SBC lifts operating income and profits

JOHN EISENHAMMER

Financial Editor

A massive leap in trading income powered strong first-half results from Swiss Bank Corporation, which yesterday reported an 18.5 per cent rise in operating income to Sfr4bn (pounds 2.2bn).

SBC, one of Switzerland's big three commercial banks which earlier this year bought SG Warburg, the City's premier investment bank, said its consolidated net interim profit rose 23.3 per cent to Sfr540m.

The positive trend in operating income was mainly ascribed to the 128 per cent increase in net trading income to Sfr1.2bn, and revenues from first-time business consolidations. These included Brinson Partners asset management and the O'Connor Associates derivatives business in the US.

Georges Blum, SBC's chief executive, expressed confidence in achieving "satisfying results over the whole year", and said the bank was on course for its goal of a 10 per cent return on equity over the next two to three years.

Marcel Ospel, who has taken over as the chief executive of SBC-Warburg, said the recently acquired British investment bank had neither lost market share nor any key personnel since the takeover. He said there had been no important departures since four senior executives and a number of other Warburg staff moved to investment banking rival, Deutsche Morgan Grenfell, in February.

Sarah Manton, analyst with Smith New Court, said: "The trading figures, even when based on the poor first half of 1994, are spectacularly good, especially when you consider that the interest margin does not appear to have suffered." The interest margin stayed around 1.3 per cent.

SBC said conditions for trading were helped by the continued decline in interest rates and by the relative calm in the foreign exchange markets. Securities trading turned in an interim profit of Sfr423m, compared with a loss of Sfr186m in the first half of 1994.

The takeover of SG Warburg was formally completed last month, and the financial results of the merged investment banking operation will not show up until the second half of 1995. SBC said "for all practical purposed the combination of the two businesses is already largely complete".

SBC said a 3.4 per cent increase in net interest income to Sfr1.4bn reflected more favourable refinancing conditions and lower interest provisions. "This result was seen as all the more encouraging in view of the substantial equity resources that were no longer earning interest because they were applied to the acquisition of strategic participations."

Net commission income, at pounds 1.3bn, was above the level of the second half of last year, but just below the record established in the first half of 1994.

Start your day with The Independent, sign up for daily news emails
Voices
There will be a chance to bid for a rare example of the SAS Diary, collated by a former member of the regiment in the aftermath of World War II but only published – in a limited run of just 5,000 – in 2011
charity appealTime is running out to secure your favourite lot as our auction closes at 2pm today
News
people
News
Elton John and David Furnish exchange marriage vows
peopleSinger posts pictures of nuptials throughout the day
News
File: James Woods attends the 52nd New York Film Festival at Walter Reade Theater on September 27, 2014
peopleActor was tweeting in wake of NYPD police shooting
PROMOTED VIDEO
Sport
Martin Skrtel heads in the dramatic equaliser
SPORTLiverpool vs Arsenal match report: Bandaged Martin Skrtel heads home in the 97th-minute
News
Billie Whitelaw was best known for her close collaboration with playwright Samuel Beckett, here performing in a Beckett Trilogy at The Riverside Studios, Hammersmith
people'Omen' star was best known for stage work with Samuel Beckett
Arts and Entertainment
Mark Wright has won The Apprentice 2014
tvThe Apprentice 2014 final
News
i100
Arts and Entertainment
Darrell Banks’s ‘Open The Door To Your Heart’
music
News
Detective Tam Bui works for the Toronto Police force
news
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

SThree: Graduate Recruitment Consultant

£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...

Day In a Page

Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there
The 12 ways of Christmas: Spare a thought for those who will be working to keep others safe during the festive season

The 12 ways of Christmas

We speak to a dozen people who will be working to keep others safe, happy and healthy over the holidays
Birdwatching men have a lot in common with their feathered friends, new study shows

The male exhibits strange behaviour

A new study shows that birdwatching men have a lot in common with their feathered friends...
Diaries of Evelyn Waugh, Virginia Woolf and Noël Coward reveal how they coped with the December blues

Famous diaries: Christmas week in history

Noël Coward parties into the night, Alan Clark bemoans the cost of servants, Evelyn Waugh ponders his drinking…
From noble to narky, the fall of the open letter

From noble to narky, the fall of the open letter

The great tradition of St Paul and Zola reached its nadir with a hungry worker's rant to Russell Brand, says DJ Taylor
A Christmas ghost story by Alison Moore: A prodigal daughter has a breakthrough

A Christmas ghost story by Alison Moore

The story was published earlier this month in 'Poor Souls' Light: Seven Curious Tales'