annual report

Transcription

annual report

Bank CIC (Switzerland) Ltd. ANNUAL REPORT 2010
CIC – La banque des connaisseurs
ANNUAL REPORT
2010
The bank for private and business clients
Publication data
Responsible for the content: Bank CIC (Switzerland) Ltd.
Concept, layout and realisation: Ivony:Krügel, Zurich
Translations: riga-blu (English), Bank CIC (Switzerland) Ltd. (French)
Proofreading: riga-blu
Lithography and printing: Kreis Druck Ltd., Basle
Picture credits: pages 3–5/10/15–16/20 Walter Fogel, Angelbachtal (D);
pages 3/13–14 sublim, Basle; page 11 iStockphoto (CAN); page 12 Panthermedia (D).
© 2011
CONTENT
Summary
2
Foreword by the Chairman of the Board of Directors and the CEO
3
Report by the Board of Directors on the financial year 2010
4
Balance sheet
7
Profit and loss statement
8
Market environment
10
Review of markets / Outlook
11
Organisation as at 1 January 2010
14
Organisational structure as at 1 January 2010
16
Bank CIC (Switzerland) Ltd. – Registered offices
17
Crédit Mutuel-CIC
18
Milestones in our development
20
Financial report
21
The Annual Report for 2010 is also available in German and French. It can be downloaded from our website www.cic.ch.
Bank CIC (Switzerland) Ltd. Annual Report 2010
2009
Titel des Content
Kapitels
1
SUMMARY
31.12.2010
31.12.2009
in 1 000 CHF
in 1 000 CHF
in %
in 1 000 CHF
1 742 731
1 830 832
–4.8
–88 101
of which due to customers on savings and
deposit accounts
332 002
271 992
22.1
60 010
of which other amounts due to customers
1 393 830
1 530 900
–9.0
–137 070
16 899
27 940
–39.5
–11 041
2 983 087
2 711 973
10.0
271 114
Customer deposits
of which medium-term notes
Loans and advances to customers
of which amounts due from customers
886 901
862 913
2.8
23 988
2 096 186
1 849 060
13.4
247 126
201 057
198 753
1.2
2 304
3 807 377
3 446 955
10.5
360 422
Net interest income
39 815
37 173
7.1
2 642
Net fee and commission income
35 606
38 965
–8.6
–3 359
Gross operating profit
13 200
17 390
–24.1
–4 190
Net profit
2 304
10 339
–77.7
–8 035
Branches
8
8
265
274
4
4
of which mortgage lending
Shareholders’ equity (after distribution of profit)
Total assets
Staff (including apprentices)
Apprentices
2
Change
2009
Titel des Kapitels
Summary
FOREWORD BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
AND THE CEO
Continued growth in the loans sector
In its 102nd year of existence, Bank CIC (Switzerland) Ltd.
continues to develop its service offerings for both its
private and commercial customers. Their confidence has
enabled the Bank to report positive results. The business
volume has increased significantly, a development that is
also due to the newest offices in Neuchâtel and Fribourg.
We see it as confirming our strategy, and consequently,
we plan to attract new customers through an even greater
regional presence. With growth of over 10% last year and
over 70% in the last five years, we were able to expand
the lending business in particular and to gain substantial
market share.
Innovations
To continue to support personal contact with our clients
through a powerful and upgradable IT system, in early
2011 Bank CIC (Switzerland) Ltd. together with its sole
shareholder, Crédit Mutuel-CIC Group, successfully
introduced the state-of-the-art Avaloq software solutions
system. This new platform will make it possible to provide
tailored services to customers quickly and easily.
In addition, customer-oriented information will be made
accessible. This superb platform will also enable the Bank
to continue its development as a streamlined universal
bank with a broad offering for private, institutional and
commercial customers.
2010 results
Results were affected by extraordinary items. One-time
charges in connection with the introduction of the new
IT platform and the implementation of a switch from a
pension fund based on a defined benefit plan to one
based on a defined contribution resulted in provisions
of around CHF 10 million. Taking into account these extraordinary items, net profit has clearly exceeded that of
the previous year.
This satisfactory result is mainly due to net interest income, which increased by 7.1%. Whereas net equity
shows little change, eligible own funds increased to over
CHF 300 million.
We are confident about the future. As part of the cooperatively organised Crédit Mutuel-CIC Group, with the new
IT system, sufficient capital to enable growth and motivated co-workers, we wish to renew our focus on our
customers, and to offer them integrated, full-service
solutions.
We would like to thank our loyal customers for their trust
and all employees of the Bank for their dedication.
Philippe Vidal
Chairman of the Board of Directors
Thomas Müller
CEO
2009
Foreword by the Chairman of the Board of Directors
Titeland
des the
Kapitels
CEO
3
Pierre Ahlborn
Jean-Louis Droz
Elmar Ittensohn
François Malnati
REPORT BY THE BOARD OF DIRECTORS
ON THE FINANCIAL YEAR 2010
Board of Directors / Management Committee
The Board of Directors of Bank CIC (Switzerland) Ltd.
named Thomas Müller Chairman of the Management
Committee as of 1 December 2010. Thomas Müller has
taken over the function of CEO from Henry Fauche, who
is retiring after 20 years of service to the Bank.
The Board of Directors is grateful to Henry Fauche for
his extraordinary achievements and recognises his pivotal
role in the development of the Bank. Thomas Müller’s
goal will be to achieve a sustainable foothold for Bank
CIC (Switzerland) Ltd. in the market. He also aims to
expand the Bank’s market presence in both commercial
and private banking and to affirm the Bank’s growth
strategy and secure it over the long term.
Assets over the last 5 years
in millions CHF
4000
3800
3600
3400
3200
3000
2800
2600
2400
2006
2007
2008
2009
2010
2009
2010
Lending over the last 5 years
in millions CHF
2900
2700
The Board of Directors appointed André Justin Head of
IT & Operations and Member of the Management
Committee effective 1 January 2011. André Justin has
worked in the CIC Group for many years. Most recently, he
directed the IT system changeover of Bank CIC (Switzerland) Ltd. and as such deserves much of the credit for
the successful implementation of the banking software.
2500
2300
2100
1900
1700
1500
2006
2007
2008
Customer deposits over the last 5 years
ANNUAL RESULTS
in millions CHF
Balance sheet and general business development
As a result of the systematic implementation of the
Swiss-wide growth strategy, total assets rose by CHF
360.4 million. Mortgage lending played a major role,
increasing by CHF 247.1 million, or 13%. Strong growth
was also seen in customer savings deposits, which
increased by over 22%.
1900
1800
1700
1600
1500
1400
1300
1200
2006
On average, growth in western Switzerland surpassed
that of the rest of the country. This result is due to the
satisfactory development of the recently established
branches in Neuchâtel and Fribourg, which have a firmer
foothold in the market.
With respect to customers, business with major corporate
clients is proving very satisfactory. Special financing
agreements experienced above-average growth, although
4
2009
Report
the Board of Directors
Titel desbyKapitels
2007
2008
2009
2010
demand for corporate financing was somewhat weakened. In private banking, as a result of our personalised
service, we were able to attract new customers who will
benefit even more from the internationally oriented CIC
Private Banking.
Dr. Anton Menth
Philippe Vidal (Chairman of the Board
of Directors)
Net new money in- and outflows
over the last 5 years
Erich Wyss (Honorary President)
Income
Net income from banking operations fell slightly in the
year under review because the increase in net interest
income of CHF 2.6 million was only partially able to
compensate the reduction in net fee and commission
income. While the interest rate margin remained stable
and additional interest income accounted for growth in
the business volume, following a very satisfactory 2009,
lower net commission income reflected customers’
cautious approach to the market.
in millions CHF
500
300
100
–100
–300
–500
2006
2007
2008
2009
2010
Expenses
The balance sheet strongly reflects extraordinary items:
the successful implementation of the new IT system resulted in a charge of CHF 4.5 million and personnel expenses
increased by CHF 6.1 million as a result of the switch from
a pension fund based on a defined benefit plan to one
based on a defined contribution. Despite the extraordinary
items, operating expenses and earnings before taxes
increased by CHF 3.4 million.
Income structure over the last 5 years
in per cent
100
90
80
70
60
50
40
30
20
10
0
2005
2006
2007
2008
2009
Other ordinary income
Net trading income
Net interest income
Net interest income
41% of our assets under management are managed in
mandates. Clients with management mandates benefit
from the professionalism and market proximity of our
specialized teams.
Personal interaction with relationship managers and the
one-to-one support offered by personal advisors are also
gaining in importance. Due to the weakening of the euro
and the US dollar, client assets in Swiss francs declined
slightly to CHF 6,968.0 million.
Profit distribution
The net profit of CHF 2.3 million plus profit brought
forward of CHF 1.1million adds up to a total of net profit
available for distribution of CHF 3.4 million. The Board of
Directors proposes that the profits be appropriated as
follows:
in 1 000 CHF
2010
Net profit
2 304
Profit brought forward
1 118
Net profit available for distribution
3 422
Distribution of dividend on share capital
Allocation to general statutory reserve
Allocation to other reserves
Retained earnings
–
–
–2 200
1 222
2010
Report by the Board
of Directors
Titel des
Kapitels
5
Outlook
The Bank’s main concern is and will remain personal
attention to our customers. Under the supervision of
Thomas Müller and a Board of Directors reinforced
with the appointment of André Justin as Head of
IT & Operations, the Bank intends to redouble its focus
on its customers and their needs, to remain closer to
them and to support them in their financial transactions.
Accordingly, we will be providing innovative solutions
in Private Banking and expanding our offerings in wealth
and asset management and advising.
In the commercial sector as well, the attractive package
of services will be rounded out with customised financing,
trade and settlement services.
Finally, the planned expansion of the branch network and
further targeted improvements will consolidate the
ambitious growth strategy of Bank CIC (Switzerland) Ltd.
and secure its future. The new IT platform and the
support of the Crédit Mutuel-CIC Group provides Bank
CIC (Switzerland) Ltd. the means it requires to implement
this growth strategy and to serve its customers with the
very highest level of efficiency and quality.
