Part of the Crédit Agricole Private Banking Group, Crédit Agricole

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Part of the Crédit Agricole Private Banking Group, Crédit Agricole
Annual Report 2013
04 : Crédit Agricole, a leading banking Group
06 : Crédit Agricole Private Banking:
a key player in wealth management
_
CONTEXT
08 : Message from the Chairman
and the Chief Executive Officer
10 : Economic and financial environment
_
ABOUT US
12 : Management Bodies
14 : Crédit Agricole (Suisse) SA, a leading Bank
_
ANNUAL REPORT
16 : 2013 Annual Report
24 : Consolidated key figures
_
BUSINESS LOCATIONS
26 : Business locations
02
03
A LEADING
BANKING GROUP
Crédit Agricole Group is the leading partner of the French economy and one of the
largest banking groups in Europe. It is the leading retail bank in Europe as well as the
first European asset manager, the first bancassurer in Europe and the global leader in
aeronautical financing.
Built on its strong cooperative and mutualistic roots, its 150,000 employees and the
31,000 directors of its local and regional banks, the Crédit Agricole Group is a
responsible and responsive Bank serving 49 million clients, 7.4 million mutual
shareholders and 1.2 million shareholders.
Thanks to its universal client-focused retail banking model – based on the cooperation
between its retail banks and their related business lines – the Crédit Agricole Group
provides support for its clients’ projects in France and around the world: insurance,
real estate, payments, asset management, leasing and factoring, consumer finance,
corporate and investment banking.
Crédit Agricole also stands out for its policy of dynamic, innovative corporate social
responsibility, for the benefit of the economy. This policy is based on a pragmatic
approach which permeates throughout the Group and engages each employee.
Its recent inclusion in the Vigeo-NYSE Euronext
extra-financial indices is recognition of this commitment.
60
49 M
150 000
Operations in almost
60 countries worldwide
clients
employees
€ 5.1 Bn
€ 76.3 Bn
11.2 %
Net income
Group share
Shareholders’ equity
Common Equity Tier 1
ratio fully loaded*
* in January 2014
04
ORGANISATION OF THE GROUP
7.4 million mutual shareholders underpin crédit agricole’s cooperative organisational structure.
they own the capital of the 2,483 local banks in the form of mutual shares and they designate their
representatives each year. 31,000 directors ensure that the Group becomes fully aware of their
expectations. the local banks own the majority of the regional banks’ share capital.
the 39 regional banks are cooperative regional banks that offer their clients a comprehensive
range of products and services. the discussion body for the regional banks is the fédération
nationale du crédit agricole, where the Group’s main orientations are discussed. the regional
banks together own, via sas rue la boétie, the majority of the share capital of crédit agricole sa
(56.2%). crédit agricole sa owns 25% of the regional banks (apart from the regional bank of
corsica). it coordinates in relation with its specialised subsidiaries the various business line
strategies in france and abroad.
THE UNIVERSAL CLIENT-FOCUSED BANK
ole
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Payme
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As CA
su
ran
INDIVIDUALS
FARMERS
Speci
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financia
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s ervices
SMALL BUSINESSES
LOCAL AUTHORITIES
INSTITUTIONALS
C
u
Gr ra
Uk
CA
na
ré
ti o n
pp dit d
al
ine o C u M
ar ar
CA iparm oc C
Srb a C A Egy
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CA t Agrico
Ban
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ska
·
·
the french ecOnOmy’s
leadinG financial partner
r
Co inv
ter
·
tate
R eal eses s
n
i
bus
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CA Immo
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in eurOpe
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ank
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CORPORATES
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easing
& Factoring
·
Fran
ce
Sa
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ACEI g
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und Bank
Am rivate
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CA
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SPECIALISED
BUSINESS LINES
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CA Paiemen Paymen
t
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A-N s
ET
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ks
RETAIL BANKS
CA v
In
OTHER SPECIALISED SUBSIDIARIES:
CRÉDIT AGRICOLE CAPITAL
Investissement & Finance
(IDIA, SODICA), Uni-éditions
nO. 1 eurOpean
asset manaGer
05
Crédit Agricole Private Banking
a key player in wealth management
Crédit Agricole Private Banking comprises the wealth management subsidiaries of the Crédit Agricole Group.
A legacy of broad geographical coverage
Crédit Agricole Private Banking has a long-standing presence in Europe, Latin America, Asia and the Middle East. It traces its roots
way back to the Compagnie Universelle du Canal Maritime de Suez, founded in 1858, and to Banque Indosuez, the central bank for
France’s Asian territories, which was founded in 1875.
These european and eastern origins underlie our international outlook and our reputation for tradition and know-how. With a
long-established network comprising 31 facilities in 15 countries, Crédit Agricole Private Banking relies on its multinational teams to
meet the steadily growing demand from international clients.
Belgium
Switzerland
Luxembourg
France
Monaco
Italy
Spain
Miami
Hong Kong
Beirut
Singapore
Abu Dhabi
Dubai
Brazil
Montevideo
Crédit Agricole Suisse Private
Banking booking centres
Other Crédit Agricole Private Banking
commercial platforms
Europe
Bordeaux, Lille, Lyon, Marseille, Nantes,
Paris, Toulouse, Monaco, Antwerp,
Brussels, Liège, Bilbao, Madrid, San
Sebastian, Valencia, Milan, Luxembourg,
Geneva, Lugano, Zurich
06
Americas
Belo Horizonte, Miami, Montevideo,
Rio de Janeiro, São Paulo
Middle East
Abu Dhabi, Beirut, Dubai
Asia
Hong Kong, Singapore
Oceania
Noumea
The financial strength of a top banking group
Crédit Agricole Private Banking boasts a sound financial position and a stable ownership structure, which further strengthen the
trust inherent in our relationship with each and every client.
CRÉDIT AGRICOLE PRIVATE BANKING IN THREE KEY FIGURES:
93.3
billiOn eurOs in assets under manaGement
2,800
RE
PR
O
DU
I TS
D
CT
S
PO
FOREIGN
E XCHANG
E
& PRECIO
US ME TALS
FI N
DS
AN ESTAT
CIA
E
LP &
LA
N
AL
OR
Y
UN
RE
ME
F
NT
Y EN
A R EM
N
IO AG
E T AN
R
M
SC O
DI OLI
F
RT
T
QUIT Y
PRIVATE E
NIN
G
TE
TA
ES
PHILANTHROPY
T
ES
IN V
Our private bankers are ready to offer state-of-the-art advice at local,
regional or international levels. Led by other experts and assisted
when necessary by specifically selected professionals from outside
the Group, these additional human resources provide considerable
added value. They help us to advise our clients on all aspects
pertaining to the management and growth of their assets, including
wealth engineering, financial management and credit.
CT
U
INSUR
RU
ED
For more than 130 years, Crédit Agricole Private Banking has been
expanding and increasing its know-how in order to meet the wealth
management needs of a client base comprising company owners,
senior executives and private investors. With this approach, which
combines Private and Corporate Banking, our teams carefully make
an in-depth analysis of each client’s situation in order to provide the
best possible solutions.
ST
CR
Knowledge-led teams dealing
specifically with families
and business leaders
A NCE
wOrldwide cOmmercial platfOrms
AD
V IS
31
emplOyees Of Over
30 natiOnalities
www.ca-privatebanking.com
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02/ about us
03/ annual
report
04/ business
locations
Message from the Chairman
and the Chief Executive Officer
For Crédit Agricole (Suisse) SA, as for all Swiss banks, 2013 was first and foremost a year of transition,
particularly on the economic and financial front. The global economy seems to be getting back on track
after the turmoil that rocked mature economies, and this process is having a substantial impact on all asset
classes. Yet 2013 was also a year of regulatory and institutional transition, with changes that look set to
usher in a new era for the Swiss banking industry.
Private Banking has undergone radical changes in recent months. Considerable resources have had to be
brought to bear to cope with a range of issues, such as the introduction of tougher regulatory requirements,
the much-needed clarification of the role of offshore banks in many countries and the resolution of
long-standing disputes, especially with the USA. Banks that failed to properly anticipate these developments
have been hard hit, particularly in terms of costs. Backed by its shareholder, Crédit Agricole (Suisse) SA has
embarked on an ambitious programme to swiftly address these issues. By acting with determination,
Crédit Agricole (Suisse) SA plans not only to adapt to the new requirements but also to lay the foundations
for future growth.
The redefinition of a business model that complies fully with the new regulatory requirements is a top priority
for the entire Swiss banking sector. Crédit Agricole (Suisse) SA is taking a proactive approach to this
challenge and launching new structural projects. While bringing these solutions onstream will require further
developments and adjustments over 2014, everything is now in place for the Crédit Agricole (Suisse) SA
teams to place the focus squarely on developing our business lines in Switzerland and around the world.
Alongside these efforts to get to grips with the increasingly complex regulatory environment, the quality of
the products and services offered to clients is now, more than ever, our teams’ primary concern. Thanks to
the commitment of our employees, our performance was broadly on-target despite challenging market
conditions in 2013.
Crédit Agricole (Suisse) SA Group revenues for the year amounted to CHF 580.5 million. After deducting
CHF 400.1 million in charges (up 2%), gross operating income was CHF 180.4 million. Net profit was
CHF 96.1 million compared with CHF 130.2 million in 2012.
All our business areas contributed to these solid results. Our expertise in the Private Banking, Capital Markets and Transactional Commodity Finance sectors, combined with high-calibre corporate and institutional
coverage and bank outsourcing services, should enable Crédit Agricole (Suisse) SA to reap the benefits of
the global economic upturn that is now becoming apparent on the markets almost everywhere.
The outlook for 2014 is even brighter for Crédit Agricole (Suisse) SA because we are part of a Group that is
set to grow strongly. After several years of major strategic, financial and operational challenges, the
Crédit Agricole Group achieved strong earnings growth in 2013. This positive situation is especially
beneficial to the Private Banking entities, which can rely on other Group entities to meet the needs of their
clients, providing a broad spectrum of banking and financial services while guaranteeing maximum security.
08
Buoyed up by the Crédit Agricole Group’s renewed global strength, Crédit Agricole (Suisse) SA plans to
continue growing in 2014 in all the regions covered by its teams, in both Private and Commercial Banking
sectors. Special care will be taken to provide support to clients in areas of the world with the highest growth
potential. Already identified as a priority for 2013, building a stronger presence in Asia remains a core objective for the years to come.
Now fully prepared to deal with the main regulatory challenges facing the Swiss banking sector, Crédit Agricole
(Suisse) SA is ready to embark upon a new stage of its corporate mission. This will form part of the initiative
begun by the Crédit Agricole Group in 2013 to reorganise Private Banking to harmonise product and to
service lines, expand geographical coverage of different markets and structure the Sales teams more
effectively. Crédit Agricole (Suisse) SA has been called on to play a major role in this huge strategic project,
which will give us fresh advantages, enabling us to continue serving clients in the spirit of excellence,
common sense and close relations that have been our hallmarks for over 130 years.
Jean BOUYSSET
Chairman of the Board
of Directors
Hervé CATALA
Chief Executive
Officer
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01/ context
02/ about us
03/ annual
report
04/ business
locations
Economic and financial
environment
Overall economic situation
Developed and emerging economies were marked
by an economic split in 2013. While some countries,
including Europe, the USA and Japan, surprised
market observers on the upside, others, particularly
in the BRIC group of Brazil, Russia and India (but
not including China) saw distinctly slower growth,
with steep currency depreciation in some cases.
This shift also played out on financial markets,
which surged in developed countries, lifted by
rock-bottom interest rates, while plummeting in
emerging countries, in many cases accompanied by
strain on financing costs. In line with our expectations, bond yields narrowed on the safest markets
(USA, Germany and Switzerland), leading to negative returns from risk-free assets.
The United States showed that it had moved on
from the crisis. The US financial sector has been
cleaned up and is profitable once again following
massive restructuring. Prices and volumes are up in
the real estate market. Households are carrying less
debt and their property and financial wealth has
grown. This has allowed them to regain some of the
confidence lost in the turmoil of the fiscal cliff and
healthcare reforms. The economic growth rate,
which remained modest in 2013, should increase in
2014 through a recovery in private activity and markedly less budget austerity.
Europe surprised on the upside, especially some of
the Southern European countries, such as Spain
and Portugal, but also, to a lesser extent, Italy.
Improved growth prospects were rewarded with a
significant reduction in the cost of financing
government debt, which allowed Portugal, for
example, to make a return to market financing. This
demonstrated the success of the massive support
operations by the European Central Bank.
Nevertheless, Europe remains a diverse region
where governance must continue to be adjusted to
suit a single monetary region and, especially, a
10
low-growth, high-unemployment area with
excessively high public and private debt levels.
From this point of view, the strength of the euro,
which owes much to the need for Asian savings to
diversify and improved current accounts in
Southern European countries, could be tested
if German competitiveness were to decline, if
growth sagged again or if the pace of European
integration slackened.
Japan has embarked on an unprecedented monetary and political experiment in an effort to reverse
the deflationary trend that paralysed its economy
and threatened its solvency with ever-increasing
levels of public debt. China’s rise, the emergence of
current account deficits and fear of having to resort
to outside sources to fund the debt are surely factors in Japan’s upsurge in nationalism, which is
reflected in the multi-stage policy pursued by Prime
Minister Shinzo Abe:
- stage one: substantial yen decline, fiscal stimulus
and quantitative easing (three times greater than
that of the USA) to stimulate corporate profits.
- stage two: Nikkei gains, the effect of household
wealth, and confidence in the future, with inflation at
long last in positive territory, notably owing to more
costly imports (energy and food).
- stage three: VAT hike to reduce the structural deficit in the public accounts, against a backdrop of
economic growth driven by wage increases on the
back of higher profits for private companies.
- the final and hardest stage has yet to be tackled:
radically reform sources of inefficiency within
Japanese society, including agriculture, immigration,
women in the workforce and above all the operating
methods of companies, many of which are
frequently risk-averse and insufficiently interested in
improving their profitability.
