Zurich-based Bellevue Group said it expects a significantly lower half-year result compared to last year.
Swiss finance boutique Bellevue said that ongoing market turmoil will reduce assets under management and its earnings based by 15 to 20 percent over a year-on-year basis, in a statement released Tuesday.
Market-related unrealized investment losses on its products and financial assets for equity participation programs will impact half-year profit by a further 20 percent.
First Half Profit
Given these headwinds, Bellevue is projecting that profits for the first six months of the year will be between 35 and 40 percent lower than the same period last year. On the positive side, the firm said its client base remains stable even in the «exceptional environment.»
Based on internal figures for May, Bellevue expects a «significantly lower business result for the first half of 2022,» with the slowdown in business development due in particular to market turbulence resulting from central banks' tightening policy, rising inflation fears, and acute geopolitical uncertainties.
2021 Results
Bellevue group ended 2021 with net profits of CHF 43 million, almost doubling the amount from the previous year. Results were driven by supportive market conditions and by strong demand for healthcare investments in 2021. Client assets grew to 12.8 billion Swiss francs in 2021 from 12.0 billion the year before. Net new money rose to 721.6 million francs from 377 million francs the previous year.
Subdued Performance
«In view of the ongoing uncertain geopolitical situation as well as the continued very high market volatility, Bellevue expects its business performance to remain subdued in the current year. The very stable and broad-based customer base provides a solid foundation for long-term business development. The medium- to long-term growth prospects based on our clear positioning remain intact,» Bellevue said.
Bellevue will publish the first-half results on July 28.
