Group ke i ure etter ro the hair an an the re i ent Habib Bank AG Zurich the Group Group or ani ation tructure irector report Group
Bank
A
2 5
inancial tate ent Balance heet nco e tate ent a h lo tate ent tate ent o chan e in e uit ote to the con oli ate inancial tate ent planation o ri k ana e ent Report o the tatutor Au itor inancial tate ent Balance heet nco e tate ent tate ent o chan e in e uit Appropriation o pro it co era e o lo e Report o the tatutor Au itor
re e
12 1 1 1 20 2 52
5 5 5 other i tribution
5
1
Habib Bank AG Zurich
Group key figures*
in H
31.12.11
illion
31.12.12
31.12.13
50
2
31.12.14
31.12.15
Balance sheet otal a et
5 1
harehol er e uit A
0
10 5
0
ance
2
1 000
5
2 51
epo it
2
1
0
2
1 5
01
Income statement otal inco e 2
05
2
25
peratin e pen e
151
15
1 51
1
1
peratin re ult
10 2
55 1
20
1
Group pro it lo
1
otal a et in H
illion
harehol er e uit
in H
1
12000 0
10000
5
50
000
10'583
1000
0
000
00
000
0 5
3'195
0 2 2
illion
epo it in H 10000
1
01
illion
8'696
000
2 51
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00
ance in H
2
2
2
500 000 2
00
2
A
illion 1 000
0
1
2
2000
000
1500
000
1000
200
2000 0 2011
2012
201
201
2015
otal inco e 2 in H
illion
500
1
0
0 2011
2012
201
2015
peratin e pen e in H
illion
00
201
194.0
200 397.2
151
15
1 51
1
2
00
0 2011
2012
201
201
2015
peratin re ult in H
illion
ecti e 1 anuar 201 1 2
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cl
2015
illion
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20 0
0 2011
2012
201
201
2015
2011
the Group a opte the ne accountin principle in accor ance o
2012
201
201
2011
2015
A ircular 2015 1 Accountin
2012
Bank
inorit intere t in e uit an in Group pro t lo
nclu in Gro re ult ro intere t operation an ther re ult ro or inar acti itie
GROUP
in H
0
50
0 201
2015
55 1
50
201
201
88.2
0
100
2012
Group pro it lo
10 2
100 200
2011
201
0 148.2
150
0
2012
100
250 200
25
100
2011
20
150
05
2000
500
Re ult ro
co i ion bu ine
an
er ice
Re ult ro
tra in acti itie an the air alue option
201
201
2015
Habib Bank AG Zurich
31.12.11
31.12.12
31.12.13
31.12.14
31.12.15
Key figures and ratios u ber o o ce
1
u ber o e plo ee Return on e uit
0 1
R
12 0 2
1
u ber o o ice 315
00 250 200
5000 000
21
1
2
5
1 0
0
1 1 0
21
21 0
12
11
2
52
1 5
1
Return on e uit
5
0 2
2 1 0
0 2012
201
201
2015
2011
2012
uit ratio 15
12
12 0
12
11.6%
12
201
201
2011
2015
2012
o t inco e ratio 0
1 1
7.3%
0
1000
2011
1
0
100
0
R
4'779
2000
50
15
5
2
55
000
150
2
u ber o e plo ee
2
25
1 0
12
o t inco e ratio
50
25
2 0
uit ratio otal capital ratio
21
25
55
0
20
52.9%
50
201
2015
otal capital ratio
0
0
201
2
21 1
21 0
2
1 5
19.9%
201
2015
15
0 10
0 20
5
10 0
0 2011
1 2
2012
201
Group pro t lo
201
2015
0 2011
2012
201
201
2015
2011
2012
201
a percenta e o e uit o a era e at ear en 201 an 2015
ince 1 anuar 201
capital a e uac ha been eter ine in accor ance ith the tan ar
in the Ba el
Accor
GROUP
Habib Bank AG Zurich
Letter from the Chairman and the President
t i our plea ure to pre ent ou ith the th annual report o Habib Bank AG Zurich ba e on the ne accountin principle i ue b the i inancial arket uper i or Authorit B the race o Go Habib Bank AG Zurich eli ere oo re ult in 2015 ba e an hi h li ui it he Habib Group aintaine it con er ati e len i cipline hi polic i characteri e b a hi h percenta e o ull ecure A a re ult a ance to client ecrea e to o epo it recei e ro a place in the interbank arket or in e te in in e t ent ra e bon
hile aintainin a tron capital in polic ith a hi h e ree o an relati el hort ter len in client he re ainin li ui it
urin 2015 e ber o the Boar o irector bi are ell to r lrich Grete ho ha er e not onl a it ice hair an but a e ber or o er ear e thank hi or hi pro e ional an er co petent con tribution a e o er the ear A o 20 April 2015 r eiler replace r lrich Grete a ice hair an an r tephan haler oine our Boar o irector a a ne e ber on the a e a e i h the all ell or the uture he Boar o irector ha propo e that out o the pro it or the ear en e 1 ece ber 2015 an a carr o er pro it ro la t ear a in up to a i tributable a ount o H 2 0 the ollo in appropria tion houl be a e Allocation to tatutor retaine earnin re er e Allocation to oluntar retaine earnin re er e i ribution o i i en ro i tributable pro it ro it an lo carrie or ar
H H H H
1 00 000 15 000 000 1 000 000 2 0
e oul like to thank our client or their lo alt to Habib Bank AG Zurich an or the tru t the place in u in 2015 e al o i h to thank all our e plo ee or their on oin co it ent an contribution to the ucce o Habib Bank AG Zurich r An rea n lin er hair an o the Boar o
irector
uha a H Habib re i ent
Habib Bank AG Zurich
Habib Bank AG Zurich - the Group
Habib Bank AG Zurich hereina ter the Bank o ne
a incorporate in
it erlan in 1
an i pri atel
he Habib a il ha been acti el in ol e in bankin or o er 1 0 ear o a il e ber r uha a H Habib re i ent an r oha e ali R Habib oint re i ent are e ber o the General ana e ent ther e ber o the a il are currentl orkin their a up throu h the ana e ent ra e he tra itional alue o the Habib a il are tru t inte rit re pect er ice an co
it ent
he Bank ha it Hea ice an operation in Zurich an branche in the nite in o ith e ect ro 1 April 201 all a et an liabilitie o the nite in o branch ill be tran erre to the ub i iar Habib Bank Zurich lc on on the nite Arab irate an en a he Bank hol i e holl o ne ub i iarie Habib Bank Zurich lc on on Habib ana ian Bank ana a HBZ Bank i ite outh A rica Habib uropean Bank t le o an an HBZ er ice Z nite Arab irate he Bank hol a 51 o ner hip intere t in Habib etropolitan Bank t aki tan an Habib Bank Zurich Hon on t Hon on collecti el the Group he Bank an the Group are ub ect to the con oli ate uper i ion o the i inancial arket uper i or Authorit A he Group ha a tron capital ba e an li ui it ratio abo e in u tr tan ar an bene it ro the political an econo ic tabilit o ha in it Hea ice in it erlan urther ore the Group ha clo e co operation ith the ariou re ulator bo ie an central bank in the countrie in hich the Group operate he Group place a hi h e pha i on per onal er ice in the countrie in hich it operate he branche an ub i iarie co er nine countrie prea o er our continent A o the en o 2015 e plo ee prea o er 15 o ice are trate icall ituate to pro i e a i u a i tance to our local an international clien tele he Group i acti e in co ercial bankin retail bankin tra e inance bu ine ealth ana e ent an la ic bankin
5
Habib Bank AG Zurich
Group organisation structure
Board of Directors he Boar o irector o the Bank i a e up o non e ecuti e an in epen ent irector all o e ten i e e perience in their re pecti e iel o co petence Name
Born
r An rea
n lin er
hair an
i
ice hair an
e ber
i
ice hair an
e ber
lrich Grete
1
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1
2
1
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5
Briti h
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1
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1 5
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e ber
r
1
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tephan haler until 20 April 2015 until 20 April 2015 ro 20 April 2015
e ber an
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2
20 April 2015 ice hair an o Boar o
ha e
Risk & Control Committee
Audit Committee
i
r r
Board of Directors
1 5
r
Ra Barne
Citizenship
ho
e ber e ber
hair an hair o an e ber
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General Management General ana e ent con i t o t o e ber o the Habib a il an one non a il the e ber o General ana e ent ha e re i enc in it erlan Name
Born
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oha e ali R Habib
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1
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1 55
alter
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1
until 0
Citizenship
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Function re i ent an Hea o
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Briti h
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1
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Management of the branch network Name
Born
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1 5 hou hr
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GROUP
1 1 1 5
5
Citizenship
Function
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nite Arab
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Habib Bank AG Zurich
Management of the subsidiaries Name u li
Ha an
Za ar han oha Ati
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Born
Citizenship
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ana ian
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1
HBZ er ice
Briti h
Function
A
Hon
irate
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Z
Group Internal Audit Name
Born
Haroon Ah a
1
5
Citizenship aki tani
Function Hea o Group nternal Au it
Group Support Functions Name air hau har A nan a ih
Born
Citizenship
Function
1
Briti h
Group hie
1
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1 5
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Hea o Group re it
GROUP
Habib Bank AG Zurich
Directors' report
Economic environment he lobal econo e perience another ear o o erate ro th an e pite hi hl acco o a ti e central bank policie the rate o e pan ion in o t a ance econo ie re aine belo their lon ter a era e e hea in e er e in the cour e o the ear ainl in the or o the un relentin ecline o co o it price an lo in tructural ro th in hina he e e elop ent particularl a ecte an co o it e portin e er in econo ie an contribute to capital out lo an i e prea currenc eakne apital out lo ere partiall oti ate b e pectation rate hich ateriali e in e or hi her ce ber hen the e eral Re er e increa e it tar et rate or the ir t ti e ince 200 n la tionar pre ure re aine ub ue in o t econo ie ith the e ception o tho e hich u ere lar e epreciation he uropean entral Bank B intro uce it o n uantitati e ea in pro ra earl in the ear in or er to co bat lin erin e lation ri k A on the Bank lar e t arket aki tan en o e b ar the hi he t ro th in 2015 ith a rate o e pan ion ell abo e in real ter Gro th a upporte b the o ern ent e ort to i ple ent the on oin a ree ent he launch o the hina aki tan cono ic orri or a a a or ile tone or the e elop ent o the countr ith the potential o li tin the lon ter ro th b e eral percenta e point thank to better in ra tructure an i pro e ener uppl he o erall po iti e econo ic en iron ent bene ite urther ro the loo er onetar polic o the tate Bank o aki tan B that lo ere ke rate to an all ti e lo a in lation ecline ith harpl lo er oil price he lo er oil bill helpe to contain the current account e icit hich re aine ell inance thank to a nu ber o ultilateral loan an ne international bon i ue A polic to aintain e chan e rate tabilit allo e the B to accu ulate a recor a ount o currenc re er e an to urther tabili e e ternal account albeit at the e pen e o harpl
GROUP
re uce international co petiti ene tr e port in u trie