6
Bank
Bank CIC
CIC (Switzerland)
(Switzerland) Ltd. Ltd. Annual
Annual Report
Report 2010
2009
Report
byKapitels
the Board of Directors
Titel des
Thanks
We would like to take this opportunity to extend our
special thanks to our customers for their trust and
their loyalty.
Our thanks also go to the Management Committee, the
Board members, the Executive Committee and all our
staff for their commitment and dedication. Their initiative
and determination throughout the past year were decisive
factors in providing customer satisfaction and achieving
our good business results.
BALANCE SHEET
in 1 000 CHF
31.12.2010
31.12.2009
Change
205 138
270 816
–65 678
Assets
Cash and other liquid assets
Money market placements
Loans and advances to banks
591
704
–113
292 251
124 288
167 963
886 901
862 913
23 988
2 096 186
1 849 060
247 126
35
11 933
–11 898
Financial investments
223 126
243 505
–20 379
Participating interests
1 628
1 725
–97
61 117
51 776
9 341
5 697
8 730
–3 033
34 707
3 807 377
21 505
3 446 955
13 202
360 422
–
–
–
54 163
15 923
38 240
Mortgage lending
Securities and precious metals held for trading
Fixed assets
Accrued income and prepaid expenses
Other assets
Total
Total subordinated claims
Total amounts due from subsidiaries and qualified
participants
Liabilities
Money market paper issued
186
221
–35
1 490 686
1 063 084
427 602
332 002
271 992
60 010
1 393 830
1 530 900
–137 070
16 899
27 940
–11 041
Bonds loans and loans from mortgage
bond institutions
222 600
212 600
10 000
Accrued expenses and deferred income
21 391
22 424
–1 033
Other liabilities
41 280
31 114
10 166
Allowance for general credit losses and other provisions
87 446
85 637
1 809
Reserves for general banking risks
30 085
30 085
–
Share capital
34 000
34 000
–
29 200
29 200
–
104 350
96 350
8 000
Due to banks
Due to customers on savings and deposit accounts
Other amounts due to customers
Medium-term notes
General statutory reserve
Other reserves
Retained earnings
Net profit
Total
Total subordinated liabilities
Total liabilities to subsidiaries and qualified participants
1 118
1 069
49
2 304
3 807 377
10 339
3 446 955
–8 035
360 422
60 102
–
60 102
1 454 439
861 438
593 001
BankCIC
CIC(Switzerland)
(Switzerland)Ltd. Ltd. Annual
AnnualReport
Report2009
2010
Bank
Sheet
TitelBalance
des Kapitels
7
PROFIT AND LOSS STATEMENT
ORDINARY INCOME AND EXPENSES
in 1 000 CHF
2010
2009
Change
59 168
62 842
–3 674
Net interest income
Interest income
Interest and dividend income from trading portfolios
Interest and dividend income from financial investments
Interest expense
Subtotal
–
–
–
6 191
5 808
383
–25 544
–31 477
5 933
39 815
37 173
2 642
3 733
2 314
1 419
29 439
33 824
–4 385
3 185
3 623
–438
Credit-related fees and commissions
Fees and commissions from securities and
investment business
Other fee and commission income
Fee and commission expense
Subtotal
Net trading income
–751
–796
45
35 606
38 965
–3 359
9 594
12 026
–2 432
Net gains from disposals of financial investments
–
–
–
Income from participating interests
1 219
1 427
–208
Income from real estate
1 553
1 492
61
–
274
–274
Other ordinary expenses
–
–
–
2 772
3 193
–421
Personnel expenses
–54 675
–52 001
–2 674
Other expenses
–19 912
–21 966
2 054
Subtotal
–74 587
–73 967
–620
13 200
17 390
–4 190
Subtotal
Operating expenses
8
NET PROFIT
in 1 000 CHF
2010
2009
Change
13 200
17 390
–4 190
Depreciation and amortisation
–7 618
–8 916
1 298
Provisions for doubtful debts and contingencies
–1 308
–7 627
6 319
Net profit before extraordinary items and taxes
4 274
847
3 427
279
12 970
–12 691
Extraordinary income
Extraordinary expenses
Taxes
Net profit
–70
–
–70
–2 179
–3 478
1 299
2 304
10 339
–8 035
PROFIT DISTRIBUTION
in 1 000 CHF
2010
2009
Change
Net profit
2 304
10 339
–8 035
Retained earnings from the previous year
1 118
1 069
49
Balance sheet profit
3 422
11 408
–7 986
–
–
–
Profit distribution
Allocation to staff pension funds
Retained earnings
–
–
–
–2 200
–8 000
5 800
–
–2 290
2 290
1 222
1 118
104
9
CONTINUING DIFFICULT MARKET ENVIRONMENT
In my 25-year-long career, I have never experienced a
market environment as difficult to assess as the one
that prevails today. Since the onset of the financial crisis,
economic differences between individual countries and
regions have become evident. In the future, any return
to “normality” is likely to be preceded by even greater
market turbulence.
Even within the European Union, the gap between the
core countries and those of the periphery is growing wider.
A solution to this dilemma is not foreseeable.
Developing countries are experiencing a genuine economic boom accompanied by rising inflation rates.
Population movements and low living standards point
to a high potential for growth, which makes the adequate
supply of infrastructure, energy, food and raw materials
Governments will have no alternative
but to cut spending in general and to raise a real challenge. Moreover, higher prices for food and raw
materials may provoke social unrest, and price bubbles
taxes.
can lead to supply or demand shocks. The task for developing countries is to keep growth rates at a sustainable
In addition, we are faced with the strongly different
growth prospects of the industrialised and developing
level and at the same time switch the focus of their
countries. In the rich industrialised countries, the growth economies from exports to domestic consumption.
outlook is modest because a very high standard of living
Keeping a close watch on the financial
has already been achieved. Economic growth will be
markets and anticipating trends in a timely
generated mainly by replacement investments. For decades, many countries have lived beyond their means
way will not be easy.
and piled up mountains of debt which the next generThese inequalities will exert their effects in 2011 and
ations will be able to pay off only by making massive
beyond, and will continue to lead to substantial volatility
changes. A higher standard of living is not the only
constraint on growth. The demographic shift towards an across the range of asset classes. Keeping a close watch
on the financial markets and anticipating trends in a
increasing number of retirees per worker will lead to
additional costs. Governments will have no alternative timely way will not be easy. Close tracking of developbut to cut spending in general and to raise taxes. Conse- ments in the financial markets is essential to be able to
quently, in future, private and governmental consumers react appropriately to demands and situations in this
will have to tighten their belts, which in turn will have a environment. Accordingly, we recommend actively
managing investments, because where there are risks,
negative effect on economic growth. And it is not only
the states that are feeling the pinch; so are the central there are also opportunities. Our assessment of economic
banks, which have massively swelled their balance sheets developments and prospects for the various asset classes
is presented in the following pages.
through monetary policy which includes keeping rates
close to zero per cent and quantitative easing (injecting
cash into the system by buying bonds or currencies).
Sooner or later, the banks will reverse these measures
Roger Baumann
and withdraw the excess liquidity from the market,
which given its sheer volume is bound to have an effect CIO
on the markets.
Roger Baumann is Chief Investment Officer, in charge of investment
policy at Bank CIC (Switzerland) Ltd.
10
2009
Continuing
difficult market environment
Titel des Kapitels
REVIEW OF MARKETS / OUTLOOK
Economy
During 2010, the economy stabilised in the industralised
countries. Although the recovery was mostly disappointing, a renewed relapse into recession is unlikely. The
weak growth meant that unemployment remained high
and core inflation (excluding energy and food) showed a
deflationary tendency. The central banks responded by
buying into the bond market (quantitative easing) and
stuck to their expansionary monetary policy. The economies in the Eurozone reacted differently. The weak euro
led to strong economic growth for world export leader
Germany, whereas the so-called PIGS countries (Portugal,
Ireland, Greece and Spain) at times even reported negative
growth rates.
Developing countries recovered rapidly from the financial
crisis. The sharp rise in inflation in some countries in late
2010 led the affected central banks to tighten the reins
on monetary policy. This slowed booming economic
growth to a sustainable level.
In the developed countries, we continue to expect belowaverage growth rates compared to those of developing
countries. The debt-relief process for households and
states could affect the economy negatively for years to
come. The developments in the euro countries of the
periphery will continue to keep the markets in suspense.
Nonetheless, over the course of 2011, we expect a
significant easing of the situation.
In developing countries, inflation rates could continue
to rise due to the sharp increase in commodity prices.
But restrictive monetary policy, together with a gradual
appreciation of the currencies of some developing
countries compared to the US dollar, will tend to push
inflation rates back down in the second half of the year.
Policy rates
in per cent
7
6
5
4
3
2
1
0
2001
2002
2003
2004
2005
SNB
2006
2007
2008
2009
EZB
2010 2011
FED
EUR/CHF
For 2011, we expect the foreign exchange market to
stabilise. Accordingly, exchange rates should move in the
direction of purchasing power parity. This long-term
exchange rate theory defines a price level at which the
purchasing power of each of two currency areas is the
same. The relationship of the currencies is observed
over time. The purchasing power parities of the major
currencies are: EUR/USD 1.25, EUR/CHF 1.40, USD/CHF
1.12 and GBP/CHF 1.80.
1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
2001
2002
Forex
The sharp increase in debt in the industralised countries
and fears regarding a possible decline of the euro resulted
in a flight to Swiss francs in 2010. In December alone,
the Swiss franc rose by around 5% against the euro and
the dollar. For the year overall, this resulted in a 15% lower
euro exchange rate and a 10% lower dollar exchange
rate.
2003
2004
2005
2006
2007
2008
2009
2010 2011
EUR/CHF
2010
Review of markets
Outlook
Titel des/ Kapitels
11
Fixed income / Bonds
The stabilising of the economies of the major industrialised countries gave rise to widespread fear of inflation.