Emerging countries had a torrid year, whether true
for those such as China, which enjoys a capital surplus but whose economic productivity is flagging
and which needs a new model, or for countries that
lack capital, such as Brazil, India, Indonesia, South
Africa and Turkey. The leadership changeover in
China and elections scheduled for 2014 in the five
other above-mentioned countries point towards a
busy political and hopefully reformist agenda. The
global economy needs emerging countries to grow
and they in turn require stable growth, based on
productivity gains and innovation, rather than
unfettered growth driven by credit or non-productive investment.
… in Switzerland
In Q3 2013, Switzerland posted quarter-on-quarter
GDP growth of 0.5% and a year-on-year expansion
of 1.9%, putting the Swiss economy at the top of
the rankings for the mature economies. For 2013,
2014 and 2015, the Swiss National Bank (SNB) is
forecasting conditional inflation of -0.2%, +0.2%
and +0.6% respectively (assuming a 3-month Libor
of 0% for 3 years). In other words, there is no
significant risk of inflation.
As a result, the SNB is not expected to become
less accommodative overall: the strength of the
franc is containing inflation and represents a risk to
growth. Indeed, international economic conditions
are impacting on Swiss GDP growth via changes
in the GDP of Switzerland’s trading partners and
through the variations in the exchange rate for the
Swiss franc.
The SNB is maintaining a floor rate of 1.20 CHF/
EUR. This makes sense given the high value of the
franc in a setting where the Central Bank has held
the fluctuation band for the 3-month Libor at 0% 0.25%. The SNB stands ready to buy currencies in
unlimited quantities if necessary.
Furthermore, the Central Bank has expressed
concern about trends on the property market
(prices of apartments intended for rental rose by
2.9% y-o-y in 2013) and related debt. Ultimately,
only this specific sector is subject to restrictive
measures in the form of increased capital
requirements for banks.
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01/ context
02/ about us
03/ annual
report
04/ business
locations
Management Bodies
Board of Directors
Chairman
Jean BOUYSSET
Deputy Chairmen
Christophe GANCEL
Chief Executive Officer,
Crédit Agricole Private Banking
Edmond TAVERNIER *
until 20 September 2013
Attorney-at-law, Geneva, Tavernier Tschanz
Fabio SOLDATI *
Attorney-at-law, Lugano, Felder, Riva,
Soldati, Marcellini, Generali
Edmond TAVERNIER *
from 20 September 2013
Attorney-at-law, Geneva, Tavernier Tschanz
Senior Management
Maurice MONBARON
from 20 September 2013
Hervé CATALA
Chief Executive Officer
Directors
Pierre GLAUSER
General Manager,
Head of Commercial Banking, Switzerland
Worldwide Head of Global Commodity Finance
Jean-Louis BERTRAND
Olivier DESJARDINS
from 20 September 2013
Head of Finance and Supervision,
Crédit Agricole Private Banking
Emmanuel DUCREST *
Attorney-at-law, Geneva,
Ducrest, Nerfin, Berta, Spira, Bory Villa
Ariberto FASSATI
Senior Country Officer for Italy,
Crédit Agricole Group,
Member of the Executive Committee, Crédit Agricole SA
Camille FROIDEVAUX *
Attorney-at-law, Geneva, Budin & Associés
Philippe GESLIN
from 23 April 2013
Martin LENZ *
Attorney-at-law, Basel, Lenz Caemmerer Bender
Olivier LIVENAIS
until 20 September 2013
Head of Finance and Supervision,
Crédit Agricole Private Banking
Maurice MONBARON
until 20 September 2013
Jacques PROST
Member of the Executive Committee,
Crédit Agricole CIB, Global Head of Structured Finance
Christoph R. RAMSTEIN *
Attorney-at-law, Zurich, Pestalozzi
Philip ADLER
Head of Capital Markets
Youssef DIB
Head of Clientele, Private Banking
succeeded by
Patrick RAMSEY
from 1 November 2013
Pierre MASCLET
Head of Markets and Investment Solutions
Jean-Claude FAVRE
Head of Logistics
Frank BERVILLE
Head of Coverage
Viviane GABARD
Head of Risks and Permanent Control
Georges ZECCHIN
until 30 June 2013
Chief Executive, Crédit Agricole (Suisse) SA in Asia
Marcel NAEF
from 1 April 2013
Head of Legal Affairs and Compliance
Aline KLEINFERCHER
Head of Human Resources
Pierre JACQMARCQ
from 1 July 2013
Head of Finance
* Members of the Board of Directors
Independent as defined in FINMA Circular 2008 / 24
12
Audit
Internal Audit
Darius PUIU
Permanent Control
Stéphane REICHENBACH
Auditors
PricewaterhouseCoopers SA
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locations
Crédit Agricole (Suisse) SA,
a leading Bank
With 1,377 employees and CHF 41.9 billion in client
assets as at 31 December 2013, Crédit Agricole
(Suisse) SA is one of the Crédit Agricole Group’s
largest international entities and the main centre of
expertise for its international Private Banking
network. Crédit Agricole (Suisse) SA is one of the
top five foreign banks in Switzerland in terms of
assets under management, net profit and shareholders’ equity*. This reflects its commitment to the
Swiss financial market, where it has continued to
develop for over 130 years.
Crédit Agricole Private Banking is the holding company set up to house the Group’s French and international Private Banking subsidiaries. Cooperation
between the entities has increased with the introduction of cross-cutting ranges of products and
services, which have further enriched the line-up
offered by Crédit Agricole (Suisse) SA.
Crédit Agricole (Suisse) SA has five main business
lines: Private Banking, Transactional Commodity Finance, Commercial Banking and Trade Finance,
Capital Markets, and Banking Logistics, plus a
coverage function for large companies and financial
institutions. This broad array of know-how allows
the company to serve a diversified client base and
generate recurring results, while also facilitating
substantial synergies between these different activities.
Against a backdrop of low volatility and uneven
market developments, the Transactional Commodity
Finance business line put in a strong overall performance. The Bank’s expert teams make it a
standard-setter in this sector. A recovery is taking
shape for 2014. The Commercial Banking, Trade Finance and Capital Markets activities focused on
clients who are strategically important to the Crédit
Agricole Group.
Private Banking met its targets in 2013, overcoming
challenging market conditions and adjusting to a
complex regulatory environment.
The Bank operates in Switzerland through 4
branches, in Geneva, Lausanne, Lugano and Zurich, and around the world through a network of
foreign offices dedicated solely to Private Banking,
chiefly in Asia (Hong Kong and Singapore), and the
Middle East (Abu Dhabi, Beirut and Dubai).
*Source: ABES 2012
14
1,377
emplOyees
tOtal assets
7
CHF
76.4%
4
Of net incOme attributable tO private bankinG
19.7 BILLION
business lOcatiOns Outside
switzerland: abu dhabi, beirut,
dubai, hOnG kOnG, karachi, nassau,
sinGapOre
business lOcatiOns in
switzerland: Geneva,
lausanne, luGanO, zurich
CHF
41.9 BILLION
in assets under manaGement
TOP 5*
in the
fOreiGn banks in switzerland fOr assets
under manaGement, balance sheet,
sharehOlders’ equity and client assets
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2013 Annual Report
Crédit Agricole (Suisse) SA
Focus on the Bank’s 2013 results
Gross consolidated profit, or gross operating profit,
totalled CHF 180.4 million in 2013. Consolidated net
profit for the Crédit Agricole (Suisse) SA Group
amounted to CHF 96.1 million compared with
CHF 130.2 million in 2012. Crédit Agricole (Suisse)
SA Group’s consolidated equity, as defined in
Articles 21-40 OFR (Tier 1-3), amounted to
CHF 2,060.5 million after appropriation of earnings.
Crédit Agricole (Suisse) SA (standalone) reported
gross profit of CHF 176.1 million in 2013 and net
profit of CHF 94.9 million. In 2013, the Bank had
CHF 2,024.6 million in shareholders’ equity after
appropriation of earnings, as defined in Articles
21-40 OFR (Tier 1-3).
Private Banking
Private Banking is Crédit Agricole (Suisse) SA’s
principal activity, with around CHF 41 billion of client
wealth under management as at 31 December 2013,
and accounts for 76.4% of its revenues. From its
offices in Switzerland and abroad, the Bank offers
its domestic and international clients a full array of
open-architecture services and products, including:
– discretionary management mandates
– investment advisory services
– investment fund selection
– foreign exchange and precious metals transactions
– structured products
– private equity
– property loans
– commercial transactions
– estate planning
– e-Banking.
From an economic and financial perspective, 2013
was a year of transition after the severe crisis which
16
has been in place since 2008, especially in the euro
zone. With conditions still remaining uncertain, and
amid mounting pressure on the Swiss banking
model, Private Banking relied on its close ties to
clients and on its ongoing commitment in providing
support to our clientele, offering hedging and
investment solutions tailored to their risk profiles.
These efforts paid off, making it possible to seize
the opportunities generated by market volatility.
In 2013, our sales and support teams continued to
implement a wide range of regulatory and organisational projects designed either to enable the Bank to
comply with federal government policies on topics
such as cross-border risk management and investor
protection, or to proactively manage issues relating
to tax regularisation and compliance.
The Bank also stepped up efforts to overhaul its
business model by regrouping its Swiss teams in
the Geneva headquarter and the Zurich and Lugano
branches, and concentrating its investments in
client areas with major growth potential, such as
Asia, the Middle East, Latin America and Russia, in
some cases revitalising long-standing franchises
reflecting the Group’s roots in these regions.
We are entering 2014 with assurance, backed up by
our extensive coverage, high-calibre human resources and the renewed confidence of our clients.
The Private Banking range
of investment solutions
For the most part, 2013 was a year of normalisation:
interest rates remained low overall, and the main
public and private economic players pursued their
debt reduction policies. The Central Bank’s policy
once again demonstrated its stabilising influence on
the broad macroeconomic metrics, as well as its deci-
“Part of the Crédit Agricole Private Banking
Group, Crédit Agricole (Suisse) SA is
spearheading the drive to build our clientele
in regions with major economic growth
potential. Our sales and support teams will
bring their talent and energy to bear to
provide existing clients with outstanding
bespoke services and win over new prospects.”
Patrick Ramsey, Head of Clientele, Private Banking
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02/ about us
03/ annual
report
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locations
sive impact on market developments. Emerging currencies and assets remained persistently weak from
the first half onwards, offering further evidence of
what may be seen as a broad-based rebalancing in
favour of mature markets.
Taking these many factors into account, the Private
Banking range of products and services was
adjusted and tailored to meet the financial conditions. The Markets and Investment Solutions Division
devised strategies for its management and advisory
business lines that sought to take full advantage of
the excellent performances of the main equity markets, as well as the opportunities offered by specific
bond market segments (Corporate, High Yield,
peripheral EU issuers).
Based on extensive internal macroeconomic
research, the investment choices made by our
teams delivered outstanding returns, particularly in
Discretionary Management, despite a sharp decline
in volatility during the closing months of 2013.
A source of considerable satisfaction in 2013 was
that all the services provided by Markets and Investment Solutions were used more extensively by
clients, particularly our delegation services and management and advisory mandates.
With our extensive range of management services
(profile-based, absolute return, flexible, single-line,
specific restrictions, regional specialisations), we
can meet all our clients’ needs, giving Crédit Agricole
(Suisse) SA a major strategic advantage as
competition mounts between private banks.
More generally, the Markets and Investment Solutions
teams were responsive at all times to major market
trends. This enabled our Advisory, Investment
Funds and Structured Products business lines to
take full advantage of the upturn offered by the swift
equity market recovery.
Similarly, falling volatility, particularly on the currency
market, prompted the Foreign Exchange and
Structured Products teams to adjust their offering to
provide clients with optimal strategies in the three
main trading currencies (USD, EUR, CHF).
Driven by long-term momentum, the Private Equity
business continued to expand both in Switzerland
and on the Asian market, from the base in Singapore.
With total investments exceeding CHF 1 billion over
the last decade, Private Equity is now a core component of our offering.
In 2013, we also showed our determination to continue
to diversify our array of products and services.
Staffing was increased at Crédit Agricole Suisse
Conseil SA, a 100%-owned subsidiary of Crédit
Agricole (Suisse) SA, to provide more effective
support to private clients in response to the latest
legal and tax developments. At the same time, we
strengthened our Real Estate teams (advisory,
transactions and financing) to more effectively meet
our clients’ diverse needs. The Markets and Investment Solutions Division was concerned at all times
to innovate and capture the international dimension
of Private Banking. With this in mind, we successfully
carried out a project on environmental, social and
governance rating for client portfolios.
This new service is now fully operational for all
clients. Supplementing the existing client reporting
system, it makes us one of the Swiss financial
centre’s most innovative institutions in terms of
“Highly responsive, always ready to listen
to our clients’ needs and alert to developments,
our investment solutions experts offer the
international vision that our clientele is
looking for.”
Pierre Masclet, Head of Markets and Investment Solutions.
18
socially responsible investing (SRI).
Throughout the year, our expert teams worked
towards the goal of providing our private clients with
optimal quality of service and the best possible
organisational and investment advice for them to
manage their assets in accordance with their
expectations.
More broadly, our staff played an active part in
building stronger ties between the Private Banking
entities of the Crédit Agricole Group and in harmonising
the product and service line-up. Efforts to unlock
synergies, pool know-how and share expertise will
continue in 2014, with a view to constantly
improving the service provided to our Bank’s clients.
Capital Markets
Global economic conditions had a severe impact on
market activities in general during 2013. The year
was marked by uncertainties over US fiscal policy,
the increasing instability of emerging economies
and the expected tapering of interventions by the
US Federal Reserve. In this context, the second-half
decline in volatility on virtually all markets, coupled
with persistently low interest rates, curtailed
business optimisation opportunities.
Despite these unsupportive conditions, the
Capital Markets department teams managed to
satisfy the needs of their diverse client base
(Private Banking, Institutional, Corporate) and
deliver optimal quality of service in all of the
department’s business lines, including:
- trading in currencies and precious metals in
accordance with strategies set up for clients;
- managing treasury, with a view to ensuring
liquidity, optimising short-term interest rate risks
and complying with prudential ratios;
- selling interest-rate, credit, currency and bond
products.
The challenging market environment was conducive
to operations with high added-value potential.
