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Swiss Post achieves good quarterly results

In the first quarter of 2014, Swiss Post achieved a Group profit of 199 million francs (previous year: 222 million francs). The decline of 23 million francs is primarily due to reduced interest income resulting from persistently low interest rates on the financial markets and higher impairment charges. Operating profit (EBIT) stood at 253 million francs (previous year: 272 million francs). All four of Swiss Post’s markets – communication, logistics, passenger transport and retail finance – contributed to the positive quarterly results.

In the first three months of 2014, Swiss Post generated operating income of 2,138 million francs. This represents a drop of almost one percent year-on-year (previous year: 2,156 million francs) which could not be fully offset by reductions in expenses. Operating profit (EBIT) totalled 253 million francs, which was 19 million francs below the previous year’s level (272 million francs), and Group profit stood at 199 million francs (previous year: 222 million francs). All four markets contributed to the positive overall result. Prior-year figures have been normalized to take one-off items into account.

In the communication market, Swiss Post recorded an operating profit of 88 million francs (previous year: 87 million francs). The decline in income at PostMail and Post Offices & Sales caused by lower volumes was offset by cost savings in these areas and by growth in income from Swiss Post Solutions. The volume of addressed letters fell by 2.4 percent, and the number of unaddressed items was down 3.5 percent. In the logistics market, Swiss Post recorded an operating profit of 31 million francs (previous year: 33 million francs). This decrease is due to high competitive pressure. Parcel volumes were up 1.1 percent in Switzerland. In the passenger transport market, PostBus recorded an operating profit of 13 million francs (previous year: 9 million francs). The improved results were mainly due to the expansion of services as well as to one-off transport revenue. The number of kilometres covered increased by 7.7 percent.

PostFinance result affected by low interest situation

PostFinance, which operates in the retail financial market, recorded an operating profit (EBIT) of 127 million francs in the segment results (previous year: 138 million francs). This decrease is due to lower net interest income resulting from persistently low interest rates on the financial markets and higher impairment charges. The inflow of new money stood at 1.3 billion francs, and customer assets rose to an average of 115 billion francs in March. 11,000 new customers put their trust in PostFinance in the first three months of the year.

Group key figures

Key figures Unit Q1 2014 Q1 2013 Full year 2013[1]
Operating income CHF million 2'138 2'156 8'575
Operating profit (EBIT)[1],[2] CHF million 253 272 911
As a % of operating income (EBIT return) % 11,8 12,6 10,6
Group profit[1] CHF million 199 222 626
Total assets CHF million 123'618 122'899 120'383
Equity CHF million 5‘815 5‘079 5‘637
Cash flow from investing activities CHF million -350 -61 -309
Headcount at Swiss Post Group FTEs[3] 44'768 43'678 44'105

1  Previous year’s figures normalized to take account of one-off items.
2  Operating profit corresponds to the result before non-operating financial income and taxes (EBIT).
3  FTEs = Full-time equivalents. Average expressed in terms of full-time equivalents, excluding trainees.

PostFinance Ltd key figures

Key figures Unit[1] Q1 2014 Q1 2013 Full year 2013
Number of customers Thousands 2‘899 2‘930 2‘888
Number of customer accounts[2] Thousands 4‘657 4‘533 4‘628
Customer assets[3] CHF million 115‘184 114‘217 113‘580
Funds, securities, life insurance[3] CHF million 6‘432 5‘539 6‘042
Mortgages[4] CHF million 4‘482 4‘237 4‘424
Loans to business customers (taken up) CHF million 7‘349 6‘236 7‘271
E-finance users Thousands 1‘565 1‘482 1‘546
Headcount FTEs[5] 3‘405 3‘454 3‘432
Transactions processed Millions, cumulative 242 232 965

1  At end of period (unless otherwise stated).
2  New calculation from 1.1.2014, previous years restated.
3  Monthly average from 2014, previous years restated.
4  In cooperation with partner banks.
5  FTEs = Full-time equivalents. Average expressed in terms of full-time equivalents. Headcount at PostFinance parent company.

Selected key figures per segment (Group units)

31 March 2014 Group units Operating income(CHF m)[1] Operating profit(CHF m)[1],[2]
Communication market 1‘238 88
PostMail 741 110
Swiss Post Solutions 164 5
Post Offices & Sales 426 -27
Logistics market PostLogistics 385 31
Retail financial market PostFinance[3] 568 127
Passenger transport market PostBus[4] 209 13
Other[5] 210 -6
31 March 2013 Group units Operating income(CHF m)[1] Operating profit(CHF m)[1],[2],[6]
Communication market 1‘243 87
PostMail 765 109
Swiss Post Solutions 139 -1
Post Offices & Sales 435 -2
Logistics market PostLogistics 391 33
Retail financial market PostFinance[3] 581 138
Passenger transport market PostBus[4] 199 9
Other[5] 218 5

1  Operating income and operating profit by segment are now reported before management, licence fee and net cost compensation. Prior-year figures have been adjusted.
2  Operating profit corresponds to the result before non-operating financial income and taxes (EBIT).
3  PostFinance is regulated by the Swiss Financial Market Supervisory Authority (FINMA) and therefore subject to its Bank Accounting Guidelines (BAG). There are differences between BAG and IFRS.
4  In the field of regional public transport, PostBus is subject to the DETEC ordinance on the accounting of licensed businesses (RKV). There are differences between RKV and IFRS.
5  Includes service units (Real Estate and Information Technology) and management units (e.g. Human Resources, Finance and Communication).
6  Normalized to take account of one-off items.