotechnology and medical technology, employs an interdisciplinary team of financial analysts. This team includes biochemists, physicians and economists and primarily covers Swiss stocks and global medtech companies. The investment companies BB BIOTECH and BB MEDTECH are managed by this team of professionals. The Bank am Bellevue is a leading broker focused on the Swiss market.
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