annual report

Transcription

annual report

Bank CIC (Switzerland) Ltd. Annual Report 2011
The bank for private and business clients
Annual Report
2011
Content
Summary
2
Foreword by the Chairman of the Board of Directors and the CEO
3
Report by the Board of Directors on the financial year 2011
4
Balance sheet
7
Profit and loss statement
8
Economic outlook for 2012
10
Key investment areas from a personal viewpoint
11
Organisation as at 1 January 2012
12
Organisational structure as at 1 January 2012
14
Bank CIC (Switzerland) Ltd. – Locations
15
Crédit Mutuel-CIC
16
Milestones in our development
18
Financial report 2011
19
The Annual Report for 2011 is also available in German and French. It can be downloaded from our website www.cic.ch.
2009
Titel des Content
Kapitels
1
summary
31.12.2011
31.12.2010
in 1 000 CHF
in 1 000 CHF
in %
in 1 000 CHF
1 782 198
1 742 731
2.3
39 467
of which due to customers on savings and
deposit accounts
328 536
332 002
–1.0
–3 466
of which other amounts due to customers
1 442 637
1 393 830
3.5
48 807
11 025
16 899
–34.8
–5 874
Loans and advances to customers
3 640 879
2 983 087
22.1
657 792
of which amounts due from customers
1 038 376
886 901
17.1
151 475
of which mortgage lending
2 602 503
2 096 186
24.2
506 317
204 107
201 057
1.5
3 050
4 347 037
3 807 377
14.2
539 660
Net interest income
44 340
39 815
11.4
4 525
Net fee and commission income
29 525
35 606
–17.1
–6 081
Gross operating profit
15 184
13 200
15.0
1 984
Net profit
3 050
2 304
32.4
746
Locations
9
8
274
265
2
4
Customer deposits
of which medium-term notes
Shareholders’ equity (after distribution of profit)
Total assets
Staff (full-time equivalents, including apprentices)
Apprentices
2
2009
Titel des Kapitels
Summary
Change
Foreword by the Chairman of the Board of Directors
And the ceo
The 2011 reporting year was characterised by the euro
and sovereign debt crises on one hand, and tax disputes
and bank misconduct on the other. These events mean
that the Swiss financial centre is now faced with new
challenges.
Thanks to the solidarity of our bank and the professionalism of our staff in this challenging environment, we have
succeeded in maintaining the confidence of our existing
customers, winning the confidence of new customers and
laying the foundations for the successful development
of our bank in the decades to come.
The financial future of our customers is built on the
stable foundations of our sole shareholder – the Credit
Mutuel-CIC Group – a traditional banking group and also
one of Europe’s most capitalised, with over seven million
cooperative members, 30 million customers and over
EUR 30 billion in equity.
Our focus is on business clients, companies and other
discerning customers who value a personal, professional
and trustworthy banking partner for their changing
financial needs. After all, our reliability and proximity to
our customers is one of the success factors in our
development.
However, our values also make Bank CIC (Switzerland) Ltd.
a suitable partner for banking transactions. The sense
of responsibility exhibited by our staff serves to guarantee the high quality of our services. The integrity of our
business policies is reflected in the consistent development and application of our international private
banking strategy and the continuity of our consulting.
Our declared objective is the long-term, cooperative
support of our customers.
The financial result in 2011 was characterised by an extremely encouraging growth in loans and adjustments to
our international retail banking business. Interest income
rose steadily as a result, while commission income fell
significantly as expected as a result of our conservative
investment advice and the general hesitancy of customers
in the investment business. While personnel expenses
decreased following the introduction of a modern, highperformance IT platform and due to the omission of the
extraordinary contribution to the pension fund, business
expenses rose significantly as a result of additional expenses of around CHF 4 million in the IT sector. Nonetheless, it was still possible to increase gross profits by 15%.
We also succeeded in increasing net profits by a good 30%
despite the initial depreciation of over CHF 5 million on
the new IT platform and additional risk provisions of
around CHF 2.5 million.
As always throughout the over 100-year history of our
bank, this result is based on the trust of our customers
as they form the core of our activities. We are therefore
particularly pleased that we were also able to attract
new customers and expand our customer base in 2011.
Based on our solid, traditional foundations, clear strategy
and stable values, we are ready to utilise the growth
potential for Bank CIC (Switzerland) Ltd. consistently in
the decades to come.
We would like to thank our customers for their trust and
our employees for their dedication and loyalty.
Philippe Vidal
Chairman of the Board of Directors
Thomas Müller
CEO
2009
Foreword by the Chairman of the Board of Directors
Titeland
des the
Kapitels
CEO
3
Pierre Ahlborn
Jean-Louis Droz
Elmar Ittensohn
Report by the Board of Directors
on the financial year 2011
Board of Directors/Management Committee
Dr. Anton Menth left the Board of Directors on 31 May
2011 after reaching retirement age. Anton Menth supported the Bank for many years. The Board of Directors
would like to thank him for his work as a member of
the Board of Directors and his outstanding contribution
and also wishes to pay tribute to his important role in
the modernisation and development of the Bank.
Assets over the last 5 years
Various changes have been made in an effort to strengthen the Management Committee:
Our long-standing colleague Patrick Python was promoted
to the Management Committee from the Extended
Management Committee on 1 May 2011. With this step,
the Board of Directors wishes to underline the importance
of Risk Management in the current climate.
2400
in millions CHF
4900
4400
3900
3400
2900
2007
2008
2009
2010
2011
2010
2011
Income structure over the last 5 years
in per cent
100
90
80
70
David Fusi was also promoted to the Management Committee from the Extended Management Committee,
which reflects the successful expansion projects and
increasing importance of French-speaking Switzerland
and special financing – both of which David Fusi has
been responsible for.
Various reorganisational measures were also carried out
in private banking. As of 1 May 2011, the Board of Directors appointed Christoph Bütikofer (previously Head of the
Zurich location) as Head of International Private Banking
and the Zurich/Tessin region, and also promoted him to
the Management Committee. Christoph Bütikofer took
over the position of Hanspeter Bollinger, who left the
Management Committee as of this date. Up until his retirement at the end of February 2012, Hanspeter Bollinger
was on hand to induct Christoph Bütikofer, assist with
various strategic projects and support important customers of the Bank. The Board of Directors would like to take
this opportunity to thank Hanspeter Bollinger for his
dedication and service to the Bank and its customers.
4
2009
Report
the Board of Directors on the financial year 2011
Titel desbyKapitels
60
50
40
30
20
10
0
2007
2008
2009
Other ordinary income
Net trading income
Net interest income
As of 1 May 2011, Daniel Meyer moved from the Management Committee to the Extended Management
Committee and took over the newly created position of
Country Manager – France.
annual results
Balance sheet and general business development
The growth strategy of Bank CIC (Switzerland) Ltd. was
also continued in 2011. The opening of our location in Sion
and the active market cultivation at our existing offices
contributed to significant credit growth, which resulted in a balance sheet increase of CHF 539.7 million (or
14.2%). French-speaking Switzerland continued to display above-average growth with its recently opened
locations. Throughout Switzerland we further expanded
our target client groups of business clients and compa-
François Malnati
Philippe Vidal
(Chairman of the Board of Directors)
Lending over the last 5 years
Erich Wyss
(Honorary President)
This in turn meant that altogether over CHF 2 billion in
client funds were entrusted to our bank.
in millions CHF
3700
3500
3300
3100
2900
2700
2500
2300
2100
1900
2007
2008
2009
2010
2011
Customer deposits over the last 5 years
Our international private banking strategy was subjected
to an in-depth analysis. Changes in the regulatory framework conditions were strictly enforced and adjustments
to our strategy and organisation were implemented.
We believe that with these measures we have created the
prerequisites for a focused and correctly regulated cultivation of the market. The resulting downturns (e.g. in
fiduciary investments) were deliberately accepted. This
way we have laid the foundation for facilitating sustainable growth in the future.
in millions CHF
1900
1800
1700
1600
1500
1400
1300
1200
2007
2008
2009
2010
2011
nies in the financing and investment sector. Specialised
services such as the financing of business jets, documentary business and foreign exchange transactions also
contributed to growth.
The processing of financial transactions in line with client
requirements enabled us also to establish new business
relationships in the investment sector. This is reflected
clearly by the increase in investment clients of almost 10%.
The investment business is one of our most important
fields of development, which we can promote through
attractive conditions and targeted campaigns. For example, the volume of pension funds from our clients doubled
as part of our third-pillar campaign.
Income
Net interest income rose by an encouraging 11.4%, while
net fee and commission income fell by 17.1%. Overall,
the strength of the Swiss franc, the difficult situation on
the financial markets, client restraint in the investment
business and our conservative assessment of the markets
weighed down significantly on income. Furthermore,
the adjustments in our new international private banking
strategy and price reductions in brokerage both had a
negative effect on income. By contrast, our strategic activities in the documentary business posted a satisfactory
21.7% increase in income, while activities in the foreign exchange sector also met with positive reactions from customers. Here, the simplified access to our foreign exchange,
money market and stock market trading services enabled
results far exceeding expectations to be achieved – especially during the turbulent market phases of the summer
and autumn.
