CEO Report

Ladies and Gentlemen

I am delighted to be able to report to you on a successful first half of 2017. The Aduno Group posted revenue of CHF 263.9 million. The result from operating activities reached CHF 47.0 million and net profit totalled CHF 42.3 million. At first glance, these figures are below the comparable figures for the same period in 2016. However, that is due to the fact that last year the Aduno Group received a substantial one-off payment as part of the acquisition of Visa Europe Ltd. by Visa Inc. After adjusting for this exceptional item, i.e in purely operational terms, all key financial figures were above their prior-year level.

The divisions Payment and Consumer Finance contributed to this gratifying result. In the Payment division, transaction volumes and transaction turnover were above the prior-year figures, reflecting positive consumer sentiment and the increasing popularity of cards as an everyday means of payment. This can also be seen in the above-average growth of card payments in the retail segment – in supermarkets and department stores as well as in smaller specialised outlets. Travel and transport as well as services have experienced significant increases, too. The engine of growth in the Consumer Finance division was leasing, for once. After losing ground in recent years, this area of business registered a turnaround in new business. The provision of stock vehicle financing accords with the needs of our partners and enabled volumes to be expanded with existing customers and new dealers to be acquired. The personal credit business continued with the robust growth posted in previous years.

In both divisions, the focus in the reporting period was on a number of projects connected with digitisation. The Payment division pushed forward with the digital transformation in the reporting period, with VisecaOne proving to be a real success story: more than half of all Viseca customers have now registered for VisecaOne and the app has been downloaded more than 580,000 times. This means that the VisecaOne app is consistently among the most downloaded and most heavily used finance apps in Switzerland. Integrating the rewards shop connected with our surprize rewards programme into the VisecaOne app made the application even more attractive to customers. The personal finance management (PFM) solution, developed by the Aduno Group in collaboration with the fintech start-up Contovista AG, has also been well received by customers and partner banks. When customers activate this service, they can view a list of their credit card transactions on their bank’s e-banking portal, create charts to represent them visually and keep track of their spending very easily. In the first half of 2017, more Aduno Group partner banks opted for this solution.

Also in Consumer Finance, digitisation is becoming ever more important. A significant proportion of business takes place online. That reflects a clear need on the part of our customers while also bringing efficiency improvements for the Aduno Group and allowing us to some extent to make up for the lower margins resulting from the reduction in the maximum interest rate for personal credit.

The Aduno Group looks towards the second half of 2017 with confidence. The economic environment will help business performance. There are no signs of a weakening in consumer sentiment, interest rates are likely to remain low and exchange rates will probably remain stable. In addition, the replacement of cash with card payments looks set to continue. A negative effect will come from the reduction in the Swiss interchange rate from the current 0.70 per cent to 0.44 per cent as at 1 August 2017. This will doubtless put further pressure on our margins, which the Aduno Group plans to compensate for this mostly by enhancing efficiency.

Finally, I would like to thank our staff for their tireless commitment and hard work, our customers for their trust in our products and services, and our shareholders for their sustained support.

Martin Huldi
Chief Executive Officer

Martin Huldi
Chief Executive Officer

With revenue of CHF 264 million, a result from operating activities of CHF 47 million and net profit of CHF 42 million, we can look back on a successful first half.