Drawing on recognised technical expertise, the
Bond and Structured Products team thus contributed positively to the results of the Capital Markets
department. On the currency market, the currencies
of the main mature economies remained steady,
limiting overall business volumes. However, the faster
depreciation of emerging currencies over the last
quarter had only a mild impact. Compared with
2012, 2013 was thus relatively stable, and more
favourable to consolidating rather than expanding
currency trading.
The Precious Metals business followed its own
trajectory. In 2013, the precious metals and currency
markets decoupled. Over the course of the year, the
business had to contend with a downturn attributable
to the prospects of higher long rates and losses on
the gold market during the final months. A significant number of clients made their exit because of
these developments.
Particular attention was paid to control operational
risks and monitor the regulatory restrictions applicable to the different categories of clients served.
This allowed the Capital Markets department to
ensure an optimal level of security, particularly for
“If the Capital Markets
department was able to
stay on track in conditions as complex as
those of 2013, this was
primarily thanks to the
unfailing commitment
of our staff, the consistency of our product
and service line-up, and
our pragmatic approach
to different markets.”
Philip Adler, Head of Capital Markets
19
01/ context
02/ about us
03/ annual
report
04/ business
locations
cash management operations, which make up an
important share of overall business. Accordingly,
sound Capital Markets performances also helped to
bolster the Crédit Agricole (Suisse) SA franchise,
especially on fast-growing Asian markets.
Keen to adapt to the conditions resulting from
steady growth on the main share indices, flat
fixed-income performances and stabilisation in
gold prices, our teams concentrated on security,
while seizing market opportunities as they arose.
Although persistently low volatility prompted most
investors to adopt a positioning that was unconducive to executing complex strategies, the Capital
Markets department sought throughout 2013 to
strike a balance between controlling risk and
generating returns.
Coverage of major businesses
and banks
The Coverage department, which Crédit Agricole (Suisse)
SA created in 2007, is responsible for the
global follow-up of the relations between the
Crédit Agricole Group and major Swiss corporate clients,
investment holding companies and financial institutions
around the world.
Its mission is to coordinate actions to meet these clients’
needs within Group business lines or entities that specifically interest this clientele.
In 2013, revenues with Swiss corporate clients fell slightly,
mainly reflecting the policy of refocusing on priority clients.
In contrast, business with large Swiss financial institutions
was extremely sustained.
In 2013, the largest transactions with major Swiss clients
were in Structured Finance, Loan Syndication, Trade Finance, Equity Capital Markets and Global Markets (fixed
income, currency, precious metals).
20
Commercial Banking
The Commercial Banking division of Crédit
Agricole (Suisse) SA handles all financing and
credit solutions for corporate clients, notably
large multinational groups and international
commodity trading companies.
Its tried and tested structure is organised around
two separate units: Global Commodity Finance, a
field in which Switzerland is the world centre and in
which the Bank has been ranked second in the
country for several years, and traditional Corporate
Banking activities.
In 2013, the Global Commodity Finance
business line, which was created in late 2012 from
the merger of the transactional and structured
finance activities, turned in a highly satisfactory performance, pointing to major development potential.
Although the second half was down, notably owing to
uneven market trends and euro appreciation against
the US dollar, the business was able to adapt and
took advantage of the expansion of its activities and
persistently high overall commodity prices, especially
in the energy sector. The business also highlighted its
structuring expertise and took part in several transactions as an active bookrunner and/or arranger.
Again in 2013, the Corporate Banking arm participated in several syndicated financing operations
within Switzerland and internationally. Despite the
Swiss franc’s continued strength and its impact on
the real economy, the quality of the loan portfolio
remained intact, with risk cost kept under control
over the year.
At the same time, the teams worked throughout the
year to integrate cash management solutions for
their clientele with the aid of a tool developed by
Crédit Agricole Corporate & Investment Bank.
With its Trade team based in Geneva and housed
within the Corporate Banking department since
summer 2013, Crédit Agricole (Suisse) SA can
provide clients with a full range of Export and Trade
Finance products and services, such as the
issuance of international market guarantees and the
preparation of export financing packages covered
by export risk guarantees. The team can draw on
the expertise and support of the entire network of
one of Europe’s top universal banking groups.
The second Commercial Banking business line,
Corporate Banking, relies on a multi-business line,
multi-service offering to forge dedicated
partnerships with large corporations and Swiss
subsidiaries of international groups.
“Building up our know-how in our areas of
expertise, i.e. international trade finance, and
providing our services to Swiss corporate
clients has supplied the Commercial division
with multiple growth opportunities.”
Pierre Glauser, General Manager, Head of Commercial Banking, Switzerland
Worldwide Head of Global Commodity Finance
21
01/ context
02/ about us
03/ annual
report
04/ business
locations
Crédit Agricole Private Banking
Services Logistics Centre
Crédit Agricole (Suisse) SA’s Logistics Centre,
operating under the name of Crédit Agricole Private
Banking Services, is an invaluable resource for the
Bank’s different activities. Equipped with first-class
technical and operational skills, it continues to
develop cutting-edge IT logistics to further improve
its role as a service centre in charge of IT and
back-office functions for the international Private
Banking subsidiaries of the Crédit Agricole Group.
- launch of an S2i banking environment in
Singapore for the subsidiary of a leading Swiss bank,
- preparation and implementation of changes to
regulations (Basel III, Mifid II, EMIR) and tax rules
(Rubik, FATCA) as well as the development of numerous new tax management functions in the S2i solution,
- the continuation of numerous outsourcing
contracts, testifying to the quality of Crédit Agricole
(Suisse) SA’s IT, accounting and back-office
outsourcing services.
Relying on these skills, which have been officially
recognised by several certifications
(ISO 9001: 2008 for quality, ISAE 3402 Type II for
operational risk management, and ISO 27001 for
IT security), for more than 15 years, the Logistics
Centre has also offered banks outside the Group,
in Switzerland and abroad, a one-stop outsourcing
package for IT services, back-office and accounting functions.
Twenty-two banks in 10 countries, totalling more than
3,500 users, have already chosen the Crédit Agricole
Private Banking Services platform, which develops
according to their needs and those of their clients. In
all, more than CHF 115 billion in client wealth is
managed using the S2i integrated banking application.
The Logistics Centre is continually improving its
services, focusing on 3 areas: constantly striving to
improve the quality of operations, boosting
productivity and managing operational risks.
This led to the completion and launch of numerous
projects in 2013:
- ongoing upgrades to S2i, with new functionalities,
notably data analysis and decision support tools,
tailored to banking needs,
- the major overhaul of the S2i software, using
new technologies that will provide client banks and
the Logistics Centre with a tool that is even better
suited to their current and future needs. The first
deliveries from this project went live at the end of
the year,
- renewal of ISAE 3402 certification, which
ensures rigorous internal control of IT and operational
processes, as well as ISO 27001 certification of our
IT security management system. These measures
reassure client banks and their auditors about
outsourcing their activities to Crédit Agricole Private
Banking Services,
22
3 500
USERS OF THE S2i SYSTEM
35 000
USERS OF THE eS2i E-BANKING
SYSTEM
115
CHF
BILLION IN CLIENT ASSETS MANAGED
USING THE S2i SYSTEM
AS AT 31 DECEMBER 2013
“Rapid and successive regulatory
and tax developments, and the
magnitude of the costs related
to these projects, pose a real
challenge for many small and
mid-sized enterprises. The
outsourcing services offered by
Crédit Agricole Private Banking
Services can contribute towards
achieving success that may prove
decisive in a banking environment in the throes of change.”
Jean-Claude Favre, General Manager,
Head of Logistics, Crédit Agricole Private Banking Services
23
01/ context
02/ about us
03/ annual
report
04/ business
locations
Consolidated key figures
24
(in millions of CHF)
2013
2012
% change
19 720
20 690
-4.7
1 530
1 541
-0.7
Balance sheet
Total assets
Shareholders’ equity as defined in Art. 21-26 and 31-40 CAO (Tier 1)
Income statement
Interest income
155.0
173.3
-10.6
Commission income
267.2
265.4
+0.7
Trading income
99.7
102.6
-2.8
Other ordinary income
58.6
60.5
-3.1
Total income (operating income)
580.5
601.8
-3.5
Personnel expenses
-290.7
-288.0
+0.9
General and administrative expenses
-109.4
-104.3
+4.9
Gross profit
180.4
209.5
-13.9
Amortisation and valuation adjustments
-50.0
-34.7
+44.1
0.5
2.0
—
-34.8
-46.6
-25.3
96.1
130.2
-26.2
41 940
44 901
-6.6
1 377
1 393
-1.1
Extraordinary income and expenses
Taxes
Consolidated profit
Total managed assets
Number of employees (in full-time work equivalents)
Ratios (%)
Equity / Total assets
Expenses / Income
ROE
Tier 1 capital ratio
7.8
7.4
68.9
65.2
6.3
8.5
14.2
13.2
The detailed figures are shown in the Management Report, which includes the annual financial statements as well as the auditor’s
report on the consolidated and parent company financial statements
25
01/ context
02/ about us
03/ annual
report
04/ business
locations
Head office
Quai Général-Guisan 4
1204 Geneva
Switzerland
Tel. + 41 58 321 90 00
Fax + 41 58 321 91 00
Business locations
Branches
Hong Kong
Singapore
Suite 2918
Two Pacific Place
88 Queensway
Hong Kong
Tel. + 852 37 63 68 88
Fax + 852 37 63 68 68
168 Robinson Road
#23-03 Capital Tower
Singapore 068912
Tel. + 65 6423 03 25
Fax + 65 6423 14 77
Lugano
Zurich
Via F. Pelli 3
6901 Lugano
Switzerland
Tel. + 41 58 321 30 00
Fax + 41 58 321 31 00
Lintheschergasse 15
8001 Zurich
Switzerland
Tel. + 41 58 321 40 00
Fax + 41 58 321 41 00
Representative offices
Abu Dhabi
Dubai
Zahed The 1st Street
Al Muhairy Center, Office Tower,
4th Floor
PO Box 44836
Abu Dhabi
United Arab Emirates
Tel. + 971 2 631 1515
Fax + 971 2 631 2500
The Maze Tower
Level 13, Sheikh Zayed Road
PO Box 9423
Dubai
United Arab Emirates
Tel. + 971 4 350 6000
Fax + 971 4 331 0199
Karachi
D-118/2, Kehkashan 5
Clifton
Karachi
Pakistan
Tel. + 92 21 358 786 97
Fax + 92 21 358 708 90
Subsidiaries outside Switzerland
Crédit Agricole Suisse (Liban)
Financial Services SAL
Al Borj An Nahar Bldg, 2nd Floor
Martyrs’ Square
1107-2070 Beirut
Lebanon
Tel. + 961 1 96 63 00
Fax + 961 1 96 63 20
26
Crédit Agricole Suisse
(Bahamas) Ltd
Goodman’s Bay
Corporate Centre
PO Box N 3015
West Bay Street
Nassau
Bahamas
Tel. +1 242 502 81 00
Fax +1 242 502 81 66
Logistics Centre
Other main subsidiaries in Switzerland
Lausanne
Crédit Agricole Suisse
Conseil SA
Finanziaria Indosuez
International SA
Rue du Marché 11
PO Box 5259
1211 Geneva 11
Switzerland
Tel. + 41 22 700 29 25
Fax + 41 22 700 29 33
Via F. Pelli 13A
PO Box 5640
6900 Lugano
Switzerland
Tel. + 41 91 910 79 70
Fax + 41 91 910 79 80
Chemin de Bérée 46-48
1010 Lausanne
Switzerland
Tel. + 41 58 321 50 00
Fax + 41 58 321 51 00
www.ca-suisse.com
27
This Annual Report is published in French and
English. In the event of a difference between
the two versions, the French text shall prevail.
This report is printed on Forest Stewardship
Council accredited environmentally sustainable paper.