Expenses
The cost structure has returned to normal again following
the extraordinary factors of the previous year. Material
expenses rose by 17.8% (around CHF 3.5 million). The main
reason for this increase lay in costs relating to the development of our IT platform, which totalled around CHF 4.1
million. The reduction in personnel expenses is primarily
explained by the omission of the extraordinary contribution
to the pension fund of CHF 6.1 million as well as savings
2011
Report by the Board of Directors on the financial
year
2011
Titel des
Kapitels
5
derived from the new IT system. It was therefore possible
to increase gross profits by 15% to CHF 15.2 million. The
initial depreciation of more than CHF 5 million on the new
IT platform increased total depreciation by more than
CHF 1.4 million, while risk provisions were increased by
around CHF 2.5 million due to the expected challenges
relating to the economic environment.
Profit distribution
The reported net profit of CHF 3.05 million is 32.4% up
on the previous year. When added to the profit brought
forward of CHF 1.22 million, this results in a total profit
available for distribution of CHF 4.27 million. The Board
of Directors proposes that the profits be appropriated
as follows:
in 1 000 CHF
3 050
Profit brought forward
1 222
Net profit available for distribution
4 272
Distribution of dividend on share capital
–
Allocation to general statutory reserve
–
Allocation to other reserves
Retained earnings
6
2011
Net profit
Bank
Bank CIC
CIC (Switzerland)
(Switzerland) Ltd. Ltd. Annual
Annual Report
Report 2011
2009
Report
byKapitels
the Board of Directors on the financial year 2011
Titel des
–3 000
1 272
Outlook
With our solid foundation based on over 100 years of
experience, we have set the course for the successful
utilisation of the Bank’s potential in a challenging environment in the decades to come. Our close proximity to
our customers and our ability to meet their different
needs individually and professionally – be this in the
investment business, financing or transaction processing – will serve as the basis for enabling us to remain a
reliable partner in the future, with our customers as the
focal point.
Thank you
We would like to take this opportunity to extend our
special thanks to our customers for their trust and
loyalty over the past year. We would also like to thank all
of our staff at Bank CIC (Switzerland) Ltd. who through
their commitment have made a sustained contribution
towards ensuring the positioning of the Bank and the
satisfaction of our customers.
BALANCE SHEET
in 1 000 CHF
31.12.2011
31.12.2010
Change
227 952
205 138
22 814
Assets
Cash and other liquid assets
Money market placements
Loans and advances to banks
–
591
–591
161 732
292 251
–130 519
1 038 376
886 901
151 475
Mortgage lending
2 602 503
2 096 186
506 317
100
35
65
Financial investments
199 588
223 126
–23 538
Participating interests
1 628
1 628
–
57 397
61 117
–3 720
8 235
5 697
2 538
49 526
4 347 037
34 707
3 807 377
14 819
539 660
5 155
–
5 155
49 813
54 163
–4 350
Securities and precious metals held for trading
Fixed assets
Accrued income and prepaid expenses
Other assets
Total
Total subordinated claims
Total amounts due from subsidiaries and qualified
participants
Liabilities
Money market paper issued
6
186
–180
1 936 159
1 490 686
445 473
328 536
332 002
–3 466
1 442 637
1 393 830
48 807
11 025
16 899
–5 874
Bonds loans and loans from mortgage
bond institutions
267 600
222 600
45 000
Accrued expenses and deferred income
16 054
21 391
–5 337
Other liabilities
55 981
41 280
14 701
Allowance for general credit losses and other provisions
84 932
87 446
–2 514
Reserves for general banking risks
30 085
30 085
–
Share capital
34 000
34 000
–
Due to banks
Due to customers on savings and deposit accounts
Other amounts due to customers
Medium-term notes
General statutory reserve
Other reserves
Retained earnings
Net profit
Total
Total subordinated liabilities
Total liabilities to subsidiaries and qualified participants
29 200
29 200
–
106 550
104 350
2 200
1 222
1 118
104
3 050
4 347 037
2 304
3 807 377
746
539 660
60 090
60 102
–12
1 744 034
1 454 439
289 595
BankCIC
CIC(Switzerland)
(Switzerland)Ltd. Ltd. Annual
AnnualReport
Report2009
2011
Bank
sheet
TitelBalance
des Kapitels
7
PROFIT AND LOSS STATEMENT
ORDINARY INCOME AND EXPENSES
in 1 000 CHF
2011
2010
Change
58 772
59 168
–396
Net interest income
Interest income
5 809
6 191
–382
–20 241
–25 544
5 303
44 340
39 815
4 525
3 107
3 733
–626
21 669
29 439
–7 770
Other fee and commission income
5 352
3 185
2 167
Fee and commission expense
–603
–751
148
29 525
35 606
–6 081
8 819
9 594
–775
Income from participating interests
1 219
1 219
–
Net income from real estate
1 565
1 553
12
242
–
242
3 026
2 772
254
Personnel expenses
–47 078
–54 675
7 597
Other expenses
–23 448
–19 912
–3 536
Subtotal
–70 526
–74 587
4 061
15 184
13 200
1 984
Interest and dividend income from financial investments
Interest expense
Subtotal
Credit-related fees and commissions
Fees and commissions from securities and
investment business
Subtotal
Net trading income
Subtotal
Operating expenses
8
Net profit
in 1 000 CHF
2011
2010
Change
15 184
13 200
1 984
Depreciation and amortisation
–9 042
–7 618
–1 424
Provisions for doubtful debts and contingencies
–2 475
–1 308
–1 167
Net profit before extraordinary items and taxes
3 667
4 274
–607
372
279
93
Extraordinary income
Extraordinary expenses
–
–70
70
Taxes
–989
–2 179
1 190
Net profit
3 050
2 304
746
PROFIT DISTRIBUTION
in 1 000 CHF
2011
2010
Change
Net profit
3 050
2 304
746
Retained earnings from the previous year
1 222
1 118
104
Balance sheet profit
4 272
3 422
850
–
–
–
Profit distribution
Retained earnings
–
–
–
–3 000
–2 200
–800
1 272
1 222
50
9
Economic outlook for 2012
The year of political decisions
Should European countries continue to
reduce public spending and increase
taxes in the coming years in order to gain
control of the spiralling levels of debt?
Conversely, which strategy should be
used to promote growth so that new
debts remain under the deficit ratio of
3% in relation to economic output, as
specified in the Maastricht Treaty? And
to what extent are the European heads
of state at all able to influence these
developments decisively without drastic external influences?
“Only a matter of time
before the establishment
of a fiscal union”
Tendencies in the eurozone towards the
establishment of a fiscal union are
intensifying. A restriction of fiscal autonomy appears to be a done deal, and
implementation only a matter of time.
Strong protests are still being made
against this step (at least in public), particularly in southern European countries.
However, their (supposed) resistance
will probably be broken due to their
A personal commentary
By
Mario
Geniale,
Chief
Investment
“Rarely have politicians
precarious financial situation and
Officer of Bank CIC (Switzerland) Ltd.
been confronted with
dependency on financial aid from donor
such a large number
countries. We are thus simply waiting for the decision
of unpopular decisions”
to be made public, and are looking forward to seeing
how the politicians will sell these policies to their voters
Rarely have politicians been confronted with such a large without losing face.
number of unpopular decisions – tax increases, reduced
spending and drastic cuts to the welfare system are just In view of the many unanswered questions, it remains
three examples. Further measures are demanded by inter- sensible to rely on a diversified portfolio in terms of both
national investment groups in order to confront the current asset classes and regional distribution. We expect positive
confidence and debt crisis. The people in the countries
market trends in 2012, with the shorter-term allocation
affected by these demands are no longer prepared to sit of investments again playing a central role this year.
back and do nothing about these developments. The heads Adjustments to the distribution of asset classes must be
of state will be presented with the consequences this year made constantly according to the changing circumstances
at the polling stations, with state elections in Germany, in order to achieve the right balance between risks and
parliamentary elections in France and congressional
opportunities.
elections in the USA. In the last two countries, the current
presidents also have to fear for their re-election.
10
2009
Economic
outlook for 2012
Titel des Kapitels
Key investment areas from a personal viewpoint
Increasing energy demand
Scarce food supplies
Guaranteeing a sufficient and affordable energy supply is a prerequisite
for any economic activity. The global
consumption of primary energy is expected to rise by 40% in the next 20
years. In particular, countries outside
the OECD will grow strongly in future
and play a decisive role in the increase
in energy consumption.
The global population is currently
around seven billion, and could grow
to nine billion in less than 40 years.
Demographic developments pose two
challenges for the foodstuffs industry:
On the one hand, biological tests have
shown that the population grows exponentially under ideal conditions. On
the other hand, eating habits change
as disposable incomes increase.
The energy mix is also changing. While
oil remains number one, there are
signs that gas will replace coal as the
second most important energy source.
Global gas supplies should be sufficient for the next 250 years. Gas is virtually predestined as the replacement
for undesired nuclear power. Moreover, it will still take decades before
the use of alternative energy sources
is more efficient than fossil fuels.
We see potential in oil and gas multinationals such as Royal Dutch Shell.
We also see opportunities for oil field
service providers and companies in
the renewable energy sector.
John James Bayer, Analyst and Portfolio Manager
Security as a basic need
The 2008 Summer Olympics in Beijing
swallowed up approximately USD
1,880 million in security costs. High
figures are expected once again for
the upcoming 2012 Games in London.
The topic of “security” is increasingly
becoming a focal point of our society.
