Valartis Group Consolidated Financial Statements 2015

GlobeNewswire

The 2015 Valartis Group consolidated financial statements, in accordance with International Financial Reporting Standards (IFRS) and taking into consideration a range of exceptional factors, show a Group loss of CHF 58.4 m for continued and discontinued operations (previous year on a comparable basis: Group loss of CHF 73.3 m). This is made up of a loss amounting to CHF 3.1 m from discontinued operations resulting from the planned divestments of Valartis Bank (Austria) AG and Valartis Bank (Liechtenstein) AG, plus a loss from continued operations amounting to CHF 55.3 m.

In 2015, Valartis Group AG and its Liechtenstein-based holding company, Valartis Finance Holding AG, were in need of recovery due to a temporary lack of liquidity. The Boards of Directors of the two holding companies resolved to divest the two private banks in Liechtenstein and Austria within the framework of the recovery plans and, thus, to relinquish the private banking business model. Against this background, the provisions of the International Financial Reporting Standards (IFRS) for continued and discontinued operations apply for the 2015 Annual Report for Valartis Group.

Continued operations 2015
The loss from continued operations amounting to CHF 55.3 m is largely attributable to

  • the impairment of goodwill positions and intangible assets amounting to CHF 9.6 m;

  • value adjustments of real estate projects in Russia amounting to 15.7 m; together with

  • significantly higher material expenditure relating to recovery plans for Valartis Group (see also «Implementation of recovery plans 2015/2016», page 2).

Continued operations from an operational viewpoint
From a purely operational viewpoint, i.e., without taking these exceptional factors into consideration, income from commission and services for continued operations was down at CHF 3.5 m (31.12.2014:CHF 6.0 m). Material expenditure rose to CHF 12.5 m, as a result of implementation of regulatory requirements, plus project and advisory service costs arising in connection with recovery plans for Valartis Group (31.12.2014:CHF 7.2 m). In addition, income from interest was significantly lower: down by CHF 1.0 m to minus CHF 2.2 m. This loss can be attributed to considerably lower average investment volumes in the bond portfolio and continuing low market interest rates at unchanged refinancing costs.

Business segments
Divestment of the banks in Liechtenstein and Austria means that the Private Clients segment has been dropped from continued operations (see Annual Report 2015, Note 43, www.valartisgroup.ch).

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