o the coun
he nite Arab irate ere al o able to aintain ecent ro th albeit at a eceleratin pace a lo er oil price a ecte eneral bu ine acti it he o ern ent a orce to re uce public e pen iture an to con i er e pan in it inco e ource ith the po ible intro uction o a eneral corporate ta an a alue a e ta hile e ort to i er i the econo helpe to li it the hort ter i pact the e iu ter pro pect beca e uch ore uncer tain urin the cour e o the ear ublic enti ent eteriorate a ectin a on other thin the lar e an i portant real e tate ector oreo er ith the A pe e a ain t the the countr ace hi her intere t rate hen it a lea t elco e A nu ber o o e tic an lobal hea in bu ete the outh A rican econo urin 2015 he pre ure on co o it price an a eneral retreat ro e er in arket hit the econo har an the ZAR lo t a uarter o it alue he o ern ent o outh A rica ean hile a unable to ake i ni icant pro re in a re in the or enin bottleneck in the ener ector he replace ent o a ell re pect e ini ter o inance late in the ear tri ere a a or con i ence cri i hich a onl partl eue hen the o ern ent a en e it eci ion oor econo ic o ernance rai e the pectre that the countr a lo e it in e t ent ra e ratin o er the e iu ter ace ith ri in in lation an a plu etin currenc the outh A rican Re er e Bank ti htene it polic e eral ti e e pite lo an i appointin ro th Real G ro th in the lo e in the cour e o 2015 to li htl abo e 2 annuall but till le t the econo a one o the top per or er in the G Go ern ent pen in cut a lo o n in con truc tion in e t ent an lo er e port ere the ain cau e or lo er acti it Hou in price al o o erate ro the ouble i it ro th recor e in the pre iou ear erall onetar con ition ti htene ue to the relati e tren th o the tra e ei hte
Habib Bank AG Zurich
GB e en thou h the Bank o n lan re raine ro rai in it ke polic rate or another ear in the ab ence o i ni icant in lationar pre ure he i ational Bank a e a urpri e eci ion to en the H 1 20 loor rate a ain t R in i anuar he re ultin harp appreciation o the currenc a ho e er ab orbe ore uickl than initiall e pecte an e portin co pa nie inclu in bank reacte pro ptl b cuttin the co t ba e thereb li itin the i pact on their e ternal co petiti ene e erthele the i econo a a hole continue to tru le in the ace o an o er alue currenc an ea re ro th in the core uropean arket A on the aller arket the en an econo are be t thank to a bitiou o ern ent in e t ent pro ect hich aintaine real annual ro th abo e 5 Ho e er lobal ri k a er ion an lar e e icit o both the bu et an current account put i ni icant o n ar pre ure on the that orce the entral Bank o en a to ub tantiall increa e polic rate Hon on u ere ro ub tantiall eaker e an ro ainlan hina ainl re lecte in lo er retail ale an touri t arri al hile pri ate con u ption continue to ro at a ecent pace the hou in arket ho e ir t i n o a lo o n ntere t rate ro e late in the ear in re pon e to hi her rate a the currenc re aine pe e to the ana a u ere a il rece ion in earl 2015 hen the econo contracte un er the i pact o lo er ener price an lo er bu ine in e t ent herea ter acti it reco ere onl lu i hl till ha pere b ub ue e an or co o itie e en a the Bank o ana a la he it polic rate t ice urin the ear he currenc ecline harpl lo in o e 20 o it alue a ain t the
Banking sector he econo ic conte t or the lobal bankin in u tr a arke b u taine e tre el lo le el o intere t rate in the e elope orl nl rate o e hi her in anticipation o a hi her e rate hi opene a iel ap that a ore the a ain t o t other currencie throu hout the ear ro the late u er on ar increa in inancial arket olatilit in re pon e to chan e to the hine e currenc re i e o inate e ent lea in to a pike o ri k a er ion an in particular pre ure on e er in arket a et he harp ecline o co o it price i pacte the acti it o oil pro ucer an e porter ho ere hit b lo er ca h lo an hi her cre it co t ren in cre it ro th ere enerall po iti e in o t a ance econo ie inclu in in the euro one here loan ro th ha pre iou l been hel back b ele era in an hrinkin balance heet en in e er in econo ie uch a outh A rica an A hich u ere ro lo er co o it price cre it ro th re aine in the hi h in le i it Bankin acti it al o re aine robu t in aki tan but lo er arket intere t rate co pre e the bank net intere t ar in ri ate bankin an ealth ana e ent re aine a ro th bu ine Here a ain ho e er lo er co o it price an hi her arket olatilit le t their ark a ectin both net ne one lo an client acti it particularl in the econ hal o the ear e pite the i ni icant hea in ro lo er econo ic ro th in hina A ia re aine the ke ro th arket or pri ate client bu ine eetin ne re ulator re uire ent continue to be a ain ocu o the in u tr Bank allocate once a ain i ni icant capital an hu an re ource to a re ne an ti hter re ulation acro all bu ine acti itie in particular the pon ore auto at ic e chan e o in or ation on ta atter an the A A le i lation At the a e ti e the e er ence o c ber threat orce an bank to har en their in ra tructure GROUP
Habib Bank AG Zurich
Operational performance and outlook
e pen e or in or ation technolo teleco uni cation an other operatin e pen e ri en b the Group branch e pan ion trate
Income statement he Group recor e in 2015 a pro it o H lion hich repre ent an increa e o H 10 a ain t 201
2 il illion
Gro re ult ro intere t operation a ounte to H 2 2 illion hich repre ent a ain an increa e o H illion a ain t the pre iou ear hi e elop ent a ainl ue to an increa e o the balance heet ite A ount ue in re pect o cu to er epo it an ther inancial in tru ent at air alue he ubtotal re ult ro co i ion bu ine an er ice a ounte to H illion hich rep re ent an increa e o H 1 illion a ain t 201 Re ult ro tra in acti itie an the air alue option a ounte H 5 illion hich repre ent a ecrea e o H a ain t the pre iou ear hi i erence ainl te ro t o e ent he pro it on ale o ther inancial in tru ent at air alue ecrea e co pare to the pre iou ear b H 1 1 illion an the con oli ation polic a opte re ulte in an lo a ountin to H 2 illion in 201 an inco e o H illion a accounte or eri in ro the tran lation o inan cial tate ent o branche ubtotal operatin e pen e increa e b H 15 illion to H 1 0 illion co pare to 201 er onnel e pen e increa e b H illion co pare to 201 to H 1 1 0 illion he ain rea on or thi increa e a relate to the increa e in nu ber o e plo ee in ariou countrie he a era e nu ber o e plo ee urin 2015 o the Group a 1 co pare to 2 urin 201 General an a ini trati e e pen e a ounte to H 0 illion hich repre ent an increa e o H 0 illion a ain t 201 ainl ue to hi her
10
GROUP
han e in re er e or eneral bankin ri k a ounte to plu H 0 illion a ain t a inu o H illion or the pre iou ear re iou ear bookin ollo e a pru ent re er e polic hich con i ere the uncertaint ue to tron H hich a not re uire in 2015 he increa e o a e ro H 5 2 201 up to H 1 illion in 2015 a the i pro e ent o Group pro it
illion in ri en b
he a ter ta return on e uit co pare to 0 in 201
in 2015
a at
he Group co t inco e ratio increa e to 52
ro
2
Risk assessment he Boar o irector con ucte a ri k a e ent o a or ri k e po ure o the Bank an the Group in 2015 Balance sheet he balance heet reache H 10 5 2 illion i e an increa e o H 1 illion co pare to 201 hi i ainl ue to the increa e ocu on epo it obili ation i ui a et a ounte to H 1 0 2 illion a ain t H 1 0 illion or 201 hich repre ent an increa e o H 101 illion A ance i e A ount ue ro cu to er an ort a e loan reache H 1 5 illion a ain t H 0 2 illion in 201 i e a ecrea e o H 212 illion ther inancial in tru ent at air alue an inancial in e t ent a ounte to H 5 1
Habib Bank AG Zurich
illion he increa e a ain t 201 a ount to H 5 illion he Group in e te a lar e part o epo ite un in local o ern ent paper he eneral intere t rate ecrea e pro i e ub tantial re aluation pro it on the e in tru ent A ount ue in re pect o cu to er epo it reache H 5 illion a ain t H 01 illion or the pre iou ear earl all countrie contribute to the increa e o H illion Capital and liquidity he Group ha a tron capital ba e a li ui it ratio
ell a a hi h
he capital a e uac ratio tan at Bank le el at 2 an at Group le el at 1 an the le el o li ui it co era e ratio a ount at Bank le el to 1 an at Group le el to 1 he le era e ratio achie e at Bank le el a 12 an at Group le el 10 or ore etail ee annual Ba el i clo ure he e ratio re uire ent
i ni icantl
e cee
the re ulator
Operations urin 2015 e ere able to e pan our net ork ith ne branche in aki tan reachin a total o 2 branche in citie acro the coun tr inclu in a branch in G aa ar the port cit o the hina aki tan cono ic orri or n en a 1 ne branch a a e in ali n the nite in o e obtaine per i ion ro the RA an A to tran or our branch into a ub i iar e pecte to occur on 1 April 201 n the ir t hal o 2015 our Hon on ub i iar obtaine a re tricte bank li cen e an it na e a chan e to Habib Bank Zu rich Hon on t a tl our ub i iar in outh A rica prou l celebrate it 20th anni er ar in 2015 n i ilar a hion to an other i bank our i operation reache an a ree ent ith the epart ent o u tice or the a ro ra be ore ear en ur i operation continue to ocu on
tren thenin it o erin terpri e in it erlan
to
all an
e iu
en
he a or ile tone o the ir t pha e o our Group trate ic lan 201 2020 ha e been ub tantiall achie e he Group Go ernance ra e ork ha been urther enhance an a pro ect to i ple ent a tate o the art nternal ontrol te ha been initiate an i ple entation b pha e ill be in in 201 he Group Hu an Re ource unction ha been tren thene an ith the no ination o our ne Group hie peratin icer the Group n or ation echnolo an the Group n or a tion echnolo Ri k unit ha e been reor ani e to better a re uture challen e ro 201 on ar the Group ill be enterin the econ pha e o the Group trate ic lan 201 2020 Outlook he pro re a e urin the ir t pha e o our Group trate ic lan 201 20 ill allo u in the co in ear to ocu on our pro uct o erin client centric it an arket e pan ion n thi conte t an in con i eration o the e ol in nee o our client e ha e eci e to cea e operation o our ub i iar in the le o an in 201 n the other han it i our oal to ur ther e pan our branch net ork in the countrie here e are alrea pre ent na el aki tan outh A rica an ana a an e are currentl e aluatin op tion to urther e pan our ranchi e n aki tan the ne l e tabli he RA haria co pliant pro uct uite ha pro re e ell an e inten to e pan our o erin o RA to other uitable countrie e ill continue to a re e ol in client e an b in e tin in ne technolo ie Ho e er not ith tan in thi e er chan in technolo ical lan cape e re ain con ince that per onal co unication i the oun ation to lon ter client relation hip e e pect that 201 ill be a challen in ear or the inancial in u tr but e are ell po itione to a re the e challen e ith our clear ocu international pre ence tron reputation an client lo alt
GROUP
11
Habib Bank AG Zurich
Balance sheet (before appropriation)
in H 000
ote
31.12.15
31.12.14
Assets i ui a et A ount
ue ro
A ount
ue ro
A ount
ue ro
1 0 2 15 bank
2