The need for stability, fear of chaos
and call for legal security have become
more noticeable on a global scale.
The current financial crisis is also a
This challenge results in the increased regular source of public concern – not
consumption of meat and dairy prod- least due to the lurking threat of soucts. These foodstuffs are expensive cial disturbances.
to produce – for example, 20 kilograms
of grain are required to produce one In today’s technology-driven world,
kilogram of meat. As a result of demo- security is a wide-ranging, highly
graphic developments, the foodstuffs dynamic and omnipresent topic.
industry can expect an exponentially Traffic, IT, the Internet, healthcare, the
increasing long-term demand. Grain environment and criminality are just
production will increase in particular, some of the areas where security
which offers interesting investment demands are constantly on the rise.
opportunities among fertiliser and
For example, cybercrime is growing
seed manufacturers. However, classi- so strongly that it has now become a
cal foodstuff providers that are well bigger business than the drug trade.
positioned in regions with high levels Security is a central topic for the fuof population growth are also an at- ture, and not one simply for the short
tractive proposition.
term. The security market has already grown strongly in the past few
Reto Fünfgeld, Head of Portfolio Management years – and continues to offer enormous growth potential.
Christian Meier, Head of Advisory
2009
Key investment areas from a personal
viewpoint
Titel des
Kapitels
11
André Justin
Rolf Waldmeier
Patrick Python
David Fusi
Christoph Bütikofer
Thomas Müller
Board of Directors
Chairman
Philippe Vidal, Paris
Vice chairmen
Pierre Ahlborn, Mersch
Elmar Ittensohn, Worb
Members
Jean-Louis Droz, Geneva
François Malnati, Sélestat
Honorary President
Erich Wyss, Biel-Benken
Management Committee
CEO
Thomas Müller
Members of the
David Fusi
André Justin
Members of the Extended
Markus Allemann (Basle)
Daniel Meyer (Geneva)
Patrick Python
Rolf Waldmeier
Head office Basle
Manager
Rolf Waldmeier
Members of the Management
René Bachmann
Marco Benziger
Reto Bornhauser
Gesine Cron
Andreas Dill
Mario Geniale
Felix Grieder
Sascha Ingelfinger
Thomas Lehmann
Thomas Lindner
Isabelle Marmier
Head of Internal Audit
Cinzia Visinoni
Auditors
Ernst & Young AG, Basle
12
Rolf Meyer
Thomas Muhr
Mathias Pini
Gustavo Rodrigues
Christoph Ruch
Eric Saunier
Thomas Schulthess
Beat Sutter
Alexandre Weber
Beat Witzig
Beat Wüst
Regional Management
Fribourg
Manager
Pierre Schroeter
Markus Baschung
Javier Postiguillo
Beat Scheibli
Christian Wenger
Geneva
Manager
David Fusi a.i.
Nicolas Brunner
Jean-Daniel Demierre
Albéric Fragnière
Sabine Mabut Buhagiar
Stefano Retti
Nicolas Roussin
Ernesto Wendenburg
Lausanne
Manager
Michel Berger
Jean-Marc Del Custode
Jean-Pierre Gremion
Corinne Spycher Conus
Pascal Trallero
Neuchâtel
Manager
Nicolas Humair
Claude Aubry
Mauro Bergonzi
Romeo Galati
Cédric Alain Petitpierre
Salvatore Tosiani
Locarno
Manager
Patrick Vicat-Cole
Roberto Moro
Luciano Soldati
Lugano
Manager
Patrick Vicat-Cole
Daniele Manzo
Andrea Merici
Nicola Pedrini
Sion
Manager
Philippe Fournier
Member of the Management
Raphaël Zuchuat
Zurich
Manager
Armando Adamo
Hanspeter Bollinger
Davide Castrini
Heinz Herter
Walter Kohler
Claudio Pianca
Thomas Schaub
Stefan Zwald
13
Organisational structure as at 1 January 2012
Chairman of the
Board of Directors
P. Vidal
Secretariat BoD
C. Ruch
Internal Audit
C. Visinoni
Secretariat MC
D. Nippel
CEO
T. Müller
Risk Management
P. Python
Logistics
A. Justin
Basle
R. Waldmeier
Zurich/Ticino
C. Bütikofer
French-speaking
Switzerland
D. Fusi
Accounting
E. Saunier
Compliance
M. Pini
IT
M. Kälin
Large Caps
R. Waldmeier
PB International Basle
M. Allemann
Special Financing
D. Fusi
Controlling
B. Sutter
Legal
C. Ruch
Organisation
G. Rodrigues
Documentary Credit
J. Perrelet
PB International
Geneva
D. Meyer
Geneva
D. Fusi a.i.
Operations
M. Gehlen
Basle
R. Waldmeier
Zurich
C. Bütikofer
Lausanne
M. Berger
Business Development Credit Office
S. Marugg
I. Marmier
Facility Management
W. Stroh
Credit Controlling
T. Treiber
Lugano
P. Vicat-Cole
Fribourg
P. Schroeter
Human Resources
S. Ingelfinger
Risk Office
T. Lindner
Locarno
Neuchâtel
N. Humair
Marketing
S. Comment
Security
F. Wüst
Markets
B. Wüst
Portfolio Management
M. Geniale
Taxes
G. Filippone
14
CEO
T. Müller
2009
Organisational
structure as at 1 January 2012
Titel des Kapitels
P. Vicat-Cole
Sion
P. Fournier
Bank CIC (Switzerland) Ltd. – Locations
Basle
Zurich
Neuchâtel
Fribourg
Lausanne
Geneva
Sion
Locarno
Lugano
Head Office
Locations
Bank CIC (Switzerland) Ltd.
Marktplatz 13
P. O. Box 216
4001 Basle
T +41 61 264 12 00
F +41 61 264 12 01
www.cic.ch
Basle
Marktplatz 11 – 13
P. O. Box 216
4001 Basle
T +41 61 264 12 00
F +41 61 264 12 01
Fribourg
Av. de la Gare 1
P. O. Box 135
1701 Fribourg
T +41 26 350 80 00
F +41 26 350 80 99
Geneva
Av. de Champel 29
P. O. Box 327
1211 Geneva 12
T +41 22 839 35 00
F +41 22 839 35 35
A member of the Crédit Mutuel-CIC
Lausanne
Rue du Petit-Chêne 26
P. O. Box 370
1001 Lausanne
T +41 21 614 03 60
F +41 21 614 03 65
Locarno
Via Stazione 9
P. O. Box 663
6602 Locarno-Muralto
T +41 91 759 10 10
F +41 91 759 10 19
Lugano
Via Ferruccio Pelli 15
P. O. Box 5873
6901 Lugano
T +41 91 911 63 63
F +41 91 922 21 23
Neuchâtel
Faubourg du Lac 2
P. O. Box 1913
2001 Neuchâtel
T +41 32 723 58 00
F +41 32 723 58 01
Sion
Place du Midi 21
Case postale 196
1951 Sion
T +41 27 329 47 50
F +41 27 329 47 51
Zurich
Löwenstrasse 62
P. O. Box 3856
8021 Zurich
T +41 44 225 22 11
F +41 44 225 22 21
Group
BankCIC
CIC(Switzerland)
(Switzerland)Ltd. Ltd. Annual
AnnualReport
Report2009
2011
Bank
Bank CIC (Switzerland)
Ltd.des
– Locations
Titel
Kapitels
15
crédit mutuel-CIC
Our bank, flexible and solid
Bank CIC (Switzerland) Ltd. operates on a comprehensible scale. With over 300 staff in nine locations, its size
offers clarity and manageability. Clients appreciate our
short decision-making channels and the fact that they can
reach the relevant people directly. At the same time, as part
of the Crédit Mutuel-CIC Group, Bank CIC (Switzerland) Ltd.
enjoys a high level of stability, ensuring continuity and
reliability even in difficult times. This combination of
versatility and solidity brings together the advantages of
being both large and small, creating unique benefits for
the client.
Our Group: A strong foundation
Being part of this Group ensures that Bank CIC (Switzerland) Ltd. has a stable shareholder base and a clear ownership structure while enabling it to operate independently.
The Group’s international and global network also
provides ample opportunity for a variety of cross-border
transactions.
The Crédit Mutuel-CIC Group is one of the most capitalised banks in Europe thanks to its cooperative structure
and diversified business model, with solid long-term
ratings.
Bank CIC (Switzerland) Ltd. is a 100% subsidiary of
the French Crédit Mutuel-CIC Group.
CRéDIT MUTUEL-CIC – A global presence
Number of countries
with representatives
Europe
15
Middle East
3
America
5
Asia
Bank CIC (Schweiz) AG
100 %
11
Australia
1
6
12
14
15
4
9
21
8
3
5
2
13
1
7
10
Banque Pasche
100 %
11
16
Banque Transatlantique
100 %
17
20
Banque de Luxembourg
100%
DUBLY-DOUILHET
Dubly Douilhet
61.9 %
16
2009
Titel des
Crédit
Mutuel-CIC
Kapitels
19
18
Crédit Mutuel-CIC
The cooperative Crédit Mutuel-CIC Group is one of the
largest banking groups in France. Its 5,898 branches and
approximately 78,000 employees represent the secondlargest branch network in France. The Crédit Mutuel-CIC
Group has proven expertise in looking after business
clients and enjoys a strong presence abroad. A third of
all small and medium-sized businesses in France bank
with the Group. It forms the second-largest retail bank
in France, managing over 28 million clients. The Group
combines the benefits of a non-centralised cooperative
bank represented throughout France with the strengths
of an international commercial bank with branches in
around 40 foreign locations.
