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Annual Review 2010
Picture concept in this Annual Review In our Annual Review we give an account of our performance. Our clients, staff, owners and business partners expect clear statements, audited figures and in-depth analyses. We meet these expectations, directly and honestly. And with five succinct, pithy statements we underline our commitment to our values as a traditional Swiss private bank – accuracy, trustworthiness and security. That’s also how we act on your behalf: thinking in a straightforward yet entrepreneurial way, and with a convincing performance ethos.
Hyposwiss Private Bank Ltd. Bahnhofstrasse/Schützengasse 4 P.O. Box 3180, CH-8021 Zurich T +41 44 214 31 11, F +41 44 211 52 23 info @ hyposwiss.ch, www.hyposwiss.ch
Contents
Editorial
3
Review of the year
4
Bank governing bodies
5
Organisation
7
Key figures 2010
9
Finance section Overview
11
Balance sheet details
12
Income statement details
14
Personnel
16
Income statement 2010
17
Balance sheet as at 31 December 2010
18
Appropriation of disposable profit
21
Cash flow statement
22
Auditor’s report
23
“We treat your money as if it were ours. Because it is yours.”
Expect the expected
Editorial
Dear Clients
summed up succinctly and neatly in the new slogan:
Ladies and Gentlemen
“Hyposwiss – expect the expected”. In addition, the campaign shows the confident way in which we are positioning our-
2010 was a turbulent year, but Hyposwiss Private Bank still
selves in the Swiss private banking industry – an industry
succeeded in building on the income figures of the previous
which is having to redefine itself. We are also developing
year. We consider this a success, since the financial markets
and challenging our staff. It is therefore only logical that
remained volatile. After a few spectacular months at the
we have made long-standing staff member Andreas Moser
start of the year, the financial markets became susceptible
our new Head of Private Banking and a member of the Ex-
to setbacks. “Directionless”, to use stock market speak. This
ecutive Board. His track record and wide experience of the
trend was dominant in Switzerland in particular. In other
private banking industry will enable him to drive forward
industrialized countries such as Germany and the US, equity
growth in our core business. This new appointment forms
indices ended the year in clearly positive territory thanks to
part of a wider generational handover. At the end of the
a strong surge in the fourth quarter. Not to mention emerg-
year, we retired Alexander Iten and Anton Schaad from the
ing markets such as Malaysia and Taiwan, both of which
Executive Board. We would like to thank them for the dedi-
enjoyed a spectacular year. Regional differences were quite
cation they have shown as Head of Private Banking and
simply enormous. “Uneven”, as market jargon would have it.
Head of Products respectively. Both will continue to put their expertise at the disposal of the bank, to the benefit of
Hyposwiss Private Bank maintained a stable flight path
all our clients.
amidst this turbulence. In a difficult interest rate environment, it increased operating income by 3.6 % to CHF 77.6
The current year will bring fresh challenges. In the late sum-
million. At CHF 21.7 million, net income broadly matched
mer we will be moving to our new premises in the “Apollo”
the previous year’s figure. The unpredictable market envi-
office building in Zurich. Designed by the Zurich architect
ronment kept clients on a cautious footing. Accordingly, the
Theo Hotz, this office building received an award from the
equity market activity of our clients remained low, although
City of Zurich for the high quality of its architecture. Its
a slight increase was evident in the second half of the year.
distinguishing characteristics include a light, window-
A notable positive development was the net new money
dominated frontage and clean form lines. Transparency and
inflow of CHF 0.6 billion, an impressive rise of 7.6 %. This
stringency – an appropriate fit. We will bring our two loca-
provides further testimony of the confidence placed in us
tions in Zurich together under one roof at the building.
by our clients.
The new location will also provide more space for our clients and employees.
The Investment Center launched three new funds in this difficult financial year: two bond funds in CHF and EUR
Finally, on behalf of all our staff, I would like to thank you
and – in keeping with the market environment – the
our clients, for the trust you continue to place in us. Our
conservatively structured Multi Defendo umbrella fund.
continuing goal is to provide you the very best financial advice and service. It is your right to “expect the expected”.