ecuritie inancin tran action cu to er
0
20 10 0 1
1 2
ort a e loan
0
1 01
2
05
2
2 11
20 5
2
5 20
ra in port olio a et o iti e replace ent alue o
0 eri ati e inancial in tru ent
0 2
ther inancial in tru ent at air alue
2
inancial in e t ent
11
Accrue inco e an prepai e pen e
5 12
1 2
20 1 1 5 1 125 111 12 2
on con oli ate participation an ible i e a et
10
ntan ible a et
11
ther a et Total assets
12
GROUP
0 2 2
51 0 52 0
12 10'582'638
9'803'487
Habib Bank AG Zurich
in H 000
ote
31.12.15
31.12.14
Liabilities A ount
ue to bank
iabilitie ro A ount
1
ecuritie inancin tran action
2
1
ue in re pect o cu to er epo it
e ati e replace ent alue o Accrue e pen e an
5 5
eri ati e inancial in tru ent
ther liabilitie
1 2
Bank capital Retaine earnin
re er e
5 5 115
1
22 555
2
150 000
150 000
255 1
21 2
1 0
inorit intere t in e uit
5
1
Group pro it lo hich
12
55 1
urrenc tran lation re er e
o
5
1
15 15
2
21
5
12
Re er e or eneral bankin ri k
01
10 1
e erre inco e
ro i ion
02 1
2
1
52
22
inorit intere t in roup pro it lo
15
0
Total liabilities
22
10'582'638
2
9'803'487
Off balance sheet transactions ontin ent liabilitie rre ocable co re it co
22
it ent
it ent
11 2 1
11
15 2
1 5 12
212 0
221 2 1
GROUP
1
Habib Bank AG Zurich
Income statement
in H 000
2015
ote
2014
Result from interest operations ntere t an
i count inco e
ntere t an
i i en inco e ro
225 inancial in e t ent
ntere t e pen e Gross result from interest operations han e in alue a u t ent or e ault ri k an lo e ro
intere t operation
Subtotal net result from interest operations
2 2
2
5
2
121
1
205 55 21
262'714
224'140
0 2
1 5
231'886
209'541
Result from commission business and services o
i ion inco e ro
o
i ion inco e ro
len in acti itie
ecuritie tra in an in e t ent acti itie
o
i ion inco e ro
other er ice
o
i ion e pen e
5
02 0
2 2
2
151
Subtotal result from commission business and services Result from trading activities and the fair value option
5 10
25
55 5
55
76'636
75'634
56'797
104'539
Other result from ordinary activities Re ult ro
the i po al o inancial in e t ent
Re ult ro
real e tate
1 10 5
ther or inar e pen e Subtotal other result from ordinary activities
1
GROUP
1
5 5 0
2 0 1'094
14'736
Habib Bank AG Zurich
in H 000
ote
2015
2014
Operating expenses er onnel e pen e General an a
2
ini trati e e pen e
121 012
2
Subtotal operating expenses alue a u t ent on participation tan ible i e an intan ible a et
1 0 -194'005
5
1
-178'327
epreciation an a orti ation on 12
han e to pro i ion an other alue a u t ent an lo e
11
Operating result traor inar inco e traor inar e pen e
11 5 5
148'176 2
12
2
2
207'797 2
han e in re er e or eneral bankin ri k a e
o
20 0
Group profit / loss hich
inorit intere t in roup pro it lo
5 1
1 12 88'228 0
5 1 77'615 22
GROUP
2
15
Habib Bank AG Zurich
Cashflow statement
2015 in H 000
ource o un
Cash flow from operating activities
157'279
Group pro it or the perio
2014 e o un 87'339
ource o un 271'453
22
ro i ion an other alue a u t ent
64'095
15
han e in re er e or eneral bankin ri k alue a u t ent on participation epreciation an a orti ation on tan ible i e a et an intan ible a et
e o un
20 12
11 5
11
han e in alue a u t ent or e ault ri k an lo e
1 0
5
0 2
1 5
urrenc tran lation re er e
2
5
1
0
Accrue inco e an prepai e pen e Accrue e pen e an re iou
ear
e erre inco e
0 1
1
i i en
52 0 1 1
2
22
Cash flow from shareholders' equity transaction Bank capital Reco ni e in re er e Cash flow from transactions in respect of participations, tangible fixed assets and intangible assets
2'853
8'816
1 2
2
7'484
15'384
on con oli ate participation Real e tate ther tan ible i e a et ntan ible a et
1
GROUP
1 02
5 0 1
5 511
5
Habib Bank AG Zurich
2015 in H 000
2014
ource o un
o un
e
ource o un
o un
e
444'805
177'990
717'652
600'435
1 5
1 5 5
Cash flow from the banking operations Medium to long-term business (> 1 year) A ount
ue to bank
A ount
ue in re pect o cu to er epo it
12 12
ther liabilitie
21
A ount
ue ro
bank
A ount
ue ro
cu to er
2
ort a e loan ther inancial in tru ent at air alue
Short-term business
A ount
1'074'854
ue ro
A ount
ue ro
1
1'303'948
0
1
20
20 2
1 2
1 10
0
2
15 0
2
12 52
5 1
inancial in e t ent
5 2 0
1 50
i erence
1
Liquidity
01
0
101'698
i ui a et Total
1'861'418
1 50 05 10 20
ther inancial in tru ent at air alue urrenc
1'632'432 115 1 2
ort a e loan ra in port olio a et
0
12
5 1
ecuritie inancin tran action
o iti e replace ent alue or eri ati e inancial in tru ent
2
2
bank cu to er
1 2
2 2 2
ecuritie inancin tran action
e ati e replace ent alue or eri ati e inancial in tru ent ue ro
1
22 1
ue in re pect o cu to er epo it
A ount
2
0
212
ue to bank
A ount
1
2 5
ther account recei able
iabilitie ro
1
21 1
inancial in e t ent
A ount
11 1 5
87'689
101 1'679'791
1'679'791
2'629'021
GROUP
2'629'021
1
Habib Bank AG Zurich
Statement of changes in equity
Bank capital
in H 000 Equity at 01.01.15
150'000
ran er o pro it to retaine earnin apital increa e
Retaine earnin re er e 217'269
Re er e or eneral bankin ri k
urrenc tran lation re er e
inorit intere t in e uit
Group pro it or lo
otal
555'832
8'675
197'352
77'615
1'206'743
55 1
22 21
an other i tribution
1 000
ther allocation to tran er ro re er e or eneral bankin ri k
the
ther allocation to tran er ro re er e
other
2 0
Equity at 31.12.15
GROUP
2
10
12
22 150'000
255'186
556'136
5 1 1
1
Group pro it lo
1
15
ecrea e
urrenc tran lation i erence i i en
2
-13'073
188'327
88'228
22 1'224'804
Habib Bank AG Zurich
icture to co e later
Matterhorn (4'478 m), Switzerland GROUP 1
Habib Bank AG Zurich
Notes to the consolidated financial statements
Accounting and valuation principles
the pro it an lo account a inco e ro Re ult ro tra in acti itie an the air alue option
he Habib Bank AG Zurich Group annual inancial tate ent ha e been ra n up in accor ance ith the accountin rule incorporate into the i Bankin Act an it acco pan in or inance to ether ith A ircular 2015 1 Accountin Bank he e account hich are ba e on the ollo in con oli ation an accountin policie i e a true an air ie o the Bank an the Group a et o it inancial po ition an o the re ult o it opera tion Consolidation principles cope o the con oli ation he Group account incorporate the annual inancial tate ent o Habib Bank AG Zurich Zurich an it ub i iarie Re er to note or a li t o con oli ate ub i iarie etho o con oli ation he Group capital con oli ation ollo cha e etho
the pur
he intere t in e uit an pro it or lo attributable to inorit harehol er are i clo e eparatel ntra roup a et an liabilitie a ell a e pen e an inco e ro intra roup tran action are eli inate on oli ation perio he con oli ation perio or all Group co panie i the calen ar ear he clo in ate or the con oli ate inancial tate ent i 1 ece ber
or con oli ation purpo e the balance heet o the inancial tate ent o branche an ub i iarie ba e out i e it erlan are tran late into H at e chan e rate pre ailin at the Group report in ate he corre pon in inco e tate ent are tran late at the a era e rate o the re pecti e ear orei n e chan e i erence ari in ro the tran lation o the inancial tate ent o ub i iarie are recor e ithin the e uit herea tho e ro the tran lation o inancial tate ent o branche are recor e in the inco e tate ent a Re ult ro tra in acti itie an the air alue option he ollo in e chan e rate o the a or currencie ere u e or the balance heet 1 1 GB 100 A 100 R 100 ZAR
31.12.15 0 1 2 0 5
31.12.14 0 15 2 5 0 51
he ollo in e chan e rate o the a or currencie ere u e or the inco e tate ent 1 1 GB 100 A 100 R 100 ZAR
31.12.15 0 1 2 2 0 5
31.12.14 0 2 1 51 2 0 1
Foreign currency translation Valuation and accounting principles n the inancial tate ent o in i i ual Group co pa nie an branche inco e an e pen iture in orei n currencie are tran late at the e chan e rate rulin a at the tran action ate A ount ue ro an ue to thir partie in orei n currencie are tran late at the ear en rate Gain an lo e ari in ro currenc tran lation into the local currencie are char e to
20
GROUP
he aluation an accountin principle are con i tent or the Bank an the Group he nancial tate ent o all roup co panie u e or con oli ation co pl ith the belo aluation an accountin principle
Habib Bank AG Zurich
Recording of transactions
Value adjustments for default risks
ran action are recor e at the tran action ate rior to the alue ate or ar orei n e chan e an preciou etal tran action are carrie a o balance heet bu ine Recei able an pa able are i clo e accor in to the o icile or re i enc o client
Recei able here it i con i ere unlikel that the ebtor ill ul ll hi obli ation are con i ere at ri k n particular recei able here intere t an co i ion are ore than 0 a o er ue are con i ere to be at ri k ntere t at ri k an intere t hich i i paire are not reco ni e a inco e but are e ucte to ether ith alue a u t ent a ain t the capital a ount ro the re pecti e a et houl the collection o intere t in re pect o A ount ue ro cu to er an ort a e loan be uncertain intere t i not calculate
Liquid assets and amounts due to and from banks and amounts due in respect of customer deposits he e a ount inclu in intere t ue but not pai are ho n at no inal alue Amounts due from and liabilities in respect of securities financing transactions
or con u er loan peci c alue a u t ent ac cor in to ti e ba e criteria are built here intere t i o er ue or ore than 0 a
he Group bu an ell ecuritie un er a ree ent to re ell or re purcha e ub tantiall i entical ecuritie uch a ree ent o not nor all con ti tute econo ic ale an are there ore treate a nancin tran action ecuritie ol ub ect to uch a ree ent continue to be reco ni e in the balance heet he procee ro the ale o the e ecuritie are treate a liabilitie ecuritie purcha e un er a ree ent to re ell are reco ni e a loan colla terali e b ecuritie or a ca h epo it a ain t hich the Group ecuritie are ple e
alue a u t ent or countr ri k are a e e in accor ance ith the ui eline on the ana e ent o countr ri k ro the i Banker A ocia tion urther ore countr peci c eneral cre it ri k alue a u t ent are aintaine ba e on the i erentiate ri k pro le reco ni e or in i i ual ector o the loan port olio or here uncertaint i re ecte b a itional alue a u t ent alue a u t ent or countr ri k a ell a countr peci c eneral cre it ri k alue a u t ent are e ucte ro A ount ue ro cu to er
Amounts due from customers and mortgage loans
Trading portfolio assets
he e clai are reporte at no inal alue All cli ent loan are a e e in i i uall or e ault ri k an here nece ar alue a u t ent a e in ac cor ance ith Group polic he e alue a u t ent take into account the alue o an collateral at len in alue an the nancial tan in o the borro er he are et o a ain t the corre pon in a et
ra in port olio a et po ition con i t ainl o preciou etal an bon he are alue at air alue a at the balance heet ate
e eral la ic Bankin branche in aki tan an outh A rica aintain A et hel un er arah a ree ent Ac uire a et un er thi a ree ent are tate at co t le accu ulate epreciation an i pair ent i an
