Société Financière Privée S.A., Geneva, reports surge in revenue and income
Société Financière Privée S.A. (SFP), a Geneva-based financial services provider listed on the SWX Swiss Exchange, closed financial 2000 with significant revenue and income gains that reflect a renewed expansion in business. While gross income rose by 21.3% to CHF 14.8 (PY 12.2) million, net income closed at CHF 5.3 (3.6) million, 48.8% higher than a year ago. This boosted earnings per share by 22% to CHF 39.50 (32.30); the number of outstanding shares increased slightly due to the exercise of rights associated with convertible bonds. At the end of 2000, equity before appropriation of retained earnings amounted to CHF 62.8 million. This represents an advance of 45.7% in comparison with the previous year (CHF 43.1 million). Total assets declined by 9.5% to CHF 184 (203.5) million, mainly because of lower liabilities to clients.
According to CEO Daniel Glasner, who says SFP will become a member of the SWX Swiss Exchange in the course of March 2001, the company generated gross revenues of CHF 62.6 (38.6) million in the year 2000, up 62% from the prior year. Service fees and commissions accounted for CHF 48.6 (30.2) million and contributed CHF 19.0 (15.9) million to net income, up 19.6% from the prior year. Net interest income rose by 38.6% to CHF 10.5 (7.6) million. Operating expenses increased by 29.1% to CHF 14.5 (11.2) million. SFP's personnel count picked up by 16% to 56 (48) full-time staff members, not counting 8 part-time employees. This resulted in a 24.2% increase in payroll expenses to CHF 7.7 (6.2) million, and a one-time stock issue to all employees absorbed another CHF 0.5 million. Other operating expenses increased by 24.7% to CHF 6.3 (5.1) million. Value adjustments, provisions, and losses were posted at CHF 6.0 (4.0) million, and depreciation of fixed assets closed at CHF 1.4 (1.1) million.
The General Meeting of Shareholders on April 19 will be asked to ratify a dividend payout ratio of 15 (14)%.
SFP's core business is prime brokerage for independent asset managers. The company is specialized in asset allocation, portfolio management, equity and forex trading, and global custody. With a systematic enhancement of its services and an expansion of its client base, the company strives for qualitative growth and greater profitability.