Press Release Results for 2010 UFF shows a sharp increase in net profits and doubles its dividend

Transcription

1 Paris, 9th February 2011 Press Release Results for 2010 UFF shows a sharp increase in net profits and doubles its dividend In a still uncertain economic climate, UFF has enjoyed sharp growth which began in 2009 and which has continued throughout This growth is demonstrated by its net income of 179.7M (+ 20%) for the year, and profits of 35.9M (+ 69%). This strong performance will allow UFF to recommend to the Annual General Meeting of shareholders a dividend of 2.60 per share. In 2010, the levels of activity and net income have reached the levels achieved pre-crisis, and mean that UFF starts 2011 confidently and with high expectations. UFF is now in a position to harvest the fruit from deployment of its strategic plan : Ambition Patrimoine Change Net Commissions Received (M ) % Operating Profits (M ) % Consolidated Net Profit (Group part) (M ) % Assets Under Management at the end of the year (Bn ) % The activity bounces back in 2010 Union Financière de France s level of activity is evidence of the recovery which began in Net subscriptions and sales of financial and real estate products are 5% above the levels of 2009.

2 The success of the flexible funds and corporate bond funds, both well-suited to the economic climate, has boosted new business in life assurance in the private individuals market (payments into accounts are up 10%). Sales of real estate units are marking time (-11%), following an exceptionally good year in Subscriptions into REITs shows strong growth (81%), which is due to : - the success of the Scellier REIT framework, which became available as of Autumn the attractiveness of the returns on REITs in a climate of low interest rates The real estate activity is slightly down compared with 2009, despite sharp growth in subscriptions coming from corporates. 7.2 billion euros of assets under management : up 5% Assets under management stand at 7.2 billion euros on 31st December 2010, compared with 6.8 billion euros on 31st December This increase is due both to the capital growth of the assets under management and to an increase in net subscriptions of 48 M. The level of net subscriptions, down compared with 2009, is not a true reflection of the activity. This is due to : - A slight increase in redemptions ; the retention rate of assets is 91.8% compared with 93.4% in The fact that sales of real estate units do not generate assets.

3 Net Banking Income on 31st December 2010 : M, up 20% Net Banking Income in millions of euros Change 2010/2009 1st Quarter % 2 nd Quarter % 3 rd Quarter % 4 th Quarter % Net Banking Income on 31st December % - Placement commissions - Management commissions - Income net of interest and other % + 10 % N.S Placement commissions accounted for in 2010 reached the level of 86.0 M. Compared with 2009, this marks an increase of 24%, higher than the figure for the increase in activity. The reason is that, in the activity of direct sales of real estate, there is a gap between the reservation of a real estate units and the recording of the sale, which is the moment when the commissions are generated. Thus, the end of 2010 saw an acceleration in the recording of sales as investors wanted to take advantage of the Scellier framework before it was reduced. Management commissions coming from assets under management (91.3 M ) rose by 10% compared with 2009; this growth is in line with the average increase in assets under management. Overall, net banking income for 2010 reached M. This represents a rise of 20% compared with The figure for the 4th Quarter (60.6 M ) constitutes an historic record for quarterly net banking income.

4 Consolidated net profits of 35.9 M, a rise of 69% The increase in operating costs (7%) is linked to the increase in activity and to the fact that UFF continue its investments in the strategic pla Ambition Patrimoine These changes led to an operating profit of 54.5 M, against 32.4 M in Consolidated net profits have followed the same rhythm: they reached 35.9 M against 21.3 M in Information on the holding company Because of the operational integration of the Group s activities, the figures are difficult to interpret in isolation. The net profits of Union Financière de France Banque for 2010 stands at 45.0 M ; it includes 13.0 M in proceeds coming from the liquidation of the subsidiary UFF International. Taking account of the profits from the holding company, together with the sharp growth in consolidated profits in 2010, the Board of Directors meeting, which was held on 8 th February 2011 and which approved the financial statements, will recommend that the Annual General Meeting of shareholders (to be held on 27th April 2011) pay a dividend of 2.60 per share. This amount represents a doubling of the dividend, (which was 1.30 in 2009). Subject to approval by the Annual General Meeting of shareholders, and taking into consideration the interim dividend of 1.0 paid on 4th November 2010, the dividend balance of 1.60 per share will be paid on 4th May The social net situation, after distribution of the dividend for 2010, will stand at M (compared with 118 M last year). The financial statements have been audited by our auditors. Their Report for certification will be produced after the audit of the management report and the other required procedures. Transactions with collaborative partners Aviva France, holding company of Union Financière de France Banque, is considered as a collaborative partner. The operational relationship between the companies of the Union Financière de France Group and the Aviva France Group concern the life assurance activity, the financial management of certain investment trusts, placement operations, and IT services.

5 Outlook for 2011 Union Financière de France s levels of activity and net income in 2010 have reached satisfactory levels, and profits are showing strong growth. This situation allows us to begin 2011 with confidence. The professionalism of our sales teams, and the diversity and quality of the financial and real estate solutions which we offer, are important competitive advantages which will help Union Financière de France to win and retain the confidence of investors, who are still living through an uncertain financial and economic climate will see the continuation of the strategic plan: «Ambition Patrimoine» and the prospect of seeing returns on actions undertaken in These actions are, for the main part: The implementation of a new system of more attractive remuneration for the sales teams ; The deployment of new IT and telecom tools to the sales teams ; Improvements in the processes of recruitment and training of new sales personnel in order to increase the integration rate of new recruits ; The continuation of the pace of launching of new products. Union Financière de France in brief Set up in 1968, Union Financière de France is a bank specialised in advice on the creation and management of wealth, which offers products and services to private individuals and corporates. Its range of products includes real estate, securities, and life assurance, as well as a wide array of products aimed at the corporate market (pension plans, employees savings plans, medium term cash management, etc). Union Financière de France enjoys a dense commercial network which is present throughout France and which consists of almost employees, more than 800 of whom work as financial advisors. On 31st December 2010, Union Financière de France had clients, of whom were private individuals and were corporates. Union Financière de France is listed on Euronext Paris Compartiment B Code Euroclear 3454 Code ISIN FR For all further information, please contact : Union Financière de France Union Financière de France Agence Golin Harris Martine SIMON CLAUDEL Hélène SADA-SULIM Coralie Ménard Chief Executive Head of Communications Press Relations Tél : Tél : Tél :