Other financial instruments at fair value ther nancial in tru ent at air alue hich are tra e on an acti e arket hich eet the con ition or an a e ent at air alue accor in to A ircular 2015 1 Accountin Bank an hich are not inten e to be hel until aturit are alue accor in to thi principle
GROUP
21
Habib Bank AG Zurich
Financial investments inancial in e t ent con i t tere t ecuritie he a orit o ith the intention o hol in the are hence carrie at co t a u te o pre iu an i count u in
ainl o e in the e are ac uire until aturit an or the a orti ation the accrual etho
he re ainin in e t ent in thi po ition are a lue at the lo er o co t or arket alue principle hi po ition al o inclu e o e hare a ell a real e tate hich ha been a u e ro the len in bu ine or re ale an hich are alue at the lo er o co t or arket alue Derivative financial instruments eri ati e nancial in tru ent con i t entirel o tra in in tru ent hich are reporte at air alue he reali e an non reali e ain an lo e ro the e tran action are reporte un er Re ult ro tra in acti itie an the air alue option he Group ha no i ni cant open eri ati e tran action on it o n account at the balance heet ate o iti e an ne ati e replace ent alue o open e ri ati e nancial in tru ent on behal o client are ho n in the balance heet a a eparate line ite he re pecti e contract olu e are ho n in the no te Non-consolidated participations on ter hol in in a ociate co panie none o hich e cee 10 are alue at co t le an econo icall nece ar epreciation Tangible fixed assets an ible e a et u e or ore than one accoun tin perio an hich e cee the thre hol e ne b the Group are capitali e n thi ca e the are e preciate on a trai ht line ba i o er the perio o their e ti ate u e ul li eti e ti ate li e ti e ha e been et a ollo
22
GROUP
Bank buil in an other real e tate roprietar or eparatel ac uire o t are ther tan ible e a et
25 50 ear 5 ear 10 ear
o epreciation i char e on lan e cept here alue a u t ent ha e been a e to allo or a re uction in arket alue he tan ible e a et are re a e e hene er circu tance u e t that their alue a ha e allen belo their book alue Intangible assets: Goodwill Goo ill in the balance heet re ult ro the pre iu pai o er net a et alue ro an ac uire co pan n uch ca e the recor e oo ill i re ie e or i pair ent e er ear an ritten o o er e ear on a trai ht line ba i Provisions he Group recor pro i ion to co er peci c ri k that are ba e on a pa t e ent that repre ent a prob able obli ation an or hich the a ount can be reliabl e ti ate Reserves for general banking risks he e ta e re er e are hel in line ith the Group pru ent policie a precautionar re er e to he e a ain t latent ri k in the Group operatin acti itie he or part o the ier 1 capital o the Group Off balance sheet transactions ontin ent liabilitie relate ainl to irre ocable co it ent ori inatin ro letter o cre it an uarantee he e are enerall ull ecure ece ar pro i ion are recor e on balance heet un er pro i ion ontin ent liabilitie to ether ith irre ocable co it ent call liabilitie an cre it co it ent are recor e at no inal alue
Habib Bank AG Zurich
i uciar tran action are con erte into H at the rate pre ailin at the balance heet ate an are ho n at no inal alue Taxes and deferred taxes nco e ta e are ba e on the ta la o each ta authorit an are e pen e in the perio in hich the relate pro t are a e e erre ta e ari in ro te poral i erence bet een the tate alue o a et an liabilitie in the con oli ate heet an their corre pon in ta alue are recon ni e a e erre ta a et or e erre ta liabilitie e er re ta a et are capitali e i there i likel to be enou h ta able pro t to o et the e i erence in uture Pension fund commitments n it erlan the occupational bene t plan are co ere b Allian ui e n urance o pan All e plo ee are in ure in accor ance ith the la the oun ation ocu ent an the re ulation o the bene t plan n the other countrie pen ion liabilitie are co ere b in urance co panie or are po te irectl to the balance heet he e plo er contribu tion i inclu e un er er onnel e pen e Receivables and payables from related parties and governing bodies Recei able an pa able ro o ernin bo ie inclu e cre it line to boar e ber an General ana e ent he e tran action ha e been e ecute in accor ance ith the current internal re ulation on e plo ee loan a ance an epo it Recei able an pa able ro inclu e in table 1
o ernin bo ie are
GROUP
2
Habib Bank AG Zurich
Explanations of risk management
Risk & Control Framework he Ri k ontrol ra e ork o the Group i the corner tone or ri k ana e ent an control he Ri k ontrol ra e ork pro i e the ba i to e ecti el i enti a e an ana e ri k ithin the Group urther ore it e ine hich bo ha the o erall re pon ibilit or a particular ri k cla ho ana e it an ho per or in epen ent ri k control Risk organisation At the le el o the Boar o irector the re pon i bilitie are the ollo in the Boar o irector i re pon ible or the trate ic irection uper i ion an control o the Group an or e inin our o erall ri k tolerance b ean o a ri k appetite tate ent an o erall ri k li it the Ri k ontrol o ittee i re pon ible or a i tin the Boar o irector in ul illin it o er i ht re pon ibilitie b pro i in ui ance re ar in ri k o ernance an the e elop ent o the ri k pro ile inclu in the re ular re ie o a or ri k e po ure an o erall ri k li it an the Au it o ittee i re pon ible or a i tin the Boar o irector in ul illin it o er i ht re pon ibilitie b onitorin General ana e ent approach ith re pect to inancial reportin internal control an accountin A itionall the Au it o ittee i re pon ible or onitorin the in epen ence an the per or ance o the Group nternal Au it an e ternal au itor At the operational le el the Group operate ith a three line o e ence o el hereb bu ine unction ri k ana e ent o er i ht an a urance role are per or e b unction in epen ent o one another urther ore a clear i tinction i a e bet een ri k o ner ri k ana er an ri k controller Ri k o ner bear the o erall uper i ion an re pon ibilit or the ana e ent o peci ic ri k cla e or ri k t pe
2
GROUP
Ri k ana er ocu on the onitorin an proacti e ana e ent o ri k he initiate ri k ana e ent ea ure an can chan e the ri k pro ile Ri k controller in epen entl onitor an a e ri k a ell a hi hli ht e iation ro tar et ri k para eter an non co pliance ith policie Risk management principles he ollo in eneral principle upport the Group e ort to aintain an appropriate balance bet een ri k an return e protect the inancial tren th o the Group b controllin our ri k e po ure an a oi in potential ri k concentration at in i i ual e po ure le el at peci ic port olio le el an at an a re ate Group i e le el acro all ri k t pe e protect our reputation throu h a oun ri k culture characteri e b a holi tic an inte rate ie o ri k per or ance an re ar an throu h ull co pliance ith our tan ar an principle e te aticall i enti cla i an ea ure ri k appl in be t practice e en ure ana e ent accountabilit hereb Bu ine ine ana e ent o n all ri k a u e throu hout the Group an i re pon ible or the continuou an acti e ana e ent o all ri k e po ure to en ure that ri k an return are balance e et up in epen ent ri k control unction or unit hich onitor e ecti ene o ri k ana e ent an o er ee ri k takin acti itie e i clo e ri k to the Boar o irector re u lator an other takehol er in a co prehen i e an tran parent anner Internal controls nternal control are proce e an in tru ent u e to onitor an control operational an other bu ine ri k n or er to continuou l enhance the Group internal control te an the e ecti ene o con trol re ult o actual control proce e are re ie e an the outco e o the Group perational Ri k ana e ent proce e i taken into account he or ani ational unit re pon ible or internal control
Habib Bank AG Zurich
ork clo el the Group
ith other or ani ational unit
ithin
in ol e in the ac ui ition o cre it bu ine the anal i an appro al o a cre it re ue t an the ub e uent a ini tration
Credit risk re it ri k ari e ro the po ibilit that a coun terpart i e pri ate an corporate client nancial in titution a ell a i uer or o erei n oe not ul l contractual obli ation or the cre it ualit e teriorate n or er to ana e potential e ault ri k an other pre ailin cre it ri k o t e ecti el it i i i e into the ollo in ri k t pe client cre it ri k i uer cre it ri k counterpart cre it ri k coun tr ri k inclu in cro bor er tran er ri k ettle ent ri k an cre it concentration ri k he Group re it ana e ent o ittee i re pon ible or cre it ri k an cre it eci ion hich a be ele ate to the re pecti e ountr re it an a e ent o ittee he Group ana e it cre it ri k ithin a con er ati e ra e ork b e aluatin the cre it orthine o the borro in counterpartie ettin appropriate cre it li it an obtainin collat eral a ee e nece ar or each collateral t pe a ini u haircut i e ne in or er to account or the olatilit in arket alue accor in to the na ture an li ui it o the collateral Aroun 0 o the Group cre it e po ure i ecure b propert an onl 1 i un ecure he Group cre it ri k appetite i e ne an oni tore throu h a co prehen i e te o cre it li it
Bank counterpartie i uer an o erei n are ana l e accor in to their nancial per or ance an their e ternal ratin er 5 o the cre it e po ure to nancial in titution i o in e t ent ra e ual it an the re ainin 25 con i t ainl o tra e nance e po ure in e er in arket to hich the Group i clo el relate an onitor the port olio ith a et o countr li it Re ar in non per or in loan the Group i in a co ortable po ition A ter takin the collateral at arket alue an the peci c pro i ion into ac count the net un ecure an un pro i e po ition at the en o ece ber 2015 a onl H 5 illion ountr ri k are onitore uarterl an are either uarantee ith the orl Bank GA or pro i e or in accor ance ith the ui eline o the i Banker A ociation u in international ratin Liquidity Risk he Group applie a pru ent approach to li ui it ri k ana e ent he Group A et iabilit an a e ent o ittee o er ee li ui it an arket ri k re ularl
he Group ha it o n ratin te or corporate client ach cre it i a e e a to the borro er cre it orthine collateral co era e an collat eral ualit re uire ent a ell a the un erl in tran action rationale bu ine potential an an a itional ri k iti ation er onal cre it are u uall onl rante on a ull collaterali e ba i ollateral co era e i onitore on a re ular ba i an accor in to the pre ailin arket con ition
he Group rant a ance an loan to client both on a hort ter ba i an ith tenor enerall up to 5 ear un in i pri aril obtaine throu h epo it hich are ainl at i ht or hort ter epo it hole ale un in i not i ni cant an epo it are ell i er i e o in le epo itor account or ore than 5 o the Group total e po it ce li ui it i hel a bank place ent or nancial in e t ent he latter pri aril con i t o bon port olio o o erei n i uer or other i uer o hi h ualit
A e uate an clear e re ation o utie are e tabli he a on the ariou or ani ational unit
he contractual aturitie o the Group nancial a et e cee the contractual aturitie o the nan
GROUP
25
Habib Bank AG Zurich