In the fourth quarter, yields on bonds of solid government
debt climbed sharply, though they are still at historically
low levels. The situation of the PIGS countries continues
to be worrisome, expressed as persistently high credit
spreads. Nonetheless, from the perspective of the year
overall, bonds of high-quality corporate borrowers were
one of the best-performing asset classes.
2011 is unlikely to enter the history as the year of bonds.
The central banks of the industralised countries could
begin to raise interest rates in the second half of the
year, and that would lead to rising interest rates in the
money and capital markets as well. Investors should
stick with short- to medium-term high-quality bonds.
10-year government bond yields
in per cent
7
6
5
4
3
2
1
2001
2002
2003
2004
CH
2005
2006
2007
2008
EU
2009
2010 2011
US
Commodity prices
in USD
140
130
120
110
Equities
In the last quarter of 2010, global equity markets advanced strongly. For the year overall, however, performance varied. The winners were those countries that
experienced strong economic growth, such as Germany
and developing countries. The USA and Great Britain
benefited from weak currencies. On the other hand, the
Swiss stock market suffered from the strong Swiss franc
and the weak performance of the highly weighted
pharmaceutical stocks and closed slightly down, as did
the Japanese stock market.
We view equities as an attractive asset class for 2011 and
expect price increases of about 15%. The reasons include:
low valuations, attractive dividend yields, solid corporate
balance sheets and lack of investment alternatives.
Emerging market stocks are once again likely to outperform stocks from industrialised countries.
100
90
80
01/10
03/10
05/10
07/10
Commodity Price Index
09/10
Crude Oil
11/10
01/11
Gold Spot
Commodities
In 2010, all four major sectors (precious metals, industrial
metals, energy and food) continued their long-term
upward trend unabated. In addition to the strong
demand from developing countries, ever greater numbers
of financial investors turned to commodities, which
reduced the available market volume of certain raw
materials considerably.
This trend of increasing commodity prices is likely to
continue in 2011, further fueled by strong demand in
developing countries. On the supply side, production
can adapt to the growing demand only with a time lag
(if at all).
12
2009
Review
markets / Outlook
Titel desofKapitels
PERSONAL VIEWS
DEBT IN THE EU WILL WEIGH ON EMERGING MARKETS – TURNING MEGATREND SMARTPHONES
CURRENCY UNION FOR YEARS
ADVERSITY TO OPPORTUNITY
Will the European Union break up?
This issue has defused somewhat in
the early months of 2011.
The PIGS countries are refinancing
under tolerable conditions, the euro
is recovering and further supportive
measures were being discussed.
Yet the situation of the PIGS countries in the coming months and years
is likely to remain precarious: National
budgets will operate in the red for a
long time, which will have a negative
impact on growth in the countries
affected. It will be interesting to
compare the roles of the key players;
of policies and rhetoric, which imply
a solidarity that does not necessarily
carry over to actions; of the European
central bank, which is just beginning
to evince concerns about inflation
but does not wish to subject the PIGS
to a stronger euro; and of the voters,
possibly the weakest link in the
democratic chain that holds the EU
together.
All things considered, we remain cautiously positioned, underweighted in
European equities with the exception
of Germany, where we are positioned
with an overweight in the DAX. We
recommend bonds, especially inflation-protected euro bonds.
The strong growth of the emerging
countries seemingly has no bounds. In
the meanwhile, the emerging markets
already account for over 40% of global
growth, and soon will overtake the
industralised nations.
The largest mobile telephone producer, Nokia, failed to pay sufficient
attention to smartphones and is now
continually losing market share to
Apple and Google. Sales for all producers for 2010 amounted to around
200 million units and are estimated
Nonetheless, the high prices of food at around 300 to 500 units for 2011.
and commodities have sparked a
Owing to the low penetration of
rise in inflation. Combating inflation smartphones in Asia, the region offers
and ensuring sustainable growth
additional room for growth. Google
will require higher interest rates and has set the standard for smartphones
currency appreciation in the near
with its new “Android” mobile phone
future.
operating system, and consequently,
we maintain a “buy” recommendation
Assuming that happens, inflationary for the company’s stock. A further
pressures should subside in the
interesting possibility to profit from
second half of the year. We are thus
the “smartphone trend” is to invest
neutral with respect to equity market in chip manufacturers. Over 50% of
funds for the short term, but recom- the material cost of a smartphone can
mend additional purchases during set- be allocated to chip manufacturers.
backs because the outlook is positive
for the long term.
Our favourite in this area is Qualcomm,
which has focused on manufacturing
In our opinion, it makes the best sense smartphone chips and currently
to invest in actively managed and
fabricates almost all the processors
globally oriented equity market funds. for the “Android” operating system.
Accordingly, we would be glad to
Mario Geniale, acting Chief Investment Officer
provide you with our current thirdparty funds recommendation list.
Stefan Kron, funds analyst
Reto Fünfgeld, funds manager and analyst
2009
Personal
views
Titel
des Kapitels
13
André Justin
Rolf Waldmeier
Daniel R. Meyer
Hanspeter Bollinger
Thomas Müller
ORGANISATION AS AT 1 JANUARY 2011
BOARD OF DIRECTORS
Chairman
Philippe Vidal, Paris
Vice chairmen
Pierre Ahlborn, Mersch
Elmar Ittensohn, Worb
Members
Jean-Louis Droz, Geneva
François Malnati, Sélestat
Dr. Anton Menth, Nussbaumen
Honorary President
Erich Wyss, Biel-Benken
MANAGEMENT COMMITTEE
CEO
Thomas Müller
Members of the
Management Committee
Hanspeter Bollinger
André Justin
Members of the Extended
Markus Allemann
David Fusi
Patrick Python
Daniel R. Meyer
Rolf Waldmeier
Head office Basle
Members of the Management
René Bachmann
Roger Baumann
Reto Bornhauser
Roger Buser
Gesine Cron
Eric De Kluijver
Andreas Dill
Edwin Gebs
Mario Geniale
Felix Grieder
Andreas Hösli
David Jermann
Thomas Lehmann
Thomas Lindner
Head of Internal Audit
Cinzia Visinoni
AUDITORS
Ernst & Young AG, Basle
14
Isabelle Marmier
Rolf Meyer
Thomas Muhr
Steffen Pawelzik
Luca Pertoldi
Mathias Pini
Christoph Ruch
Hans-Peter Rüd
Eric Saunier
Thomas Schulthess
Beat Sutter
Alexandre Weber
Beat Witzig
Beat Wüst
REGIONAL MANAGEMENT
Fribourg
Manager
Pierre Schroeter
Markus Baschung
Xavier Postiguillo
Alexandre Raboud
Beat Scheibli
Geneva
Manager
Daniel R. Meyer
Nicolas Brunner
Jean-Daniel Demierre
Cristina Ferreira Laurie
Albéric Fragnière
Sabine Mabut Buhagiar
Nicolas Roussin
Ernesto Wendenburg
Lausanne
Manager
Daniel R. Meyer a. i.
Jean-Marc Del Custode
Jean-Pierre Gremion
Corinne Spycher Conus
Pascal Trallero
Neuchâtel
Manager
David Fusi Members of the Management
Claude Aubry
Mauro Bergonzi
Philippe Fournier
Romeo Galati
Nicolas Humair
Cédric Alain Petitpierre
Raphaël Zuchuat
Locarno
Manager
Patrick Vicat-Cole
Renato De Bernardi
Roberto Moro
Luciano Soldati
Lugano
Manager
Patrick Vicat-Cole
Member of the Management
Daniele Manzo
Zurich
Manager
Hanspeter Bollinger
Marco Bachmann
Heinrich Frei
Heinz Herter
Walter Kohler
Stefan Zwald
15
ORGANISATIONAL STRUCTURE AS AT 1 JANUARY 2011
Chairman of the
Board of Directors
Ph. Vidal
Secretariat BoD
C. Ruch
Facility
Management
W. Stroh
Internal Audit
C. Visinoni
CEO
T. Müller
Human
Resources
E. Gebs
Legal Office
C. Ruch
Compliance
M. Pini
Secretariat MC
D. Nippel
Front
T. Müller
Private Clients
Business Clients
German-speaking French-speaking Basle
Switzerland,
Switzerland
R. Waldmeier
Ticino
D. R. Meyer
H. Bollinger
Zurich & Frenchspeaking Switzerland
D. Fusi
Basle
M. Allemann
Fribourg
X. Postiguillo
Fribourg
P. Schroeter
Ticino
P. Vicat-Cole
Geneva
D. R. Meyer
Geneva
N. Brunner
Zurich
H. Bollinger
Lausanne
J. M. Del Custode
Lausanne
P. Trallero
Portfolio
Management
R. Baumann
Neuchâtel
N. Humair
Neuchâtel
D. Fusi
Marketing & PM
S. Comment
Trading
B. Wüst
Risk Management IT & Operations
P. Python
A. Justin
Zurich
D. Fusi a. i.
Extended Management Committee
16
2009
Organisational
structure as at 1 January 2011
Titel des Kapitels
Finance &
Accounting
E. Saunier
B. Sutter
BANK CIC (SWITZERLAND) LTD. – REGISTERED OFFICES
Basle
Zurich
Neuchâtel
Fribourg
Lausanne
Locarno
Geneva
Lugano
HEAD OFFICE
REGISTERED OFFICES
Bank CIC (Switzerland) Ltd.