A German idea with a European flavour
Crédit Mutuel is a cooperative bank founded on the
values of the famous German mayor F. W. Raiffeisen
(1818 – 1888). It has always understood the importance
of developing products and services which best meet
the expectations of its clients. This is how the concept
of “bancassurance” arose, and today Crédit Mutuel offers
its clients a broad and successful range of banking and
insurance services. Building on this idea, we as a modern
Bank wish to promote the realisation of the idea of a
European community.
As an experienced Swiss asset manager, Bank CIC (Switzerland) Ltd. is part of the Group’s international private banking operation. Together with the other Group members,
Banque de Luxembourg, Banque Pasche, Banque Transatlantique and Dubly Douilhet, Bank CIC (Switzerland) Ltd.
provides first-class services to the discerning clientele of
CIC Banque Privée in the area of asset management and
investment advice.
Ratings as at 31 December 2011
Standard & Poor’s
Moody’s
Fitch
Short-term
A-1
P-1
F1+
Long-term
A+
Aa3
A+
Outlook
stable
stable
stable
The rating refers to Banque Fédérative du Crédit Mutuel (BFCM). BFCM is the holding company for the Crédit Mutuel-CIC Group.
Principal key figures of Crédit Mutuel-CIC
Profit
EUR 2 195 million
Loans to clients
EUR 338.4 billion
Equity
EUR 33 292 million
Employees
78 000
Ratio of tier one funds
11.2%
Cooperative members
7.3 million
Clients
28.8 million
Awards 2011/2010
Client funds
EUR 584.3 billion
Crédit Mutuel-CIC
17
MILESTONES IN OUR DEVELOPMENT
A Basle bank with a rich history
The origins of Banque CIC (Suisse) can
be traced back to 1871 when bankers
from Basle founded the Banque
d’Alsace et de Lorraine (BAL) in Strasbourg. At that time, Basle was the
most important centre of the Swiss
banking industry. BAL shares were
listed on the Basle stock exchange in
1872. From its foundation until the
start of World War One in 1914, the
bank acted as a correspondent for the
Swiss railways and Swiss National
Bank. The first BAL counters were
opened in Basle in 1909. This marked
the beginning of a Swiss banking
tradition lasting over 100 years.
1909
2009
BAL opens its first counters in the
Aeschenvorstadt, Basle. The Baslebased Gewerbebank AG is integrated
into the company in the same year.
1919
Acquisition of premises on Marktplatz
in the heart of Basle which still
remain the Bank headquarters today.
1931
BAL taken over by French Banque
CIAL, based in Strasbourg.
1971
Bank CIC (Switzerland) Ltd. celebrates
its centenary with many highlights all
over Switzerland. Gerry Hofstetter got
the celebrations off to a radiant start
by staging spectacular light art at all
our locations.
Lausanne location opens.
1977
Zurich location opens.
1984
Swiss operation becomes an
independent limited company:
Bank CIAL (Switzerland) Ltd.
1997
Opening of new office in Geneva
through merger with Banque de
l’Union Européenne en Suisse SA.
Lugano and Locarno locations are
also opened.
2007
Neuchâtel location opens.
2008
Change of name to Bank CIC
(Switzerland) Ltd. The Bank is now
presented under a single brand
name – Banque CIC (Suisse).
Fribourg location opens.
18
2009
Milestones
in our development
Titel des Kapitels
2011
Sion location opens.
Financial Report 2011
Balance sheet
20
Off-balance-sheet business
21
22
Cash flow statement
24
Explanatory notes to the annual report
25
Accounting and valuation principles
28
Notes to the balance sheet
31
Information on off-balance-sheet business
48
Notes on the profit and loss statement
50
Auditor’s report
51
Titel des Kapitels
19
BALANCE SHEET
in 1 000 CHF
31.12.2011
31.12.2010
Change
227 952
205 138
22 814
–
591
–591
Assets
161 732
292 251
–130 519
1 038 376
886 901
151 475
Mortgage lending
2 602 503
2 096 186
506 317
100
35
65
199 588
223 126
–23 538
1 628
1 628
–
57 397
61 117
–3 720
Fixed assets
Other assets
Total
Total subordinated claims
Total amounts due from subsidiaries
and qualified participants
8 235
5 697
2 538
49 526
34 707
14 819
4 347 037
3 807 377
539 660
5 155
–
5 155
49 813
54 163
–4 350
Liabilities
6
186
–180
1 936 159
1 490 686
445 473
328 536
332 002
–3 466
1 442 637
1 393 830
48 807
11 025
16 899
–5 874
Bonds loans and loans from mortgage
bond institutions
267 600
222 600
45 000
16 054
21 391
–5 337
Other liabilities
55 981
41 280
14 701
84 932
87 446
–2 514
30 085
30 085
–
Share capital
34 000
34 000
–
29 200
29 200
–
106 550
104 350
2 200
1 222
1 118
104
Due to banks
Due to customers
on savings and deposit accounts
Medium-term notes
Other reserves
Retained earnings
Net profit
Total
Total subordinated liabilities
Total liabilities to subsidiaries and qualified participants
20
Bank CIC (Switzerland) Ltd. Financial
Annual Report
Report
2009
2011
Titel dessheet
Balance
Kapitels
3 050
2 304
746
4 347 037
3 807 377
539 660
60 090
60 102
–12
1 744 034
1 454 439
289 595
OFF-BALANCE-SHEET BUSINESS
31.12.2011
31.12.2010
Change
Contingent liabilities
156 752
161 484
–4 732
Irrevocable commitments
103 503
150 493
–46 990
961
961
–
1 724
4 832
–3 108
Positive replacement values
14 658
13 335
1 323
Negative replacement values
45 344
34 959
10 385
in 1 000 CHF
Liabilities for calls on shares and other equities
Commitment facilities
Derivative financial instruments
Contract volume
Fiduciary transactions
1 059 883
784 958
274 925
244 274
417 291
–173 017
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Off-balance-sheet
Titel desbusiness
Kapitels
21
PROFIT AND LOSS STATEMENT
ORDINARY INCOME AND EXPENSES
in 1 000 CHF
2011
2010
Change
58 772
59 168
–396
Net interest income
Interest income
5 809
6 191
–382
–20 241
–25 544
5 303
44 340
39 815
4 525
3 107
3 733
–626
21 669
29 439
–7 770
Other fee and commission income
5 352
3 185
2 167
Fee and commission expense
–603
–751
148
29 525
35 606
–6 081
8 819
9 594
–775
Income from participating interests
1 219
1 219
–
Net income from real estate
1 565
1 553
12
242
–
242
3 026
2 772
254
Personnel expenses
–47 078
–54 675
7 597
Other expenses
–23 448
–19 912
–3 536
Subtotal
–70 526
–74 587
4 061
15 184
13 200
1 984
Interest and dividend income from financial investments
Interest expense
Subtotal
Credit-related fees and commissions
Fees and commissions from securities and
investment business
Subtotal
Net trading income
Subtotal
Operating expenses
22
Annual Report
Report
2009
2011
Titel des
Profit
andKapitels
loss statement
Net profit
in 1 000 CHF
2011
2010
Change
15 184
13 200
1 984
–9 042
–7 618
–1 424
Provisions for doubtful debts and contingencies
–2 475
–1 308
–1 167
Net profit before extraordinary items and taxes
3 667
4 274
–607
372
279
93
Extraordinary expenses
–
–70
70
Taxes
–989
–2 179
1 190
Net profit
3 050
2 304
746
PROFIT DISTRIBUTION
in 1 000 CHF
2011
2010
Change
Net profit
3 050
2 304
746
Retained earnings from the previous year
1 222
1 118
104
4 272
3 422
850
–
–
–
Profit distribution
Retained earnings
–
–
–
–3 000
–2 200
–800
1 272
1 222
50
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Profit and
Titel
lossdes
statement
Kapitels
23
CASH FLOW STATEMENT
2011
in 1 000 CHF
Net cash provided by (used in) operating activities
Annual result
Allocations to pension funds
Dividend previous year
Net cash used in fixed asset transactions
Real estate
Investments in rented property
Other fixed assets
Investments in software
Intangible assets
Net cash provided by (used in) banking activities
a) Medium- and long-term activities (> 1 year)
Due to banks
Due to customers
Medium-term notes
Loans from mortgage bond institutions
Savings and deposit funds
Other liabilities
Mortgage lending
Other assets
b) Short-term activities
Due to banks
Due to customers
Medium-term notes
Loans from mortgage bond institutions
Mortgage lending
c) Liquidity
Cash and other assets
Total
24
Annual Report
Report
2009
2011
Titel des
Cash
flowKapitels
statement
2010
Source
of funds
Application
of funds
Source
of funds
Application
of funds
1 703
3 050
9 042
–
–
–
–
–
–
–
–
2 514
2 538
5 337
–
–
11 441
2 304
7 618
1 809
3 033
–
–
–
–
–
–
–
–
1 033
2 290
–
–
–
–
–
–
–
5 322
–
68
376
479
4 399
–
–
97
–
–
–
–
–
16 863
–
200
67
2 495
13 378
820
–
–
–
–
23 500
–
14 701
–
11 868
–
30 282
–
21 736
111
30 000
4 586
–
3 466
–
–
–
49 105
–
14 819
102 095
5 826
15 000
–
5 000
60 010
10 166
–
49 935
–
10 137
–
–
–
–
7 614
–
–
–
–
–
33 163
–
13 202
48 169
–
445 584
78 807
–
21 500
591
130 518
–
–
–
–
–
180
–
–
1 288
–
–
–
163 343
457 212
65
6 744
–
–
421 778
–
–
5 000
113
–
–
–
11 898
10 241
162 351
35
–
152 070
3 427
–
–
167 963
73 923
213 963
–
–
–
–
49 872
22 814
22 814
49 872
65 678
65 678
179 214
–
–
179 214
–
EXPLANATORY NOTES TO THE ANNUAL REPORT
Bank CIC (Switzerland) Ltd. has its headquarters in Basle. It also has registered offices in Fribourg, Geneva,
Lausanne, Lugano, Neuchâtel and Zurich as well as one agency in Locarno-Muralto and one representative office
in Sion. It operates a full range of banking activities. Its core business includes commercial banking in a clearly
defined risk framework as well as asset management and all associated banking services. Both business sectors
make a crucial contribution to the Bank’s revenue. Bank CIC (Switzerland) Ltd. mainly serves customers from
Switzerland and Western Europe.