cial liabilitie Ho e er hen eter inin aturit ap the tickine o epo it or econo ic aturi tie nee to be con i ere hich i ni cantl re uce the contractual ap urther ore in i i ual client roup in i erent countrie ill not act in the a e a an at the a e ti e n eneral the Group i e po e to potential lar er epo itor out o an u en a er e arket e el op ent here ore relate cenario ha e been ana l e a part o three li ui it tre te t per or e throu hout the Group he tre te t re ult ho e that the li ui a et a ailable coul ab orb pro ecte out o in all ca e he Group aintain a tron li ui it po ition hich i urther upporte b e tabli he repo unc tionalitie n a ition li ui it co era e ratio tar et ha e been e ne or all operatin Group co panie
intere t rate ri k o t client a ance are a ree on a or onth ba e rate plu a cre it prea n a ition branche an ub i iarie ha e place e ce li ui it in bank place ent or in nancial in e t ent ith tenor u uall up to 5 ear hile the olu e o nancial in e t ent i kept li ite the a era e uration o the e inco e port olio create intere t rate ri k e po ure i en the ab ence o lon ter hole ale nancin or orei n e chan e ri k a er e approach an ai ei n e chan e lo e lo proprietar orei n e chan
the Group pur ue a ri k at keepin potential or he Group oe not pur ue e tra in acti itie
he hort ter li ui it i po ition an li ui it ituation o in i i ual countrie are onitore b the re pecti e countr trea ur unction n a ition li ui it re er e are hel both on Group an on countr le el an contin enc un in plan are in place or the Group all branche an ub i iarie
ro t earne in the Bank branche are ub ect to e chan e rate ri k up to their re ittance to Habib Bank AG Zurich Zurich he e ri k are onitore in the Hea ce an pro t he e a elt appro priate apital an re er e hel in the branche are al o ub ect to orei n e chan e ri k in o ar a the are hel in local currencie An orei n e chan e tran lation ain or lo on the e capital an re er e i taken to the inco e tate ent in the ear in hich it occur
Market risk
Operational risk
he Group i e po e to arket intere t rate ri k or ei n e chan e ri k an to a er li ite e tent to e uitie an co o itie ri k
perational ri k i e ne a the ri k o lo re ultin ro ina e uate or aile internal proce e people te or ro e ternal e ent
he Group arket ri k appetite i e ne an on itore throu h a co prehen i e te o arket ri k li it b the Group A et iabilit ana e ent o ittee urther ore the Group re ularl per or cenario an tre te t or intere t rate an orei n e chan e ri k ba e on pre ailin ri k e po ure
he Group ake u e o i operational ri k an a e ent proce e hich con i t o ke ri k in i cator chan e ri k a e ent ri k el a e ent cenario anal i ri k e ent ana e ent an i ue ana e ent action trackin
he Group i e po e to intere t rate ri k ue to inter e t perio et or a ance a e to client e cee in the intere t perio or client epo it taken o li it
2
GROUP
urther ore three t pe o ri k an co pri e control enhance tinuit ana e ent an other ri k a oi ance ri k re uction ri
iti ation are u e ent bu ine con iti ation ea ure k tran er
Habib Bank AG Zurich
o pro acti el a re ri k relate to potential bu ine i ruption bu ine i pact anal e cri i ana e ent tea an bu ine continuit plan ha e been e tabli he or the Group a ell a or all branche an ub i iarie
reputation lea in potentiall to a lo ne or penaltie
Legal and compliance risk
Systemic risk
e al ri k i the ri k that the Group ill con uct ac ti itie or carr out tran action in hich it i ina e uatel co ere or i le t e po e to potential liti a tion t i the po ibilit that a ailure to eet le al re uire ent a re ult in unen orceable contract liti ation ne penaltie or clai or a a e or other a er e con e uence
te ic ri k can be e ne a a ri k o i ruption to nancial er ice that i cau e b an i pair ent o all or part o the nancial te an ha the po tential to ha e eriou ne ati e con e uence or the real econo
o pliance ri k i the ri k o le al or re ulator anction aterial nancial lo or lo to the repu tation the Group a u er a a re ult o it ailure to co pl ith la re ulation rule relate el re ulator or ani ation tan ar an co e o con uct applicable to it bankin acti itie ea ure ai e at ini i in le al an co pliance ri k inclu e rai in e plo ee a arene o le al an re ulator i ue throu h trainin an internal irecti e an control to en ure a herence to the le al an re ulator re uire ent ithin hich the Group operate
o bu ine
he Group ha e tabli he a o e o on uct an pro ote tran parenc an ethical beha ior
he Group anal e on a re ular ba i actor hich coul ha e a e tabili in i pact on the nancial te hich inclu e a on t other the ra ile econo ic e elop ent continue nancial arket uncertaint nu erou political cri e increa e e po ure to c ber attack a ell a the e er increa in e tent an co ple it o re ulation Ba e on thi anal i the Group i ple ent iti atin ea ure here er po ible Events after the balance sheet date o e ent that oul a er el a ect the nancial tate ent inclu e in thi report occurre a ter the balance heet ate
n line ith the e elop ent o the le al an re ula tor en iron ent o the in u tr the Group ha con i tentl in e te in per onnel an technical re ource to en ure a e uate co pliance co era e A co pre hen i e ra e ork o policie an re ular peciali e trainin e ion en ure that e plo ee recei e ap propriate on oin e ucation an trainin in thi area Reputation risk Reputation ri k i the ri k that ille al unethi cal or inappropriate beha ior b the Group it el e ber o ta or client or repre entati e o the Group ill a a e Habib Bank AG Zurich
GROUP
2
Habib Bank AG Zurich
Information on the financial statements 1 Structure of securities financing transactions (assets and liabilities) in H 000
31.12.15
Book alue o recei able ro ca h collateral relate to ecuritie borro in an re er e repurcha e tran action Book alue o pa able ro tran action
ca h collateral po te
hich tho e ith an unre tricte ri ht to re ell or ple
2
e
air alue o ecuritie er in a collateral po te or ecuritie len in or ecuritie borro e or ecuritie recei e in connection ith re er e repurcha e tran action ith an unre tricte ri ht to re ell or reple e the o
hich reple
e
o
hich re ol
ecuritie
ecuritie
Be ore takin into con i eration an nettin a ree ent
2
GROUP
1
or ecuritie len in an repurcha e
Book alue o ecuritie lent in connection ith ecuritie len in or eli ere a collateral in connection ith ecuritie borro in a ell a ecuritie in o n port olio tran erre in connection ith repurcha e tran action o
31.12.14
2
1
Habib Bank AG Zurich
2 Collateral for loans and off balance sheet transactions, as well as impaired loans / receivables pe o collateral ort a e co era e
in H 000
ecure b other collateral
n ecure
otal
Loans (before netting with value adjustments) ue ro
cu to er
51
ort a e loan
20
Re i ential an co o
ercial propert
0
2 31.12.15 1 12 1
Total loans (after netting with value adjustments)
11
5
01 222
1
1 10
ercial pre i e
Total loans (before netting with value adjustments)
1
1 21 1
1 01
0
1 21
1'417'304
1'474'889
1
1 20 2
50
22 1 02
546'213
3'438'406
2
31.12.15
1'240'663
1'457'549
1 12 1
1 201 55
15
2
1 10 1 5
55 01
5
497'150
3'195'361
0
0 22
Off balance sheet ontin ent liabilitie rre ocable co re it co
20 50
it ent
15
it ent
Total off balance sheet
11 2 1
1 1
1 1
15
0
212 0
31.12.15
26'611
1'247'802
121'906
1 12 1
1 115
02 011
5 001
Gro ebt a ount
ti ate li ui ation alue o the collateral
et ebt a ount
n i i ual alue a u t ent
347'145
105'644
241'501
235'852
1
11 555
250 0
22
in H 000
1'396'319 1 0 12
Impaired loans / receivables 31.12.15 1 12 1
GROUP
0
2
Habib Bank AG Zurich
3 Breakdown of trading portfolios and other financial instruments at fair value in H 000
31.12.15
31.12.14
98
707
Assets Trading portfolios ebt in tru ent o
one
arket in tru ent
one
arket tran action
hich li te uit intere t
reciou
etal an co
o itie
0
ther tra in a et Other financial instruments at fair value ebt in tru ent
2'437'957
1'956'773
2
1
5
0
tructure pro uct ther
5
Total assets
2'438'055
o
hich eter ine b
o
hich ecuritie allo e
0
GROUP
aluation
o el
or repo tran action in accor ance ith li ui it re uire ent
11 1'957'480 1 22 12
Habib Bank AG Zurich
Hongkong (Downtown Street), People's Republic of China GROUP
1
Habib Bank AG Zurich
4 Presentation of derivative financial instruments Trading instruments o iti e replace ent alue
in H 000
e ati e replace ent alue
ontract olu e
Interest rate instruments or ar contract inclu in
RA
ap uture ption ption e chan e tra e Foreign exchange / precious metals or ar contract
0 2
o bine intere t rate
currenc
10 1
2
2
ap
uture ption ption e chan e tra e Equity interests / indices or ar contract ap uture ption ption e chan e tra e
22
Credit derivatives re it e ault otal return
ap ap
ir t to e ault
ap
ther cre it eri ati e Other or ar contract ap uture ption ption e chan e tra e Total before taking into consideration netting agreements Total at 31.12.15 o
2
hich eter ine b u in a aluation
GROUP
8'092 o el
10'918
3'241'949
Habib Bank AG Zurich
Trading instruments o iti e replace ent alue
in H 000 otal at 1 12 1 o
20 1
hich eter ine b u in a aluation
e ati e replace ent alue
ontract olu e
21
1
1
o el
in H 000
o iti e replace ent alue accu ulate
e ati e replace ent alue accu ulate
8'092
10'918
Total after taking into consideration netting agreements Total
at 31.12.15 at 1 12 1
20 1
21
5 Breakdown by counterparties of derivative financial instruments
in H 000 o iti e replace ent alue a ter nettin a ree ent he Group ha no he
entral clearin partie
Bank an ecuritie ealer
20
5 0
ther client 1
in in tru ent
GROUP
Habib Bank AG Zurich
6 Breakdown of financial investments Book alue 31.12.15
31.12.14
31.12.15
31.12.14
1'126'308
1'115'015
1'129'570
1'116'937
1 12
1 115 015
1 12 5 0
1 11
972
1'120
972
1'044
11'897
8'976
17'674
13'833
1'139'177
1'125'111
1'148'216
1'131'813
in H 000 Debt instruments o
hich hel until
o
hich not hel until
aturit
air alue
0
aturit
Equity interests Real estate Total o hich ecuritie allo e li ui it re uire ent
or repo tran action in accor ance ith 20
0
1
02
7 Breakdown of the counterparty according to rating in H 000 Book alue
AAA 1
5
Ratin cate or i ba e on the o erei n orei n currenc lon ter
GROUP
AA 12 ratin
A
5
1 1 te
ro
1 itch
BBB 1
5
BB to B 1
0
nrate 0
1
Habib Bank AG Zurich
8 List of consolidated companies in which the Bank permanently holds direct or indirect participation of significance Bu ine acti itie
hare capital in 1 000
apital hare
roporti on o o tin ri ht
irect o ner hip
n irect o ner hip
Company name and registered office Habib ana ian Bank i ite
0 000
100
100
100
0
outh A rica
Bank
ZAR 50 000
100
100
100
0
Habib uropean Bank i ite le o an
ou la
Bank
GB 5 000
100
100
100
0
HBZ er ice
A
A
100
100
100
0
HBZ Bank i ite
Habib
urban
Z
oronto
ubai
etropolitan Bank t on
Habib AG Zurich
on on
lc
Bank
er ice centre
arachi
Habib Bank Zurich Hon Hon on
ana a
t
aki tan
A
Bank
00 R 10
Re tricte icence Bank
H
Bank
GB 50
15
00 000
51
51
51
0
51
51
51
0
100
100
100
0
GROUP
5
Habib Bank AG Zurich
9 Presentation of participations