In the middle of 2010, we launched an advertising campaign as part of a multi-media marketing strategy for the first time in our history. Based around the core concept of “Taking the excitement out of banking”, the campaign conveys how the traditional values of a private bank –
Roland Ledergerber
diligence, trustworthiness and security – constitute our
Chairman CEO
Siegfried R. Peyer
guiding principle. Our commitment to these values is
Hyposwiss Zurich | Annual Review 2010 3
Review of the Year
Following the severe recession of 2009, the global economy
The performance of our discretionary mandates in 2010
found its way back to growth in 2010. Driven by govern-
was substantially affected by currency developments. In
ment aid packages and the very expansionary monetary
mandates whose reference currency is the Swiss franc,
policies pursued by all the central banks – along with high
gains on equities and bonds were offset by the apprecia-
levels of demand in Asia – global trade levels recovered
tion of the franc and the associated losses on foreign
rapidly. It was to be expected, however, that the above-
currencies, with the overall result that no great increase in
average growth rates of the first half of 2010 would not be
value was possible. On the other hand, mandates with
sustainable. From the middle of the year onwards, eco-
the euro as reference currency benefited from its weak-
nomic growth eased off sharply, especially in the USA. The
ness. These closed the year with handsome gains, which in
debt problems experienced by a number of industrialized
the higher-risk profiles amounted to more than 10 %.
countries were another factor influencing the financial
Overall, we can also look back on a good investment year
markets. These repeatedly impacted on sentiment, bringing
with further performance gains for the funds of the
exchange rate developments increasingly into the central
St.Galler Kantonalbank Group, which are likewise managed
banks’ focus. With its interventions in the currency markets,
by Hyposwiss Zurich. Three new funds were launched in
the Swiss National Bank was one of the front-runners in
2010. The bond funds in francs and euros will be used
this respect. The net effect was a sharp see-sawing of prices
as portfolio building blocks in the fund mandates. In Sep-
on the equity markets. On balance, equities made little
tember, a new umbrella fund was launched under the
progress over the year for the Swiss investor. With interest
name Multi Defendo, which has a conservative risk profile.
rates falling further, bonds performed well over the year. The most striking development, however, was the meteoric rise in the price of gold.
Board of Directors
Roland Ledergerber
Dr. Rico Jenny
Chairman
Vice-Chairman
Stefan Klinger
Yves Burrus
4 Hyposwiss Zurich | Annual Review 2010
Theodor Horat
Jean-Luc de Buman
Bank governing bodies as at January 1 2011
Board of Directors
Expiry
Members of senior management
Roland Ledergerber, St. Gallen, Chairman
2013
Managing Directors
Dr. Rico Jenny, Erlenbach, Vice-Chairman
2011
Hans Bucher, Markus Holenstein, Alexander Iten, Caterina
Theodor Horat, Obfelden
2013
Minelle, René Wyss
Stefan Klinger, St. Gallen
2013
Yves Burrus, Genf
2011
Executive Directors
Jean-Luc de Buman, Cully
2013
Gabriele Bosshard, Hansjürg E. Christen, Oliver Egli, Kurt Frischknecht, Marcel Jörger, Dr. Milan Kormanak, Michael
Executive Board
Lenhardt, Rolf Müller, Daniel Reichmuth, Alex Rinder-
Siegfried R. Peyer, CEO
knecht, Alfred Rüttimann, Daniel Schibli, Alfred Steininger,
Dr. Thomas Stucki, Deputy CEO, Director
Giuseppe Stella, Günter Stessel, Markus Straubinger,
Andreas Moser, Director
Heinz von Dach
Stefan Betschart, Director Directors Auditors
Hans-Ulrich Abt, Nicandro Barile, Julia Barreca, Ricco
PricewaterhouseCoopers AG
Brusch, Stella Dombrowsky, Philipp Dubin, Philipp Ess, Manuel Graf, Margrith Goydke, Yves Guenot, Christian Gwerder, Birgit Heim, Caroline Hilb Paraskevopoulos, Roger P. Hugentobler, Doris Ingold, Karl Keller, Johannes Kobelt, Adrian Koller, Ueli Lott, Oliver Lyhs, Marco Magnani, Guido Malgaroli, Luca Marchetti, Urs Merz, Sonja Pellegrino Isenegger, Pascal Schmid, Urs Schneider, Stefan Spörndli, Roger Stalder, Patrick Unternährer, Anneliese Weber, Konstantin Zalad
Executive Board
Siegfried R. Peyer
Dr. Thomas Stucki
Andreas Moser
Stefan Betschart
CEO
Investment Center
Private Banking
Services & Logistics
Hyposwiss Zurich | Annual Review 2010 5
“The difference between banking and gambling is a good night’s sleep.”