Balance sheet business
Balance sheet business is extremely important for our activities on the Swiss market. Loans to customers are
made against security in the form of either a mortgage or other customary collateral, or as unsecured business
loans. Loans secured by mortgages represent a substantial share of the lending volume. These mortgages consist
for the most part of first-class residential and commercial real estate in the catchment areas of our locations.
Net fee and commission business, net trading business
Net fee and commission business includes in particular asset management and investment consulting, underwriting, executing stock exchange orders in Switzerland and abroad, currency trading, arranging fiduciary
investments, payment transactions and documentary business. Trading includes securities and foreign exchange
transactions on a proprietary basis. The possible price risks for the Bank as a result of this activity are restricted by
a limit system. The Bank is a member of Eurex.
Other fields of business
The Bank holds a securities portfolio consisting mainly of fixed income securities, partly to obtain an appropriate
income and partly to secure its supply of liquidity. In the field of asset and liability management, we sometimes
use swaps to hedge against the interest rate risk. The Bank carries out its business operations in its own and in
rented premises.
Risk assessment by the Board of Directors pursuant to Art. 663b of the Swiss Code of Obligations
The Board of Directors of Bank CIC (Switzerland) Ltd. is informed regularly of any significant risks facing the Bank.
These pertain to credit, market and operational risks. The assessment of credit risks is based on risk distribution
and required equity capital; market risks are evaluated on the basis of the utilisation of limits, including stress
scenarios, and operational risks are evaluated on the basis of the Bank’s internal risk inventory. Internal control
measures, measures intended to minimise risks and reporting are factored into the assessment. Internal control
measures are used to support continual monitoring and evaluation as well as precise recording of the effects of
these significant risks in financial accounting. The Board of Directors passed the risk policy pursuant to the risk
assessment. For further information on risk management, see the paragraph below.
Risk management
The risk policy is regularly reviewed by the Board of Directors for appropriateness. It defines how much risk the
Bank is prepared to take, and allocates corresponding competencies to the Management Committee. Units that
are completely independent of each other are defined for managing and controlling the risk of each of the risk
categories set out hereafter. Risk management is responsible for managing risk. Risk control is responsible for
monitoring compliance with limits set by the Board of Directors and reporting to the Management Committee
and Board of Directors on the risk situation.
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Explanatory notes to the
Titel
Annual
des Kapitels
Report
25
Loan default risk
The loan policy covers all commitments from which a loss may arise if contracting parties are unable to fulfil their
obligations.
Default risks are limited using risk diversification, quality requirements and coverage margins. Risk-oriented
delegation of responsibility governs loan approvals, where credit standing and financial standing are assessed on the
basis of uniform criteria. Depending on the nature of the security, loans are reviewed periodically and submitted to
the responsible authorities for approval. Monitoring loan default risks throughout the whole credit period is ensured
by means of a regular analysis of commitments. Impairment reviews of collateral are carried out at appropriate
intervals, depending on the type of cover. The valuation of real estate is governed by binding directives. The standards
apply to both internal and external valuers. Owner-occupied properties and simple income properties can be valued
internally by customer support managers themselves.
External valuers are brought in for other property. The “market value” serving as the starting point for the loan is
established as follows:
n Owner-occupied properties: real value
n Income property: weighted income value
n O
wner-used trade or industrial property: income value or utility value realised on the market
(property to be considered as means of production)
n B
uilding land: market value taking into account future utilisation
The Bank uses independent valuation models and is thus in a position to ensure that the figures used in the
valuations are plausible. The maximum possible financing granted depends on the Bank’s internal fixed collateral
values and on affordability. There is a repayment obligation for second mortgages. Allowances for general credit
losses and other provisions are regularly reviewed and adjusted.
Interest rate risk
The interest rate risk on balance sheet and off-balance-sheet business is monitored and controlled by the Asset
and Liability Management Committee.
Control is exercised by means of sensitivity analyses and the Bank’s own interest rate forecasts; interest rate
swaps are the only hedging measures used. Specification of the limits is carried out taking into account the
effects on interest income and the influence on equity. ALM software is used to measure compliance with
interest rate risk limits.
Other market risks
Other market risks (essentially share price and currency risks) are restricted through limits. Trading positions are
monitored daily.
Liquidity risk
Ability to pay is monitored and guaranteed within the framework of the banking law. The Bank’s own positions
are checked regularly for fungibility.
26
Annual Report
Report
2009
2011
Titel des Kapitels
Explanatory
notes to the Annual Report
Operating risk
Operating risk is limited by means of internal regulations and directives on organisation and control. Control is
carried out mainly through qualitative measures. The business divisions bear responsibility for the operational
risks. Systematic management and constant monitoring and assessment of the operational risks are carried out
by Risk Management. The Board of Directors and Management Committee are informed of incurred losses on a
regular basis using standardised methods. Recommendations on the observations made support the Management
Committee in implementing effective measures for eliminating errors and weak points.
Compliance and legal risks
The Compliance Office ensures that business activity complies with applicable regulatory standards and the duty
of care of a financial intermediary. This office also ensures that directives and guidelines are adapted to
regulatory developments and adhered to.
Outsourcing
Bank CIC (Switzerland) Ltd. has outsourced payment transactions to PostFinance.
Staff
At the end of the business year, the number of employees expressed in terms of full-time employees was 274
(prior year 265), including two trainees.
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Explanatory notes to the
Titel
Annual
des Kapitels
Report
27
ACCOUNTING AND VALUATION PRINCIPLES
General principles
The principles adopted for accounting, drawing up the balance sheet and valuation are in accordance with the
provisions of the Code of Obligations, the banking law and the articles of association, as well as with the
guidelines of the Swiss Financial Market Supervisory Authority (FINMA).
The annual financial statements are created in accordance with the provisions applicable to banks set out in the
accounting standards (see FINMA circular 2008/2) based on providing reliable insight into the Bank’s asset,
financial and earnings situation.
Recording and valuation
All transactions are recorded in the Bank’s books on the closing day and valued from that date on in accordance
with the principles stated below.
Foreign currencies
Claims and liabilities in foreign currencies, as well as banknotes and coins held for the currency exchange
business, are converted at the middle rates applying on the balance sheet date, except for participating interest
items, which are valuated at historical exchange rates. Foreign currency profits and losses are booked to net
income.
Reporting is carried out according to the accrual method.
Cash and other liquid assets, loans and advances to banks and customers, mortgage lending, deposit funds
These items are shown in the balance sheet at nominal value.
Doubtful debts
Doubtful debts, i.e. loans/advances and their interest (including accrued interest), where there is an acute or
latent risk of the debtor not being able to fulfil his obligations, are valued on a case-by-case basis in accordance
with FINMA circular 2008/2 section 18ff., and the decrease in value is covered by individual value adjustments in
accordance with the principle of prudence. Off-balance-sheet transactions, such as firm commitments, guarantees or
derivative financial instruments, are also included in this valuation. Interest outstanding for more than 90 days is
considered to be overdue. This is allocated directly to the Allowance for general credit losses and other provisions.
The decrease in value of the debt is based on the difference between the book value and the anticipated
collectable value, taking into account counter-party risk and the net proceeds from the realisation of any
collateral held. Individual value adjustments are stated under Liabilities. If debts are classified as wholly or partly
irrecoverable, or if the claim is waived, the debts are booked out against the appropriate value adjustment.
Trading portfolios in securities and precious metals
Securities and precious metals held on a short-term basis at the Bank’s own risk are valued at market value on the
balance sheet date. The relevant interest and dividend income is posted as Interest and dividend income from
trading positions. The refinancing costs of trading are charged as interest expense. Stock price gains and losses
resulting from the valuation are posted under Net trading income.
Fixed income securities, convertible bonds, bonds cum warrants and investment fund units acquired as a
long-term investment are valued at the lower of acquisition cost or market price if there is no intention of
holding them until maturity. Securities to be held until maturity are valued according to the accrual method, i.e.
premiums and discounts are deducted or added over the period to maturity.
