SWITZERLAND - Swiss bankers Vontobel Group posted a massive 88% drop in 1H figures compared to the same period 2000 - pummelled by "extraordinary factors".
The group returned CHF22m, compared with last year’s figure of CHF189.2m.
Vontobel said figures were “burdened” by charges of CHF89.5m and weakened markets, mostly attributing the downturn to a loss of CHF46.9m from Private Equity Holding and 5E Holding; a cut of CHF10.9m in its corporate finance unit; and market-induced losses of CHF31.7m on the firms own shares.
AUM also declined 9% to CHF 69.4bn compared with figures at the end of December 2000. A loss of CHF2.6bn was put down to the assets of Private Equity Holding and 5E Holding, which are no longer included since management agreements were terminated.* The figures also contracted 6% due to market conditions.
The firm said: “[We] expect operating profits to improve considerably during the second half of the year, even if markets remain weak. However, net profit will still fall short of last year’s figure.”
Net inflow of new assets amounted to just over CHF1.2bn across all business units.
The firm has also wound up its CHF100m internet bank project.
*Vontobel has reached an out of court settlement with Private Equity Holdings and 5E Holdings. Both PEH and Vontobel had considered claiming for damages after an auditor's report in March 2001 alleged cases of negligence. The funds are now managed by Swiss Life.
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