Expect the expected
Organisation
as at January 1 2011
Executive Board Siegfried R. Peyer, CEO * (Deputy: Dr. Thomas Stucki, MD)
Assistant to the CEO Regula Schumacher, AD
Legal & Compliance, Risk
Business Management ***
Daniel Schibli, ED **
Hansjürg E. Christen, ED **
Private Banking
Investment Center
Services & Logistics
Andreas Moser, MD * (Deputy: Siegfried R. Peyer, CEO)
Dr. Thomas Stucki, MD * (Deputy: Marcel Jörger, ED)
Stefan Betschart, MD * (Deputy: Giuseppe Stella, ED)
Switzerland / Germany / Austria
Investment Strategy
Loans
Caroline Hilb Paraskevopoulos, DI
Alex Rinderknecht, ED **
Andreas Moser, MD *, a.i. External Asset Manager Oliver Egli, ED ** Central & Eastern Europe / Middle East Konstantin Zalad, DI, a.i.
Equity & Fund Analysis
Taxes
Alfred Steininger, ED
Guido Malgaroli, DI
Portfolio Management
Cash Desk
Marcel Jörger, ED **
Philippe Bertholet, AD
Sales Support
Business & IT Services
Christian Gwerder, DI
Giuseppe Stella, ED **
Hedge Funds
Internal Services
Stephen Rufino (Location Geneva)
Johannes Kobelt, DI
Latin America / Iberia Michael Lenhardt, ED ** Senior Client Partners Caterina Minelle, MD **
*
Member of the Executive Board
**
Member of the Extended Executive Board
***
Accounting, Controlling, Human Resources,
Marketing / Communications, Corporate Development
MD:
Managing Director
ED:
Executive Director
DI: Director AD:
Associate Director
Hyposwiss Zurich | Annual Review 2010 7
“Luck shouldn’t be part of your portfolio.”
Expect the expected
Key financial figures 2010
Key figures 2010 2010
2009
2008
Net interest income
11 534
11 628
20 962
Net commission and fee income
50 105
52 285
70 479
Net income from trading positions
9 429
9 268
8 146
Other ordinary income
6 494
1 705
1 080
Operating income
77 562
74 886
100 667
Personnel expenses
34 286
32 523
33 316
Other operating expenses
19 023
18 540
15 148
Total operating expenses
53 309
51 063
48 463
Gross profit
24 253
23 823
52 204
818
1 145
1 279
in CHF 1 000
Depreciation of fixed assets
67
237
7 679
23 368
22 441
43 246
Extraordinary income
4 344
4 956
843
Taxes
6 030
5 808
9 047
21 682
21 589
35 042
112 510
110 828
109 238
9 602 254
9 051 175
9 159 648
Cost/income ratio (%)
69.8
68.9
48.80
Employees (number of FTEs)
162
175
171
Value adjustments, provisions and losses Operating profit
Net profit for the year Shareholders’ equity (after appropriation of profit) Assets under management (incl. double counts)
Hyposwiss Zurich | Annual Review 2010 9
“Global: Yes. Players: No.”
Expect the expected
Finance Section Overview
Overall, the 2010 financial year developed satisfactorily,
At the end of the financial year, the balance sheet total of
but the financial crisis of 2008 and the associated uncer-
Hyposwiss Private Bank amounted to CHF 1 926.9 million.
tainty in the markets continue to leave their marks. None-
This equates to an increase of CHF 104.3 million, or 5.7 %
theless, operating income improved to CHF 77.6 million
compared with the prior year figure of CHF 1 822.6 million.
from CHF 74.9 million the previous year, an increase
The bank’s reported shareholders’ equity after the appro-
of 3.6 %. Operating expenses rose by CHF 2.2 million to
priation of profit amounted to CHF 112.5 million,
CHF 53.3 million, while gross profit increased by 1.8 %
resulting in a self-financing level of 5.9 %.
to CHF 24.3 million. Assets under management increased over the course of Depreciation of fixed assets experienced a slight year-on-
the financial year from CHF 9.1 billion to CHF 9.6 billion.
year decline to CHF 0.8 million, while the value adjust-
Of this figure, CHF 636.7 million is accounted for by
ments, provisions and losses item contains CHF 0.1 million
the investment funds managed by the Investment Center
of negative settlement differences.