Real estate to be disposed of is reported under Financial investments and recorded at the lower of acquisition
cost or market price.
28
Annual Report
2009
Report
2011
Titel des Kapitels
Accounting
and valuation principles
Any necessary value adjustments to financial investments valued at the lower of acquisition price or market
value are booked via the income category Other ordinary expenses or income; however, in the case of financial
investments valued at the lower of acquisition price or market cost, the maximum appreciation is limited to the
acquisition price.
Realised gains on financial investments represent the difference between the book value and the sale price, and
are booked under Gains from disposal of financial assets.
Participating interests in other companies held as long-term investments and participating interests in joint
infrastructure programmes are valued at cost less operationally necessary depreciation and amortisation.
Fixed assets
Fixed assets are shown at cost less operationally necessary depreciation and amortisation. The estimated useful life is
a maximum of 50 years for real estate, five years for IT investments and eight years for other fixed assets. Goodwill
is amortised over a period not exceeding five years and merger losses are written down over a period not to exceed
20 years. All items are written down on a straight-line basis from the time of acquisition. Regular value impairment
reviews are carried out. The Bank has activated the external costs of the NCS.CH IT project, which are being written
down over a period of five years starting from 1 January 2011.
Realised gains from the disposal of fixed assets are booked under Extraordinary income and realised losses under
Extraordinary expense.
Amounts due to pension funds
The staff of Bank CIC (Switzerland) Ltd. are insured in the pension fund of Bank CIC (Switzerland) Ltd. in accordance with the law on occupational pension funds (BVG) and for any portion of the salary that exceeds the maximum insured level under the BVG. Executive staff are insured under the executive pension scheme of Bank CIC
(Switzerland) Ltd. The pension liabilities and assets covering these liabilities are outsourced to legally independent foundations. The organization, management and financing of the pension plans are based on the statutory
requirements, the foundation deeds and the applicable pension fund regulations. Since 1 July 2011 all pension
plans of Bank CIC (Switzerland) Ltd. have been defined contribution plans. The employer contributions from these
pension plans are listed by period under Personnel expense.
Under Swiss GAAP ARR 16, the Bank is obliged to assess whether any financial risks or benefits could arise from a
shortfall or surplus in its pension funds. In general, calculations are made based on the pension funds’ own financial statements of the previous year.
Taxes
The Bank defers tax liabilities existing from previous fiscal periods and taxes on the current period result and on
taxable capital.
In accordance with the principle of prudence, an allowance for general credit losses and other provisions is set aside
for all recognisable risks. The allowance for general credit losses and other provisions for remaining risks is
recorded under this balance sheet heading.
Reserves for general banking risks are taxed and considered as equity.
Bank
CIC
(Switzerland)
Ltd. Financial
Annual Report 2009
Bank
CIC
(Switzerland)
Ltd. 2011
Titel des
Kapitels
Accounting and valuation
principles
29
Contingent liabilities, irrevocable commitments, liabilities for calls on shares and other equities, commitment
facilities
Items shown under the heading Off-balance-sheet business are assessed at their nominal value. In accordance with the
principle of prudence, provisions for foreseeable risks are made and shown on the liabilities side of the balance sheet.
Derivative financial instruments
Trading transactions
Derivative financial instruments open at the balance sheet date are shown in the balance sheet at fair value, i.e. at
positive and negative replacement value under Other assets or Other liabilities. Realised and unrealised profits are
booked under the heading Net trading income in the case of transactions with derivative financial instruments entered
into for trading purposes.
Hedging transactions
With hedged transactions, income is allocated to the same category as the corresponding income from the covered transaction.
The positive and negative replacement values are shown under Other assets or Other liabilities. The accrued interest on
the hedged item is shown in the adjustment account under Other assets or Other liabilities. Hedging relationships and
the goals and strategies of the hedging transaction are documented by the Bank on conclusion of the derivative financial
instrument. The effectiveness of the hedging relationship is reviewed regularly. In the case of hedging transactions for
which the hedge financing is no longer effective either partially or in its entirety the non-effective part is treated in the
same way as trading transactions.
Over-the-counter transactions (OTC)
The open positive and negative replacement values from transactions on the balance sheet date are stated in the balance
sheet.
Changes to accounting and valuation principles
The accounting and valuation principles have not changed compared to the previous year.
Events after the balance sheet date
No extraordinary events arose after the balance sheet date that would have had a significant effect on the asset,
financial and earnings situation of Bank CIC (Switzerland) Ltd. in the past year.
30
Annual Report
Report
2009
2011
Titel des Kapitels
Accounting
and valuation principles
NOTES TO THE BALANCE SHEET
BREAKDOWN OF LOAN AND OFF-BALANCE-SHEET BUSINESS COLLATERAL AS OF 31.12.2011
Nature of security
in 1 000 CHF
Mortgage
collateral
Other
collateral
Unsecured
Total
95 764
540 710
401 902
1 038 376
Loans
Mortgage lending
Residential properties
1 945 219
–
–
1 945 219
Business and office properties
338 720
–
–
338 720
Commercial and industrial properties
126 298
–
–
126 298
Other loans
192 266
–
–
192 266
Total
2 698 267
540 710
401 902
3 640 879
As of 31.12.2010
2 130 312
285 917
566 858
2 983 087
1 107
81 781
73 864
156 752
–
37 122
66 381
103 503
Liabilities for calls on shares
and other equities
–
–
961
961
–
–
1 724
1 724
1 107
118 903
142 930
262 940
194
92 935
224 641
317 770
Total amount
of debt
Estimated
liquidation
value of
collateral
Net amount
of debt
Individual
adjustment
Year under review
18 968
7 405
11 563
12 314
Prior year
12 306
945
11 361
12 404
Off-balance-sheet business
Contingent liabilities
Total
As of 31.12.2010
in 1 000 CHF
Impaired loans/receivables
The individual value adjustments exceeded net debt by CHF 0.75 million (previous year: CHF 1.04 million). The
committed credit lines for customers are taken into account rather than the amount effectively used as per the
balance sheet date when calculating the individual value adjustment.
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
31
CLASSIFICATION of SECURITIES AND PRECIOUS METALS HELD FOR TRADING,
FINANCIAL INVESTMENTS AND PARTICIPATING INTERESTS
31.12.2011
31.12.2010
Debt securities
–
–
with market value
–
–
with no market value
–
–
of which general loans and medium-term notes
–
–
Equity instruments
–
–
of which own equity instruments
–
–
Precious metals
100
35
Total
100
35
–
–
in 1 000 CHF
of which securities eligible for repurchase transactions
in accordance with the liquidation provisions
32
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
Book value
in 1 000 CHF
Fair value
31.12.2011
31.12.2010
31.12.2011
31.12.2010
199 571
223 107
202 517
228 897
Debt securities
of which general loans and medium-term notes
of which intended to be held to maturity
of which valued at the lower of acquisition cost or market price
–
–
–
–
199 571
223 107
202 517
228 897
–
–
–
–
Equity instruments
17
19
18
19
of which qualifying holdings*
–
–
–
–
Precious metals
–
–
–
–
Real estate
–
–
–
–
Total
199 588
223 126
202 535
228 916
of which securities eligible for repurchase
according to liquidity provisions
195 924
219 239
The Bank does not have any own stock in the financial investments.
* at least 10% of capital or voting rights
31.12.2011
31.12.2010
–
–
with no market value
1 628
1 628
Total
1 628
1 628
with market value
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
33
Notes on participating interests
31.12.2011
in 1 000 CHF
Business activity
Capital
Share
in %
Share prior
year in %
100
100
100
The following are reported
as participations:
ICM Finance SA, Basle
finance company
Statement of fixed assets
2011
in 1 000 CHF
Cost price
Reclassifications
Investments
Disposals
Depreci
ation and
amortisa- Book value
tion end 2011
Majority participating
interests
100
–
100
–
–
–
–
100
Minority participating
interests
1 548
20
1 528
–
–
–
–
1 528
Total participating
interests
1 648
20
1 628
–
–
–
–
1 628
Real estate
42 923
–16 987
25 936
–
68
–
–1 405
24 599
of which Bank
premises1
42 923
–16 987
25 936
–
68
–
–1 405
24 599
5 709
–3 489
2 220
–
376
–
–618
1 978
14 056
–9 519
4 537
–
479
–
–1 396
3 620
Investments in rented
property
Other fixed assets
Assets under finance
leases
Investments in software
Merger losses
Goodwill
Total fixed assets
–
–
–
–
–
–
–
–
24 972
–3 096
21 876
–
4 649
–250
–5 259
21 016
7 276
–728
6 548
–
–
–
–364
6 184
820
–820
–
–
–
–
–
–
95 756
–34 639
61 117
–
5 572
–250
–9 042
57 397
Fire insurance value of real estate
38 933
Fire insurance value of other fixed assets
23 048
1
34
Accrued
depreci
ation and
amortisa- Book value
tion end 2010
In January 2012, the property in Geneva was sold at a net selling price of CHF 16.39 million (accounting value of CHF 7.57 million).
