Reports
Banca del Gottardo Grows AUMs, Profits Improve
Banca del Gottardo saw net profit fall to SFr44.2 million ($35.8 million) in the first six months of 2005, compared with SFr44.3 million in ...
Banca del Gottardo saw net profit fall to SFr44.2 million ($35.8 million) in the first six months of 2005, compared with SFr44.3 million in the same period a year ago. The Lugano-based bank saw assets under management rise to SFr37.3 million, an 8.4 per cent rise on the end-2004 figure. Despite the small fall in net profits, the interim results will be of some comfort to management. Last year, Gottardo, which is owned by Swiss Life Holdings, saw net profits fall by 17 per cent to SFr71 million, which the bank blamed on a large increase in its tax burden. The bank said the rise in AUMs was attributed to net new money flows, performance and positive exchange rate gains. The rise in AUMs outstrips the growth rate of 7 per cent achieved in 2004. The bank said revenues were SFr236.9 million at the end of the first half, compared with SFr239.4 million. Considerable pressure was placed on the bank’s commission and fee income during the first half and interest income also suffered. The bank’s trading operations saw a year-on-year rise of 11.6 per cent to SFr36.5 million. The bank added that total costs rose 2.5 per cent, compared with the same period a year ago. The rise was attributed to on-going banking developments, including Gottardo’s ambitious plans in Spain. Last April, the bank announced it was opening a Spanish office and going after the local high net worth market. “Although the overall results are positive, further efforts are still necessary to acquire new clients and boost our efficiency," said chief executive Marco Netzer in the results statement. He added: “With the outsourcing in July the majority of our IT and back-office activities to the company B-Source, in which a 37 per cent capital share participation was acquired, Banca del Gottardo took an important strategic step. This move will help us to contain our costs and benefit, together with other banks, from the development of a joint IT platform."