Designed and produced by:
Envie d’ailes creaconseil en communication _ Vevey
Reference No. 302
Crédit Agricole (Suisse) SA
Management Report 2013
MANAGEMENT REPORT 2013
Consolidated financial statements
MANAGEMENT REPORT 2013
Consolidated balance sheet as at 31 December 2013
Assets
(in thousands of CHF)
Liquid assets
Amounts due arising from money-market instruments
31.12.2013
31.12.2012
3 264 497
2 721 873
500 914
800 170
Amounts due from banks
6 908 632
8 098 194
Amounts due from customers
6 031 091
6 207 397
466 620
423 312
Mortgage loans
Trading portfolios of securities and precious metals
Financial investments
Non-consolidated participating interests
Tangible fixed assets
Intangible assets
825
868
1 848 010
1 682 881
30 077
31 301
247 820
252 381
5 956
1 611
Accrued income and prepaid expenses
158 689
150 272
Other assets
256 521
320 199
Total assets
19 719 652
20 690 459
—
—
6 641 059
7 601 031
Total subordinated claims
Total amounts due from non-consolidated participating interests
and holders of qualified participations
04 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
Liabilities
(in thousands of CHF)
Liabilities from money-market instruments
Amounts due to banks
31.12.2013
31.12.2012
870
734
5 372 197
5 503 930
12 205 102
12 979 128
Accrued expenses and deferred income
133 000
138 927
Other liabilities
253 226
314 092
Valuation adjustments and provisions
103 235
69 047
96 089
96 089
Share capital
579 371
579 371
Capital reserves
414 826
414 826
Profit reserves
465 666
464 096
96 070
130 219
19 719 652
20 690 459
590 000
590 000
1 755 569
2 130 476
31.12.2013
31.12.2012
Contingent liabilities
5 131 306
6 756 238
Irrevocable commitments
1 374 882
1 283 126
112 457
348 530
Positive replacement values
244 387
327 256
Negative replacement values
247 339
278 670
Contract volumes
26 588 524
31 520 182
Fiduciary transactions
4 056 177
5 406 930
Other amounts due to customers
Reserves for general banking risks
Consolidated profit
Total liabilities
Total subordinated liabilities
Total amounts due to non-consolidated participating
interests and holders of qualified participations
Off-balance sheet transactions
(in thousands of CHF)
Commitment credits
Derivative financial instruments:
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 05
Consolidated income statement for the year 2013
INCOME AND EXPENSES FROM ORDINARY BANKING OPERATIONS
(in thousands of CHF)
Year 2013
Year 2012
188 720
232 289
Result from interest operations
Interest and discount income
Interest and dividend income from financial investments
5 350
4 548
Interest expense
-39 033
-63 473
Subtotal result from interest operations
1
1 33 4
03
Result from commission business and services
Commission income from lending activities
Commission income from securities trading and investment activities
55 016
64 729
184 722
170 405
Commission income from other services
70 011
71 940
Commission expense
-42 551
-41 611
Subtotal result from commission business and services
2
1 8
Result from trading activities
8
2
4 3
102
2
Other result from ordinary activities
Result from the disposal of financial investments
1 043
2 554
332
542
Total income from participating interests
332
42
Result from real estate
of which from other non-consolidated participating interests
2 263
1 979
Other ordinary income
55 109
56 487
-93
-1 102
4
04 0
Personnel expenses
-290 739
-287 994
General and administrative expenses
-109 410
-104 330
Subtotal operating e penses
-400 14
-3 2 324
Gross profit
180 425
209 525
Other ordinary expenses
Subtotal other result from ordinary activities
8
Operating expenses
06 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
CONSOLIDATED PROFIT
(in thousands of CHF)
Year 2013
Year 2012
Gross profit
180 425
209 525
Depreciation and amortisation of fixed assets
-11 230
-15 018
Valuation adjustments, provisions and losses
-38 814
-19 692
Result before e traordinary items and ta es
130 381
1 4 81
Extraordinary income
470
6 941
Extraordinary expenses
-29
-4 934
Taxes
-34 752
-46 603
Consolidated profit
96 070
130 219
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 07
Consolidated cash flow statement
for the year 2013
Year 2013
(in thousands of CHF)
Source
of funds
Year 2012
Use
of funds
Source
of funds
Use
of funds
Cash flow from operating activities
(internal financing)
Consolidated profit
96 070
130 219
Depreciation of fixed assets
11 230
15 018
Valuation adjustments and provisions
34 193
2 574
Allocation to reserves for general banking risks
Accrued income and prepaid expenses
4 847
39 617
Accrued expenses and deferred income
Other assets
63 678
Other liabilities
3 462
283 845
60 866
Current taxes
Other positions
40 732
4 810
175 817
49 151
35
Subtotal
244 823
Balance
129 996
63 004
28
114 827
474 689
244 857
229 832
Cash flow from shareholders’
equity transactions
Previous year’s dividend
128 000
149 000
649
455
Subtotal
128 649
149 455
Balance
128 649
149 455
Effect of exchange rate changes
08 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
Year 2013
(in thousands of CHF)
Source
of funds
Year 2012
Use
of funds
Source
of funds
Use
of funds
Cash flow from investment activities
Financial investments
Non-consolidated participating interests
165 129
1 189
1 677 833
1 189
Other tangible fixed assets
6 669
9 292
Intangible assets
4 345
1 611
Subtotal
1 189
Balance
176 143
1 189
1 688 736
174 954
1 687 547
28 288
17 468
Cash flow from banking operations
Medium- and long-term business (>1 year)
Amounts due to banks
Amounts due to customers
913
3 872
Amounts due from banks
224 656
328 479
Amounts due from customers
128 136
176 293
45 404
14 770
Mortgage loans
Short-term business
Liabilities from money-market instruments
136
13
Amounts due to banks
103 445
Amounts due to customers
773 113
Amounts due from money-market instruments
Amounts due from banks
Amounts due from customers
Mortgage loans
Trading portfolios of securities and precious metals
2 110 513
361 622
299 256
272 772
1 414 218
4 226 995
304 437
155 787
2 096
37 900
43
Subtotal
2 020 186
Balance
716 231
1 030
1 303 955
5 264 989
2 442 525
2 822 464
Liquidity
Change during the year
MANAGEMENT REPORT 2013
542 624
1 215 294
CONSOLIDATED FINANCIAL STATEMENTS 09
Notes to the consolidated financial statements
1. NOTES ON BUSINESS ACTIVITIES, DISCLOSURE OF HEADCOUNT
Crédit Agricole (Suisse) SA is the parent company of
Crédit Agricole (Suisse) SA (hereinafter “the Group”).
It has branches in Lugano, Zurich, Hong Kong and
Singapore, subsidiaries in Switzerland, the Bahamas,
Lebanon and Luxembourg, and representative offices in the United Arab Emirates and Pakistan. In
2013, the Group reduced its non-consolidated
holding in the capital of Crédit Agricole Financements
(Suisse) SA. At the end of 2013, the company was
11.4% owned, compared with 15.0% at the end of
2012. Further, Sogea, Société de Gestion et d’Administration SA, was merged by absorption with Crédit
Agricole (Suisse) SA. The Group also closed its
branches in Basel and Lausanne as part of its efforts
to refocus on its core business.
lity for implementing the policy lies with Senior Management.The Group is active in several business areas,
which expose it primarily to counterparty risk, market
risk, operational risk, legal risk and reputation risk.
The parent company participated in the US program in
accordance with the recommendations issued by the
Swiss Financial Market Supervisory Authority. A reserve was set up to cover the costs incurred in this
programme (legal fees and costs, third-party fees and
costs, as well as a possible fine). This reserve was
determined on the basis of elements available as at the
date on which the accounts were drawn up and is
based on transparent criteria.
COUNTERPARTY RISK Counterparty risk, or credit
risk, represents the loss borne by the Group in the
event of default by a counterparty.
The Group is active in Private Banking, Corporate
Banking and Transactional Commodity Finance, as
well as spot and forward trading in money market
instruments, currencies and precious metals, both
as an intermediary and on a proprietary basis. In
addition, the Group’s Logistics Centre in Lausanne
acts as a service centre in charge of IT, back-office
and outsourcing accounting activities for entities
belonging to the Crédit Agricole Group and for
third-party entities.
As at 31 December 2013, the Group had 1,377 fulltime equivalent employees compared with 1,393 as
at 31 December 2012.
Risk Management
GENERAL RISK POLICY The Board of Directors
establishes the risk policy on the basis of statutory
requirements and head-office directives. Responsibi-
10 CONSOLIDATED FINANCIAL STATEMENTS
RISK ASSESSMENT The Board of Directors regularly
examines the main operational risks to which the
Group is exposed; these are described below. The
assessment takes account of measures which aim to
limit the risks as well as internal controls planned for
this purpose. The Board of Directors ensures that
measures are in place to ensure continuous control
within the business lines and that the parameters influencing the risk profile are assessed and taken into
account in the preparation of the financial statements.
Loans are granted according to a system of delegation of authority and are subject to a rating system.
A Credit Committee examines loan applications,
granting authorisations on the basis of the aforementioned delegation and policy. This policy encompasses the commitments of the Group’s clients
and correspondents that result from lending activities, issuance of guarantees, and trading in currencies, derivatives and securities.
Risks are regularly monitored by the Credit and Risk
division according to stringent procedures. Senior
Management and the Board of Directors are kept
informed on a regular basis.
MARKET RISK Market risk reflects the potential loss on
the Group’s portfolio caused by fluctuations in exchange rates, interest rates and the prices of securities.
Managing market risk involves identifying, measuring
and monitoring open positions. The trading portfolio
is valued and compliance with assigned limits is
monitored on a daily basis. These positions are
followed on the basis of a value-at-risk model.
Moreover, they are subject to sensitivity limits, which
are also checked on a daily basis.
MANAGEMENT REPORT 2013
The main market risks faced by the Group are:
– Foreign exchange risk Foreign exchange risk relates
to changes in the value of positions denominated in
foreign currencies as a result of fluctuations in the exchange
rates of the said currencies against the Swiss franc.
Positions in foreign currencies are adjusted as soon
as the transaction is initiated. They are revalued several times a day at regular intervals. In addition, limits
are set for each currency in order to reduce the risk.
With the exception of some strictly identified hedging
positions, all foreign exchange risk is included in the
Group’s trading positions.
– Interest rate risk Interest rate risk relates to the
loss of value on the overall positions of the Group,
both in the trading portfolio or resulting from the structure of the Group’s balance sheet.
The Group’s portfolio positions essentially cover the
capital loans and acceptances business (net outstanding
loans to clients and banks). The Group assesses this
risk using asset-liability management (ALM) techniques in order to evaluate maturity structures and the
impact of possible interest rate movements affecting
on-balance sheet and off-balance sheet positions.
Within the framework of asset-liability management
and on the basis of empirical statistical analyses, the
Group then staggers certain positions with undetermined interest rate constraints.
This risk is limited through the use of highly automated processes and internal control measures. In
addition, the Group has an Internal Control unit that
ensures procedural compliance and analyses data
flows. A database has been created to cater for the
collection and analysis of data regarding any incidents which may occur.
COMPLIANCE AND LEGAL RISK Compliance and legal risk relates to the loss, whether financial or in
terms of reputation, that could result from failing to
comply with regulations or with due diligence duties
specific to financial intermediaries.
The Group has a Compliance and Legal Affairs department whose role is to monitor compliance with
the regulations, notably in relation to the prevention of
money laundering, the financing of terrorism and the
prevention of fraudulent acts. This department also
ensures that in-house directives are consistent with
new legislation and regulations
REGULARITY RATIO (BASEL II) In accordance with
ref. No. 5 of the FINMA circular 2008 / 22, Crédit
Agricole (Suisse) SA does not disclose information
about its capital insofar as comparable information is
published on an annual basis at the level of the Crédit
Agricole Corporate & Investment Bank Group (cf.
2013 Annual Report – Chapter: “Basel 2 Pillar 3 disclosures”, available at www.ca-cib.fr) and on a
half-yearly basis at the level of the Crédit Agricole SA
Group (available at http://finance.credit-agricole.com).
BUSINESS POLICY WHEN USING DERIVATIVE FINAN-
– Securities price risk Securities price risk relates
to value changes in securities portfolios (trade and
financial investments). It is monitored on a regular
basis by Risks and Permanent Control.
– Liquidity risk The system put in place by the Group
to manage liquidity risk ensures compliance with the
relevant regulatory requirements at all times.
Securities received under repurchase and reverse
repurchase agreements and those that the Group
can dispose of freely are included in the liquidity ratio.
The market value of the securities received or remitted is checked on a daily basis so that additional
collateral may be put up or demanded.
OPERATIONAL RISK Operational risk is defined as
the risk resulting from inadequacies in the design,
procurement or implementation of procedures for
recording data relating to Group operations in information systems in general, and in accounting
systems in particular.
MANAGEMENT REPORT 2013
CIAL INSTRUMENTS Transactions for the Group itself
are carried out within the framework of internal directives applying to the management of market risk and
interest rate risk. Transactions carried out on behalf
of clients include foreign exchange transactions
(forward and options), stock options, stock exchange
rates, interest rates, precious metals and futures.
The Group calculates an equivalent risk on these
transactions to determine the amount of collateral
required. This equivalent risk corresponds to the replacement value of the instruments plus an add-on or
the usual margin calculated by the market. Margin
calls are effected as soon as the value of the assets
given as guarantee is no longer sufficient to hedge
the risk exposure.
OUTSOURCING OF ACTIVITIES The Group does not
outsource any of its activities as defined by the FINMA
circular 2008 / 7.
CONSOLIDATED FINANCIAL STATEMENTS 11
2. DISCLOSURE OF THE ACCOUNTING AND VALUATION POLICIES
2.1 Principles for preparation
of the Group’s financial statements
GENERAL PRINCIPLES The Group’s accounting and
valuation principles comply with the requirements of
the Swiss Code of Obligations, the Swiss Federal
Banking Act and the corresponding Implementing
Ordinance, and also with the FINMA circular 2008 /
02 “Accounting – Banks”.
In accordance with the above, the consolidated financial statements of the Group have been drawn up in
accordance with the principle of presenting a true
and fair view of the Group’s assets, liabilities, financial
position and profit or loss.
CONVERSION FOR CONSOLIDATION PURPOSES OF
INDIVIDUAL COMPANY ACCOUNTS EXPRESSED IN
A FOREIGN CURRENCY The balance sheets of
companies domiciled outside Switzerland and
drawn up in a foreign currency are converted into
Swiss francs at the year-end exchange rate. The
income statements of these companies are
converted at the average rate for the year. The
currency gains and losses arising from this
conversion are directly accounted for in Group
shareholders’ equity.
2.2 Accounting principles
GENERAL PRINCIPLES Assets, liabilities and off-
CONSOLIDATION SCOPE The list of fully consolidated
participating interests, participating interests accounted for using the equity method, non-consolidated participating interests and changes in the
consolidation scope, is provided in note 3.3.
YEAR-END DATE FOR THE CONSOLIDATED FINANCIAL STATEMENTS The consolidation period corre-
sponds to the calendar year. The year-end for all the
companies included within the consolidation scope is
31 December.
CONSOLIDATION METHOD Companies in the banking
and financial sector in which the Group directly or
indirectly holds the majority of the voting rights are
consolidated according to the purchase method; the
acquisition cost of the participating interest is offset
by the amount of the shareholders’ equity at the time
the Group took over control.
The participating interests of 20% to 50% in the
banking and financial sectors are accounted for using
the equity method. They are stated in the balance
sheet at the proportional value of their net assets,
including earnings.
balance sheet items reported under the same
heading are always valued individually.
RECORDING OF TRANSACTIONS AND PRESENTATION IN THE BALANCE SHEET All transactions are
booked at the trade date and valued thereafter for
the purpose of determining profit or loss. Until their
settlement date, executed transactions are
presented as off-balance sheet transactions, with
the exception of securities transactions, which are
directly accounted for on the balance sheet.
CONVERSION OF FOREIGN CURRENCY ITEMS The
Group uses a multi-currency accounting system and
balance sheet items denominated in foreign currency
are converted at the closing exchange rate.
Interest on fixed-term transactions and commissions
on fiduciary operations in foreign currency are recorded daily in the income statement, at the
exchange rate prevailing on that day. All other income
and expenses are recorded on the day they occur,
using the rate prevailing at the time of the transaction.
The exchange rates against the Swiss franc used for
converting foreign currency items are as follows:
However, participating interests that have no material
impact on the objectives of the Group’s financial
statements are not consolidated.
