In a business environment that remained challenging, Valartis Group was able to generate client net new money inflows of CHF 929 million due to intensified marketing efforts and could increase overall client assets by almost 15 per cent to CHF 7.8 billion. At the same time, Valartis Group was able to reduce administrative expense once again while increasing operating income year-on-year to CHF 107.1 million (+69 per cent).
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Gross operating profit improved considerably to CHF 27 million versus CHF -18.4 million in the prior, thanks to the absence of negative one-off effects and the 8 per cent increase in income from commission and service fee business. In addition, Valartis Group was also able to further strengthen its capital base. As at 31 December 2012, the capital adequacy ratio II was 181 per cent and the BIS tier 1 ratio 13.3 per cent, an increase of 22 per cent. On the basis of the net profit recorded, the Board of Directors will propose to the Annual Shareholders’ Meeting, to be held on 14 May 2013, the distribution of a dividend of CHF 1.00 per bearer share.
This corresponds to a pay-out ratio for the shareholders of Valartis Group AG of 74 per cent. The "Private Banking Plus" strategy embarked upon in 2008 is starting to pay off Valartis Group reported a net profit of CHF 10.2 million for 2012. The Swiss banking and finance group has thus returned to profitable territory following a loss of CHF 19.5 million in 2011, which was attributable primarily to a one-off valuation adjustment on an associated investment company. In a difficult business environment that continued to be impacted by the European debt crisis and uncertainty among investors, Valartis Group increased operating income by 69 per cent year-on-year in 2012 to CHF 107.1 million (2011: CHF 63.3 million).
Income from interest business fell from CHF 41.2 million to CHF 34.2 million, a decrease of 17 per cent, due to historically low interest rates. Meanwhile, income from commissions and service fees, the most important earnings driver, increased considerably to CHF 56.6 million (+8 per cent). Trading income amounted to CHF 8.3 million in 2012, and was due in large part to the currency spread from client currency transactions. In 2011, one-off factors had resulted in a negative trading result. There were no material one-off factors in other ordinary income in 2012, with the result that other ordinary income amounted to CHF 8.0 million in 2012 following a loss in the previous year.
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