Annual Review

2009 2010 2011 2012 Annual Review 2013 2014 2015 2016 2017 Annual Review 2010 Picture concept in this Annual Review In our Annual Review we give ...
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2009 2010 2011 2012 Annual Review 2013 2014 2015 2016 2017

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