Depending on its nature, negative goodwill is attributed
either to revenue reserves or to provisions. Positive
goodwill is carried in the balance sheet and
amortised over its economic lifetime which is
estimated at 5 years.
12 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
2013
Closing
exchange rate
Average
exchange rate
for the year
FINANCIAL INVESTMENTS Fixed-income debt instru-
EUR
1.2244
1.2286
USD
0.8864
0.9236
JPY
0.00844
0.00945
ments to be held until maturity are valued according
to the accrual method. The corresponding premiums
and discounts are apportioned over the residual period to maturity. These adjustments are recorded as
additions to or deductions from book value.
Closing
exchange rate
Average
exchange rate
for the year
Gains and losses arising on interest alienated before
maturity or repaid early are spread over the remaining
life of the transaction, i.e. until the initial expected
maturity.
1.2038
Currency
2012
Currency
EUR
1.2070
USD
0.9125
0.9316
JPY
0.01059
0.01167
CASH,
RECEIVABLES
MARKET
RELATING
INSTRUMENTS
AND
TO
MONEY-
COMMITMENTS
These items are carried in the balance sheet at
their nominal value. Specific provisions are raised
for any receivables deemed to be doubtful and are
charged directly against the assets concerned.
Discounts on money-market instruments are
allocated to the income statement on an accruals
basis through adjustment accounts.
The fixed-income debt instruments that are not to be
held until maturity may be valued according to the
accrual method. The corresponding premiums and
discounts are apportioned over the residual period to
maturity. Valuation is therefore based on an acquisition cost that is adjusted according to the interest rate
component. Spreading of gains and losses on
transactions alienated during the theoretical remaining duration is not applicable.
Securities relating to participating interest instruments
are valued, according to whichever is the lower, the
acquisition cost or the market value.
AMOUNTS DUE FROM BANKS AND CLIENTS,
MORTGAGES Doubtful receivables, i.e. receivables
for which it is unlikely that the debtor will be able to
meet his commitments, are valued individually and
the write-down is covered by valuation adjustments.
When a receivable is deemed to be wholly or partially irrecoverable, it is written down by debiting the
corresponding valuation adjustment.
A receivable is no longer deemed to be doubtful
when the arrears (principal plus interest) have been
settled, servicing of the debt has returned to
normal and other solvency criteria have been met.
SECURITIES AND PRECIOUS METALS TRADING
PORTFOLIOS Securities acquired in the course of
Physical stocks of precious metals, held to cover
commitments on metals accounts, are measured at
market value.
REPURCHASE AND REVERSE REPURCHASE Sales of
securities with a repurchase obligation (repurchase)
and acquisitions of securities with an obligation to
resell (reverse repurchase) are classed as guaranteed
financial transactions. The total value of liquid assets
received or given as a guarantee for repurchase and
reverse repurchase agreements is carried in the
balance sheet, including accrued interest.
Interest income from reverse repurchases and the
interest expense from repurchases are apportioned
over the underlying transaction period.
trading activities are marked to market.
NON-CONSOLIDATED PARTICIPATING INTERESTS
Gains and losses made on purchases and sales, as
well as unrealised gains and losses arising from
fair-value changes, are reported under “Net income
from trading”. The cost of refinancing securities in
trading portfolios is set off against interest and
dividend income from those portfolios and is
reported under “Net income from trading”.
MANAGEMENT REPORT 2013
Non-consolidated participating interests are recorded
in the balance sheet at their acquisition cost, less
required value adjustments.
TANGIBLE FIXED ASSETS Fixed assets are recognised
at their acquisition cost and depreciated on a straightline basis over their estimated useful life as follows:
CONSOLIDATED FINANCIAL STATEMENTS 13
-
vehicles and IT equipment: 3 years
fixtures and fittings : 5 years
mainframe IT system: 5 years
fitting-out of premises: 10 years
buildings used by the Group (1.5% per annum)
Upon subsequent revaluation, tangible fixed assets
are carried in the balance sheet at their acquisition
cost, less cumulative depreciation. The depreciation
calculation is based on the asset’s entire estimated
useful life. Depreciation is calculated from the time the
item is first used. The accounting value is reviewed on
each balance sheet date. If necessary, the impairment charges not included in the plans are accounted
for in the current period.
INTANGIBLE ASSETS The Group has embarked on
a major IT upgrade known as the S2i JT (Java
Technologies) Programme. This S2i JT programme
comprises several modules and is intended to
harness the latest technology to upgrade the S2i
banking platform. Some of the costs relating to the
programme and meeting capitalisation criteria are
carried as assets in the balance sheet.
When the total cost of an acquisition is higher than
the net assets acquired, valued in accordance with
Group principles, the positive difference is treated as
goodwill acquired and is capitalised.
Intangible assets are amortised on a straight-line
basis over 5 years, with the exception of intangible
assets relating to the S2i JT programme, which are
depreciated over 10 years once the modules are put
into production.
The accounting value is reviewed regularly when
the balance sheet is drawn up. Extraordinary depreciation is taken into account when the situation
so requires.
ACCRUED INCOME AND TAXES Cut-off is applied to
interest income and expenses, lending commissions
considered as a component of interest, personnel
and other operating expenses, safekeeping fees,
commissions on fiduciary transactions and asset
management commissions.
TAXES
– Current taxes Current taxes on the income and
the determining capital for the corresponding period
are calculated in accordance with the relevant tax requirements. Current taxes which are still due at the
14 CONSOLIDATED FINANCIAL STATEMENTS
end of the financial year are recorded in the liabilities
section of the balance sheet under the heading “Accrued income and expenses”.
– Deferred taxes The tax impact of temporary differences between the balance sheet value and the tax
value of assets and liabilities is recorded in the “Valuation adjustments and provisions” section of the
balance sheet if the amounts are taxable and under
“Other assets” if they are tax-deductible. Claims resulting from tax losses carried forward are only
recorded if they are likely to be realised in the
future through the existence of sufficient taxable
profits.Deferred taxes are determined annually on the
basis of genuinely expected tax rates or, if they are not
already known, on those in force at the time when the
balance sheet is drawn up.
Deferred tax income and expenses are recorded in
the income statement.
ADJUSTMENTS AND PROVISIONS The
Group’s credit activity is limited mainly to Lombard
loans and Transactional Commodity Finance. The
particularity of these transactions is that repayment
capacity is linked to the collateral put up during the
transactions (self-liquidating transactions) as well as
to the solvency of the debtor concerned.
VALUE
When there is doubt as to a debtor’s ability to honour
his commitments, the Group raises adequate provisions for the principal and interest, taking into account existing guarantees and collateral, as well as
the economic environment. These valuation adjustments, which are made on an individual basis for
each position, are charged directly against the balance sheet assets concerned. Interest deemed to be
doubtful under this rule is provisioned from the date
on which serious doubts first arise.
In accordance with the prudence principle, other
identifiable risks are covered by provisions recognised in the balance sheet under “Valuation adjustments and provisions”.
RESERVES FOR GENERAL BANKING RISKS Free
provisions, included in valuation adjustments and
provisions in the individual accounts, are transferred
to the reserves for general banking risks after deduction of a deferred tax provision.
PENSION COMMITMENTS The majority of the staff of
the Crédit Agricole (Suisse) SA Group are covered by
the pension fund. Employee pension contributions
are deducted from salaries from the date on which
MANAGEMENT REPORT 2013
the employee joins the Group or from 1 January following his or her 24th birthday, whichever is the later.
Employee contributions amount to 6.2% of the
guaranteed salary. The employer’s contribution varies
from 8.8% to 18.8% of the guaranteed salary and
depends on the employee’s age. Employees are entitled to a pension or lump sum payment upon
reaching the retirement age conferring entitlement to
the Swiss State pension scheme. Employees can opt
to take early retirement as from 58 years of age, in
which case the pension amount is reduced. The
pension plan also provides for payment of a pension
to the employee’s spouse and children in the event of
the death of the employee.
or “Other liabilities” depending on the balance on the
account.
LAYOUT OF THE NOTES TO THE FINANCIAL STATEMENTS The numbering of the notes follows the
layout stipulated by the FINMA in its directives
governing the preparation of financial statements,
except for note 3.5.
CHANGES IN ACCOUNTING PRINCIPLES Comparative figures of the Assets under discretionary asset
management agreements as shown in section 4.5
(Managed assets) have been adjusted to reflect the
presentation adopted in the current year.
The pension commitments and the assets covering
these commitments are held by a legally independent foundation. Contributions which have
been adjusted to the period are presented as personnel expenses in the income statement. Furthermore, the foundation manages its assets through
the Group, hence the related positions are recorded in the latter’s balance sheet.
The economic benefits or commitments arising from
a funding surplus or deficit are determined annually
based on the pension fund’s financial statements,
prepared in accordance with Swiss GAAP RPC 16.
CONTINGENT COMMITMENTS, IRREVOCABLE COMMITMENTS, COMMITMENTS TO DISCHARGE AND
MAKE SUPPLEMENTARY PAYMENTS, AND CONFIRMED CREDITS Off-balance sheet items are stated
at their nominal value. A provision is made for identifiable risks and recorded under liabilities in the
balance sheet.
DERIVATIVE FINANCIAL INSTRUMENTS The Group
uses derivative financial instruments to manage its
balancesheet structure, and also for trading purposes
on behalf of its clients.
The positive or negative replacement values of all derivative instruments outstanding at the balance- sheet
date are recorded gross in the balance sheet under
“Other assets” and “Other liabilities” respectively.
Trading transactions are marked to market, whereas
balance sheet management transactions are valued
in the same way as the hedged positions.
Valuation adjustments that are not recognised in the
income statement at the closing date are recorded in
a netting account, which is included in “Other assets”
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 15
3.
INFORMATION ON THE BALANCE SHEET
3.1
Overview of collateral for loans and off-balance-sheet transactions
3.1.1
Overview according to collateral
Type of collateral
Secured
by mortgage
Other
collateral
Unsecured
Total
14 569
3 400 952
2 615 570
6 031 091
466 620
—
—
466 620
Reference year
481 189
3 400 952
2 615 570
6 497 711
Previous year
437 864
3 903 211
2 289 634
6 630 709
(in thousands of CHF)
Loans and advances
Amounts due from customers
Mortgage loans
Residential property
Total loans and advances
Off-balance sheet
Contingent liabilities
16 949
1 324 192
3 790 165
5 131 306
Irrevocable commitments
—
—
1 374 882
1 374 882
Commitment credits
—
855
111 602
112 457
Total off-balance sheet
3.1.2
Reference year
16 949
1 325 047
5 276 649
6 618 645
Previous year
22 381
1 528 599
6 836 914
8 387 894
Gross
amount
Estimated
liquidation
proceeds of
collateral
Net
amount
Individual
value
adjustments
Disclosures of impaired loans/receivables
(in thousands of CHF)
Impaired loans / receivables
Current year
241 517
37 478
204 039
169 974
Previous year
220 009
45 997
174 012
174 012
The difference between the net amount and the individual value adjustment is explained by partial provisioning on debtors whose solvency
is reasonably ensured.
16 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
(in thousands of CHF)
Previous
Year
Trading portfolios of securities and precious metals,
financial investments and participating interests
Current Year
3.2
Trading portfolios of securities and precious metals
– Debt securities
—
—
—
—
– Equity securities
825
868
Total trading portfolios of securities and precious metals
825
868
listed *
unlisted
of which securities eligible for repo transaction in accordance with li uidity regulations
Previous
Year
Current Year
Previous
Year
Fair value
Current Year
Book value
1 727 629
1 679 854
1 728 229
1 682 633
1 2
1
1 2
1 81 1 0
(in thousands of CHF)
Financial investments
– Debt securities
of which held until maturity
of which recognised in accordance with the lower of cost or market principle
– Equity securities
00
2
83 4
14 0
2 581
3 027
00
2
14 3
3 763
3 901
of which ualified participations
- Precious metals
Total financial investments
117 800
1 848 010
1 682 881
1 849 792
1 686 534
1 2
1
1 2
1 81
88
00
2
Previous
Year
00
Current Year
including securities eligible for repo transactions in accordance with
li uidity regulations
117 800
– Without listed value
30 077
31 301
Total participating interests
30 077
31 301
(in thousands of CHF)
Participating interests
* listed
admitted to trading on a recognised stock e change
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 17
3.3
Main participating interests
Registered
office
Activity
Currency
Share capital
(in thousands)
Voting rights %
Holding %
Current Year
Crédit Agricole Suisse (Bahamas) Ltd,
Nassau
Bahamas
Banking
USD
10 000
100.0
100.0
Crédit Agricole Suisse Conseil SA,
Geneva
Switzerland
Advisory and entities
management
CHF
3 000
100.0
100.0
Finanziaria Indosuez
International SA, Lugano
Switzerland
Investment and asset
management
CHF
1 800
100.0
100.0
Banking –
Mortgage lending
CHF
229 992
11.4
11.4
Company name
Fully consolidated participating
interests:
Non-consolidated participating
interests :
Crédit Agricole Financements (Suisse) SA, Switzerland
Geneva
Crédit Agricole Investment
Management S.à.r.l. – Luxembourg
Luxembourg Financial company
EUR
12
100.0
100.0
Crédit Agricole Suisse (Liban)
Financial Services SAL – Beirut
Lebanon
Financial company
LBP
2 000 000
100.0
100.0
Indosuez Trust Company Cayman Ltd,
George Town
Cayman
Islands
Fiduciary operations
USD
500
100.0
100.0
Indosuez Trust (Switzerland) SA, Geneva
Switzerland
Fiduciary operations
CHF
400
100.0
100.0
Main changes in 2013:
- 3.6% reduction in the shareholding of Crédit Agricole Financements (Suisse) SA.
- Merger by absorption of Sogea, Société de Gestion et d’Administration SA, Lausanne.