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
OTHER ASSETS AND OTHER LIABILITIES
in 1 000 CHF
31.12.2011
31.12.2010
Other
assets
Other
liabilities
Other
assets
Other
liabilities
Replacement values of derivative contracts
14 658
45 344
13 335
34 959
Equalisation account
31 475
–
18 609
–
2 509
–
–
–
Settlement accounts
421
5 895
2 313
1 267
Indirect taxes
434
4 371
434
4 778
Coupons
29
371
16
222
Various
–
–
–
54
49 526
55 981
34 707
41 280
Tax prepayment
Total
PLEDGED OR ASSIGNED ASSETS AS WELL AS
ASSETS UNDER RETENTION OF TITLE
in 1 000 CHF
The following assets were not freely available for
use on the balance sheet date:
31.12.2011
31.12.2010
Book value
Actual
obligation
Book value
Actual
obligation
Nostro account, Eurex
4 813
4 813
3 711
3 711
Own securities, Eurex
1 114
1 114
1 828
1 828
Mortgage loans pledged or assigned
for mortgage bonds
529 120
289 008
357 235
240 408
Total
535 047
294 935
362 774
245 947
Securities lending and repurchase and reverse-repurchase transactions
with securities
in 1 000 CHF
31.12.2011
The following assets were not freely available for
use on the balance sheet date:
Book value
Book value
–
–
There are no loan and repurchase transactions involving
securities
31.12.2010
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
35
Amounts due to the pension funds
of Bank CIC (Switzerland) Ltd.
in 1 000 CHF
31.12.2011
31.12.2010
8 146
6 515
Contributions
accrued in
period
Pension expenses
contained in
personnel expenses
2011
2010
On the balance sheet date, the current account credit
balances and investments of the staff pension funds with
Bank CIC (Switzerland) Ltd. amounted to:
Employer contribution reserve
There are no employer contribution reserves requiring disclosure.
Financial benefit/financial liability and pension expenses
in 1 000 CHF
Change vs.
Financial share
previous year or
of the Bank
recognised in
31.12.2010 31.12.2009 P&L in period
Surplus/
shortfall
31.12.2010
Pension funds
in surplus
–
–
–
–
–
4 076
10 101
As at 31.12.2011, the expected coverage ratio for the pension fund of Bank CIC (Switzerland) Ltd. was 105% and
113% for the executive staff.
BONDS/MORTGAGE BONDS OUTSTANDING
Institute
Pfandbriefbank Schweizerischer
Hypothekarinstitute
By due date
in 1 000 CHF
36
Year due
issue
Outstanding
amount
in 1 000 CHF
31.12.2011
Outstanding
amount
in 1 000 CHF
31.12.2010
2.09
2012–2022
267 600
222 600
Year of
issue
Average
interest rate
in %
2008–2011
2012
2013
2014
2015
2016
after 2016
Total
41 500
57 200
62 700
36 000
17 100
53 100
267 600
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
Allowance for general credit losses and other provisions, provisions for
credit risks, reserves for general banking risks
2011
in 1 000 CHF
Allowances
applied in
Status conformity
end
with
2010
purpose
Allowances and provisions for loan
default risks and sovereign default
risks
Allowances and provisions for other
business risks
Restructuring provisions
Provisions from pensions
Change in
purpose of
allowances
(transfers)
New
New
Recoveries,
allowallowoverdue
ances
ances
interest,
charged
credited
exchange to income to income
differences statement statement
Status
end
2011
12 404
–2 099
1 095
360
973
–420 12 314
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1 562
1 595
–64
–
–
32
Other provisions
73 447
–2 504
–1 095
–
1 448
–240 71 056
Total allowance for general credit
losses and other provisions
87 446
–4 667
–
360
2 453
–660 84 932
Less specific provisions
–
–
Total allowance for general credit
losses and other provisions as per
balance sheet
87 446
84 932
Reserves for general banking risks1
30 085
30 085
1
Reserves for general banking risks are fully taxed.
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
37
COMMON STOCK
31.12.2011
in 1 000 CHF
Total
nominal
value
34 000
31.12.2010
No.
Capital
ranking for
dividend
Total
nominal
value
No.
Capital
ranking for
dividend
34 000
34 000
34 000
34 000
34 000
Nominal
Share in %
Nominal
Share in %
34 000
100
34 000
100
Common stock
Share capital
The Bank has neither contingent nor authorised capital.
Significant shareholders
and Groups united
by voting rights
Banque CIC Est, Strasbourg
Bank CIC (Switzerland) Ltd. is wholly owned by the French regional Banque CIC Est, Strasbourg. Together with
other regional banks, Banque CIC Est is wholly owned by the French banking group CIC. The CIC Group, in turn, is
a majority holding of the French Crédit Mutuel banking group.
38
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
STATEMENT OF SHAREHOLDERS’ EQUITY
in 1 000 CHF
Shareholders’ equity on 1.1.2011 (before distribution of profit)
Paid-up share capital
Other reserves
Total
34 000
29 200
104 350
30 085
3 422
201 057
– Allocation to staff pension funds
–
– Dividends and other distributions from previous year’s net profit
–
+ Net profit for the reporting year
Total shareholders’ equity on 31.12.2011 (before distribution of profit)
3 050
204 107
of which
Share capital
34 000
29 200
Other reserves
106 550
30 085
4 272
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
39
MATURITY PROFILE OF CURRENT ASSETS
AND BORROWED FUNDS as of 31.12.2011
Maturity of capital
in 1 000 CHF
Sight
Callable
Due
Total
within
3 months
after
3 to 12
months
after 12
months to
5 years
after Immo5 years bilised
Current assets
Cash and other
liquid assets
227 952
–
–
–
–
–
–
227 952
Money market
placements
–
–
–
–
–
–
–
–
Loans and advances
to banks
98 084
–
48 648
5 000
–
10 000
–
161 732
Loans and advances
to customers
–
179 568
668 214
57 330
84 859
48 405
–
1 038 376
Mortgage lending
– 1 649 190
249 025
61 591
428 286
214 411
–
2 602 503
Securities and
precious metals
held for trading
100
–
–
–
–
–
–
100
17
–
15 204
27 399
156 968
–
–
199 588
Total
326 153 1 828 758
981 091
151 320
670 113
272 816
–
4 230 251
As of 31.12.2010
341 443 1 263 175
970 110
193 526
650 013
285 961
–
3 704 228
Borrowed funds
Money market
paper issued
6
–
–
–
–
–
–
6
19 530
–
1 647 673
129 000
61 956
78 000
–
1 936 159
–
328 536
–
–
–
–
–
328 536
Other amounts due
to customers
809 403
30 511
524 864
65 089
12 770
–
–
1 442 637
Medium-term notes
–
–
4 154
1 651
4 671
549
–
11 025
Due to banks
Due to customers
on savings and
deposit accounts
Bonds loans and loans
from mortgage bond
institutions
40
–
–
8 000
33 500
173 000
53 100
–
267 600
Total
828 939
359 047
2 184 691
229 240
252 397
131 649
–
3 985 963
As of 31.12.2010
895 305
374 712
1 305 078
485 864
255 000
140 244
–
3 456 203
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
CLAIMS AGAINST AND AMOUNTS DUE TO AFFILIATED ENTITIES
AND ADVANCES TO DIRECTORS
in 1 000 CHF
Claims against affiliated entities
Amounts due to affiliated entities
Advances to directors
31.12.2011
31.12.2010
3 381
3 612
18 532
6 983
6 832
3 304
Transactions with affiliated corporate bodies and individuals
Transactions with affiliated bodies and individuals are carried out at usual market conditions. Medium- and
long-term refinancing in the money market area is predominantly dealt within the CIC Group and the Crédit
Mutuel Group. Short-term liquidity is invested within the CIC Group and the Crédit Mutuel Group. The interest
terms for Group-internal investments are the same as those used for third parties.
In the case of transactions (e.g. securities transactions, payments, granting of credit and compensation for
contributions), affiliated individuals employed at Bank CIC (Switzerland) Ltd. receive the same preferential
conditions, which are customary in the banking sector, as the other employees.