Marktplatz 13
P. O. Box 216
4001 Basle, Switzerland
T +41 61 264 12 00
F +41 61 264 12 01
www.cic.ch
Basle
Marktplatz 11 – 13
P. O. Box 216
4001 Basle, Switzerland
T +41 61 264 12 00
F +41 61 264 12 01
Fribourg
Avenue de la Gare 1
P. O. Box 135
1701 Fribourg, Switzerland
T +41 26 350 80 00
F +41 26 350 80 99
Geneva
Av. de Champel 29
P. O. Box 327
1211 Geneva 12, Switzerland
T +41 22 839 35 00
F +41 22 839 35 35
A member of the CIC Group
Lausanne
Rue du Petit-Chêne 26
P. O. Box 370
1001 Lausanne, Switzerland
T +41 21 614 03 60
F +41 21 614 03 65
Locarno
Via Stazione 9
P. O. Box 663
6602 Locarno-Muralto,
Switzerland
T +41 91 759 10 10
F +41 91 759 10 19
Lugano
Via Ferruccio Pelli 15
P. O. Box 5873
6901 Lugano, Switzerland
T +41 91 911 63 63
F +41 91 922 21 23
Neuchâtel
Faubourg du Lac 2
P. O. Box 1913
2001 Neuchâtel, Switzerland
T +41 32 723 58 00
F +41 32 723 58 01
Zurich
Löwenstrasse 62
P. O. Box 3856
8021 Zurich, Switzerland
T +41 44 225 22 11
F +41 44 225 22 21
Bank
BankCIC
CIC(Switzerland)
(Switzerland)Ltd. Ltd. Annual
AnnualReport
Report2009
2010
Bank CIC (Switzerland) Ltd. – Registered
Titel des Kapitels
offices
17
CRÉDIT MUTUEL-CIC
Our bank, flexible and solid
Bank CIC (Switzerland) Ltd. operates on a comprehensible scale. With around 270 staff in eight locations, its
size offers clarity and manageability. Clients appreciate
our short decision-making channels and the fact that
they can reach the relevant people directly.
At the same time, as part of the Crédit Mutuel-CIC Group,
Bank CIC (Switzerland) Ltd. enjoys a high level of stability,
ensuring continuity and reliability even in difficult times.
This combination of versatility and solidity brings together
the advantages of being both large and small, creating
unique benefits for the client.
Our Group: a strong foundation
Being part of this Group ensures that Bank CIC (Switzerland) Ltd. has a stable shareholder base and a clear ownership structure while enabling it to operate independently.
The Group’s international and global network also
provides ample opportunity for a variety of cross-border
transactions. The Group’s ratings make it one of the
best-valued banks in the Eurozone.
Bank CIC (Switzerland) Ltd. is a 100% subsidiary of
the French Crédit Mutuel-CIC Group.
92%
Crédit Mutuel France
Balance sheet
Employees
Clients
Profit
EUR 591 billion*
approx. 76 000
approx. 29.2 million
EUR 3 026 million
Branches
5 875
* Figures as at year-end 2010
18
2009
Titel des
Crédit
Mutuel-CIC
Kapitels
100%
CIC Paris
Balance sheet
Employees
Clients
Profit
Branches
EUR 242 billion*
approx. 21 000
approx. 4.4 million
EUR 1 144 million
2 117
Balance sheet
Employees
CHF 3.8 billion*
265
Clients
approx. 17 000
Profit
CHF 2.3 million
Branches
8
RATINGS AS AT 31 DECEMBER 2010
Standard & Poor’s
Moody’s
Fitch
Short-term
A-1
P-1
F1+
Long-term
A+
Aa3
AA–
Outlook
stable
stable
stable
The rating refers to Banque Fédérative du Crédit Mutuel (BFCM). BFCM is the holding company for the Crédit Mutuel-CIC Group.
Crédit Mutuel-CIC
The CM-CIC Group is one of the largest banking groups
in France. Its 5 875 branches and approximately 76 000
employees represent the second-largest branch network in France. The CM-CIC Group has proven expertise
in looking after business clients and enjoys a strong
presence abroad. A third of all small and medium-sized
businesses in France bank with the Group.
It forms the second-largest retail bank in France, managing over 29 million clients. The Group combines the
benefits of a non-centralised cooperative bank represented
throughout France with the strengths of an international
commercial bank with branches in around 40 foreign
locations.
A German idea with a European flavour
Crédit Mutuel is a cooperative bank founded on the
values of the famous German mayor F. W. Raiffeisen
(1818 – 1888). It has always understood the importance
of developing products and services which best meet
the expectations of its clients. This is how the concept
of “bancassurance” arose, and today Crédit Mutuel offers
its clients a broad and successful range of banking and
insurance services. Building on this idea, we as a modern
Bank wish to promote the realisation of the idea of a
European community.
As an experienced Swiss asset manager, Bank CIC
(Switzerland) Ltd. is part of the Group’s international
private banking operation. Together with the other Group
members, Banque de Luxembourg, Banque Pasche,
CIC Banque Transatlantique and the CIC representative
office in Singapore, Bank CIC (Switzerland) Ltd. provides
first-class services to the discerning clientele of CIC Banque
Privée in the area of asset management and investment
advisory.
100 %
CIC Private Banking – Banque Pasche
100 %
CIC Banque Transatlantique
100 %
Banque de Luxembourg
100%
Dubly Douilhet
61.9 %
Crédit Mutuel-CIC
19
MILESTONES IN OUR DEVELOPMENT
1909 1910
1919
1931
1909
First branch of Banque
d’Alsace et de Lorraine (BAL)
in Basle. Integration of
Basler Gewerbebank AG.
1971
1977
1984 1997
1977
Zurich branch opens.
2007
1919
Establishment of S.A.C.I.C.,
Société Alsacienne de Crédit
Industriel et Commercial, in
Strasbourg. Acquisition of the
premises at Marktplatz 13 in
Basle.
20
2009
Milestones
in our development
Titel des Kapitels
2009
2007
Neuchâtel branch opens.
2008
Bank CIAL (Switzerland)
becomes Bank CIC (Switzerland) Ltd. Merger with the
asset management company
ICM Finance SA.
Fribourg branch opens.
1971
First branch of Bank CIAL
in Lausanne.
1931
BAL merges with S.A.C.I.C. to
form Crédit Industriel
d’Alsace et de Lorraine (CIAL).
2008
1997
New office in Geneva
through merger with
Banque de l’Union
Européenne en Suisse SA.
Lugano and Locarno
branches are opened.
1984
Swiss operation becomes
an independent limited
company: Bank CIAL
(Switzerland), head office
in Basle.
2009
The Bank CIC
(Switzerland) Ltd.
celebrates its
centenary.
FINANCIAL REPORT 2010
Balance sheet
22
Off-balance-sheet business
23
24
Cash flow statement
26
Explanatory notes to the annual report
27
Accounting and valuation principles
29
Notes to the balance sheet
31
Information on off-balance-sheet business
48
Notes on the profit and loss statement
50
Auditors’s report
51
BALANCE SHEET
31.12.2010
31.12.2009
Change
205 138
270 816
–65 678
591
704
–113
292 251
124 288
167 963
886 901
862 913
23 988
2 096 186
1 849 060
247 126
35
11 933
–11 898
223 126
243 505
–20 379
1 628
1 725
–97
61 117
51 776
9 341
in 1 000 CHF
Assets
Mortgage lending
Fixed assets
Other assets
Total
Total subordinated claims
Total amounts due from subsidiaries
and qualified participants
5 697
8 730
–3 033
34 707
21 505
13 202
3 807 377
3 446 955
360 422
–
–
–
54 163
15 923
38 240
Liabilities
186
221
–35
1 490 686
1 063 084
427 602
332 002
271 992
60 010
1 393 830
1 530 900
–137 070
16 899
27 940
–11 041
Bonds loans and loans from mortgage
bond institutions
222 600
212 600
10 000
21 391
22 424
–1 033
Other liabilities
41 280
31 114
10 166
87 446
85 637
1 809
30 085
30 085
–
Share capital
34 000
34 000
–
29 200
29 200
–
104 350
96 350
8 000
1 118
1 069
49
Due to banks
Due to customers
on savings and deposit accounts
Medium-term notes
Other reserves
Retained earnings
Net profit
Total
Total subordinated liabilities
Total liabilities to subsidiaries and qualified participants
22
Bank CIC (Switzerland) Ltd. Financial Report 2010
Balance sheet
2 304
10 339
–8 035
3 807 377
3 446 955
360 422
60 102
–
60 102
1 454 439
861 438
593 001
OFF-BALANCE-SHEET BUSINESS
31.12.2010
31.12.2009
Change
Contingent liabilities
161 484
172 098
–10 614
Irrevocable commitments
150 493
77 333
73 160
961
961
–
4 832
1 300
3 532
in 1 000 CHF
Liabilities for calls on shares and other equities
Commitment facilities
Derivative financial instruments
Positive replacement values
13 335
3 193
10 142
Negative replacement values
34 959
20 762
14 197
Contract volume
784 958
674 627
110 331
Fiduciary transactions
417 291
549 814
–132 523
23
PROFIT AND LOSS STATEMENT
ORDINARY INCOME AND EXPENSES
in 1 000 CHF
2010
2009
Change
59 168
62 842
–3 674
Net interest income
Interest income
Interest and dividend income from trading portfolios
Interest and dividend income from financial investments
Interest expense
Subtotal
–
–
–
6 191
5 808
383
–25 544
–31 477
5 933
39 815
37 173
2 642
3 733
2 314
1 419
29 439
33 824
–4 385
3 185
3 623
–438
Credit-related fees and commissions
Fees and commissions from securities and
investment business
Other fee and commission income
Fee and commission expense
Subtotal
Net trading income
–751
–796
45
35 606
38 965
–3 359
9 594
12 026
–2 432
Net gains from disposals of financial investments
–
–
–
Income from participating interests
1 219
1 427
–208
Real estate income
1 553
1 492
61
–
274
–274
Other ordinary expenses
–
–
–
2 772
3 193
–421
Personnel expenses
–54 675
–52 001
–2 674
Other expenses
–19 912
–21 966
2 054
Subtotal
–74 587
–73 967
–620
13 200
17 390
–4 190
Subtotal
Operating expenses
24
NET PROFIT
in 1 000 CHF
2010
2009
Change
13 200
17 390
–4 190
–7 618
–8 916
1 298
Provisions for doubtful debts and contingencies
–1 308
–7 627
6 319
Net profit before extraordinary items and taxes
4 274
847
3 427
279
12 970
–12 691
Taxes
Net profit
–70
–
–70
–2 179
–3 478
1 299
2 304
10 339
–8 035
PROFIT DISTRIBUTION
in 1 000 CHF
2010
2009
Change
Net profit
2 304
10 339
–8 035
Retained earnings from the previous year
1 118
1 069
49
3 422
11 408
–7 986
–
–
–
Profit distribution
Allocation to staff pension funds
Retained earnings
–
–
–
–2 200
–8 000
5 800
–
–2 290
2 290
1 222
1 118
104
25
CASH FLOW STATEMENT
2010
in 1 000 CHF
Application
of funds
Source
of funds
Application
of funds
11 441
2 304
7 618
1 809
3 033
–
–
–
–
–
–
–
–
1 033
2 290
–
5 160
10 339
8 916
–
–
–
–
–
–
–
–
4 334
432
1 879
950
6 500
–
97
–
–
11 371
–
21 303
–
12 045
–
–
–
–
–
16 863
–
200
67
2 495
13 378
820
–
–
–
2 373
10 980
7 276
Net cash provided by (used in) banking activities
a) Medium- and long-term activities (> 1 year)
Due to banks
Due to customers
Medium-term notes
Loans from mortgage bond institutions
Savings and deposit funds
Other liabilities
Mortgage lending
Other assets
102 095
5 826
15 000
–
5 000
