OREANDA-NEWS.  November 11, 2014. The Group delivered an overall very good performance thanks to its diversified business and geographic mix. There was a good sales and marketing drive, confirming the loyalty of institutional, corporate and individual clients.

The Group closed two bolt-on acquisition deals this quarter with the buyout of the 50% stake that it did not own in LaSer and the acquisition of BGZ in Poland.
 
Revenues totalled 9,537 million euros, up 3.9% compared to the third quarter 2013. One-off items this quarter totalled -197 million euros (-138 million euros in the third quarter 2013) corresponding to Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA). Excluding these one-off items and at constant scope and exchange rates, revenues were up 2.8%.
 
Revenues grew in all the operating divisions, driven in particular by the specialised businesses, international retail and Fixed Income. They rose by 2.6% compared to the third quarter 2013 and were up 2.8% at Retail Banking, 5.2% at Investment Solutions and 2.9% at Corporate and Investment Banking.
 
Operating expenses, at 6,623 million euros, were up by 3.8%. They include the one-off 148 million euro impact of Simple & Efficient transformation costs (145 million euros in the third quarter 2013).
 
Operating expenses of the operating divisions were up 2.6%: the increase related to continued investments in business development plans was limited thanks to the impact of Simple & Efficient. Operating expenses were up 1.3% at Retail Banking, 4.3% at Investment Solutions and 4.8% at CIB.
 
Gross operating income was up 4.2% over the period at 2,914 million euros. It rose by 2.5% for the operating divisions.
 
The Group’s cost of risk was down 9.2% this quarter, at 754 million euros (47 basis points of outstanding customer loans), reflecting the Group’s good risk control.
 
Pre-tax income thus came to 2,308 million euros (2,120 million in the third quarter 2013), up 8.9%.
 
Net income attributable to equity holders was 1,502 million euros (1,358 million euros in the third quarter 2013). Excluding one-off items, it was 1,730 million euros, up 12.5% compared to the same period a year earlier.