of Hyposwiss Private Bank. A net new money inflow of CHF 618 million was recorded during the financial year. One cli-
The extraordinary income contains the sum of CHF 4.3 mil-
ent opened a custody account portfolio in December,
lion resulting from the reversal of value adjustments no
thereby generating some CHF 1.2 billion of new money for
longer required. The net income figure of CHF 21.7 million
the bank. In keeping with FINMA’s bank accounting
for the year permits the distribution of a dividend of
and financial reporting accounting guidelines (RRV/BAG),
CHF 20.0 million to our shareholder.
however, this sum was classified as custody assets and not included in the calculation of client assets. It is there-
At 70 %, the cost/income ratio including depreciation of
fore not contained in the net new money figure.
tangible assets is around the same level as the previous year.
Hyposwiss Zurich | Annual Review 2010 11
Balance sheet details
Assets Total loans to customers, namely amounts due from cus-
the portfolio of mortgages increased from CHF 229.1 million
tomers and mortgage loans, rose from CHF 520.0 million
to CHF 266.7 million.
to CHF 871.6 million. Amounts due from customers are largely secured by collateral loan business or are covered
The bank primarily holds its financial investments as a
by pledged fiduciary investments.
liquidity reserve. These amounted to CHF 9.2 million as at the balance sheet date, a decline of CHF 0.8 million on
In detail, fixed advances and loans increased from
the previous year.
CHF 256.7 million to CHF 582.5 million. This pleasing increase is attributable to a number of large individual
In the reporting year, investments were already being
collateralized loans. Current account receivables had de-
channelled into fixed assets in view of the bank’s planned
clined by CHF 11.9 million to CHF 22.4 million as at the
move into a new office building in 2011. These increased
end of December. Despite the continued backdrop of fierce
from CHF 1.3 million to CHF 2.7 million.
competition for Swiss real estate financing,
Assets Balance sheet total 1 926 917 (in CHF 1 000)
Securities trading portfolio, financial investments and participations 0.5 %
9 294
Cash and cash equivalents
Other assets 1.6 %
30 489
1.2 %
22 680
Loans to customers 871 643
45.2 %
Due from banks 51.5 %
992 811
Of which loans to customers Total 871 643 (in CHF 1 000)
Current account receivables 2.6 %
22 416
Mortgages 266 719
Fixed advances and loans 30.6 %
12 Hyposwiss Zurich | Annual Review 2010
66.8 %
582 508
Liabilities Customer deposits entrusted to Hyposwiss Private Bank
The share capital remained unchanged at CHF 26.0 million,
amounted to CHF 1.5 billion as at the end of the reporting
while disclosed reserves after appropriation of profit
year. The largest item was “Other amounts due to cus-
amounted to CHF 84.5 million.
tomers at sight”, at CHF 1.4 billion. Amounts due to customers in savings and deposit accounts amounted to CHF 44.4 million at the year end. A further CHF 151.5 million was attributable to fixed-term deposits with our bank. As a consequence of the higher client lending compared to the previous year, amounts due to banks rose by CHF 65.3 million to CHF 198.4 million. Of this sum, CHF 183.5 million was assumed by our parent company for refinancing purposes.
Liabilities Balance sheet total 1 926 917 (in CHF 1 000)
Shareholders’ equity
Due to banks
132 510
6.9 %
198 398
10.3 %
Other liabilities 46 882
2.4 %
Customer deposits 80.4 %
1 549 127
Of which customer deposits Total 1 549 127 (in CHF 1 000) Due to customers in savings and deposit accounts 2.9 %
44 449
Medium-term notes Time deposits 151 460
0.0 %
230
9.8 % Other amounts due to customers at sight 87.3 %
1 352 988
Hyposwiss Zurich | Annual Review 2010 13
Income statement details
Expenses Total 81 906 (in CHF 1 000)
Taxes 6 030
7.4 %
Depreciation and provisions 1.1 %
885
Net profit 26.5 % Other operating expenses 19 023
21 682
23.2 % Personnel expenses 41.9 %
34 286
Income Total 81 906 (in CHF 1 000)
Net interest income
Extraordinary income 5.3 %
4 344
14.1 %
11 534
Net other ordinary income 6 494
7.9 %
Net income from trading position 11.5 % 9 429
14 Hyposwiss Zurich | Annual Review 2010
Net commission and fee income 61.2 %
50 105
Net interest income in the reporting year declined by the
Income from trading positions, which is largely dictated
negligible amount of CHF 0.1 million to CHF 11.5 million.
by foreign exchange trading, came in at CHF 9.4 million,
Income was boosted by the growth in business volume,
a very slight year-on-year rise.
with loans to customers increasing strongly. Mortgage interest showed a year-on-year decline of CHF 0.1 million
The significant rise in “Net other ordinary income” to
to CHF 5.9 million.