18 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.4
Presentation of fixed assets
Cost value
Accumulated depreciation
Book value end
previous year
Variation / foreign
exchange difference
Additions
Disposals
Depreciation
Book value
current year end
Current Year
Other participating interests
31 301
—
31 301
-35
—
-1 189
—
30 077
Total participating interests
31 301
—
31 301
-35
—
-1 189
—
30 077
275 893
-43 147
232 746
—
—
—
-3 694
229 052
82 588
-62 953
19 635
-29
6 718
-20
-7 536
18 768
358 481
-106 100
252 381
-29
6 718
-20
-11 230
247 820
Other intangible assets
1 611
—
1 611
—
4 345
—
—
5 956
Total intangible assets
1 611
—
1 611
—
4 345
—
—
5 956
(in thousands of CHF)
Non-consolidated
participating interests
Tangible fixed assets
Bank’s buildings
Other tangible fixed assets
Total tangible fixed assets
Intangible assets
Fire insurance value
of real estate
Fire insurance value
of other tangible fixed assets
MANAGEMENT REPORT 2013
178 223
178 316
94 000
94 000
CONSOLIDATED FINANCIAL STATEMENTS 19
3.5
Other assets and other liabilities
Current Year
Previous Year
Other assets
Other
liabilities
Other assets
Other
liabilities
– Trading instruments
168 129
156 322
200 195
147 553
– Hedging instruments
72 649
87 408
117 430
121 479
257
8 249
158
10 524
5 460
—
—
33 120
10 026
1 247
2 416
1 416
256 521
253 226
320 199
314 092
(in thousands of CHF)
Replacement values
of derivative financial instruments
Indirect taxes
Offset account
Other assets and other liabilities
Total
20 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.6
Disclosure of pledged or assigned assets to secure own commitments
and of assets subject to reservation of title
Current Year
(in thousands of CHF)
Book value
of pledged
assets
and assets
assigned as
collateral
Previous Year
Effective
obligations
Book value
of pledged
assets
and assets
assigned as
collateral
Effective
obligations
Financial assets
729
—
958
—
Other assets
778
—
727
—
1 507
—
1 685
—
Current
Year
Previous
Year
—
185 972
1 379 779
1 017 950
1 389 786
1 148 638
Total
Lending transactions and securities repurchase agreements
(in thousands of CHF)
Receivables from cash collateral delivered in connection with securities borrowing and
reverse repurchase agreements
Obligations from cash collateral received in connection with securities lending and
repurchase agreements
Securities lent in connection with securities lending or delivered as collateral in connection
with securities borrowing as well as securities in own portfolio transferred in connection
with repurchase agreements
with unrestricted right to resell or pledge
Securities received and serving as collateral in connection with securities lending or
securities borrowed in connection with securities borrowing as well as securities received
in connection with reverse-repurchase agreements with an unrestricted right to resell or
repledge
including repledged or resold securities
MANAGEMENT REPORT 2013
13
2
83 12
—
198 772
—
1 232
CONSOLIDATED FINANCIAL STATEMENTS 21
3.7
Liabilities relating to own pension funds
1. Liabilities to own pension funds
(in thousands of CHF)
Other amounts due to customers
Other liabilities
Total liabilities to own pension funds
31.12.2013
31.12.2012
43 818
59 821
1 680
947
45 498
60 768
2. Information regarding pension funds
The majority of the staff at Crédit Agricole (Suisse) SA are covered by the pension fund. Employee pension plan contributions
are deducted from salaries from the date the employee joins the Group, but no earlier than 1 January following his or her 24th
birthday. Employee contributions amount to 6.2% of the guaranteed salary. The employer’s contribution varies from 8.8% to
18.8% of the guaranteed salary and depends on the employee’s age. Employees are entitled to a pension or lump-sum payment
upon reaching the retirement age conferring entitlement to the Swiss State pension scheme. Employees can opt to take early
retirement as from 58 years of age, in which case the pension amount is reduced. The pension plan also provides for payment
of a pension to the employee’s spouse and children in the event of the death of the employee.
Pension expenses
included in
“Personnel expenses”
(in thousands of CHF)
Crédit Agricole (Suisse) SA pension fund
2013
2012
22 532
21 813
Financial benefits / commitments arising from a funding surplus / deficit
The pension latest fund’s audited annual financial statements, prepared in accordance with Swiss GAAP RPC 26, show the
following level of funding:
Crédit Agricole (Suisse) SA pension fund
31.12.2012
31.12.2011
106.6%
103.2%
Based on provisional figures, the level of funding is in excess of 100% at 31 December 2013. Provided that these reserves do not
reach the regulatory level, there is no funding surplus as defined by Swiss GAAP RPC 16.
22 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
(in thousands of CHF)
Use in conformity with
designated purpose
Recoveries, overdue
interest, currency
differences
New provisions
charged to income
statement
Releases
to income statement
Balance as at
end of reference
financial year
Valuation adjustments and provisions, reserve for fluctuations
in credit risks, reserves for general banking risks
Balance as at
end of previous
financial year
3.9
Provisions for deferred taxes
29 089
—
—
—
—
29 089
Valuation adjustments and provisions for default risks
and other risks
– Valuation adjustments and provisions
for default risks (collection and country risks)
174 012
-833
- 2 070
9 338
-10 473
169 974
– Valuation adjustments and provisions
for other business risks
39 946
-1 389
-1 798
50 271
-12 891
74 139
Total valuation adjustments and provisions
243 047
-2 222
-3 868
59 609
-23 364
273 202
Less:
Valuation adjustments directly offset against assets
-174 000
-169 967
Total valuation adjustments and provisions
as per balance sheet
69 047
103 235
Reserves for general banking risks
96 089
—
—
—
—
96 089
The nature of its activity exposes the Group to legal and regulatory risks. The Group is also required to collaborate in the event of investigations carried out by Swiss or foreign supervisory authorities. In line with its policy, the Group sets up reserves for current, or for any potential
procedures that might arise when Management considers there is a risk that the aforementioned procedures are likely to result in a financial
commitment. In accordance with the recommendations issued by the Swiss Financial Market Supervisory Authority, the value adjustments
include reserves to cover for a potential fine that could be imposed within the framework of the US program.
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 23
3.10
Share capital and shareholders holding
more than 5% of all voting rights
Current Year
Total nominal value
in thousands of CHF
Number of shares
in thousands
Dividend-bearing capital
in thousands of CHF
Previous Year
Share
capital
Total
share capital
Share
capital
Total
share capital
579 371
579 371
579 371
579 371
579
579
579
579
579 371
579 371
579 371
579 371
Current Year
Significant shareholders
and groups of shareholders
with pooled voting rights
Previous Year
Nominal
in thousands
of CHF
Holding
in %
Nominal
in thousands
of CHF
Holding
in %
579 371
100
579 371
100
With voting rights
Crédit Agricole Private Banking SA, Paris
(indirect subsidiary of Crédit Agricole SA)
24 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.11
Statement of shareholders’ equity
(in thousands of CHF)
Equity at beginning of current year
Share capital
579 371
Capital reserves
414 826
Profit reserves
470 329
Reserves for general banking risks
Consolidated profit
- Foreign-currency translation
96 089
130 219
-6 233
Total equity at beginning of current year
(before appropriation of profit)
- Dividend distribution
+ Consolidated profit for the year
- Translation differences
1 684 601
-128 000
96 070
-649
Total shareholders’ equity at the end of the reference financial year
(before appropriation of profit)
of which: Share capital
1 652 022
579 371
Capital reserves
414 826
Profit reserves
472 548
Reserves for general banking risks
96 089
Consolidated profit
96 070
- Foreign-currency translation
-6 882
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 25
3.12
Maturity structure of current assets,
financial investments and borrowed funds
Cancellable
Within
3 months
Within 3 to 12
months
Within 1 to
5 years
After 5 years
Total
(in thousands of CHF)
At sight
Residual term
3 264 497
—
—
—
—
—
3 264 497
Current assets
Liquid assets
Amounts due arising from
money-market instruments
—
—
420 001
80 913
—
—
500 914
502 001
—
3 621 332
900 470
1 239 428
645 401
6 908 632
Amounts due from customers
—
892 099
3 978 011
638 035
511 275
11 671
6 031 091
Mortgage loans
—
—
87 867
31 912
247 830
99 011
466 620
825
—
—
—
—
—
825
120 676
—
180 773
886 389
660 172
—
1 848 010
Amounts due from banks
Trading portfolios of
securities and precious
metals
Financial investments
Total current assets
Reference year
3 887 999
892 099
8 287 984
2 537 719
2 658 705
756 083
19 020 589
Previous year
3 955 445
1 118 477
9 135 028
2 896 423
2 152 441
676 881
19 934 695
870
—
—
—
—
—
870
507 870
—
3 398 708
801 781
73 838
590 000
5 372 197
9 648 720
—
2 238 322
318 060
—
—
12 205 102
Third-party liability
Liabilities from money-market
instruments
Amounts due to banks
Other amounts due to
customers
Total third-party liability
Current year
10 157 460
—
5 637 030
1 119 841
73 838
590 000
17 578 169
Previous year
11 581 005
—
5 182 401
1 027 347
63 039
630 000
18 483 792
26 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.13
Disclosure of amounts due from/to related companies as well as loans
to members of governing bodies
(in thousands of CHF)
Receivables from related companies
Due to related companies
Loans to members of governing bodies
Current
Year
Previous
Year
73 439
89 736
1 382 043
373 794
6 979
6 281
Transactions with related companies
These refer to transactions with related companies carried out under normal market conditions.
Loans to members of governing bodies
These mainly consist of mortgages and Lombard loans.
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 27
3.14
Breakdown of domestic and foreign assets and liabilities (based on domicile)
Current Year
(in thousands of CHF)
Previous Year
Domestic
Foreign
Total
Domestic
Foreign
Total
3 065 812
198 685
3 264 497
257 155
243 759
500 914
2 559 005
162 868
2 721 873
344 124
456 046
Amounts due from banks
3 943 614
2 965 018
800 170
6 908 632
4 483 154
3 615 040
8 098 194
Amounts due from customers
2 505 059
188 316
3 526 032
6 031 091
2 546 567
3 660 830
6 207 397
278 304
466 620
198 259
225 053
423 312
Assets
Liquid assets
Amounts due arising from money-market
Mortgage loans
Trading portfolios of securities and
precious metals
—
825
825
—
868
868
Financial investments
118 547
1 729 463
1 848 010
1 484
1 681 397
1 682 881
Non-consolidated
participating interests
28 118
1 959
30 077
29 308
1 993
31 301
Tangible fixed assets
246 973
847
247 820
251 160
1 221
252 381
5 956
—
5 956
1 611
—
1 611
155 853
2 836
158 689
146 921
3 351
150 272
14 855
241 666
256 521
20 308
299 891
320 199
10 530 258
9 189 394
19 719 652
10 581 901
Intangible assets
Accrued income and
prepaid expenses
Other assets
Total assets
10 108 558 20 690 459
Liabilities
Liabilities from money-market instruments
Amounts due to banks
Other amounts due to customers
Accrued expenses and
deferred income
Other liabilities
Valuation adjustments
and provisions
Reserves for general banking risks
869
1
870
733
1
734
898 431
4 473 766
5 372 197
1 302 410
4 201 520
5 503 930
1 865 616
10 339 486
12 205 102
2 199 312
10 779 816
12 979 128
123 005
9 995
133 000
129 039
9 888
138 927
18 625
234 601
253 226
53 126
260 966
314 092
101 842
1 393
103 235
67 562
1 485
69 047
96 089
—
96 089
96 089
—
96 089
579 371
—
579 371
579 371
—
579 371
Capital reserves
414 826
—
414 826
414 826
—
414 826
Profit reserves
465 666
—
465 666
464 096
—
464 096
96 070
—
96 070
130 219
—
130 219
4 660 410
15 059 242
19 719 652
5 436 783
15 253 676
20 690 459
Share capital
Consolidated profit
Total liabilities
28 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.15
Total assets by country or group of countries
Current Year
(in thousands of CHF)
Previous Year
Amount
%
Amount
%
Europe
15 089 983
76.5
15 956 794
77.1
o/w
10 30 2 8
3.4
10 81 01
1.1
Assets
Swit erland
France
12.8
2 424 280
11.
0 4
2.
31 8
1.
Africa
165 021
0.8
166 471
0.8
North America
235 077
1.2
407 412
2.0
South America
235 604
1.2
261 526
1.3
3 936 298
20.0
3 851 878
18.6
23
11.
