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.

See Figures

Source: Swiss Post