CHF 6.5 million is a consequence of the SLA with the parent company as mentioned above.
Income from commission and fees was once again overshadowed by the repercussions of the severe financial crisis
At CHF 34.3 million, personnel expenses were up CHF 1.8
that shook the markets some two years ago. Against this
million on the previous year, or 5.4 %. This increase should
backdrop, net commission and fee income in the reporting
be viewed in the context of last year’s complete out-
year came in at CHF 50.1 million, or 4.2 % below the prior-
sourcing of the securities processing, payment transactions
year figure. It should be noted, however, that the services
and trading businesses to the parent company.
provided by the Investment Center for the parent company were reported in this income figure in 2009, and amounted
At CHF 19.0 million, other operating expenses were up by
to CHF 3.8 million. Owing to the restructuring of the Service
CHF 0.5 million or 2.6 % on the previous year.
Level Agreement (SLA), this item is being reported under “Net other ordinary income” from 2010 onwards. Income
Expenses of CHF 0.1 million from settlement differences
from the deposit business came in at a healthy CHF 15.5
were included under value adjustments, provisions and
million, a year-on-year rise of 16.0 %. At CHF 17.1 million,
losses.
income from the securities and investment activities was up only modestly (+0.8 %).
Extraordinary income contains the sum of CHF 4.3 million for the reversal of value adjustments that are no longer
Even though clients kept their holdings of fiduciary invest-
required.
ments at a very high level, commission income declined by CHF 1.8 million year-on-year to CHF 3 million. Due to the very low prevailing interest rate environment, an increasing number of special terms were granted to ensure that the interest income earned covered the commission charged. These kept interest income to a minimum.
Hyposwiss Zurich | Annual Review 2010 15
Personnel
Promotions
Compensation model
As at 1 January 2011, the following promotions were made
In the spring of 2009, the bank’s compensation system was
at senior management level:
enhanced with a long-term participation program for the Executive Board and key members of senior management
Members of the Extended Executive Board
(Long Term Incentive Plan, LTI). As a rule, participants will
Hansjürg E. Christen, Oliver Egli, Marcel Jörger,
be awarded a number of options each year as part of their
Michael Lenhardt, Alex Rinderknecht, Daniel Schibli,
variable compensation, with the actual number of options
Giuseppe Stella
awarded being at the discretion of the Board of Directors. The options cannot be exercised for four years from the
Managing Director
date of receipt (i.e. a vesting period of four years applies),
Markus Holenstein, Caterina Minelle,
but may then be exercised over the following six years.
Andreas Moser, René Wyss
The aim of the program is to retain the services of key staff members over the long term and to promote entrepreneur-
Executive Director
ial conduct, as the LTI enables participants in the plan to
Kurt Frischknecht, Daniel Reichmuth,
share in the company’s success by exercising their options,
Alex Rinderknecht
provided they have stayed with the firm and the bank’s enterprise value has increased.