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
41
ANALYSIS OF DOMESTIC AND FOREIGN ASSETS AND LIABILITIES
31.12.2011
in 1 000 CHF
31.12.2010
Domestic
Foreign
Total
Domestic
Foreign
Total
227 423
529
227 952
–
–
–
204 774
364
205 138
–
591
591
Assets
58 707
103 025
161 732
90 989
201 262
292 251
808 442
229 934
1 038 376
659 183
227 718
886 901
2 598 009
4 494
2 602 503
2 088 882
7 304
2 096 186
Mortgage lending
Securities and precious
metals held for trading
100
–
100
35
–
35
200
199 388
199 588
952
222 174
223 126
Fixed assets
Accrued income and prepaid
expenses
Other assets
Total
42
1 626
2
1 628
1 626
2
1 628
57 397
–
57 397
61 117
–
61 117
3 709
4 526
8 235
2 034
3 663
5 697
48 498
1 028
49 526
31 609
3 098
34 707
3 804 111
542 926
4 347 037
3 141 201
666 176
3 807 377
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
ANALYSIS OF DOMESTIC AND FOREIGN ASSETS AND LIABILITIES
31.12.2011
in 1 000 CHF
Domestic
Foreign
31.12.2010
Total
Domestic
Foreign
Total
Liabilities
6
–
6
186
–
186
Due to banks
170 370
1 765 789
1 936 159
75 253
1 415 433
1 490 686
Due to customers on savings
and deposit accounts
279 371
49 165
328 536
298 498
33 504
332 002
1 068 826
373 811
1 442 637
971 050
422 780
1 393 830
11 025
–
11 025
16 899
–
16 899
267 600
–
267 600
222 600
–
222 600
Accrued expenses and
deferred income
14 166
1 888
16 054
19 312
2 079
21 391
Other liabilities
52 481
3 500
55 981
34 409
6 871
41 280
Allowance for general credit
losses and other provisions
84 932
–
84 932
87 446
–
87 446
Reserves for
general banking risks
30 085
–
30 085
30 085
–
30 085
Share capital
34 000
–
34 000
34 000
–
34 000
29 200
–
29 200
29 200
–
29 200
106 550
–
106 550
104 350
–
104 350
Retained earnings
1 222
–
1 222
1 118
–
1 118
Net profit
3 050
–
3 050
2 304
–
2 304
2 152 884
2 194 153
4 347 037
1 926 710
1 880 667
3 807 377
Other amounts
due to customers
Medium-term notes
Bonds loans and loans from
mortgage bond institutions
Other reserves
Total
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
43
ASSETS BY REGIONS AND COUNTRIES
in 1 000 CHF
31.12.2011
31.12.2010
Quota in %
Quota in %
Assets
Industrialised countries
502 685
11.5
630 956
16.6
Other Western Europe
11 073
0.3
11 282
0.3
Central and Eastern Europe
4 300
0.1
200
0.0
162
0.0
168
0.0
7 660
0.2
18 890
0.5
92
0.0
282
0.0
Middle East
1 611
0.0
1 665
0.0
Other Africa
7 656
0.2
1 761
0.0
Asia, Oceania
7 687
0.2
972
0.0
Other industrialised countries
Caribbean
Latin America
Total foreign claims
44
542 926
12.5
666 176
17.4
Switzerland
3 804 111
87.5
3 141 201
82.6
Total
4 347 037
100.0
3 807 377
100.0
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
MAJOR CURRENCY RATES ON THE BALANCE SHEET DATE
31.12.2011
31.12.2010
EUR (1 EUR = CHF)
1.2162
1.2480
USD (1 USD = CHF)
0.9376
0.9300
GBP (1 GBP = CHF)
1.4558
1.4560
JPY (100 JPY = CHF)
1.2180
1.1479
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
45
BALANCE SHEET BY CURRENCY as of 31.12.2011
in 1 000 CHF
CHF
USD
EUR
Other
Total
219 799
339
7 609
205
227 952
–
–
–
–
–
Assets
Mortgage lending
Securities and precious metals
held for trading
Fixed assets
Other assets
Total balance sheet assets
Delivery claims from spot exchange deals,
foreign exchange deals and currency options
transactions (contract volume)
Total assets
46
Annual Report
Report
2009
2011
Titel des
Notes
to Kapitels
the balance sheet
32 510
26 542
66 505
36 175
161 732
716 286
82 676
210 395
29 019
1 038 376
2 600 375
–
2 128
–
2 602 503
–
–
–
100
100
152 848
4
46 736
–
199 588
1 626
–
2
–
1 628
57 397
–
–
–
57 397
6 586
153
1 484
12
8 235
45 387
589
3 418
132
49 526
3 832 814
110 303
338 277
65 643
4 347 037
142 750
243 442
184 472
25 379
596 043
3 975 564
353 745
522 749
91 022
4 943 080
BALANCE SHEET BY CURRENCY as of 31.12.2011
in 1 000 CHF
CHF
USD
EUR
Other
Total
Liabilities
–
3
3
–
6
1 703 459
203 760
19 036
9 904
1 936 159
328 536
–
–
–
328 536
1 010 396
97 444
278 065
56 732
1 442 637
11 025
–
–
–
11 025
267 600
–
–
–
267 600
15 855
139
51
9
16 054
Other liabilities
50 136
893
4 786
166
55 981
Allowance for general credit losses
and other provisions
78 378
167
6 387
–
84 932
30 085
–
–
–
30 085
Share capital
34 000
–
–
–
34 000
Due to banks
Due to customers on savings
and deposit accounts
Medium-term notes
Bonds and loans from mortgage
bond institutions
29 200
–
–
–
29 200
106 550
–
–
–
106 550
Retained earnings
1 222
–
–
–
1 222
Net profit
3 050
–
–
–
3 050
3 669 492
302 406
308 328
66 811
4 347 037
309 563
61 975
201 430
23 694
596 662
3 979 055
364 381
509 758
90 505
4 943 699
–3 491
–10 636
12 991
517
–619
Other reserves
Total balance sheet liabilities
Delivery claims from spot exchange deals,
foreign exchange deals and currency options
transactions (contract volume)
Total liabilities
Net position per currency
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Notes to the
Titel
balance
des Kapitels
sheet
47
INFORMATION ON OFF-BALANCE-SHEET BUSINESS
CONTINGENT LIABILITIES
31.12.2011
31.12.2010
Credit guarantees
57 695
44 015
Guarantees
67 471
98 302
in 1 000 CHF
31 586
19 167
156 752
161 484
Liabilities from deferred payments
1 724
4 832
Total
1 724
4 832
Total
OPEN DERIVATIVE FINANCIAL INSTRUMENTS AS OF 31.12.2011
Trading instruments
in 1 000 CHF
Hedging instruments
Positive
replacement
values
Negative
replacement
values
Contract
volume
Positive
replacement
values
Negative
replacement
values
Contract
volume
Futures contracts, including FRAs
–
185
60 810
–
–
–
Swaps
–
–
–
4 178
38 661
308 800
Futures contracts
6 104
2 232
506 402
–
–
–
Options (OTC)
4 376
4 265
183 871
–
–
–
Total before consideration of
netting contracts (reporting year)
10 480
6 683
751 083
4 178
38 661
308 800
As of 31.12.2010
11 105
11 290
476 158
2 230
23 669
308 800
Interest rate products
Foreign exchange products
Total after consideration of
netting contracts (accumulated)
48
Positive
replacement values
Negative
replacement values
Contract
volume
Total
14 658
45 344
1 059 883
As of 31.12.2010
13 335
34 959
784 958
Annual Report
Report
2009
2011
Titel des Kapitels
Information
on off-balance-sheet business
FIDUCIARY TRANSACTIONS
in 1 000 CHF
Fiduciary investments with third-party banks
31.12.2011
31.12.2010
76 928
67 368
Fiduciary investments with Group banks and affiliated banks
167 346
349 923
Total
244 274
417 291
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Information on off-balance-sheet
Titel desbusiness
Kapitels
49
NOTES ON THE PROFIT AND LOSS STATEMENT
2011
2010
Foreign exchange trading in currency and banknote trading
8 267
9 597
Trading in interest rate futures
–185
–
in 1 000 CHF
Net trading income
Precious metals trading
535
–
Securities trading
202
–3
8 819
9 594
37 591
39 188
Total
Personnel expenses
Salaries
Employee benefits
3 267
2 919
Contributions to staff pension schemes
4 076
10 443
Other personnel expenses
Total
2 144
2 125
47 078
54 675
3 767
3 711
12 113
8 036
Business expenses
Cost of premises
IT and communication costs
Other administrative expenses
Total
7 568
8 165
23 448
19 912
Provisions, value adjustments and losses
Net losses from loans of CHF 0.81 million, the creation of other provisions totalling CHF 1.20 million and operational
losses of CHF 0.47 million were posted in the year under review.
The extraordinary income comprises the release of various provisions totalling CHF 0.37 million.
Disclosure of capital
As a member of the Crédit Mutuel-CIC Group, Bank CIC (Switzerland) Ltd. is not subject to this disclosure
requirement. Relevant information can be found in the Annual Report of the Crédit Mutuel-CIC Group.
50
Annual Report
Report
2009
2011
Titel des
Notes
onKapitels
the profit and loss statement
Auditor’s Report
To the General Meeting of
Bank CIC (Switzerland) Ltd., Basle
Basle, 9 March 2012
Report of the statutory auditor on the financial statements
As statutory auditor, we have audited the financial statements of Bank CIC (Switzerland) Ltd., which comprise the
balance sheet, income statement, cash flow statement and notes (pages 19 to 50), for the year ended 31 December
2011.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are
free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for
selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in
the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control system. An audit also
includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting
estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended 31 December 2011 comply with Swiss law and the
company’s articles of incorporation.
Bank
Bank
CIC
CIC
(Switzerland)
(Switzerland)
Ltd. Ltd. Financial
Annual Report 2009
2011
Titel
Auditor’s
des Kapitels
Report
51
Report on Other Legal Requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and
independence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our
independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an
internal control system exists, which has been designed for the preparation of financial statements according
to the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the
company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
Ernst & Young Ltd.
Michael Riesen
Licensed audit expert
(Auditor in charge)
52
Annual Report
Report
2009
2011
Titel des Kapitels
Auditor’s
Report
Markus Berchtold
Licensed audit expert
Publication data
Responsible for the content: Bank CIC (Switzerland) Ltd.
Concept, layout and realisation: Ivony:Krügel, Zurich
Translations: Apostroph Ltd., Lucerne (English); CLS Communication, Zurich (French)
Proofreading: riga-blu, Magadino/Frick
Lithography and printing: Kreis Druck Ltd., Basle
© 2012
Annual Report
2011

annual report

Transcription

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