VIEL & Cie : First-half 2015 Results Operating profit up 57% to €36.1m Net profit - Group share up 32% to €16.8m

First-half 2015 Results

Operating profit up 57% to €36.1m

Net profit - Group share up 32% to €16.8m

Developments in core businesses

Interdealer broking (IDB)

 Compagnie Financière Tradition (CFT) faced a varying market environment in the first six months of 2015. Activity levels were generally more stable although there were differences among the geographic regions and asset classes. The group benefited from increased volatility in a number of markets while others remained under pressure from the prolonged low interest rates and a continued evolving market structure as a result of regulatory developments. In the context of the regulatory developments in the United States, the group successfully developed the activities and positioning of Tradition SEF, especially through Trad-X, Tradition's market leading hybrid trading platform for interest rate swaps.

Against this backdrop, the group posted consolidated revenue for the first six months of CHF 426.6m compared with CHF 425.4m in the first half of 2014, a rise of 0.3% at current exchange rates, or 1.1% in constant currencies.

In this market environment, the group remained focused on controlling costs by implementing measures to reduce fixed costs and increase flexibility, while minimising reorganisation costs. At the same time, the group maintained its investments in technology, essential to the deployment of its electronic broking strategy, even though these substantial investments have a negative impact on the group's short-term profitability.

Reported operating profit increased by 35.6% in constant currencies to CHF 35.9m for a margin of 8.4% compared with CHF 26.8m and a margin of 6.3% respectively in the first half of 2014.

The group is active in all the major financial markets and operates in a number of currencies. Its results are therefore affected by movements in the exchange rates used to translate into the consolidation currency.

Online trading

Bourse Direct achieved strong business growth in number of trades executed and new customer acquisition in the first half of 2015, and this trend was particularly marked in the second quarter. Order execution reached close to 2,485.000 in the first six months, up 14.1% on the equivalent period in 2014. In the second quarter, trading volumes grew by 24.5% compared with the second quarter of 2014.  These figures confirm Bourse Direct's leadership position in the French online trading sector in terms of the number of trades executed, with customers averaging 4.2 trades per account per month during the reporting period.

The Company continued to grow its customer base, with the number of accounts exceeding the 100,000 mark in June 2015. The number of new customers increased 16.3% in the first half compared with a year ago, while new customer acquisition in the second quarter was 28% ahead of the same period in 2014.

In 2015, Bourse Direct has focused primarily on accelerating growth, particularly in terms of expanding its customer base, rather than on increasing profit.

The Company's revenue declined 2.5% in the first half to €19.5m, compared with €20.0m in the equivalent period in 2014.

Private banking and asset management

SwissLife Banque Privée, in which Viel & Cie holds a 40% interest, posted strong growth in net banking income to €26.3m in the first half of 2015. This increase of 18,8% was mainly due to sustained inflows into customised structured products offered by the Bank. Operating results showed a profit for the period.

Consolidated results

First-half consolidated revenue from operating subsidiaries was €423.2m compared with €368.3m in the equivalent period in 2014, a rise of 14.9% at current exchange rates, or 0.9% in constant currencies.

Quarterly consolidated revenue by business segment at current exchange rates was as follows:

The Group's consolidated operating profit for the period was €36.1m compared to €23.0m in the first half of 2014, a rise of 57.3% thanks to cost reduction measures.

Consolidated net profit rose 39.3% to €25.8m in the first half of 2015 compared with €18.5m in the equivalent period last year.

Group share of net profit grew 31.9% to €16.8m in the first six months, compared with €12.7m in 2014.

This result brought consolidated shareholders' equity to €425.4m at 30 June 2015, €327.3m of which was the Group's share, net of the gross value of directly held treasury shares amounting to €27.3m.

Outlook

In the IDB business, the year-to-date adjusted revenue at the end of August confirms the first half positive trend. The CFT group will continue its focus on operational performance management. Regulatory developments across global markets (SEF in the United States and MIFID 2 in Europe) have led the group to concentrate on developing and operating its electronic platforms.

Bourse Direct focused on accelerating its growth in the first half of the year through the robust acquisition of new customers; thus its main activity indicators (trading volume and customer acquisitions) were positive during the period. New mobile applications are being rolled out to further enhance the quality of services offered. In Investment Trends' 2015 survey, Bourse Direct won first place for customer service and satisfaction. The range of training possibilities offered to clients will be extended, to help them improve their knowledge of the markets. The Company will pursue its development policy as part of its commitment to provide an innovative and continually expanding service offering.   

In the Group's private banking and asset management segment, SwissLife Banque Privée, which achieved revenue growth and improved results, will also pursue its development policy through external and organic growth.

VIEL & Cie is an investment company comprising three core businesses in the financial sector: Compagnie Financière Tradition, an interdealer broker with a presence in 28 countries, Bourse Direct, a major player in the online trading sector in France, and a 40% stake in SwissLife Banque Privée, present in the private banking sector in France.

VIEL & Cie shares (codes: FR0000050049, VIL) are listed in Compartment C of Euronext. For more information on our Group, please visit ww.viel.com.

Paris, 4 September 2015