60 010
10 166
–
49 935
–
10 137
–
–
–
–
7 614
–
–
–
–
–
33 163
–
13 202
–
–
–
–
77 400
169 475
–
–
–
–
–
3 653
197 440
21 614
5 581
9 220
–
–
8 984
4 717
138 759
72 738
186 355
–
b) Short-term activities
Due to banks
Due to customers
Medium-term notes
Loans from mortgage bond institutions
Mortgage lending
–
–
421 778
–
–
5 000
113
–
–
–
11 898
10 241
162 351
35
–
152 070
3 427
–
–
167 963
73 923
213 963
–
–
254 558
43
57 464
339 788
4 488
–
2
–
–
–
–
83 863
–
–
–
–
–
9 000
–
43 066
15 171
162 047
1 806
–
c) Liquidity
Cash and other assets
Total
65 678
65 678
179 214
–
–
179 214
–
–
259 718
40 975
40 975
259 718
Net cash provided by (used in) operating activities
Annual result
Allocations to pension funds
Dividend previous year
Net cash used in fixed asset transactions
Real estate
Investments in rented property
Other fixed assets
Investments in software
Intangible assets
26
2009
Source
of funds
Cash flow statement
–
EXPLANATORY NOTES TO THE ANNUAL REPORT
Bank CIC (Switzerland) Ltd. has its headquarters in Basle. It also has registered offices in Fribourg, Geneva, Lausanne,
Lugano, Neuchâtel and Zurich as well as an agency in Locarno-Muralto. It operates a full range of banking
activities. Its core business includes asset management and all associated banking services, as well as
commercial banking in a clearly defined risk framework. Both business sectors make a crucial contribution to
the Bank’s revenue. Bank CIC (Switzerland) Ltd. mainly services customers from Switzerland and Western Europe .
Balance sheet business
Balance sheet business is extremely important for our activities on the Swiss market. Loans to customers are
made against security in the form of either a mortgage or other customary collateral, or as unsecured business
loans. Loans secured by mortgages represent a substantial share of the lending volume. These mortgages consist
for the most part of first-class residential and commercial real estate in the catchment areas of our branch offices.
Net fee and commission business, net trading business
Net fee and commission business includes in particular asset management and investment consulting,
underwriting, executing stock exchange orders in Switzerland and abroad, currency trading, arranging fiduciary
investments, payment transactions and documentary business. Trading includes securities and foreign exchange
transactions on a proprietary basis. The possible price risks for the Bank as a result of this activity are restricted by
a limit system. The Bank is a member of the Eurex and was an active member of the SIX until mid-November 2010.
Other fields of business
The Bank holds a securities portfolio consisting mainly of fixed income securities, partly to obtain an appropriate
income and partly to secure its supply of liquidity. In the field of asset and liability management, we sometimes
use swaps to hedge against interest rate risk. The Bank carries out its business operations in its own and in rented
premises.
Risk assessment by the Board of Directors pursuant to Art. 663b of the Swiss Code of Obligations
The Board of Directors of Bank CIC (Switzerland) Ltd. is informed twice a year of any significant risks facing the
Bank. These pertain to credit, market and operational risks. The assessment of credit risks is based on risk
distribution and required equity capital; market risks are evaluated based on utilisation of limits throughout the
reporting period, including stress scenarios, and operational risks are evaluated on the basis of the Bank’s internal
risk inventory. Internal control measures and reporting are factored into the assessment. Internal control
measures are used to support continual monitoring and evaluation as well as precise recording of the effects of
these significant risks in financial accounting. The Board of Directors passed the risk policy pursuant to the risk
assessment. For further information on risk management, see the paragraph below.
Risk management
Risk policy is regularly reviewed by the Board of Directors for appropriateness. It defines how much risk the Bank
is prepared to take, and allocates corresponding competencies to the Management Committee. Units that are
completely independent of each other are defined for managing and controlling the risk of each of the risk
categories set out below. Risk management is responsible for managing risk. Risk control is responsible for
monitoring compliance with limits set by the Board of Directors and reporting to the Management Committee
and Board of Directors on the risk situation.
Loan default risk
The loan policy covers all commitments from which a loss may arise if contracting parties are unable to fulfil their
obligations.
Default risks are limited using risk diversification, quality requirements and coverage margins. Risk-oriented
delegation of responsibility governs loan approvals, where credit standing and financial standing are assessed on
the basis of uniform criteria. Depending on the nature of the security, loans are reviewed periodically and
submitted to the responsible authorities for approval.
2008
Explanatory notes to the
Titel
Annual
des Kapitels
Report
27
Monitoring loan default risks throughout the whole credit period is ascertained by regular analysis of
commitments. Impairment reviews of collateral are carried out at appropriate intervals, depending on the type
of cover. The valuation of real estate is governed by binding directives. The standards apply to both internal and
external surveyors. Owner-occupied properties and simple income properties can be valued internally by
customer support managers themselves.
External valuers are brought in for other property. The “market value” serving as the starting point for the loan is
established as follows:
n Owner-occupied properties: real value
n Income property: weighted income value
n O
wner-used trade or industrial property: income value or utility value realised on the market
(property to be considered as means of production)
n B
uilding land: market value taking into account future utilisation
The Bank uses independent valuation models and is thus in a position to ensure that the figures used in the
valuations are plausible. The maximum possible financing granted depends on the Bank’s internal fixed collateral
values and on affordability. There is a repayment obligation for second mortgages. Allowances for general credit
losses and other provisions are regularly reviewed and adjusted.
Interest rate risk
Interest rate risk on balance sheet and off-balance-sheet business is monitored and controlled by the Asset and
Liability Management Committee.
Control is exercised by means of sensitivity analyses and the Bank’s own interest rate forecasts; interest rate
swaps are the only hedging measures used. ALM software is used to measure compliance with interest rate risk
limits.
Other market risks
Other market risks (share price risks, currency risks) are restricted through limits. Trading positions are
monitored daily.
Liquidity risk
Ability to pay is monitored and guaranteed within the framework of the banking law. The Bank’s own positions
are checked regularly for saleability.
Operating risk
Operating risk is limited by means of internal regulations and directives on organisation and control.
Compliance and legal risks
The Compliance Office ensures that business activity complies with applicable regulatory standards and the duty
of care of a financial intermediary. This office ensures that directives and guidelines are adapted to regulatory
developments and are adhered to.
Outsourcing
Bank CIC (Switzerland) Ltd. outsourced payment transactions to PostFinance.
Staff
At the end of the business year, the number of employees expressed in terms of full-time employees was 265
(prior year 274), including 4 trainees.
28
Explanatory notes to the Annual Report
ACCOUNTING AND VALUATION PRINCIPLES
General principles
The principles adopted for accounting, drawing up the balance sheet and valuation are in accordance with the
provisions of the Code of Obligations, the banking law and the articles of association, as well as with the
guidelines of the Swiss Financial Market Supervisory Authority (FINMA).
Recording and valuation
All transactions are recorded in the Bank’s books on the closing day and valued from that date on in accordance
with the principles stated below.
Foreign currencies
Claims and liabilities in foreign currencies, as well as banknotes and coins held for the currency exchange business,
are converted at the middle rates applying on the balance sheet date, except for participating interest items, which
are valuated at historical exchange rates. Foreign currency profits and losses are booked to net income.
Reporting is carried out according to the accrual method.
Cash and other liquid assets, loans and advances to banks and customers, mortgage lending, deposit funds
These items are shown in the balance sheet at nominal value.
Doubtful debts
Doubtful debts, i.e. loans/advances and their interest (including accrued interest), where there is an acute or latent risk
of the debtor not being able to fulfil his obligations, are valued on a case-by-case basis in accordance with FINMA
circular 08/2 section 18ff., and the decrease in value is covered by individual value adjustments in accordance with the
principle of prudence. Off-balance-sheet transactions, such as firm commitments, guarantees or derivative financial
instruments, are also included in this valuation. Interest outstanding for more than 90 days is considered to be overdue.
This is allocated directly to the Allowance for general credit losses and other provisions. The decrease in value of the
debt is based on the difference between the book value and the anticipated collectable value, taking into account
counter-party risk and the net proceeds from the realisation of any collateral held. Individual value adjustments
are stated under Liabilities. If debts are classified as wholly or partly irrecoverable, or if the claim is waived, the
debts are booked out against the appropriate value adjustment.