Director Marco Magnani, Guido Malgaroli,
The basis for determining the value of the options will be
Sonja Pellegrino Isenegger, Pascal Schmid,
an annual valuation of the bank by a recognized manage-
Patrick Unternährer
ment consultancy firm. The options issued in 2010, which may be freely exercised in 2014, currently have a slightly positive fair value, and we are accordingly creating a provision amounting to CHF 0.1 million. The options issued in 2009 still have no positive fair value. In addition to this program, a proportion of the variable compensation (members of senior management 25 %, Associate Directors 20 %) has been paid in the form of shares in St. Galler Kantonalbank ever since the bank became part of St. Galler Kantonalbank Group. These shares are subject to a vesting period of three years. Zurich, February 24, 2011
16 Hyposwiss Zurich | Annual Review 2010
For the Board of Directors:
For the Executive Board:
Roland Ledergerber, Chairman
Siegfried R. Peyer, CEO
Income statement 2010
Income and expenses from ordinary banking business in CHF 1 000
Interest and discount income Interest and dividend income on trading position Interest and discount income on financial investment Interest expenses Net interest income
2010
2009
16 303
17 099
3
1
224
287
4 996
5 759
11 534
11 628
140
219
53 885
55 045
609
525
4 529
3 504
50 105
52 285
9 429
9 268
0
0
14
17
6 483
1 688
3
0
6 494
1 705
Operating income
77 562
74 886
Personnel expenses
34 286
32 523
Other operating expenses
19 023
18 540
Total operating expenses
53 309
51 063
Gross profit
24 253
23 823
818
1 145
67
237
23 368
22 441
Extraordinary income
4 344
4 956
Taxes
6 030
5 808
21 682
21 589
Commission income from lending activities Commission income from securities and investment activities Commission income from other service fee activities Commission expenses Net commission and fee income Income from trading positions Income from disposal of financial investments Participation income Other ordinary income Other ordinary expenses Net other ordinary income
Depreciation and amortisation of fixed assets Value adjustments, provisions and losses Subtotal
Net profit for the year
Hyposwiss Zurich | Annual Review 2010 17
Balance sheet as at 31 December 2010
before appropriation of profit
Assets 2010
2009
22 680
10 810
Due from banks
992 811
1 255 260
Due from customers
604 924
290 978
Mortgages
266 719
229 072
59
61
9 193
10 005
42
42
Fixed assets
5 546
4 575
Accrued income and prepaid expenses
3 703
10 790
in CHF 1 000
Cash and cash equivalents
Securities trading portfolios Financial investments Participations
Other assets
21 240
10 997
Total assets
1 926 917
1 822 590
827 332
1 134 061
Total receivables from group companies and qualified participants
18 Hyposwiss Zurich | Annual Review 2010
Liabilities in CHF 1 000
2010
2009
Liabilities from money market securities
706
268
198 398
133 130
44 449
37 034
1 504 448
1 480 581
230
370
Accrued expenses and deferred income
15 428
10 622
Other liabilities
21 574
15 441
Value adjustments and provisions
9 175
14 317
Reserves for general banking risks
1 700
1 700
26 000
26 000
General statutory reserves
45 500
45 500
Other reserves
37 000
35 000
627
1 038
21 682
21 589
1 926 917
1 822 590
195 116
126 657
36 280
48 324
6 013
8 116
501 147
311 130
13 768
7 914
Due to banks Due to customers in savings and deposit accounts Other amounts due to customers Medium-term notes
Share capital
Retained earnings brought forward Net profit for the year Total liabilities Total liabilities to group companies and qualified participants Off-balance-sheet transactions Contingent liabilities Irrevocable commitments Derivative instruments positive replacement values negative replacement values Fiduciary transactions
12 786
8 367
2 078 631
1 930 305
Hyposwiss Zurich | Annual Review 2010 19
“Never trust a banker who says, ‘Trust me.’ ”
Expect the expected
Appropriation of disposable profit
Appropriation of disposable profit 2010
2009
21 682
21 589
628
1039
22 310
22 628
20 000
20 000
0
0
2 000
2 000
310
628
22 310
22 628
Share capital
26 000
26 000
General legal reserve
45 500
45 500
Other reserves
39 000
37 000
1 700
1 700
310
628
112 510
110 828
in CHF 1 000
Net profit for the year Retained earnings brought forward from previous year Profit at the disposal of the AGM The Board of Directors proposes the following appropriation: a) Distribution of a dividend b) Allocation to the general statutory reserve c) Allocation to the other reserves d) Balance brought forward to new account Total Following authorisation of this proposal, total shareholders’ equity is as follows:
Reserves for general banking risks Retained earnings brought forward to new account Total
Hyposwiss Zurich | Annual Review 2010 21
Cash flow statement 2010
2010
in CHF 1 000 Source
Net profit for the year Depreciation on fixed assets
2009
Application
Balance
Source
21 682
21 589
818
1 145
Value adjustments and provisions
5 143
Application
Balance
5 612
Reserves for general banking risks Accrued income and prepaid expenses
7 087
4 676