n H 000
Ac ui ition co t
Accu ulate a orti ation or alue a u t ent e uit aluation
Other participation with no market value R
Bel iu
Total
88
10 Tangible fixed assets
in H 000 Bank buil in
Ac ui ition co t an re i ential apart ent
ther real e tate roprietar or eparatel ac uire
102 5 1
o t are
ther tan ible i e a et
Accu ulate epreciation 1 52 11
15 00
0 2 5
an ible a et ac uire un er inancial lea e o
hich bank buil in
o
hich other real e tate
o
hich other tan ible i e a et
Total
172'571
inclu in net o orei n currenc a u t ent
GROUP
-81'942
Habib Bank AG Zurich
Reporting year
Book alue at 31.12.14
Recla i ication
A
ition
i po al
alue a u t ent o participation intere t
88
Book alue at 31.12.15
arket alue
88
Reporting year Book alue at 31.12.14 12 0 1
Recla i ication
A
ition
i po al
epreciation
2
1 51
22
2 0
0
2 25
22
Re er al
Book alue at 31.12.15 11
2
11 5
0
90'629
8'816
1 51
0
10
12
-2'281
-10'218
-10
86'936
GROUP
5
Habib Bank AG Zurich
11 Intangible assets Reporting year
in H 000 Goo
Ac ui ition co t
Accu u late a orti ation
Book value at 31.12.14
2
51 0
1 12
5'140
-1'712
5
ill
n et ent
i et ent
A orti ation
Book value at 31.12.15 2
atent icen e ther intan ible a et Total
8'567
-3'427
3'428
12 Breakdown of other assets and other liabilities ther a et in H 000
31.12.15
ther liabilitie 31.12.14
o pen ation account e erre inco e ta reco ni e a a et
50
2
2
ther
2 0 1
1
Total
74'783
52'069
GROUP
31.12.15
2 5
31.12.14 11
1 5 35'333
2 35'115
Habib Bank AG Zurich
13 Disclosure of assets pledged or assigned to secure own commitments and of assets under reservation of ownership* in H 000
Book alue
co
ecti e it ent
Assets pledged A ount
ue ro
bank
1
2
5
inancial in e t ent A et put un er o ner hip re er ation Total clu in
9'509
599
31.12.15
31.12.14
ecuritie inancin tran action
14 Payable to own employee benefit plans
a able to e plo ee bene it plan
11
1 1
Commitments to own pension and welfare plans he Group oe not aintain it o n pen ion un he occupational bene it plan in the countrie are co ere b in urance co panie All e plo ee are in ure in accor ance ith the la the oun ation ocu ent an the re ulation o the bene it plan n accor ance ith the contractual an le al con ition o the bene it plan in the countrie there can be neither eco no ic liabilitie that e cee the contribution et b the re ulation o the bene it plan nor econo ic bene it or the Group n a ition urin both the reportin ear an urin the pre iou ear there ere no non co itte plan nor a there an e plo er pai contribution re er e uch that the e pen e ho n in the inco e tate ent e ual the actual e pen e or pen ion an el are plan or the reportin perio
GROUP
Habib Bank AG Zurich
15 Value adjustments and provisions and reserves for general banking risks
n H 000
Balance at 31.12.14
ro i ion or e erre ta e
e in con or it ith e i nate purpo e
2
ro i ion or pen ion un obli ation ro i ion or e ault ri k ro i ion or other bu ine
21 ri k
1
1
15 0
ro i ion or re tructurin ther pro i ion Total provisions
1 1
1 1
22'967
-16'084
Reserves for general banking risks
555'832
Value adjustments for default risks and country risks
229'308
0
o
hich alue a u t ent or e ault ri k in re pect o i paire loan
o
hich alue a u t ent or e ault ri k in re pect o inancial in e t ent
o
hich alue a u t ent or latent ri k
GROUP
22
0 2 00
-13'118 1 11
Habib Bank AG Zurich
Recla i ication
urrenc i erence
a t ue intere t reco erie
e creation char e to inco e
Relea e to inco e
Balance at 31.12.15
1 25
52 1 0
1
1 51
11 0
150 -787
14'198
1'238 -7'810
4'580
10
5 0
36'425 10
150 -2'303
17'991
-934
556'136
-5'597
243'788
55
2 5 52
5
1
GROUP
1
Habib Bank AG Zurich
16 Disclosure of amounts due from / to related parties A ount in H 000
31.12.15
ue ro
A ount
31.12.14
uali ie hol in
31.12.15
ue to 31.12.14
2 22
A ociate ran action
ith
e ber o
ther relate partie
2
GROUP
o ernin bo ie
1 520
1 22
1 50
10
Habib Bank AG Zurich
17 Maturity structure of financial instruments Due
in H 000
At i ht
ancel lable
ithin onth
Bet een Bet een an 12 12 onth onth an 5 ear
A ter 5 ear
o aturit
otal
Asset / financial instruments i ui a et
1 0 2 15
A ount
ue ro
bank
A ount
ue ro
cu to er
1 0 2 15
1
0
1
0 2
2 21
5 51
1 11 05
ort a e loan
2
10 2
5 51
12
1
5
0
0
2
52 15
05 20 5
ra in port olio a et o iti e replace ent alue o eri ati e inancial in tru ent ther inancial in tru ent at air alue
0 2 2
inancial in e t ent Total
0 2
5
2
5 31.12.15 1 12 1
5
4'731'220 1
50
6'809 2
10
3'140'636 5
5 1
51 52 1'253'630 1
2 0
2
0
55 0
975'067
186'420
1 5 1 2
55 5 2
5
11
1
10'293'781 12
0
5 22
Liabilities / financial instruments A ount
ue to bank
11 52
1
1 0
iabilitie ro ecuritie inancin tran action
1
2
A ount ue in re pect o cu to er epo it
20
e ati e replace ent alue o eri ati e inancial in tru ent Total
0
2 2
1 10
12
215 0
0
5 5
10 1
31.12.15
5'066'278
1 12 1
2 2
10 1 339'448 2
5
2'237'282
1'295'042
215'909
7'608
20 5
1 02
1 5
02 2
1
9'161'566 0
GROUP
0
Habib Bank AG Zurich
18 Assets and liabilities broken down by domestic and foreign origin in accordance with domicile principle 31.12.15 in H 000
31.12.14
o e tic
orei n
o e tic
orei n
Assets i ui a et A ount
ue ro
A ount
ue ro
A ount
ue ro
5 0 bank
12 0
2 01 0
21 02 0
1
2 5
1
ecuritie inancin tran action
0
5 1
cu to er
55 252
2 1
ort a e loan
5
5 12
2
5
20 5
5 20
ra in port olio a et
2 1
o iti e replace ent alue o
eri ati e inancial in tru ent
12
ther inancial in tru ent at air alue inancial in e t ent
0 2
5
150
Accrue inco e an prepai e pen e
2
2 5
1 5 120
115 0
20 5 2
5
1 00 12
1 225
10 05
on con oli ate participation an ible i e a et
002
ntan ible a et
2
ther a et
10 0
1
51 0
10'002'182
671'552
21
1 5
Total
580'456
1 0 9'131'934
Liabilities A ount
ue to bank
iabilitie ro A ount
1
ecuritie inancin tran action
ue in re pect o cu to er epo it
e ati e replace ent alue o Accrue e pen e an
eri ati e inancial in tru ent
1 2
10
551 501
122 2
20 000 1
25 1 50
e erre inco e
5
ther liabilitie ro i ion
1 2 250
Bank capital
150 000
Retaine earnin
re er e
urrenc tran lation re er e inorit intere t in e uit Group pro it lo Total
2 2
2
5
12 021 0
10 22
2
25 12
1
2
50
1
5
150 000 1
1 0
21 2 5
2 1 1 1 835'846
GROUP
21 2
2 11
2
Re er e or eneral bankin ri k
55
5 1
21
15
52
15 10 9'746'792
2 1 758'030
9'045'457
Habib Bank AG Zurich
19 Breakdown of total assets by countries or regions (domicile principle) in H 000
31.12.15
31.12.14
Assets Europe o
1'898'004
hich
it erlan nite
in
5 o
1'680'179
5
51 2
515
North America Asia hich A
21
262'574
2.5%
239'324
2.4%
7'753'008
73.3%
7'178'093
73.3%
2 1
2
25
2 0
2
0
aki tan
5 51
2
10 0 0
ther
5
5
21 20
Other countries
669'052
6.3%
o
2
2
hich outh A rica ther
705'891 2
7.2%
0
0 05
Total
17.1%
50
1 0
ther
o
17.9%
2
2
10'582'638
100.0%
9'803'487
100.0%
20 Breakdown of total assets by credit rating of regions (risk domicile principle) et orei n e po ure at 31.12.15
in H 000 AAA
1
1 151
AA to AA
1
1 0
A to A
2
0 2
BB to B
1
nrate
2
1 2
Total
te
ro
1
2 0
15
2 1
1 2
1
1 12
1
1
12 2
21
00
50
01
0
10'002'182 ratin
2 25 1 0 5
22
BBB to BBB
Ratin cate or i ba e on the o erei n orei n currenc lon ter
et orei n e po ure at 31.12.14
100.0%
1
1
9'803'487
100.0%
itch
GROUP
5
Habib Bank AG Zurich
21 Assets and liabilities broken down by the most important currencies for the Group in H 000
H
GB
A
R
ther
otal
Asset i ui a et A ount
ue ro
5 2 bank
A ount ue ro tran action A ount
ue ro
1 2
15 02
5 022
21
1
5 2
1 5
5
11
25 5
1 0 2 15 05
2
0
0
ecuritie inancin cu to er
1
1
555 1
ort a e loan
50 1 1
5 21 5
0
1
1
1 52
2 5
5
05 20 5
ra in port olio a et o iti e replace ent alue or eri ati e inancial in tru ent
12
1
2
ther inancial in tru ent at air alue inancial in e t ent
5 2
2
1
Accrue inco e an prepai e pen e
0 0
5
1 20
0 12 02
1 00 5
0 2 2
22 2
120 255
0
2
1
5
11 12
1 2
on con oli ate participation an ible i e a et
10
ntan ible a et ther a et
2 5 2
1
1
1 1 5
5
394'648
1'985'170
eli er clai ro pot e chan e tran action orei n e chan e or ar an orei n e chan e option
2 210
1
396'857
2'618'901
GROUP
21
2
Total assets shown in balance sheet
Total assets
1
776'726
15 52
51 00
5
2'374'048
4'269'855
782'191
0
1 01 0
4'910'633
922'371
2 869'522
2
2'374'048
10'582'638
1 50 12'092'332
Habib Bank AG Zurich
in H 000
H
GB
A
15 2
2 2
R
ther
22
20
otal
Liabilities A ount
ue to bank
iabilitie ro tran action A ount
1 50
2
1
ecuritie inancin 20 000
ue in re pect o cu to er epo it
e ati e replace ent alue o inancial in tru ent Accrue e pen e an
5 515
52 1
5
0
2
1
5 1
2
0
51
5 5
eri ati e 1 50
e erre inco e
ther liabilitie
11 50
Re er e or eneral bankin ri k
1 2 250
Bank capital
150 000 re er e
urrenc tran lation re er e
2
Total liabilities shown in balance sheet eli er co it ent ro pot e chan e tran action orei n e chan e or ar an orei n e chan e option
0 1
21 5
2
1
150 11
2
1 2
5
2 51
52 1
10 1
10 12
1
1
0
0
5
1
2
1
55 1 150 000
1
11
2 1 5
1
255 1 1 0
2
15
1 5 1 728'455
2
5
5
21
1 0
inorit intere t in e uit Group pro it lo
1
12
ro i ion
Retaine earnin
52 2
2'042'524
5
1
722'812
2'316'657
2 00
2
51
10 1
4'067'957
704'234
1
5 0 05
0
21
Total liabilities
790'946
2'633'229
784'820
2'316'657
4'776'678
790'003
Net position for each currency
-394'088
-14'328
84'702
57'391
133'955
132'368
1
2 22
10'582'637
5
1 50 12'092'331
GROUP
Habib Bank AG Zurich
22 Breakdown of contingent liabilities in H 000
31.12.15
re it uarantee an rre ocable co
i ilar
it ent
01 1
ue to ocu entar cre it
Total
31.12.14 5
1 150
55 5
1'182'316
1'139'144
31.12.15
31.12.14
151
1 20
23 Breakdown of credit commitments in H 000 o
it ent ari in
ther cre it co
ro
acceptance
it ent
Total
0 1
5 22
212'407
221'271
31.12.15
31.12.14
24 Breakdown of fiduciary transactions in H 000 i uciar in e t ent
ith thir part co panie
i uciar tran action ro ecuritie len in an borro in actin un er it o n na e but on behal o client Total
1
0
hich are carrie out b the Bank 1 2 89'947
GROUP
5 1 1 1 105'917
Habib Bank AG Zurich
25 Breakdown of the result from trading activities and the fair value option 2015
in H 000
2014
Result from trading activities ntere t rate in tru ent incl un nreali e
ore
ain
2
lo e on re er e hel in orei n currencie
2
orei n e chan e o
o itie
preciou
00
25 11 etal
56'797 hich ro
1
25
Total o
5 11
the air alue option applie to a et
2
104'539 5 11
26 Breakdown of personnel expenses 2015
in H 000 alarie an a
itional allo ance
o hich e pen e relate to hare ba e co pen ation an alternati e or co pen ation
11 205 o
10
ariable
ocial in urance obli ation
1
ther per onnel e pen e
5
Total
2014
2 0
130'993
GROUP
121'336
Habib Bank AG Zurich
27 Breakdown of general and administrative expenses 2015
in H 000 ice pace e pen e
1
pen e or in or ation technolo pen e or otor ehicle lea e e pen e
an teleco
achiner
01
2014 1
unication
0
urniture an other e uip ent an operatin
Au it ee o
hich or inancial an re ulator au it
o
hich or other er ice
ther operatin e pen e Total
2
2
1 25
1 0
1 5
1 11
1
5
01
2
63'012
56'991
2015
2014
28 Analysis of extraordinary income and expenses in H 000 Extraordinary income Relea e o pro i ion no lon er re uire ro it on ale o i e a et Reco erie an other