22
11.0
Netherlands
Asia
o/w
Singapore
2 1
8
2 1
80
ong ong
44
80
2.3
410 30
2.0
Saudi Arabia
1
2 1
1.0
1 2
0.8
Caribbean
39 797
0.2
23 430
0.1
Oceania
17 872
0.1
22 948
0.1
19 719 652
100.0
20 690 459
100.0
Total assets
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 29
30 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.16
Assets and liabilities by currency
Currencies converted to CHF
(in thousands of CHF)
CHF
EUR
USD
Other
Total
3 264 497
Assets
Liquid assets
3 065 812
3 228
550
194 907
—
2 092
456 638
42 184
500 914
4 496 736
552 338
1 318 533
541 025
6 908 632
Amounts due from customers
558 469
1 000 439
3 779 177
693 006
6 031 091
Mortgage loans
219 982
177 950
4 749
63 939
466 620
42
515
268
—
825
747
1 247 794
481 669
117 800
1 848 010
28 118
15
1 944
—
30 077
246 972
—
60
788
247 820
Amounts due arising from money-market instruments
Amounts due from banks
Trading portfolios of securities and precious metals
Financial investments
Non-consolidated participating interests
Tangible fixed assets
5 956
—
—
—
5 956
Accrued income and prepaid expenses
Intangible assets
119 646
19 847
9 801
9 395
158 689
Other assets
225 660
4 178
9 302
17 381
256 521
Total balance sheet assets
8 968 140
3 008 396
6 062 691
1 680 425
19 719 652
Delivery entitlements from spot exchange, forward
Forex and Forex options transactions
1 131 669
5 582 309
8 112 433
5 743 592
20 570 003
10 099 809
8 590 705
14 175 124
7 424 017
40 289 655
Total assets
Liabilities
Liabilities from money-market instruments
88
707
54
21
870
1 168 566
2 500 262
1 649 449
53 920
5 372 197
767 355
3 174 867
6 581 603
1 681 277
12 205 102
Accrued expenses and deferred income
106 560
3 590
13 252
9 598
133 000
Other liabilities
235 802
1 079
1 789
14 556
253 226
Valuation adjustments and provisions
87 339
1 541
12 911
1 444
103 235
Reserves for general banking risks
96 089
—
—
—
96 089
Share capital
579 371
—
—
—
579 371
Capital reserves
427 298
—
-12 472
—
414 826
Profit reserves
468 519
—
-2 853
—
465 666
85 376
—
3 559
7 135
96 070
Total balance sheet liabilities
4 022 363
5 682 046
8 247 292
1 767 951
19 719 652
Delivery obligations from spot exchange, forward
Forex and Forex options transactions
6 081 352
2 907 998
5 925 726
5 654 927
20 570 003
10 103 715
8 590 044
14 173 018
7 422 878
40 289 655
-3 906
661
2 106
1 139
—
Amounts due to banks
Other amounts due to customers
Consolidated profit
Total liabilities
Net positions by currency
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 31
4. INFORMATION ON OFF-BALANCE SHEET TRANSACTIONS
4.1
Contingent liabilities
(in thousands of CHF)
Irrevocable and similar guarantees
Bid bonds
4.2
Current
Year
Previous
Year
3 469 228
5 036 917
630 361
533 915
Irrevocable commitments
1 031 717
1 185 406
Total
5 131 306
6 756 238
(in thousands of CHF)
Current
Year
Previous
Year
Commitments arising from acceptances
112 457
348 530
Total
112 457
348 530
Commitment credits
32 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
4.3
Outstanding derivative financial instruments
Negative
replacement
values
Contract
volumes
Positive
replacement
values
Negative
replacement
values
Contract
volumes
(in thousands of CHF)
Hedging instruments
Positive
replacement
values
Trading instruments
13 577
13 226
932 535
72 050
71 933
4 634 703
Interest rate-related instruments
– Swaps
including e ternal counterparties
13
including internal counterparties
– Options (OTC)
4 359
1
8 1 03
8 441
1 33
3 0
0 32
4 359
132 370
3 0
—
4
3
1
—
0 32
—
—
Foreign exchange / precious metals
– Unsettled spot Forex transactions
– Forward contracts
including e ternal counterparties
—
—
448 725
—
—
—
98 982
91 347
10 071 046
4 208
15 475
5 415 640
8 82
1 34
10 0 1 04
4 208
1 4
41
40
including internal counterparties
– Futures
– Options (OTC)
—
—
434
—
—
—
44 065
44 060
4 634 591
—
—
—
7 146
6 939
318 480
—
—
—
Equity securities / indices
– Options (OTC)
Total before netting contracts
159 931 16 538 181
200 195
157 192
(in thousands of CHF)
Total after impact of netting contracts
19 618 945
76 258
127 061
87 408 10 050 343
121 478
11 901 237
Negative
replacement
values
(cumulative)
168 129
Positive
replacement
values
(cumulative)
Current year
Previous year
243 730
317 625
269 032
Balance of offset account
Other
liabilities
240 778
Other
assets
Current year
Previous year
Current year
5 460
—
Previous year
—
33 120
Internal operations consist of transactions between the Group’s various trading desks to cover their financing and hedging needs.
These transactions are offset in the balance sheet.
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 33
4.4
Fiduciary transactions
(in thousands of CHF)
Fiduciary transactions with third-party banks
Fiduciary transactions with related banks
Fiduciary loans and other fiduciary transactions
Total
4.5
Current
Year
Previous
Year
703 065
778 786
3 345 513
4 605 958
7 599
22 186
4 056 177
5 406 930
Current
Year
Previous
Year
Managed assets
(in millions of CHF)
Type of managed assets
Assets in collective investment schemes managed by the Group
Assets under discretionary asset management agreements
Other managed assets
Total managed assets (including double-counting)
of which double-counted items
Net new money inflow-outflow
Private Banking
Commercial Banking
—
22
3 411
3 190
38 529
41 711
41 940
44 923
—
22
-3 312
-1 618
-2 32
-1 0 8
- 80
-
0
The criteria used to determine “ more-than-custody-only ” other assets are defined by the link existing between the end-client and
the Group. As a result, the assets held by the Group as part of its global custodian services provided to other financial institutions
are not indicated in the above figures.
The subheading “ Net new money inflow-outflow ” does not include items relating to the return on assets. Items such as interest
are thus excluded from this heading.
34 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
5.
INFORMATION ON THE INCOME STATEMENT
5.2
Result from trading activities
(in thousands of CHF)
Securities trading
Previous
Year
234
306
99 427
102 298
Other
24
-42
Total
99 685
102 562
(in thousands of CHF)
Current
Year
Previous
Year
Salaries and indemnities
Currencies trading
5.3
Current
Year
Personnel expenses
235 224
230 612
Social security contributions (AVS, AI, APG and other contributions required by law)
26 625
28 337
Contributions to pension funds
22 532
21 813
6 358
7 232
290 739
287 994
Other personnel expenses
Total
MANAGEMENT REPORT 2013
CONSOLIDATED FINANCIAL STATEMENTS 35
5.4
General and administrative expenses
Current
Year
Previous
Year
Expenses relating to premises, light and heating
19 591
20 017
Expenses relating to IT, office equipment and furniture,
vehicles and other equipment
(in thousands of CHF)
26 637
24 251
Postal and telecommunication expenses
5 269
5 421
Travel and entertainment expenses
9 211
8 711
Fees
11 963
5 918
Other operating expenses
36 739
40 012
109 410
104 330
Total
5.5
Comments on extraordinary income and expenses, material releases
of hidden reserves, reserves for general banking risks and releases
of valuation adjustments and provisions no longer required
Extraordinary income and expenses for the 2013 financial year are not significant.
In 2012, extraordinary income mainly resulted from material releases of hidden reserves related to previous financial years. Extraordinary expenses reflected the attribution to the reserves for general banking risks.
5.7
Income and expenses from ordinary banking activity – breakdown between those which
are of domestic or foreign origin, according to the principle of permanent establishment
Current Year
(in thousands of CHF)
Domestic
Previous Year
Foreign
Total
Domestic
Foreign
Total
Income
Interest income
145 634
9 403
155 037
161 190
12 174
173 364
Commission income
216 535
50 663
267 198
217 935
47 528
265 463
Trading income
93 687
5 998
99 685
94 962
7 600
102 562
Other ordinary income
58 486
168
58 654
60 459
1
60 460
514 342
66 232
580 574
534 546
67 303
601 849
-250 140
-40 599
-290 739
-250 773
-37 221
-287 994
-92 183
-17 227
-109 410
-87 399
-16 931
-104 330
-342 323
-57 826
-400 149
-338 172
-54 152
-392 324
Total income
Expenses
Personnel expenses
Other operating expenses
Total expenses
The geographical distribution of income and expenses is assessed via consolidated branches and subsidiaries based in Switzerland
and abroad respectively.
36 CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
Report of the statutory auditor
REPORT OF THE STATUTORY AUDITOR ON THE
appropriate to provide a basis for our audit opinion.
CONSOLIDATED FINANCIAL STATEMENTS As statu-
tory auditor, we have audited the consolidated financial statements of Crédit Agricole (Suisse) SA, which
comprise the balance sheet, income statement,
cash flows statement and notes (pages 04 to 36), for
the year ended 31 December 2013.
BOARD OF DIRECTORS’ RESPONSIBILITY The
Board of Directors is responsible for the preparation
and fair presentation of the consolidated financial
statements in accordance with accounting rules for
banks and the requirements of Swiss law. This
responsibility includes designing, implementing and
maintaining an internal control system relevant to the
preparation of consolidated 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.
OPINION In our opinion, the consolidated financial
statements for the year ended 31 December 2013
give a true and fair view of the financial position, the
results of operations and the cash flows in accordance with accounting rules for banks and comply
with Swiss law.
REPORT ON OTHER LEGAL REQUIREMENTS We
confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act
(AOA) and Independence (art. 728 CO and art. 11
AOA) and that there are no circumstances incompatible with our independence.
In accordance with art. 728a para. 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 consolidated financial
statements according to the instructions of the
Board of Directors.
AUDITOR’S RESPONSIBILITY Our responsibility is to
express an opinion on these consolidated financial
statements based on our audit. We conducted our
audit in accordance with Swiss law and Swiss Auditing Standards. These standards require that we plan
and perform the audit to obtain reasonable assurance whether the consolidated financial statements
are free from material misstatement.
An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in
the consolidated 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 these risk assessments, the auditor considers the internal control
system relevant to the entity’s preparation of the
consolidated 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
consolidated financial statements. We believe that the
audit evidence we have obtained is sufficient and
MANAGEMENT REPORT 2013
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers Ltd
Geneva, 29 April 2014
Patrick Fritz
Audit expert
Auditor in charge
Josée Mercier
CONSOLIDATED FINANCIAL STATEMENTS 37
MANAGEMENT REPORT 2013
Parent company
financial statements
MANAGEMENT REPORT 2013
Parent company balance sheet as
at 31 December 2013
ASSETS
(in thousands of CHF)
Liquid assets
Amounts due arising from money-market instruments
31.12.2013
31.12.2012
3 264 452
2 721 871
500 914
800 170
Amounts due from banks
6 909 560
8 097 367
Amounts due from customers
6 028 846
6 201 005
466 620
423 312
Mortgage loans
Trading portfolios of securities and precious metals
Financial investments
Tangible fixed assets
Fixed assets
825
868
1 848 010
1 682 881
73 892
78 102
253 528
253 583
Accrued income and prepaid expenses
156 442
147 381
Other assets
253 296
318 444
Total assets
19 756 385
20 724 984
Total subordinated claims
Total amounts due from Group companies and significant shareholders
40 PARENT COMPANY FINANCIAL STATEMENTS
—
—
6 645 068
7 607 379
MANAGEMENT REPORT 2013
LIABILITIES
(in thousands of CHF)
Liabilities from money-market instruments
Amounts due to banks
Other amounts due to customers
31.12.2013
31.12.2012
870
734
5 469 470
5 644 714
12 145 217
12 871 143
Accrued expenses and deferred income
127 649
135 319
Other liabilities
252 126
313 066
Valuation adjustments and provisions
178 828
144 714
Reserves for general banking risks
19 400
19 400
Share capital
579 371
579 371
General statutory reserve
490 205
490 205
Retained earnings brought forward
398 318
384 243
94 931
142 075
19 756 385
20 724 984
Profit for the year
Total liabilities
Total subordinated liabilities
Total amounts due to Group companies and significant shareholders
590 000
590 000
1 868 370
2 285 968
31.12.2013
31.12.2012
OFF-BALANCE SHEET TRANSACTIONS
(in thousands of CHF)
Contingent liabilities
5 130 473
6 751 522
Irrevocable commitments
1 374 882
1 283 126
112 457
348 530
Commitment credits
Derivative financial instruments :
Positive replacement values
244 388
327 234
Negative replacement values
247 337
278 645
26 588 524
31 518 519
4 056 798
5 407 569
Contract volumes
Fiduciary transactions
MANAGEMENT REPORT 2013
PARENT COMPANY FINANCIAL STATEMENTS 41
Parent company income statement
for the year 2013
INCOME AND EXPENSES FROM ORDINARY BANKING ACTIVITY
(in thousands of CHF)
Year 2013
Year 2012
188 656
232 137
Result from interest operations
Interest and discount income
Interest and dividend income from financial investments
5 350
4 548
Interest expense
-39 421
-64 000
Subtotal result from interest operations
1 4 8
1 2 8
Result from commission business and services
Commission income on loans
Commission income on securities trading and investments
Commission income on other services
55 005
64 698
181 519
166 818
63 688
66 849
Commission expenses
-44 585
-45 156
Subtotal result from commission business and services
2
2 3 20
Result from trading activities
2
303
100 8 1
Other result from ordinary activities
Result from the disposal of financial investments
1 035
2 554
Income from participating interests
2 500
31 310
Result from real estate
2 263
1 979
Other ordinary income
53 804
55 012
Other ordinary expenses
Subtotal other result from ordinary activities
-93
0
-897
8
8
Operating expenses
Personnel expenses
-285 841
General and administrative expenses
-107 040
-101 580
Subtotal operating e penses
-3 2 881
-384
Gross profit
42 PARENT COMPANY FINANCIAL STATEMENTS
176 143
-283 091
1
232 042
MANAGEMENT REPORT 2013
PROFIT FOR THE YEAR
(in thousands of CHF)
Year 2013
Year 2012
Gross profit
176 143
232 042
Depreciation and amortisation of fixed assets
-13 853
-40 778
Valuation adjustments, provisions and losses
-38 521
-33 673
Result before e traordinary items and ta es
123
1
Extraordinary income
Extraordinary expenses
Taxes
Profit for the year
4 736
1
28 505
-21
-86
-33 553
-43 935
94 931
142 075
Year 2013
Year 2012
APPROPRIATION OF PROFIT
(in thousands of CHF)
Profit for the year
94 931
142 075
Retained earnings brought forward
398 318
384 243
Retained earnings
493 249
526 318
Dividend
-85 438
-128 000
Retained earnings brought forward
407 811
398 318
Appropriation of profit
MANAGEMENT REPORT 2013
PARENT COMPANY FINANCIAL STATEMENTS 43
Notes to the parent company financial statements
1. NOTES ON BUSINESS ACTIVITIES,
DISCLOSURE OF HEADCOUNT
Crédit Agricole Suisse (“the Bank”) is active in Private Banking, Corporate
Banking and Transactional Commodity Finance, as well as spot and
forward trading in money market instruments, currencies and precious
metals, both as an intermediary and on a proprietary basis. In addition, the
Group’s Logistics Centre in Lausanne acts as a service centre in charge of
IT, back-office and outsourcing accounting activities for entities belonging
to the Crédit Agricole Group and for third-party entities.
The Bank has branches in Lugano, Zurich, Hong Kong and Singapore,
subsidiaries in Switzerland, the Bahamas, Lebanon and Luxembourg, and
representative offices in the United Arab Emirates and Pakistan.