Accrued expenses and deferred income
4 806
4 701
Dividend in the previous year Cash flow from operating activities (internal financing)
20 000 34 394
25 143
30 000 9 251
22 734
44 989
-22 255
Participations Fixed assets Cash flow from fixed asset operations Liabilities from money market securities Due to banks
1 789 0
1 789
33 -1 789
0
33
438
16
65 268
75 762
262 449
709 567
-33
Due from money markets instruments Due from banks Securities trading portfolios Interbank transactions
2 328 157
Medium-term notes Due to customers in savings and deposit accounts Other amounts due to customers
Customer business
0
23 867
678 405 37 647
0
313 946
31 282
351 733
Capital market business
812
Other assets
0
Other balance sheet items
6 133
10 243
366 384
22 Hyposwiss Zurich | Annual Review 2010
28 876 127 912 -320 451
812
10 243 6 133
Total application of funds
-785 303
818 373
29 441
788 932
0
1 995
1 995
Other liabilities
Liquid assets
785 345 565
12 056
812
Total source of funds
42
7 415
Financial investments
Cash flow from banking business
328 157
140
Mortgages Due from customers
42
1 995 17 090 0
9 075
-4 110
17 090
9 075
8 015
361 976
4 408
837 500
823 861
13 639
11 870
-11 870
8 649
400 778
8 649
868 883 400 778
868 883
Auditor’s report
The following Auditor’s report refers to the 2010 annual report, which is available from Hyposwiss Private Bank Ltd. Auditor’s report on the annual accounts
the plausibility of the estimates made and an evaluation
In our capacity as auditor we have audited the annual
of the overall picture presented by the annual accounts.
accounts of Hyposwiss Private Bank Ltd, consisting of bal-
We are of the view that the audit evidence obtained by us
ance sheet, income statement, cash flow statement and
provides a sufficient and appropriate basis for our audit
notes to the accounts (pages 17 to 39 of the annual
opinion.
report), for the financial year ended 31 December 2010. Audit opinion Responsibility of the Board of Directors
In our view, the annual accounts for the financial year
The Board of Directors is responsible for preparing the an-
ended 31 December 2010 are in compliance with Swiss law
nual accounts in compliance with the legal requirements
and the articles of association.
and articles of association. This responsibility includes the design, implementation and upkeep of an internal control
Reporting due to additional statutory regulations
system to allow the preparation of annual accounts that
We confirm that we meet the statutory requirement in
are free of significant false statements as a result of viola-
respect of authorisation according to the Federal Act on
tions or errors. Furthermore, the Board of Directors is re-
Licensing and Oversight of Auditors (Revisionsaufsichts-
sponsible for the selection and application of appropriate
gesetz, RAG) and independence (Article 728 SCO and Arti-
accounting methods and for making appropriate estimates.
cle 11 RAG) and that there are no circumstances inconsistent with our independence.
Auditor’s responsibility Our responsibility is to issue an audit opinion on the annu-
In compliance with Article 728a (1) figure 3 SCO and
al accounts based on our audit. We conducted our audit
the Swiss Audit Standard 890 we confirm that an internal
in compliance with Swiss law and with the Swiss auditing
control system exists for the preparation of the annual
standard. On the basis of these standards, audits are to
accounts that has been designed in accordance with the
be planned and performed in such a way that material
guidelines from the Board of Directors.
misstatements in the annual accounts are reasonably certain to be recognised.
We further confirm that the application for the appropriation of net retained profits is in compliance with Swiss
An audit includes the performance of audit activities to
law and the articles of association and recommend that
obtain audit evidence for the valuations contained in
the annual accounts be adopted.
the annual accounts and other information. The choice of audit activities is a matter for the dutiful discretion of
Zurich, February 24, 2011
the auditor. This incorporates an assessment of the risks of
PricewaterhouseCoopers AG
significant false information in the annual accounts as a result of violations or errors. In assessing these risks, the
Beat Rütsche
Thomas Kleger
auditor takes into account the internal control system
Audit specialist
Audit specialist
(to the extent that it is significant for the preparation of
Chief Auditor
the annual accounts) in order to define the appropriate audit activities for the circumstances, but not, however, to issue an audit opinion on the effectiveness of the internal control system. The audit also incorporates an assessment of the appropriateness of the accounting methods used, Hyposwiss Zurich | Annual Review 2010 23
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Hyposwiss Private Bank Ltd. Bahnhofstrasse/Schützengasse 4 P.O. Box 3180, CH-8021 Zurich, Switzerland T +41 44 214 31 11, F +41 44 211 52 23
[email protected], www.hyposwiss.ch