2 5 2
20
1
21 5
612
2'675
ther
2
1
Total
-82
-71
Total Extraordinary expenses
50
GROUP
Habib Bank AG Zurich
29 Breakdown of operating result broken down according domestic and foreign origin according to the principle of permanent establishment 2015 in H 000
it erlan
et re ult ro
intere t operation i ion bu ine
Re ult ro
co
tra in acti itie an the air alue option
ther re ult ro
an
er ice
221
110 1
ini trati e e pen e
alue a u t ent on participation epreciation an a orti ation on tan ible i e an intan ible a et
1
01
0 102 22 0
2
54'735
311'679
70'979
333'471
21 0
10
21 15
100 021
50 52
11 15
51
33'791
160'214
33'130
145'197
15 1
10 05
1 1
10 0
12
Operating expenses
Abroa
52 5 05
er onnel e pen e
it erlan 10 525
5 110
other or inar acti itie
Total net income General an a
Abroa
10 5
Re ult ro
2014
han e to pro i ion an other alue a u t ent an lo e
2
0
25
1
52
Operating result it erlan Abroa
10'771
137'406 2
34'799 1
172'998
Taxes it erlan
-2'986
-58'426 51
-1'641 2
-54'526 1
7'798
80'430 12
3'374
74'241 5
2015
2014
Abroa
Group profit / loss it erlan Abroa nco e an e pen iture
it erlan
inclu e the
i
operation an Hea
ice
30 Presentation of current taxes, deferred taxes and disclosure of the tax rate in H 000 nco e ta e
2 2
e erre ta e pen e
1 51
Taxes
61'412
A era e ta rate he utili ation o ta lo e carrie
1
1 or ar in the
Branch ha le to H 0 5
05 56'166 0
illion lo er inco e ta e or the perio
GROUP
51
Habib Bank AG Zurich
Report of the Statutory Auditor o the General eetin o Habib Bank AG Zurich Zurich Report of the Statutory Auditor on the Consolidated Financial Statements A tatutor au itor e ha e au ite the acco pan in con oli ate inancial tate ent o Habib Bank AG Zurich hich co pri e the balance heet inco e tate ent tate ent o chan e in e uit ca h lo tate ent an note pa e 12 to 51 o the annual report or the ear en e 1 ece ber 2015 Board of Directors' Responsibility he Boar o irector i re pon ible or the preparation o the con oli ate inancial tate ent in accor ance ith the pro i ion o ernin the preparation o inancial tate ent or Bank an the re uire ent o i la hi re pon ibilit inclu e e i nin i ple entin an aintainin an internal control te rele ant to the preparation an air pre entation o con oli ate inancial tate ent that are ree ro aterial i tate ent hether ue to rau or error he Boar o irector i ur ther re pon ible or electin an appl in appropriate accountin policie an akin accountin e ti ate that are rea onable in the circu tance Auditor's Responsibility ur re pon ibilit i to e pre an opinion on the e con oli ate inancial tate ent ba e on our au it e con ucte our au it in accor ance ith i la an i Au itin tan ar ho e tan ar re uire that e plan an per or the au it to obtain rea onable a urance hether the con oli ate inancial tate ent are ree ro aterial i tate ent An au it in ol e per or in proce ure to obtain au it e i ence about the a ount an i clo ure in the con oli ate inancial tate ent he proce ure electe epen on the au itor u ent inclu in the a e ent o the ri k o aterial i tate ent o the con oli ate inancial tate ent hether ue to rau or error n akin tho e ri k a e ent the au itor con i er the internal control te rele ant to the entit preparation o the con oli ate inancial tate ent in or er to e i n au it proce ure that are appropriate in the circu tance but not or the purpo e o e pre in an opinion on the e ecti ene o the entit internal control te An au it al o inclu e e aluatin the appropriatene o the accountin policie u e an the rea onablene o accountin e ti ate a e a ell a e aluatin the o erall pre entation o the con oli ate inancial tate ent e belie e that the au it e i ence e ha e obtaine i u icient an appropriate to pro i e a ba i or our au it opinion Opinion n our opinion the con oli ate inancial tate ent or the ear en e 1 ece ber 2015 i e a true an air ie o the inan cial po ition the re ult o operation an the ca h lo in accor ance ith the pro i ion o ernin the preparation o inancial tate ent or Bank an co pl ith i la Report on Other Legal Requirements e con ir that e eet the le al re uire ent on licen in accor in to the Au itor er i ht Act A A an in epen ence article 2 an article 11 A A an that there are no circu tance inco patible ith our in epen ence n accor ance ith article 2 a para raph 1 ite an i Au itin tan ar 0 e con ir that an internal control te e i t hich ha been e i ne or the preparation o con oli ate inancial tate ent accor in to the in truction o the Boar o irector e reco
en that the con oli ate
inancial tate ent
ub itte to ou be appro e
G AG rtu rul ek i Licensed Audit Expert Auditor in Charge Zurich 25 April 201
52
GROUP
irko iberto Licensed Audit Expert
Habib Bank AG Zurich
Dubai (Burj Khalifa), United Arab Emirates GROUP 5
Habib Bank AG Zurich
Balance sheet (before appropriation)
in H 000
ote
31.12.15
31.12.14
25
5 2 5
Assets i ui a et A ount
ue ro
bank
1 0
A ount
ue ro
cu to er
1
2
ort a e loan
21
15 0 5 1
2
10
2
1 1
ra in port olio a et o iti e replace ent alue o
0 eri ati e inancial in tru ent
5
inancial in e t ent
2
Accrue inco e an prepai e pen e articipation
2
an ible i e a et
Total assets
5
BANK
1
0
2 1
2
51
ntan ible a et ther a et
25
5 52
2 1 5'423'802
51 0 1
1
5'333'916
Habib Bank AG Zurich
in H 000
ote
31.12.15
31.12.14
Liabilities A ount
ue to bank
iabilitie ro A ount
5
ecuritie inancin tran action
20 000
1
ue in re pect o cu to er epo it
e ati e replace ent alue o Accrue e pen e an
2 1
01
eri ati e inancial in tru ent
e erre inco e
25 1 2
1
5
1 205
0
ther liabilitie
20 50
22 12
ro i ion
10
0
1 122
10
Re er e or eneral bankin ri k
10
5 0
000
Bank capital
11
150 000
150 000
tatutor retaine earnin
re er e
oluntar retaine earnin
re er e
ro it carrie
carrie
ro it lo
or ar
lo
000 1
5 000
1
1
or ar
52
re ult o the perio
05
Total liabilities
5'423'802
5'333'916
Off balance sheet transactions ontin ent liabilitie rre ocable co re it co
2
it ent
it ent
15
2
2
15
5 12
05 1
0
BANK
55
Habib Bank AG Zurich
Income statement
in H 000
2015
ote
2014
Result from interest operations ntere t an
i count inco e
ntere t an
i i en inco e ro
101 inancial in e t ent
ntere t e pen e Gross result from interest operations
1 5 2
1
15
1 5
104'593
22
100'577
han e in alue a u t ent or e ault ri k an lo e ro intere t operation
15 12
120
Subtotal net result from interest operations
88'781
97'456
Result from commission business and services o
i ion inco e ro
o
i ion inco e ro
len in acti itie
ecuritie tra in an in e t ent acti itie 1
5 21 1
o
i ion inco e ro
other er ice
1
22
o
i ion e pen e
2
Subtotal result from commission business and services Result from trading activities and the fair value option
1
51 0
2 022
41'281
43'751
8'449
38'155
Other result from ordinary activities Re ult ro
the i po al o inancial in e t ent
nco e ro Re ult ro
participation real e tate
ther or inar inco e Subtotal other result from ordinary activities
5
BANK
1 2
12 2
12 52 222
5 1 31'217
18'060
Habib Bank AG Zurich
in H 000
2015
ote
2014
Operating expenses er onnel e pen e General an a
1
ini trati e e pen e
1
Subtotal operating expenses alue a u t ent on participation an tan ible i e an intan ible a et
0
2 1
25 0
-102'896
-102'479
5 2
traor inar inco e traor inar e pen e
5
12 5
Operating result
5
48'631
83'198
20
22
2 20
20
2
1
15 0
0 000
han e in re er e or eneral bankin ri k
Profit / loss (result for the period)
5
epreciation an a orti ation on
han e to pro i ion an other alue a u t ent an lo e
a e
5
21
12 20
1
34'784
40'563
BANK
5
5
Habib Bank AG Zurich
Statement of changes in equity
Bank apital
in H 000 Equity at 01.01.15
150'000
ran er o pro it to retaine earnin apital increa e
tatutor retaine earnin re er e 75'000
Re er e or eneral bankin ri k 488'000
2 000
Bank pro it or lo
otal
179'512
40'563
933'075
21 000
2 000
ecrea e
urrenc tran lation i erence i i en
oluntar retaine earnin an pro it lo carrie or ar
5
an other i tribution
ther allocation to tran er ro re er e or eneral bankin ri k
5 1 5
1 000
the 15 0
15 0
ther allocation to tran er ro other re er e ro it lo
re ult o the perio
Equity at 31.12.15
5
BANK
150'000
77'000
489'580
196'502
34'784
947'866
Habib Bank AG Zurich
Information on the financial statements 1 Structure of securities financing transactions (assets and liabilities) 31.12.15 Book alue o recei able ro tran action Book alue o pa able ro tran action
ca h collateral relate to ecuritie borro in an re er e repurcha e ca h collateral po te
or ecuritie len in an repurcha e 20 000
Book alue o ecuritie lent in connection ith ecuritie len in or eli ere a collateral in con nection ith ecuritie borro in a ell a ecuritie in o n port olio tran erre in connection ith repurcha e tran action o
31.12.14
hich tho e ith an unre tricte ri ht to re ell or ple
20 000
e
air alue o ecuritie er in a collateral po te or ecuritie len in or ecuritie borro e or ecu ritie recei e in connection ith re er e repurcha e tran action ith an unre tricte ri ht to re ell or reple e the o
hich reple
e
ecuritie
o
hich re ol
ecuritie
Be ore takin into con i eration an nettin a ree ent
BANK
5
Habib Bank AG Zurich
2 Collateral for loans and off balance sheet transactions, as well as impaired loans / receivables pe o collateral ort a e co era e
in H 000
ecure b other collateral
n ecure
otal
Loans (before netting with value adjustments) ue ro
cu to er
5
02 2
ort a e loan Re i ential an co o
ercial propert
2
1
2
2
2
2
ercial pre i e
Total loans (before netting with value adjustments)
31.12.15
889'366
402'927
1 12 1 Total loans (after netting with value adjustments)
31.12.15 1 12 1
1 888'045
385'612
10 0
55
494'926
1'787'219
5 5
1 01 22
2
447'949
1'721'606
5 10
1
5
Off balance sheet ontin ent liabilitie rre ocable co re it co
22
it ent
it ent
Total off balance sheet
2 31.12.15 1 12 1
in H 000
1 0
0
2
15
15
22 50
51 2
05 1
250'982
79'228
342'036
1
11'825
2
2
15 111
1
1
Gro ebt a ount
ti ate li ui ation alue o the collateral
et ebt a ount
n i i ual alue a u t ent
110'799
47'548
63'251
58'420
Impaired loans / receivables 31.12.15 1 12 1
0
BANK
11
0
5
52 0
Habib Bank AG Zurich
3 Breakdown of Trading portfolios and other Financial instruments at fair value in H 000
31.12.15
31.12.14
98
707
Assets Trading portfolios ebt in tru ent o
one
arket in tru ent
one
arket tran action
hich li te uit intere t
reciou
etal an co
o itie
0
ther tra in a et Other financial instruments at fair value ebt in tru ent tructure ro uct ther Total Assets
98
o
hich eter ine b
o
hich ecuritie allo e
aluation
707
o el
or repo tran action in accor ance ith li ui it re uire ent
BANK
1
Habib Bank AG Zurich
4 Presentation of derivative financial instruments Trading instruments o iti e replace ent alue
in H 000
e ati e replace ent alue
ontract olu e
Interest rate instruments or ar contract inclu in
RA
ap uture ption ption e chan e tra e Foreign exchange / precious metals or ar contract
5
o bine intere t rate
currenc
1
2 5
ap
uture ption ption e chan e tra e Equity interests / indices or ar contract ap uture ption ption e chan e tra e