Trading portfolios in securities and precious metals
Securities and precious metals held on a short-term basis at the Bank’s own risk are valued at market value on the
balance sheet date. The relevant interest and dividend income is posted as Interest and dividend income from
trading positions. The refinancing costs of trading are charged as interest expenditure. Stock price gains and
losses resulting from the valuation are posted under Net trading income.
Fixed income securities, convertible bonds, bonds cum warrants and investment fund units acquired as a
long-term investment are valued at the lower of acquisition cost or market price, if there is no intention of
holding them until maturity. Securities to be held until maturity are valued according to the accrual method, i.e.
premiums and discounts are deducted or added over the period to maturity.
Real estate to be disposed of is reported under Financial investments and recorded at the lower of acquisition cost
or market price. Any necessary value adjustments to financial investments valued at the lower of acquisition price or
market value are booked via the income category Other ordinary expenses or income; however, in the case of financial
investments valued at the lower of acquisition price or market cost, the maximum appreciation is limited to the
acquisition price. Realised gains on financial investments represent the difference between the book value and
the sale price, and are booked under Gains from disposal of financial assets.
29
Participating interests in other companies held as long-term investments and participating interests in joint
infrastructure programmes are valued at cost less operationally necessary depreciation and amortisation.
Fixed assets
Fixed assets are shown at cost less operationally necessary depreciation and amortisation. The estimated useful life
is a maximum of 50 years for real estate, a maximum of 5 years for IT investments, a maximum of 8 years for other
fixed assets. Goodwill is amortised over a period not exceeding 5 years and merger losses are written down over a
period not to exceed 20 years. All items are written down on a straight-line basis from the time of acquisition. Regular
value impairment reviews are carried out. The external costs of the NCS.CH project, i.e. bills from third parties and
group suppliers, are capitalised. Expenses and costs of the project management are not included. As IT investment,
the project will be depreciated over a period of five years from the day of implementation as of 1 January 2011.
Amounts due to pension funds
The staff of Bank CIC (Switzerland) Ltd. are insured in the Bank CIC (Switzerland) Ltd. in accordance with the law on
occupational pension funds (BVG) and for any portion of the salary that exceeds the maximum insured level under
the BVG. Executive staff are insured under the executive pension scheme of Bank CIC (Switzerland) Ltd. Under Swiss
GAAP ARR 16, the Bank is obliged to assess whether any financial risks or benefits could arise from a shortfall or surplus
in its pension funds. In general, calculations are made based on the pension funds’ own financial statements of the
previous year.
Taxes
The Bank defers tax liabilities existing from previous fiscal periods and taxes on the current period result and on
taxable capital.
In accordance with the principle of prudence, an allowance for general credit losses and other provisions is set
aside for all recognisable risks. The allowance for general credit losses and other provisions for remaining risks is
recorded under this balance sheet heading.
Reserves for general banking risks are taxed and considered as equity.
Contingent liabilities, irrevocable commitments, liabilities for calls on shares and other equities,
commitment facilities
Items shown under the heading Off-balance-sheet business are assessed at their nominal value. In accordance
with the principle of prudence, provisions for foreseeable risks are made and shown on the liabilities side of
the balance sheet.
Derivative financial instruments
Derivative financial instruments open at the balance sheet date are shown in the balance sheet at fair value, i.e.
positive and negative replacement value. For derivative financial instruments valued in accordance with the
minimum payment principle or the accrual method depending on the business intention pursued, the difference
is balanced out at market value via an equalisation account under Other assets or Other liabilities. Realised and
unrealised profits are booked under the heading Net trading income in the case of transactions with derivative
financial instruments entered into for trading purposes. With hedged transactions, income is allocated to the
same category as the corresponding income from the covered transaction.
Changes to accounting and valuation principles
As IT investment, the NCS.CH project will be depreciated over a period of five years starting with the implementation
on 1 January 2011.
Events after the balance sheet date
No extraordinary events arose after the balance sheet date that would have had a significant effect on the asset,
financial and earnings situation of Bank CIC (Switzerland) Ltd. in the past year.
30
NOTES TO THE BALANCE SHEET
BREAKDOWN OF LOAN AND OFF-BALANCE-SHEET BUSINESS COLLATERAL AS OF 31.12.2010
Nature of security
in 1 000 CHF
Mortgage
collateral
Other
collateral
Unsecured
Total
34 126
285 917
566 858
886 901
1 724 697
–
–
1 724 697
168 935
–
–
168 935
Loans
Mortgage lending
Residential properties
Business and office properties
Commercial and industrial properties
82 846
–
–
82 846
119 708
–
–
119 708
Total
2 130 312
285 917
566 858
2 983 087
As of 31.12.2009
1 881 415
356 156
474 402
2 711 973
194
92 604
68 686
161 484
–
–
150 493
150 493
Liabilities for calls on shares
and other equities
–
–
961
961
–
331
4 501
4 832
Total
194
92 935
224 641
317 770
As of 31.12.2009
969
98 212
152 511
251 692
Total amount
of debt
Estimated
liquidation
value of
collateral
Net amount
of debt
Individual
adjustment
Other loans
Contingent liabilities
in 1 000 CHF
Impaired loans/receivables
Year under review
12 306
945
11 361
12 404
Prior year
15 073
2 915
12 158
12 141
31
CLASSIFICATION OF SECURITIES AND PRECIOUS METALS HELD FOR TRADING,
FINANCIAL INVESTMENTS AND PARTICIPATING INTERESTS
31.12.2010
31.12.2009
Debt securities
–
–
with market value
–
–
with no market value
–
–
of which general loans and medium-term notes
–
–
Equity instruments
–
–
of which own equity instruments
–
–
Precious metals
35
11 933
Total
35
11 933
–
–
in 1 000 CHF
of which securities eligible for repurchase transactions
in accordance with the liquidation provisions
32
Book value
in 1 000 CHF
Fair value
31.12.2010
31.12.2009
31.12.2010
31.12.2009
223 107
243 503
228 897
250 571
Debt securities
of which general loans and medium-term notes
of which intended to be held to maturity
of which valued at the lower of acquisition cost or market price
–
–
–
–
223 107
243 503
228 897
250 571
–
–
–
–
Equity instruments
19
2
19
2
of which qualifying holdings*
–
–
–
–
Precious metals
–
–
–
–
Real estate
–
–
–
–
Total
223 126
243 505
228 916
250 573
of which securities eligible for repurchase
according to liquidity provisions
219 239
233 383
The bank does not have any own stock in the financial investments.
* at least 10% of capital or voting rights
31.12.2010
31.12.2009
–
–
with no market value
1 628
1 725
Total
1 628
1 725
with market value
33
NOTES ON PARTICIPATING INTERESTS
31.12.2010
in 1 000 CHF
Business activity
Capital
Share
in %
Share prior
year in %
100
100
100
The following are reported
as participations:
ICM Finance SA, Basle
finance company
STATEMENT OF FIXED ASSETS
2010
in 1 000 CHF
Cost price
Reclassifications1
Investments
Disposals
Depreci
ation and
amortisa- Book value
tion end 2010
Majority participating
interests
152
–
152
–
–
–52
–
100
Minority participating
interests
1 573
–
1 573
–
–
–25
–20
1 528
Total participating
interests
1 725
–
1 725
–
–
–77
–20
1 628
Real estate
42 723
–15 844
26 879
–
200
–
–1 143
25 936
of which bank
premises
42 723
–15 844
26 879
–
200
–
–1 143
25 936
5 642
–2 899
2 743
–
67
–
–590
2 220
–11 594
2 495
–
–1 605
4 537
Investments in rented
property
Other fixed assets
23 155
–7 914
15 241
Assets under finance
leases
–
–
–
–
–
–
–
–
Investments in software
–
–
–
11 594
13 378
–
–3 096
21 876
7 276
–364
6 912
–
–
–
–364
6 548
–
–
–
–
820
–
–820
–
78 796
–27 021
51 775
–
16 960
–
–7 618
61 117
Merger losses
Goodwill
Total fixed assets
Fire insurance value of real estate
38 796
Fire insurance value of other fixed assets
23 068
1
34
Accrued
depreci
ation and
amortisa- Book value
tion end 2009
In the year under review, investments in software were reclassified from Other fixed assets to Investments in software.
OTHER ASSETS AND OTHER LIABILITIES
in 1 000 CHF
31.12.2010
31.12.2009
Other
assets
Other
liabilities
Other
assets
Other
liabilities
Replacement values of derivative contracts
13 335
34 959
3 193
20 762
Equalisation account
18 609
–
13 348
–
Settlement accounts
2 313
1 267
3 816
2 867
434
4 778
1 125
7 266
16
222
23
163
Indirect taxes
Coupons
Various
Total
–
54
–
56
34 707
41 280
21 505
31 114
PLEDGED OR ASSIGNED ASSETS AS WELL AS
ASSETS UNDER RETENTION OF TITLE
in 1 000 CHF
The following assets were not freely available for
use on the balance sheet date:
31.12.2010
31.12.2009
Book value
Actual
obligation
Book value
Actual
obligation
Nostro account, Eurex
3 711
3 711
–
–
Own securities, Eurex
1 828
1 828
–
–
Mortgage loans pledged or assigned
for mortgage bonds1
357 235
240 408
354 281
212 600
Total
362 774
245 947
354 281
212 600
SECURITIES LENDING AND REPURCHASE AND REVERSE-REPURCHASE TRANSACTIONS
WITH SECURITIES
in 1 000 CHF
31.12.2010
31.12.2009
The following assets were not freely available for
use on the balance sheet date:
Book value
Book value
Obligations arising from repurchase transactions
–
70 000
Securities in own portfolio transferred within the
framework of repurchase transactions
–
69 161
thereof the unlimited right to sell on or pledge has been granted
–
69 161
In the year under review, the Pfandbriefbank Schweizerischer Hypothekarinstitute (Mortgage Bond Bank of Swiss Mortgage Institutes) raised its coverage to 108%.