In 2013, the Bank reduced its non-consolidated holding in the capital of
Crédit Agricole Financements (Suisse) SA. At the end of 2013, the company
was 11.4% owned, compared with 15.0% at the end of 2012. Further,
Sogea, Société de Gestion et d’Administration SA, was merged by absorption with Crédit Agricole (Suisse) SA. The Bank also closed its branches in
Basel and Lausanne as part of its efforts to refocus on its core business.
The Bank participated in the US programme in accordance with the
recommendations issued by the Swiss Financial Market Supervisory
Authority. A reserve was set up to cover the costs incurred in this
programme (legal fees and costs, third-party fees and costs, as well
as a possible fine). This reserve was determined on the basis of elements available as at the date on which the accounts were drawn up
and is based on transparent criteria.
As at 31 December 2013, the Bank had 1,322 full-time equivalent employees compared with 1,337 as at 31 December 2012.
COMPULSORY DISCLOSURE ON THE HONG KONG BRANCH
REMUNERATION SYSTEM, INCLUDED IN THE ANNUAL REPORT OF CRÉDIT AGRICOLE (SUISSE) SA AS PART OF THE
NOTES TO THE FINANCIAL STATEMENTS: The Board of Directors
of Credit Agricole (Suisse) SA sets and enforces remuneration policy. It
appoints a Remuneration Committee composed of three members of
the Board of Directors.
The structure and level of total remuneration is aligned on Crédit Agricole (Suisse) SA’s business strategy, objectives, values and long-term
interests, such as sustainable growth prospects as well as financial
results and risk policy. It is consistent with the principles governing client
and investor protection.
Remuneration is structured to ensure that the fixed and variable components are fairly balanced. The fixed component accounts for a sufficiently important share of total remuneration and makes it possible to
operate a flexible bonus policy. If a substantial bonus is granted, payment of a portion can be deferred.
persons) and key personnel (2 persons) of the Credit Agricole (Suisse)
Hong Kong Branch, amounted to HKD 19.8 million. Variable remuneration totalled HKD 5.1 million, split between HKD 4.2 million for immediate cash bonuses and HKD 0.9 million for deferred bonuses.
Among the same personnel categories, no sign-on or severance
payments were awarded in 2013.
RISK MANAGEMENT Please refer to the consolidated financial
statement on pages 10 and 11.
2. DISCLOSURE OF THE ACCOUNTING
AND VALUATION POLICIES
The Group’s accounting and valuation policies apply to the Bank’s annual
accounts with the exception of the following balance sheet items:
PARTICIPATING INTERESTS Participating interests are recorded in the balance sheet at their acquisition cost, less required
value adjustments.
The Bank regularly assesses the value of its participating interests and may
make exceptional provisions for decrease value where necessary.
FIXED ASSETS The Bank has embarked on a major IT upgrade
known as the S2i JT (Java Technologies) Programme. This S2i JT
programme comprises several modules and is intended to harness
the latest technology to upgrade the S2i banking platform.
Some of the costs relating to the programme and meeting capitalisation
criteria are carried as assets on the balance sheet. These fixed assets
are depreciated over ten years once the modules are put into production.
The accounting value is reviewed regularly when the balance sheet is
drawn up. Extraordinary depreciation is taken into account when the
situation so requires.
TAXES Current taxes on the income and the determining capital for
the corresponding period are calculated in accordance with the relevant fiscal requirements. Direct taxes which are still due at the end of
the financial year are recorded as liabilities in the balance sheet under
“Accrued income and expenses”.
RESERVES FOR GENERAL BANKING RISKS Reserves for general
banking risks are set aside as a preventive measure with the aim of
covering underlying risks relating to overall banking activity. These
reserves are considered as forming part of shareholders’ equity under
Swiss banking law (CAO). Amounts allocated to or written back from
the reserves are recognised as extraordinary items.
In reference to 2013, fixed remuneration for the Senior Management (6
44 PARENT COMPANY FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.
INFORMATION ON THE BALANCE SHEET
3.5
Other assets and other liabilities
Current Year
Previous Year
Other assets
Other
liabilities
Other assets
Other
liabilities
– Trading instruments
168 130
156 320
200 173
147 528
– Hedging instruments
72 649
87 408
117 430
121 479
71
8 262
60
10 427
Offset account
5 460
—
—
33 120
Other assets and liabilities
6 986
136
781
512
253 296
252 126
318 444
313 066
(in thousands of CHF)
Replacement values of derivative instruments
Indirect taxes
Total
MANAGEMENT REPORT 2013
PARENT COMPANY FINANCIAL STATEMENTS 45
3.6
Disclosure of pledged or assigned assets to secure own commitments and
of assets subject to reservation of title
Current Year
(in thousands of CHF)
Book value
of pledged
assets
and assets
assigned as
collateral
Previous Year
Effective
obligations
Book value
of pledged
assets
and assets
assigned as
collateral
Effective
obligations
Financial investments
729
—
958
—
Other assets
778
—
727
—
1 507
—
1 685
—
Total
Lending transactions and securities repurchase agreements
(in thousands of CHF)
Current
Year
Previous
Year
—
185 972
1 379 779
1 017 950
1 389 786
1 148 638
Receivables from cash collateral delivered in connection with securities borrowing and
reverse repurchase agreements
Obligations from cash collateral received in connection with securities lending and repurchase agreements
Securities lent in connection with securities lending or delivered as collateral in connection
with securities borrowing as well as securities in own portfolio transferred in connection with
repurchase agreements
with unrestricted right to resell or pledge
Securities received and serving as collateral in connection with securities lending or securities borrowed in connection with securities borrowing as well as securities received in
connection with reverse-repurchase agreements with an unrestricted right to resell or
repledge
including repledged or resold securities
46 PARENT COMPANY FINANCIAL STATEMENTS
13
2
83 12
—
198 772
—
1 232
MANAGEMENT REPORT 2013
3.7
Liabilities to own pension funds
1. Liabilities to own pension funds
(in thousands of CHF)
Other amounts due to customers
Other liabilities
Total liabilities to own pension funds
31.12.2013
31.12.2012
43 818
59 821
1 680
947
45 498
60 768
2. Pension funds
Information regarding pension funds
The majority of the staff at Crédit Agricole (Suisse) SA are covered by the pension fund. Employee pension plan contributions
are deducted from salaries from the date the employee joins the Group, but no earlier than 1 January following his or her 24th
birthday. Employee contributions amount to 6.2% of the guaranteed salary. The employer’s contribution varies from 8.8% to
18.8% of the guaranteed salary and depends on the employee’s age. Employees are entitled to a pension or lump-sum payment
upon reaching the retirement age conferring entitlement to the Swiss State pension scheme. Employees can opt to take early
retirement as from 58 years of age, in which case the pension amount is reduced. The pension plan also provides for payment
of a pension to the employee’s spouse and children in the event of the death of the employee.
Pension expenses
included in
“Personnel expenses”
(in thousands of CHF)
Crédit Agricole (Suisse) SA pension fund
2013
2012
22 211
21 537
Financial benefits / commitments arising from funding excess / deficit
The latest pension fund’s audited annual financial statements, prepared in accordance with Swiss GAAP RPC 26, show the
following level of funding:
Crédit Agricole (Suisse) SA pension fund
31.12.2012
31.12.2011
106.6%
103.2%
Based on provisional figures, the level of funding is in excess of 100% at 31 December 2013. Provided that these reserves do not
reach the regulatory level, there is no funding surplus as defined by Swiss GAAP RPC 16.
MANAGEMENT REPORT 2013
PARENT COMPANY FINANCIAL STATEMENTS 47
Recoveries, overdue
interest currency
differences
New provisions charged
to income statement
Releases
to income statement
Balance as at end
of reference
financial year
(in thousands of CHF)
Use in conformity with
designated purpose
Valuation adjustments and provisions, reserve for fluctuations in credit risks,
reserves for general banking risks
Balance as at end
of previous
financial year
3.9
174 012
-833
-2 070
9 338
-10 473
169 974
-1 603
49 961
-12 872
Valuation adjustments and provisions
for default risks and other risks
– Valuation adjustments and provisions
for default risks (collection and country risks)
– Valuation adjustments and provisions
for other business risks
– Other provisions
Total valuation adjustments and provisions
38 923
-1 367
105 779
–
318 714
-2 200
–
-3 673
59 299
73 042
105 779
-23 345
348 795
Less:
Valuation adjustments directly offset against assets
-174 000
-169 967
Total valuation adjustments and provisions
as per balance sheet
144 714
178 828
Reserves for general banking risks
19 400
–
–
–
–
19 400
The reserves for general banking risks have been declared to the tax authorities.
The nature of its activity exposes the Bank to legal and regulatory risks. The Bank is also required to collaborate in the event of investigations
carried out by Swiss or foreign supervisory authorities. In line with its policy, the Bank sets up reserves for current, or for any potential procedures that might arise when Management considers there is a risk that the aforementioned procedures are likely to result in a financial
commitment. In accordance with the recommendations issued by the Swiss Financial Market Supervisory Authority, the value adjustments
include reserves to cover for a potential fine that could be imposed within the framework of the US program.
48 PARENT COMPANY FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
3.10
Share capital and shareholders holding exceeding 5 % of all voting rights
Current Year
Previous year
Share
capital
Total
share capital
Share
capital
Total
share capital
in thousands
of CHF
579 371
579 371
579 371
579 371
Number of shares
in thousands
579
579
579
579
Dividend-bearing capital
in thousands
of CHF
579 371
579 371
579 371
579 371
Total nominal value
Current Year
Significant shareholders
and groups of shareholders
with pooled voting rights
Previous Year
Nominal
in thousands of
CHF
Holding
in %
Nominal
in thousands of
CHF
Holding
in %
579 371
100
579 371
100
With voting rights
Crédit Agricole Private Banking SA, Paris
(indirect subsidiary of Crédit Agricole SA)
MANAGEMENT REPORT 2013
PARENT COMPANY FINANCIAL STATEMENTS 49
3.11
Proof of equity
(in thousands of CHF)
Equity at beginning of current year
Share capital
579 371
General statutory reserve
490 205
Reserves for general banking risks
19 400
Retained earnings
526 318
Total equity at beginning of current year
1 615 294
(before appropriation of profit)
- Dividend from previous year‘s profit
-128 000
+ Profit for the current year
94 931
Total equity at end of current year
1 582 225
(before appropriation of profit)
of which :
Share capital
579 371
General statutory reserve
490 205
Reserves for general banking risks
19 400
Retained earnings
493 249
3.13 Disclosure of amounts due from/to related companies as well as loans
to members of governing bodies
(in thousands of CHF)
Receivables from related companies
Due to related companies
Loans to members of governing bodies
Current
Year
Previous
Year
73 439
89 736
1 382 043
373 794
6 979
6 281
Transactions with related companies
These refer to transactions with related companies carried out under normal market conditions.
Loans to members of governing bodies
These result chiefly from mortgages and Lombard loans.
50 PARENT COMPANY FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
4.
INFORMATION ON OFF-BALANCE SHEET TRANSACTIONS
4.4
Fiduciary transactions
(in thousands of CHF)
Fiduciary transactions with third-party banks
Fiduciary transactions with related banks
Current
Year
703 065
778 786
3 346 134
4 606 598
7 599
22 185
4 056 798
5 407 569
Current
year
Previous
year
Fiduciary loans and other fiduciary transactions
Total
5.
5.2
INFORMATION ON THE INCOME STATEMENT
Result from trading activities
(in thousands of CHF)
Securities trading
234
306
99 044
100 566
Other
25
-11
Total
99 303
100 861
Currencies trading
5.5
Previous
Year
Comments on extraordinary income and expenses, material releases
of hidden reserves, reserves for general banking risks and releases
of valuation adjustments and provisions no longer required
Extraordinary income for the 2013 financial year consists mainly of the CHF 4.4 million gain arising from the merger by
absorption of Sogea, Société de Gestion et d’Administration SA.
In 2012, extraordinary income resulted from material releases of hidden reserves related to previous financial years,
amounting to CHF 14.3 million as well as from the merger by absorption of Safec, Société Anonyme d’Entreprises Financières et Commerciales, amounting to CHF 14.2 million.
MANAGEMENT REPORT 2013
PARENT COMPANY FINANCIAL STATEMENTS 51
Proposal to the Annual General Meeting
PROPOSAL OF THE BOARD OF DIRECTORS
TO THE ORDINARY ANNUAL GENERAL MEETING
(with previous year comparison)
Appropriation of profit
(in thousands of CHF)
The Board of Directors proposes to the Ordinary Annual General Meeting held on 29 April 2014
that available earnings for 2013 be appropriated as follows :
Year 2013
Profit for the year
Year 2012
94 931
142 075
Retained earnings brought forward
398 318
384 243
Retained earnings
493 249
526 318
Appropriation of profit
Dividend
Retained earnings brought forward
85 438
128 000
407 811
398 318
493 249
526 318
Since the legal reserve has reached 50% of the share capital, it is proposed that no further attributions be made to it.
52 PARENT COMPANY FINANCIAL STATEMENTS
MANAGEMENT REPORT 2013
Report of the statutory auditor
REPORT OF THE STATUTORY AUDITOR ON THE
FINANCIAL STATEMENTS As statutory auditor, we
have audited the financial statements of Crédit Agricole (Suisse) SA, which comprise the balance sheet,
income statement and notes (pages 40 to 51), for the
year ended 31 December 2013.
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. These 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 these 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
MANAGEMENT REPORT 2013
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 2013 comply with Swiss law
and the company’s articles of incorporation.
REPORT ON OTHER LEGAL REQUIREMENTS We
confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act
(AOA) and Independence (art. 728 CO and art. 11
AOA) and that there are no circumstances incompatible with our independence.
In accordance with art. 728a para. 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.
PricewaterhouseCoopers Ltd
Geneva, 29 April 2014
Patrick Fritz
Audit expert
Auditor in charge
Josée Mercier
PARENT COMPANY FINANCIAL STATEMENTS 53
54
MANAGEMENT REPORT 2013
This Management Report is published in French
and English. In the event of a difference between
the two versions, the French text shall prevail.
This report is printed on Forest Stewardship
Council accredited environmentally sustainable paper.
Designed and produced by:
Envie d’ailes creaconseil en communication _ Vevey
Reference No. 302
www.ca-suisse.com

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