22
Credit derivatives re it e ault otal return
ap ap
ir t to e ault
ap
ther cre it eri ati e Other or ar contract ap uture ption ption e chan e tra e Total before taking into consideration netting agreements Total at 31.12.15 o
2
hich eter ine b u in a aluation
BANK
495 o el
1'749
247'940
Habib Bank AG Zurich
Trading instruments o iti e replace ent alue
in H 000
e ati e replace ent alue
otal at 1 12 1 o
ontract olu e
5
hich eter ine b u in a aluation
12
50
o el
in H 000
o iti e replace ent alue accu ulate
e ati e replace ent alue accu ulate
495
1'749
Total after taking into consideration netting agreements Total
at 31.12.15 at 1 12 1
5
5 Breakdown by counterparties of derivative financial instruments
entral clearin partie
in H 000 o iti e replace ent alue a ter nettin a ree ent he Bank ha no he
Bank an ecuritie ealer
ther client
12
in in tru ent
6 Breakdown of financial investments Book alue in H 000 Debt instruments o
hich hel until
aturit
o
hich not hel until
air alue
31.12.15
31.12.14
31.12.15
31.12.14
826'079
816'855
829'779
819'307
2 0
1
55
2
1
0
aturit
Equity interests
346
485
346
409
826'425
817'340
830'125
819'716
20
1
Real estate Total o hich ecuritie allo e li ui it re uire ent
or repo tran action in accor ance ith 0
02
BANK
Habib Bank AG Zurich
7 Breakdown of the counterparty according to rating in H 000
AAA
Book alue
1
5
Ratin cate or i ba e on the o erei n orei n currenc lon ter
AA 12 ratin
5 te
A
BBB
12 055
1 01 2
ro
BB to B
nrate
1 2
2
0
0
itch
8 Breakdown of other assets and other liabilities ther a et 31.12.15
in H 000 o pen ation account e erre inco e ta e reco ni e a a et
31.12.15
31.12.14
25
0
10
ther Total
ther liabilitie 31.12.14
18'339
1
20 50
15
19'418
20'750
22'711
2
9 Disclosure of assets pledged or assigned to secure own commitments and of assets under reservation of ownership* in H 000
Book alue
co
ecti e it ent
Assets pledged A ount
ue ro
bank
15
5
1'543
599
inancial n e t ent A et put un er o ner hip re er ation Total clu in
ecuritie inancin tran action
BANK
Habib Bank AG Zurich
Durban (Skyline), South Africa BANK 5
Habib Bank AG Zurich
10 Value adjustments and provisions and reserves for general banking risks
n H 000
Balance at 31.12.14
e in con or it ith e i nate purpo e
ro i ion or e erre ta e ro i ion or pen ion un obli ation ro i ion or e ault ri k ro i ion or other bu ine
ri k
1 122
1
5
ro i ion or re tructurin ther pro i ion Total provisions Reserves for general banking risks Value adjustments for default risks and country risks o
hich alue a u t ent or e ault ri k in re pect o i paire loan
o
hich alue a u t ent or e ault ri k in re pect o inancial in e t ent
o
hich alue a u t ent or latent ri k
BANK
13'122
-14'754
488'000 54'667 52 0 2 00
-5'847 5
Habib Bank AG Zurich
Recla i ication
urrenc i erence
a t ue intere t reco erie
e creation char e to inco e
Relea e to inco e
112
1 025
1 51
-112
14'025
-1'451
Balance at 31.12.15
10
10'830
1'580 -900 00
2'624
21'328
2 2
15
2
0
489'580 -5'516
66'356
5 51
5
5
20 1
BANK
Habib Bank AG Zurich
11 Bank's capital 31.12.15
31.12.14 apital eli ible or i i en
otal no inal alue
uantit
apital eli ible or i i en
in H 000
otal no inal alue
Bank capital cooperati e capital
150 000
1 500 000
150 000
150 000
1 500 000
150 000
150'000
1'500'000
150'000
150'000
1'500'000
150'000
o
uantit
hich pai up
Total Bank's capital Authori e capital thereo e ecute capital increa e
12 Disclosure of holders of significant participations 31.12.15
31.12.14
At no inal alue
in H 000
At no inal alue
Significant shareholders and groups of shareholders with voting agreements otin
hare
Ge an inan AG Zu non otin
150 000
100
150 000
hare
Bene ical hol in Ge an inan AG i 100 o ne b a tru t tructure hich repre ent in e ual hare the our branche o the oha e ali Habib a il o in i i ual ha a bene icial intere t o 10 or ore in the hare o Habib Bank AG Zurich
BANK
100
Habib Bank AG Zurich
13 Disclosure of amounts due from / to related parties A ount in H 000
ue ro
31.12.15
A ount
31.12.14
31.12.15
uali ie hol in
31.12.14
2 22
Group co panie ran action
ue to
25 52
ith
e ber o
o ernin bo ie
0
1 520
0
2
1 22
2 2
10
2
14 Breakdown of total assets by the credit rating of regions (risk domicile principle) et orei n e po ure at 31.12.15
in H 000
12
AAA AA to AA
0
2 5
2
A to A
2
BBB to BBB BB to B
et orei n e po ure at 31.12.14 1
5 1 2
55 1
120 12
25
2 2 12 55 1
521
1
4'845'123
Ratin cate or i ba e on the o erei n orei n currenc lon ter
ratin
te
ro
0
1 00
nrate
1
5
0 5
Total
5
2 1
100.0%
50 1
01
11
2
5'333'917
100.0%
31.12.15
31.12.14
itch
15 Breakdown of credit commitments in H 000 o
it ent ari in
ther cre it co Total
ro
it ent
acceptance
1
5
51 10 70'561
BANK
2 1 5 70'934
Habib Bank AG Zurich
16 Breakdown of fiduciary transactions in H 000 i uciar in e t ent
ith thir part co panie
i uciar in e t ent
ith roup co panie an a iliate co panie
i uciar tran action ro ecuritie len in an borro in actin un er it o n na e but on behal o client
31.12.15
31.12.14
05
5
1
5
1
hich are carrie out b the Bank
Total
1 2
1 1 1
89'948
119'885
2015
2014
17 Breakdown of the result from trading activities and the fair value option in H 000 Result from trading activities nreali e
ore
ain
lo e on re er e hel in orei n currencie
orei n e chan e o
o itie
preciou
0
00
11 etal
Total o
2 5 25 8'449
hich ro
the air alue option applie to a et
BANK
5 10 38'155
Habib Bank AG Zurich
18 Breakdown of personnel expenses 2015
in H 000 alarie an a
itional allo ance
50
o hich e pen e relate to hare ba e co pen ation an alternati e or co pen ation
o
ro
1
5 0
ariable
ocial in urance obli ation alue a u t ent or econo ic bene it or obli ation ari in
2014
5
55
2 0
1 22
58'666
59'909
2015
2014
1
5
pen ion un
ther per onnel e pen e Total
19 Breakdown of general and administrative expenses in H 000 ice pace e pen e pen e or in or ation technolo pen e or otor ehicle lea e e pen e
an teleco
achiner
o
hich or inancial an re ulator au it
o
hich or other er ice
Total
1 0
urniture an other e uip ent an operatin
Au it ee
ther operatin e pen e
unication 10
1 15
1
1 00
1 2
12 5
1
25
0
5
2
44'231
5
42'570
BANK
1
Habib Bank AG Zurich
20 Analysis of extraordinary income and expenses in H 000
2015
2014
Extraordinary income Relea e o pro i ion no lon er re uire
2
ro it on ale o i e a et
20
Reco erie an other
1
21 5
Total
22
2'420
ther
2
1
Total
-82
-71
2015
2014
Extraordinary expenses
21 Presentation of current taxes, deferred taxes and disclosure of the tax rate in H 000 nco e ta e
1
e erre ta e pen e
0
1 02
1
20
1
Taxes
12'206
14'985
A era e ta rate
25 1
1
he utili ation o ta lo e carrie
2
BANK
or ar in the
Branch ha le to H 0 5
illion lo er inco e ta e or the perio
Habib Bank AG Zurich
Appropriation of profit / coverage of losses / other distributions
he Boar o
irector
ill ub it the ollo in propo al to the General
in H 000 ro it lo ro it carrie
eetin o
harehol er in re pect o the i tribution o pro it
31.12.15
31.12.14
re ult or the perio or ar
lo
05
carrie
or ar
52
Distributable profit
34'873
41'089
1 00
2 000
Appropriation o pro it Allocation to tatutor retaine earnin Allocation to oluntar retaine earnin i tribution o
i i en
Profit carried forward
ro
re er e re er e
15 000
21 000
i tributable pro it
1 000
1 000
73
89
BANK
Habib Bank AG Zurich
Report of the Statutory Auditor o the General eetin o Habib Bank AG Zurich Zurich Report of the Statutory Auditor on the Financial Statements A tatutor au itor e ha e au ite the acco pan in inancial tate ent o Habib Bank AG Zurich hich co pri e the balance heet inco e tate ent tate ent o chan e in e uit an note pa e 5 to 2 o the annual report or the ear en e 1 ece ber 2015 Board of Directors' Responsibility he Boar o irector i re pon ible or the preparation o the inancial tate ent in accor ance ith the pro i ion o ern in the preparation o inancial tate ent or Bank the re uire ent o i la an the co pan article o incorporation hi re pon ibilit inclu e e i nin i ple entin an aintainin an internal control te rele ant to the preparation o inancial tate ent that are ree ro aterial i tate ent hether ue to rau or error he Boar o irector i urther re pon ible or electin an appl in appropriate accountin policie an akin accountin e ti ate that are rea onable in the circu tance Auditor's Responsibility ur re pon ibilit i to e pre an opinion on the e inancial tate ent ba e on our au it e con ucte our au it in accor ance ith i la an i Au itin tan ar ho e tan ar re uire that e plan an per or the au it to obtain rea onable a urance hether the inancial tate ent are ree ro aterial i tate ent An au it in ol e per or in proce ure to obtain au it e i ence about the a ount an i clo ure in the inancial tate ent he proce ure electe epen on the au itor u ent inclu in the a e ent o the ri k o aterial i tate ent o the inancial tate ent hether ue to rau or error n akin tho e ri k a e ent the au itor con i er the internal control te rele ant to the entit preparation o the inancial tate ent in or er to e i n au it proce ure that are appropriate in the circu tance but not or the purpo e o e pre in an opinion on the e ecti ene o the entit internal control te An au it al o inclu e e aluatin the appropriatene o the accountin policie u e an the rea onablene o accountin e ti ate a e a ell a e aluatin the o erall pre entation o the inancial tate ent e belie e that the au it e i ence e ha e obtaine i u icient an appropriate to pro i e a ba i or our au it opinion Opinion n our opinion the inancial tate ent or the ear en e 1 ece ber 2015 i e a true an air ie o the inancial po ition the re ult o operation an the ca h lo in accor ance ith the pro i ion o ernin the preparation o inancial tate ent or Bank an co pl ith i la an the co pan article o incorporation Report on Other Legal Requirements e con ir that e eet the le al re uire ent on licen in accor in to the Au itor er i ht Act A A an in epen ence article 2 an article 11 A A an that there are no circu tance inco patible ith our in epen ence n accor ance ith article 2 a para raph 1 ite an i Au itin tan ar 0 e con ir that an internal control te e i t hich ha been e i ne or the preparation o inancial tate ent accor in to the in truction o the Boar o irector e urther con ir that the propo e appropriation o a ailable earnin co plie ith incorporation e reco en that the inancial tate ent ub itte to ou be appro e
i
la
an the co pan
G AG rtu rul ek i Licensed Audit Expert Auditor in Charge Zurich 25 April 201
BANK
irko iberto Licensed Audit Expert
article o
Habib Bank AG Zurich
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Habib
Pakistan
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Habib Bank Zurich (Hong Kong) Ltd.
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Habib Bank AG Zurich
Representative offices Bangladesh
Habib Bank AG Zurich B B Bhaban 12 a ran Ba ar
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haka 1215 Ban la e h elephone ail Hong Kong
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