1
35
AMOUNTS DUE TO THE PENSION FUNDS
OF BANK CIC (SWITZERLAND) LTD.
in 1 000 CHF
31.12.2010
31.12.2009
6 515
2 754
Contributions
accrued in
period
Pension expenses
contained in
personnel expenses
2010
2009
On the balance sheet date, the current account credit
balances and investments of the staff pension funds with
Bank CIC (Switzerland) Ltd. amounted to:
Employer contribution reserve
There are no employer contribution reserves requiring disclosure.
Financial benefit / financial liability and pension expenses
in 1 000 CHF
Surplus/
shortfall
31.12.2009
Pension funds
in shortfall
–
Change vs.
Financial share
previous year or
of the Bank
recognised in
31.12.2009 31.12.2008
P&L in period
–
–
–
–
10 101
4 551
As at 31.12.2010, the expected coverage ratio for the pension fund of Bank CIC (Switzerland) Ltd. was 107%
(taking into account the planned shift from a defined benefits plan to a defined contribution plan) and 113.7%
for the executive staff..
BONDS/MORTGAGE BONDS OUTSTANDING
in 1 000 CHF
Mortgage bonds issued by the
Pfandbriefbank Schweizerischer
Hypothekarinstitute
Total
36
Year of
issue
Interest rate
in %
Year due
issue
2008
3.050
2008
1.812
2008
2008
31.12.2010
31.12.2009
2010
–
15 000
2011
20 000
20 000
3.050
2012
16 700
16 700
2.425
2012
8 000
8 000
2009
1.800
2012
16 800
16 800
2008
3.550
2013
6 500
6 500
2008
2.925
2013
13 000
13 000
2009
2.050
2013
10 000
10 000
2009
1.550
2013
27 700
27 700
2008
3.175
2014
30 000
30 000
2009
2008
2.101
3.050
2014
2017
27 700
11 000
27 700
11 000
2009
3.425
2022
10 200
10 200
2010
1.050
2015
10 000
–
2010
1.925
2020
10 000
–
2010
2.300
2020
5 000
–
222 600
212 600
ALLOWANCE FOR GENERAL CREDIT LOSSES AND OTHER PROVISIONS, PROVISIONS FOR
CREDIT RISKS, RESERVES FOR GENERAL BANKING RISKS
2010
in 1 000 CHF
Allowances
applied in
Status conformity
end
with
2009
purpose
Allowances and provisions for loan
default risks and sovereign default
risks
Allowances and provisions for other
business risks1
Restructuring provisions
Provisions from pensions2
Change in
purpose of
allowances
(transfers)
New
New
Recoveries,
allowallowoverdue
ances
ances
interest,
charged
credited
exchange to income to income
differences statement statement
Status
end
2010
12 141
–711
–
382
1 741
–1 149 12 404
5 816
–
–5 816
–
–
–
–
–
–
–
–
–
–
–
–
1 595
–
–
–
–
1 595
Other provisions
67 680
–375
5 816
–
650
–324 73 447
Total allowance for general credit
losses and other provisions
85 637
–1 086
–
382
3 986
–1 473 87 446
Less specific provisions
–
–
Total allowance for general credit
losses and other provisions as per
balance sheet
85 637
87 446
Reserves for general banking risks3
30 085
30 085
All provisions for business risks are shown under Other provisions.
All provisions from pensions to date are shown under Charges to income.
3
Reserves for general banking risks are fully taxed.
1
2
37
COMMON STOCK
31.12.2010
in 1 000 CHF
Total
nominal
value
34 000
31.12.2009
No.
Capital
ranking for
dividend
Total
nominal
value
No.
Capital
ranking for
dividend
34 000
34 000
34 000
34 000
34 000
Nominal
Share in %
Nominal
Share in %
34 000
100
34 000
100
Common stock
Share capital
The bank has neither contingent nor authorised capital.
Significant shareholders
and Groups united
by voting rights
Banque CIC Est, Strasbourg
Bank CIC (Switzerland) Ltd. is wholly owned by the French regional Banque CIC Est, Strasbourg. Together with
other regional banks, Banque CIC Est is wholly owned by the French banking group CIC. The CIC Group, in turn, is
a majority holding of the French Crédit Mutuel banking group.
38
STATEMENT OF SHAREHOLDERS’ EQUITY
in 1 000 CHF
Shareholders’ equity on 1.1.2010 (before distribution of profit)
Paid-up share capital
34 000
29 200
Other reserves
96 350
30 085
11 408
Total
– Allocation to staff pension funds
– Dividends and other distributions from previous year’s net profit
+ Net profit for the reporting year
Total shareholders’ equity on 31.12.2010 (before distribution of profit)
201 043
–2 290
–
2 304
201 057
of which
Share capital
34 000
29 200
Other reserves
104 350
30 085
3 422
39
MATURITY PROFILE OF CURRENT ASSETS
AND BORROWED FUNDS AS OF 31.12.2010
Maturity of capital
in 1 000 CHF
Sight
Callable
Due
within
3 months
after
3 to 12
months
after 12
months to
5 years
after
5 years
Immobilised
Total
Current assets
Cash and other
liquid assets
205 138
–
–
–
–
–
–
205 138
Money market
placements
–
–
591
–
–
–
–
591
Loans and advances
to banks
136 251
–
146 000
–
–
10 000
–
292 251
Loans and advances
to customers
–
131 539
539 287
70 943
83 731
61 401
–
886 901
Mortgage lending
– 1 131 636
279 232
91 726
379 032
214 560
–
2 096 186
Securities and
precious metals
held for trading
35
–
–
–
–
–
–
35
19
–
5 000
30 857
187 250
–
–
223 126
Total
341 443 1 263 175
970 110
193 526
650 013
285 961
–
3 704 228
As of 31.12.2009
391 864
296 147
1 517 702
194 622
681 065
281 819
– 3 363 219
Borrowed funds
Money market
paper issued
186
–
–
–
–
–
–
186
33 245
–
1 021 935
295 438
37 068
103 000
–
1 490 686
–
332 002
–
–
–
–
–
332 002
Other amounts due
to customers
861 874
42 710
280 742
165 734
42 770
–
–
1 393 830
Medium-term notes
–
–
2 401
4 692
8 762
1 044
–
16 899
Due to banks
Due to customers
on savings and
deposit accounts
Bonds loans and loans
from mortgage bond
institutions
40
–
–
–
20 000
166 400
36 200
–
222 600
Total
895 305
374 712
1 305 078
485 864
255 000
140 244
–
3 456 203
As of 31.12.2009
943 446
337 888
1 217 476
230 895
295 754
81 278
–
3 106 737
CLAIMS AGAINST AND AMOUNTS DUE TO AFFILIATED ENTITIES
AND ADVANCES TO DIRECTORS
31.12.2010
31.12.2009
Claims against affiliated entities
3 612
464
Amounts due to affiliated entities
6 983
5 863
Advances to directors
3 304
2 639
in 1 000 CHF
Transactions with affiliated corporate bodies and individuals
Transactions with affiliated bodies and individuals are carried out at usual market conditions. Medium- and
long-term refinancing in the money market area is predominantly dealt with in the CIC Group and the Crédit
Mutuel Group. Short-term liquidity is invested within the CIC Group and the Crédit Mutuel Group. The interest
terms for Group-internal investments are the same as those used for third parties.
In the case of transactions (e.g. securities transactions, payments, granting of credit and compensation for
contributions), affiliated individuals employed at Bank CIC (Switzerland) Ltd. receive the same preferential
conditions, which are customary in the banking sector, as the other employees.
