VP Bank Ltd, Vaduz, acquired all the shares of Centrum Bank Ltd, Vaduz, on 7 January 2015. In accordance with the International Financial Reporting Standards (IFRS), as of this date Centrum Bank Ltd will be fully consolidated in VP Bank Group reports and a purchase price allocation (PPA) in accordance with IFRS 3 will be established. The PPA serves to divide the acquisition price paid between the adjusted equity purchased and the identified value of client relationships. If the acquisition price is higher than the value of assets, a “goodwill” will be the result; if the acquisition price is lower, a “bargain purchase” will be the result.
The PPA process is not yet fully completed. As things currently stand, VP Bank Group expects a “bargain purchase” (profit from the purchase of Centrum Bank) in the order of around CHF 50 million. The “bargain purchase” is a one-off positive effect and will be recognised in the income statement. However, the first half of 2015 has also seen restructuring expenses (including redundancy settlements), project costs and amortisation of acquired capitalised client assets of around CHF 25 million.
The consolidated results for the first half of 2015 (excluding the aforementioned one-off effects) are likely to be similar to the net income for the same period of the previous year.
Definitive financial information regarding the integration of Centrum Bank will be published in the semi-annual report as of 30 June 2015. The first consolidated report including Centrum Bank data will be published as of 30 June 2015. All figures will be announced at the semi-annual round-table discussion and in the publication of the 2015 semi-annual report of VP Bank Group on 25 August 2015.
These are unaudited numbers. No further information on the Group’s business performance will be released until the publication of the semi-annual report on 25 August 2015.
This announcement has been made in line with the rules on disclosing potentially price-sensitive facts in accordance with Art. 53 of the Listing Rules. These require companies to issue a prior notification by means of an ad hoc disclosure in the case of a significant deviation from the prior-year result even if the issuer has not made any projections about future business performance.