Consolidated half-yearly results as at 30 June 2007

Transcription

1 Consolidated half-yearly results as at 30 June 2007

2 Key figures (Half-yearly figures are not audited.) 1st half st half ) Income statement in CHF million in CHF million +/ in % Gross income Operating expense Operating profit / operational cash flow Profit before allocation to reserves, excluding deductions for minority interests and extraordinary write-off Group net profit ) Balance sheet in CHF million in CHF million +/ in % Due from customers 2,469 2, Mortgage loans 9,487 9, Deposits from the public 9,205 8, Bonds and loans from central mortgage institutions 2,534 2, Equity excluding minority interests (before appropriation of profits) 1,550 1, Balance sheet total 14,163 13, Customer deposits 12,346 12, Fiduciary transactions (including pension fund mortgages) Parent company locations Group locations Headcount Full-time equivalents (adjusted for parttime positions, apprenticeships at 50 %) Consolidated half-yearly results 2007

3 Consolidated balance sheet ) Assets in CHF 1,000 in CHF 1,000 +/ in % Liquid assets 56, , Claims from money market securities 0 0 Due from banks 1,041, , Due from customers 2,469,409 2,313, Mortgage loans 9,486,791 9,482, Securities and precious metals trading assets 3,475 3, Financial assets 715, , Non-consolidated participations 20,320 21, Participations accounted for using the equity method 9,041 9, Tangible assets 151, , Goodwill 2,225 4, Accrued income and prepaid expenses 99,483 74, Other assets 107, , Balance sheet total 14,163,291 13,815, ) The 2006 income statement has been adjusted in line with the new structure of the Finnova standard software. 2) The balance sheet as at 31 December 2006 corresponds to the opening balance sheet migrated to Finnova (restatement). 3) Including extraordinary write-off of the residual book value of capitalized IT migration costs of CHF 19.9 million.

4 ) Liabilities in CHF 1,000 in CHF 1,000 +/ in % Due to banks 290, , Due to customers on savings and deposit accounts 4,987,972 5,301, Other balances due to customers 3,928,378 3,382, Medium-term notes 289, , Bonds and loans from central mortgage institutions 2,534,320 2,340, Accrued expenses and deferred income 119, , Other liabilities 157, , Value adjustments and provisions 297, , Reserves for general banking risks 1,030, , Endowment capital 200, , Participation capital 50,000 50, Own equity 3,736 1, Capital reserve 46,918 46, Retained earnings 177, , Minority interests in equity 8,559 7, Consolidated net profit for the year 89,685 Consolidated net profit for the half-year 49,946 of which minority interests Balance sheet total 14,163,291 13,815, Consolidated half-yearly results 2007

5 Consolidated income statement 1st half st half ) in CHF 1,000 in CHF 1,000 +/ in % Net interest income 127, , Net fee and commission income 54,025 51, Net trading income 8,649 8, Other ordinary income 2,325 6, Gross income 192, , Personnel expenses 55,382 52, General administrative expenses 27,910 27, Total operating expense 83,292 80, Operating profit / operational cash flow 109, , Depreciation on fixed assets 3) 30,676 10, Value adjustments, provisions, losses 0 0 Group profit before extraordinary items and taxes 78,563 99, Group profit (excluding immediate write-off) 98,478 99, Extraordinary income, including taxes 28,617 57, of which write-back of reserves for general banking risks 19,915 0 of which allocation to reserves for general banking risks 62,000 60, Group net profit for the half-year 49,946 42, of which minority interests

6 Still on track for success: increase in Group net profit IT migration completed successfully In the first half of 2007, Graubündner Kantonalbank recorded another excellent result with an increase of 18.4 % in Group net profit and consolidated operating profit of CHF million. ( 0.7 %). The period under review saw the successful completion of the major IT migration project. The residual book value of capitalized migration costs of CHF 19.9 million was eliminated in full via an extraordinary write-off. Return on equity before extraordinary write-offs amounted to 14.8 % (prior year: 14.5 %). The cost/income ratio I of 43.3 % (42.1 %) comes out well ahead in a sector comparison. Business volume grew by 2.3 %. The switch to the new IT platform meant that the 2006 balance sheet and income statement had to be restated. Graubündner Kantonalbank can look back on a good first six months for Consolidated operating profit of CHF million ( 0.7 %) including Privatbank Bellerive AG, Zurich, and Private Client Bank AG, Zurich was down only slightly on the record 2006 result. The resource-intensive migration to Finnova standard software was completed in the first half of the year. Writing off the migration costs in full means that, financially speaking, a line can now be drawn under the project. In respect of the strategic activities of Graubündner Kantonalbank, the focus was once again on issues such as leadership in connection with the GKB brand and "best service", the further development of the advisory and acquisition process, modernization of the investment process and enhancement of quality and efficiency via process management measures. At CHF million, net interest income was up CHF 3.9 million, or 3.1 %, on the prioryear figure. Growth in customer business offset margin pressures and the drop in income resulting from shifts involving products with narrower margins. Net fee and commission income increased 5.2 % to CHF 54 million. Holding fees made a higher level of income possible in securities and investment business, but this contrasted with a drop in earnings from transactions. At CHF 8.6 million, net trading income dipped by 2.8 %. Other ordinary income (CHF 2.3 million) was boosted by extraordinary income in the first half of 2006, when a restructuring of financial investments in securities brought in proceeds of an unprecedented CHF 5.7 million. Total gross income nevertheless increased to CHF million (+ CHF 2.4 million / 1.3 %). Operating expense went up by CHF 3.2 million or 4 % in the first six months of Costs were impacted by higher staffing levels than in the prior year and general salary increases as well as by the "fit" IT migration project. The cost/income ratio the relationship between operating expense and gross income increased only very slightly from 42.1 % to 43.3 %. Consolidated half-yearly results 2007

7 Depreciation on fixed assets of CHF 30.7 million, up CHF 20.1 million, contains the extraordinary write-off (migration costs) of CHF 19.9 million mentioned previously. The business and economic environment improved the credit ratings of many clients, making it possible for the writing back of existing value adjustments and provisions to considerably exceed the creation of new provisions. The risk result for the first half of 2007 improved the income statement by CHF 12.8 million under extraordinary income. Profit before allocations to reserves saw an increase of 9.6 % to CHF million, and extraordinary write-offs of CHF 19.9 million were eliminated. Using the aforementioned calculation basis, return on equity amounted to 14.8 %. As a result, Group net profit increased 18.4 % to CHF 49.9 million. of customer business increasing by CHF million. (2.3 %) to CHF 34.2 billion. If market conditions remain the same, Graubündner Kantonalbank expects operating profit for full-year 2007 to come in at just below the record result for Profit before allocations to reserves should be up on the record 2006 result following the elimination of special factors, and the Bank is anticipating a Group net profit in excess of CHF 100 million for the first time ever. For the first time ever as at 30 June 2007, Graubündner Kantonalbank recorded a balance sheet total of more than CHF 14 billion, up 2.5 % on Loans to customers (+ CHF 161 million) saw a much higher increase than in 2006 thanks to a greater willingness to invest on the part of business and private clients. Deposits from the public grew on a par with the prior year, rising by CHF million or 2.8 %. Investors favoured fixed-income options, at the expense of savings and deposit accounts. Clients' custody account and fiduciary assets registered a rise of CHF 353 million, with the total volume

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