Press releases, Press releases Post Real Estate Management and Services Ltd, Press releases Mobility Solutions Ltd

Swiss Post off to a good start in 2015

In the first quarter of 2015, Swiss Post achieved Group profit of 225 million francs (previous year: 199 million francs). The increase of 26 million francs is primarily due to reversals of impairment on the investment portfolio in a continually difficult low interest rate environment. Operating profit (EBIT) stood at 292 million francs (previous year: 253 million francs). All four of Swiss Post’s markets contributed to the positive quarterly results. Nonetheless, Swiss Post will need to focus its efforts in an increasingly challenging market environment.

In the first three months of 2015, Swiss Post made a Group profit of 225 million francs, which is 13.1 percent up on the previous year’s figure (199 million francs). This was principally due to higher operating income from financial services. Operating profit totalled 292 million francs, which was around 39 million francs (15.4 percent) above the previous year’s level (253 million francs). Operating income remained stable at 2,125 million francs (previous year: 2,138 million francs). All four of Swiss Post’s markets contributed to the positive quarterly results.

In the communication market, Swiss Post recorded an operating profit of 83 million francs (previous year: 88 million francs). This slight drop is primarily the result of the continuing decline in income at PostMail and Post Offices & Sales caused by lower volumes. The reduction in operating income could not be fully offset by cost optimization. The number of addressed letters fell by 1.1 percent year-on-year, while the number of unaddressed items was up 2.5 percent. In the logistics market, PostLogistics recorded an operating profit of 31 million francs, on a par with the previous year’s level. Parcel volumes were up 2.2 percent. In the passenger transport market, the operating profit generated by PostBus remained unchanged year-on-year at 13 million francs. The rise in transport revenue and additional compensation payments were offset by higher operating expenses. The number of kilometres covered remained constant.

PostFinance benefits from reversals of impairment

PostFinance, which operates in the financial services market, achieved an operating profit of 172 million francs in the first three months of 2015 (previous year: 127 million francs). The increase of 45 million francs is mainly due to reversals of impairment (reversals of portfolio impairment charges) on financial assets. As expected, a negative inflow of new money was recorded at – 5.9 billion francs. This is a reflection of the ongoing difficult interest rate situation. Customer assets fell to around 111 billion francs in March. 15,000 new customers put their trust in PostFinance in the first three months of the year.

Group key figures

Key figures Unit Q1 2015 Q1 2014 Full year 2014
Operating income CHF m 2,125 2,138 8,457
Operating profit (EBIT)[1] CHF m 292 253 803
As a % of operating income (EBIT return) % 13.7 11.8 9.5
Group profit[1] CHF m 225 199 638
Total assets CHF m 120,644 123,618 124,671
Equity CHF m 5,209 5,815 5,010
Cash flow from investing activities CHF m -338 -350 -369
Headcount at Swiss Post Group FTEs[2] 44,071 44,768 44,681

1  The operating profit corresponds to the result before non-operating financial income and taxes (EBIT)
2  FTEs = Full-time equivalents. Average expressed in terms of full-time equivalents, excluding trainees.

PostFinance Ltd key figures

Key figures Unit[1] Q1 2015 Q1 2014 Full year 2014
Number of customers Thousands 2,953 2,899 2,938
Number of customer accounts[2] Thousands 4,795 4,657 4,752
Customer assets[3] CHF m 111,485 115,184 117,186
Funds, securities, life insurance[3] CHF m 7,432 6,431 7,125
Mortgages[4] CHF m 4,817 4,482 4,713
Loans to business customers (taken up) CHF m 8,650 7,349 8,165
E-finance users Thousands 1,645 1,565 1,624
Headcount FTEs[5] 3,510 3,405 3,454
Transactions processed Millions, cumulative 248 242 996

1  At end of period (unless otherwise stated).
2  New calculation from 1.1.2014
3  Monthly average from 2014
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 2015 Group units Operating income (CHF m)[1] Operating profit (CHF m)[1],[2]
Communication market Consolidated 1,185 83
Communication market PostMail 706 104
Communication market Swiss Post Solutions 153 4
Communication market Post Offices & Sales 413 -25
Logistics market PostLogistics 379 31
Financial services market PostFinance[3] 592 172
Passenger transport market PostBus[4] 211 13
Other[5] - 223 -7
31 March 2014 Group units Operating income (CHF m)[1] Operating profit (CHF m)[1],[2]
Communication market Consolidated 1,238 88
Communication market PostMail 741 110
Communication market Swiss Post Solutions 164 5
Communication market Post Offices & Sales 426 -27
Logistics market PostLogistics 385 31
Financial services market PostFinance[3] 568 127
Passenger transport market PostBus[4] 209 13
Other[5] - 210 -6

1  Operating income and operating profit by segment are now reported before management, licence fee and net cost compensation.
2  The 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).