41
ANALYSIS OF DOMESTIC AND FOREIGN ASSETS AND LIABILITIES
31.12.2010
in 1 000 CHF
31.12.2009
Domestic
Foreign
Total
Domestic
Foreign
Total
204 774
364
205 138
267 165
3 651
270 816
–
591
591
–
704
704
Assets
90 989
201 262
292 251
53 045
71 243
124 288
659 183
227 718
886 901
658 389
204 524
862 913
2 088 882
7 304
2 096 186
1 841 475
7 585
1 849 060
Mortgage lending
Securities and precious
metals held for trading
35
–
35
11 933
–
11 933
952
222 174
223 126
10 067
233 438
243 505
Fixed assets
Accrued income and prepaid
expenses
Other assets
Total
42
1 626
2
1 628
1 671
54
1 725
61 117
–
61 117
51 776
–
51 776
2 034
3 663
5 697
4 443
4 287
8 730
31 609
3 098
34 707
20 886
619
21 505
3 141 201
666 176
3 807 377
2 920 850
526 105
3 446 955
ANALYSIS OF DOMESTIC AND FOREIGN ASSETS AND LIABILITIES
31.12.2010
in 1 000 CHF
Domestic
Foreign
31.12.2009
Total
Domestic
Foreign
Total
Liabilities
186
–
186
221
–
221
75 253
1 415 433
1 490 686
236 205
826 879
1 063 084
Due to customers on savings
and deposit accounts
298 498
33 504
332 002
245 463
26 529
271 992
Other amounts
due to customers
971 050
422 780
1 393 830
1 022 191
508 709
1 530 900
16 899
–
16 899
27 940
–
27 940
222 600
–
222 600
212 600
–
212 600
Accrued expenses and
deferred income
19 312
2 079
21 391
20 277
2 147
22 424
Other liabilities
34 409
6 871
41 280
26 461
4 653
31 114
Allowance for general credit
losses and other provisions
87 446
–
87 446
85 637
–
85 637
Reserves for
general banking risks
30 085
–
30 085
30 085
–
30 085
Share capital
34 000
–
34 000
34 000
–
34 000
29 200
–
29 200
29 200
–
29 200
104 350
–
104 350
96 350
–
96 350
Retained earnings
1 118
–
1 118
1 069
–
1 069
Net profit
2 304
–
2 304
10 339
–
10 339
1 926 710
1 880 667
3 807 377
2 078 038
1 368 917
3 446 955
Due to banks
Medium-term notes
Bonds loans and loans from
mortgage bond institutions
Other reserves
Total
43
ASSETS BY REGIONS AND COUNTRIES
in 1 000 CHF
31.12.2010
31.12.2009
Quota in %
Quota in %
Assets
Industrialised countries
630 956
16.6
499 641
14.5
Other Western Europe
11 282
0.3
5 980
0.2
Central and Eastern Europe
200
0.0
3 381
0.1
Other industrialised countries
168
0.0
965
0.0
18 890
0.5
14 084
0.4
282
0.0
340
0.0
Middle East
1 665
0.0
4
0.0
Other Africa
1 761
0.0
838
0.0
972
0.0
871
0.0
Caribbean
Latin America
Asia, Oceania
Total foreign claims
44
666 176
17.4
526 104
15.2
Switzerland
3 141 201
82.6
2 920 851
84.8
Total
3 807 377
100.0
3 446 955
100.0
MAJOR CURRENCY RATES ON THE BALANCE SHEET DATE
31.12.2010
31.12.2009
EUR (1 EUR = CHF)
1.2480
1.4871
USD (1 USD = CHF)
0.9300
1.0350
GBP (1 GBP = CHF)
1.4560
1.6616
JPY (100 JPY = CHF)
1.1479
1.1201
45
BALANCE SHEET BY CURRENCY AS OF 31.12.2010
in 1 000 CHF
CHF
USD
EUR
Other
Total
199 686
500
4 724
228
205 138
–
–
591
–
591
Assets
Mortgage lending
Securities and precious metals
held for trading
Fixed assets
Other assets
Total balance sheet assets
Delivery claims from spot exchange deals,
foreign exchange deals and currency options
transactions (contract volume)
Total assets
46
96 422
37 010
107 322
51 497
292 251
607 898
68 092
192 690
18 221
886 901
2 092 460
637
3 089
–
2 096 186
–
–
–
35
35
174 156
5
48 965
–
223 126
1 626
–
2
–
1 628
61 117
–
–
–
61 117
4 284
89
1 318
6
5 697
33 542
1 019
146
–
34 707
3 271 191
107 352
358 847
69 987
3 807 377
151 689
48 203
89 540
14 998
304 430
3 422 880
155 555
448 387
84 985
4 111 807
BALANCE SHEET BY CURRENCY AS OF 31.12.2010
in 1 000 CHF
CHF
USD
EUR
Other
Total
Liabilities
–
7
27
152
186
1 437 603
3 025
41 873
8 185
1 490 686
Due to customers on savings
and deposit accounts
332 002
–
–
–
332 002
921 835
104 766
310 710
56 519
1 393 830
16 899
–
–
–
16 899
222 600
–
–
–
222 600
Due to banks
Medium-term notes
Bonds and loans from mortgage
bond institutions
21 334
2
44
11
21 391
Other liabilities
40 479
297
420
84
41 280
Allowance for general credit losses
and other provisions
87 446
–
–
–
87 446
30 085
–
–
–
30 085
Share capital
34 000
–
–
–
34 000
29 200
–
–
–
29 200
104 350
–
–
–
104 350
Retained earnings
1 118
–
–
–
1 118
Net profit
2 304
–
–
–
2 304
3 281 255
108 097
353 074
64 951
3 807 377
147 602
47 725
92 183
17 107
304 617
3 428 857
155 822
445 257
82 058
4 111 994
–5 977
–267
3 130
2 927
–187
Other reserves
Total balance sheet liabilities
Delivery claims from spot exchange deals,
foreign exchange deals and currency options
transactions (contract volume)
Total liabilities
Net position per currency
47
INFORMATION ON OFF-BALANCE-SHEET BUSINESS
CONTINGENT LIABILITIES
31.12.2010
31.12.2009
Credit guarantees
44 015
94 058
Guarantees
98 302
66 819
in 1 000 CHF
19 167
11 221
161 484
172 098
Liabilities from deferred payments
4 832
1 300
Total
4 832
1 300
Total
OPEN DERIVATIVE FINANCIAL INSTRUMENTS AS OF 31.12.2010
Trading instruments
in 1 000 CHF
Hedging instruments
Positive
replacement
values
Negative
replacement
values
Contract
volume
Positive
replacement
values
Negative
replacement
values
Contract
volume
–
–
–
2 230
23 669
308 800
5 080
5 265
226 589
–
–
–
–
–
–
–
–
–
6 025
6 025
249 569
–
–
–
11 105
11 290
476 158
2 230
23 669
308 800
3 193
4 736
354 327
–
16 026
320 300
Interest rate products
Swaps
Foreign exchange products
Futures contracts
Combined interest and
currency swaps1
Options (OTC)
Total before consideration of
netting contracts (reporting year)
As of 31.12.2009
Total after consideration of
netting contracts (accumulated)
Total
As of 31.12.2009
1
48
Positive
replacement values
Negative
replacement values
Contract
volume
13 335
34 959
784 958
3 193
20 762
674 627
In the year under review, currency swaps are shown under Futures contracts.
FIDUCIARY TRANSACTIONS
in 1 000 CHF
Fiduciary investments with third-party banks
31.12.2010
31.12.2009
67 368
125 108
Fiduciary investments with Group banks and affiliated banks
349 923
424 706
Total
417 291
549 814
31.12.2010
31.12.2009
ASSETS UNDER MANAGEMENT
in 1 000 CHF
Assets in own administered funds
–
257 959
Assets with management mandate
2 857 524
2 922 479
Other assets under management
4 110 476
4 446 366
Total assets under management (including double counts)2
6 968 000
7 626 804
–
257 959
–240 607
295 317
1
of which double counts
Net new cash inflow
In 2010, the relocation of deposit currencies of CIC-own administered funds to the Banque de Luxembourg solved the problem of double counts.
In the year under review, the Bank’s claims on customer current account balances in the amount of CHF 142.330 million were subtracted from assets under management. In the prior year claims on current account balances amounted to CHF 162.131 million.
1
2
Customer assets comprise all customer assets managed or held for investment purposes. The definition and
calculations are based on the following principles:
Customer deposits
Securities, precious metals and fiduciary assets are recorded at market value for the calculation of customer
deposits. The figures comprise both assets deposited with the Bank and assets deposited with third parties for
which the Bank has a management mandate. Assets held solely for transaction and custody purposes do not
count as customer assets (custody business).
Customer funds
Amounts owed to customers are recorded.
Credit items
Customer assets are shown gross. With the exception of claims on current account balances, credit items are not
compensated for.
Double counting
Assets are recorded more than once in customer assets if the Bank can achieve a typical investment margin at
several stages of the value chain. In 2010, the relocation of deposit currencies of CIC-own administered funds
to the Banque de Luxembourg solved the problem of double counts.
Net new cash inflow
New money consists of the acquisition of new customers, loss of customers, as well as inflows and outflows of
assets from existing customers. Market changes resulting from securities or currency movements, interest and
dividend payments, and paid fees are not considered for the evaluation of net new money.
49
NOTES ON THE PROFIT AND LOSS STATEMENT
in 1 000 CHF
2010
2009
9 597
11 400
–3
626
9 594
12 026
39 188
42 654
2 919
3 261
10 443
4 551
Net trading income
Foreign exchange trading in currency and banknote trading
Securities trading
Total
Personnel expenses
Salaries
Employee benefits
Contributions to staff pension schemes
Other personnel expenses
2 125
1 535
54 675
52 001
Cost of premises
3 711
3 549
IT and communication costs
8 036
7 963
8 165
10 454
19 912
21 966
Total
Business expenses
Other administrative expenses
Total
Provisions, value adjustments and losses
In the year under review, net losses from loans in the amount of CHF 0.6 million, operational losses of CHF 0.066 million
and an accrual for litigation of CHF 0.650 million were charged against current income.
Total extraordinary income consists of the liquidation of various provisions amounting in total to CHF 0.190
million and different items amounting to CHF 0.089 million overall.
Extraordinary expenses comprise the branch clearing settlement of CHF 0.044 million, a valuation adjustment
of CHF 0.007 million as well as the disposal of an equity interest of CHF 0.019 million.
Disclosure of capital
As a member of the CM-CIC Group, Bank CIC (Switzerland) Ltd. is not subject to this disclosure requirement.
Relevant information can be found in the Annual Report of the CM-CIC Group.
50
Notes on the profit and loss statement
AUDITOR’S REPORT
To the Annual General Meeting of
Bank CIC (Switzerland) Ltd., Basle
Basle, 8 March 2011
Report of the statutory auditor on the financial statements
As statutory auditor, we have audited the financial statements of Bank CIC (Switzerland) Ltd., which comprise the
balance sheet, income statement, cash flow statement and notes (pages 21 to 50), for the year ended 31 December
2010.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements��
of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are
free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for
selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in
the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also
includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting
estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended 31 December 2010 comply with Swiss law and the
company’s articles of incorporation.
Auditor’s Report
51
Report on Other Legal Requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and
independence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our
independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an
internal control system exists, which has been designed for the preparation of financial statements according
to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the
company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
Ernst & Young Ltd.
Thomas Schneider
Licensed audit expert
(Auditor in charge)
52
Auditor’s Report
Markus Berchtold
Licensed audit expert
Publication data
Responsible for the content: Bank CIC (Switzerland) Ltd.
Concept, layout and realisation: Ivony:Krügel, Zurich
Translations: riga-blu (English), Bank CIC (Switzerland) Ltd. (French)
Proofreading: riga-blu
Lithography and printing: Kreis Druck Ltd., Basle
Picture credits: pages 3–5/10/15–16/20 Walter Fogel, Angelbachtal (D);
pages 3/13–14 sublim, Basle; page 11 iStockphoto (CAN); page 12 Panthermedia (D).
© 2011
Bank CIC (Switzerland) Ltd. ANNUAL REPORT 2010
CIC – La banque des connaisseurs
ANNUAL REPORT
2010
The bank for private and business clients

annual report

Transcription

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