NOTENSTEIN ANNUAL REPORT 2012
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Transcript of NOTENSTEIN ANNUAL REPORT 2012
2012
Annual Report
Translation notice: this document is a translation of the German original which can be obtained from Notenstein Private Bank Ltd (“Notenstein”) at any time. While Notenstein makes every effort to ensure
translation accuracy, the German version prevails in the event of discrepancies in content or interpretation.
Contents
Introduction
Key figures
Organigram
Review of business results
Auditor’s report
Balance sheet
Income statement
Notes to the financial statements – explanatory notes on business activities
Notes to the financial statements – accounting and valuation principles
1. Information on the balance sheet
2. Information on off-balance-sheet transactions
3. Information on the income statement
Contact
Page 3
Page 5
Page 7
Page 9
Page 11
Page 13
Page 15
Page 17
Page 21
Page 27
Page 39
Page 43
Page 45
2
t o A l l o u r c l i e n t S A n d r e A d e r S ,
It is with some pride that we look back at Notenstein Private Bank’s fi rst business year. The kick-off was exception-
ally successful, thanks in no small part to the loyalty of our clients. In the course of the year, we were able to wel-
come over 1,500 new clients; a pleasing sign of confi dence in our asset management expertise. At the same time, we
believe that the stability and high credit rating of our parent company, Raiffeisen – Switzerland’s third-largest
banking group – is much appreciated by our clients. Stability and continuity in client relationships will remain the
cornerstone of our banking activities.
Notenstein’s roots go back to the 15th century, when the merchants of St.Gallen founded a guild under the
name of “Notenstein”. The proprietors of the city’s leading linen and trading companies met regularly at the
assembly house “zum Nothvestein”, be it to discuss their business concerns or simply enjoy good company. In 1555,
the Notenstein guild established its own residence in a castellated building next to the “Brühltor” gate of St.Gal-
len’s marketplace. The head offi ce of Notenstein Private Bank is found at this very location today.
The success of our bank has always been based on tradition and innovation: past experience is the foundation
of future progress. We believe that independent thought and entrepreneurial spirit are key success factors in as-
set management. Our scenario models, which depict both probable and possible developments, provide a framework
for this process.
In a challenging economic environment, we have proved particularly profi table. By focusing on our core com-
petencies in asset management, Notenstein Private Bank has achieved high business effi ciency. Our almost 700 staff
in 13 branches throughout Switzerland are highly committed to our clients’ interests.
We look forward to continuing our services to you throughout 2013.
d r p i e r i n v i n c e n Z
Chairman of the Board
Notenstein Private Bank Ltd
Introduction
d r p i e r i n v i n c e n Z
Chairman of the Board
d r A d r i A n k Ü n Z i
CEO
Notenstein Private Bank Ltd
3
Dr Pierin Vincenz (Chairman of the Board) and Dr Adrian Künzi (CEO).
4
Key figures
NoteNsteiN at a glaNce
2012
Balance sheet total 3,872
Net interest income 37
Net commission income 100
Net trading income 36
Operating expenses –137
Profit for the year 30
Cost income ratio 74.9 %
Attributable equity capital 320
Core capital ratio in percent (tier I ratio) * 19.6 %
Assets under management ** 20,516
Employees (full-time equivalents) 588
* The disclosure of equity capital, as defined by FINMA Circular 08-22, is consolidated at the Raiffeisen Group level.
** Including 1741 Asset Management Ltd.
Amounts in CHF millions
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
5
6
Organigram
Board of directors
executive Board
iNterNal audit
corporate ceNtre
Regulatory Affairs
Legal & Compliance
Risk Controlling
Communication
Private Banking
Switzerland
Eastern Switzerland
Zurich /
Central Switzerland
North-western
Switzerland
Western Switzerland
Southern
Switzerland
Portfolio
Management
Investment Centre
Institutional
Clients Switzerland
German-speaking
Switzerland
French-speaking
Switzerland
Services
Operations
Products & Trading
IT
IT Operations
Business Systems /
Insourcing
Finance
Finance and
Accounting
Credit
Reporting /
Controlling
Human Resources
Private Banking
International
fully-owNed suBsidiary: 1741 asset MaNageMeNt ltd
7
Board of directors
Dr Pierin Vincenz
Chairman of the Board
Dr Patrik Gisel
Vice Chairman of the Board, Member of the Audit Committee
Günter Haag *
President of the Audit Committee
Heinz Karrer *
Maya Salzmann *
Member of the Audit Committee
Thomas C. Weissmann *
iNterNal audit
Internal auditors of the Raiffeisen Group
Prüfag
Wirtschaftsprüfungs- und Beratungs AG
* Independent members of the Board of Directors as defined by the
Swiss Financial Market Supervisory Authority (FINMA).
executive Board
Dr Adrian Künzi
Chief Executive Officer
Dr Basil Heeb
Chief Financial Officer
Martin Schenk
Head of Private Banking Switzerland
Dr Silvio Hutterli
Head of Regulatory Affairs
Dr Ivan Adamovich
Head of Private Banking International
Dr Hanspeter Wohlwend
Chief Operating Officer
Patrick Revey
Head of Institutional Clients Switzerland
Christoph Schwalm
Chief Information Officer
Tihomir Katulic
Chief Risk Officer
8
S u c c e S S f u l d e B u t i n A c h A l l e n G i n G m A r k e t
Banks are currently doing business in an environment
of increasing regulation, rising costs and mounting
pressure on margins. In addition, the financial market
situation remains challenging. While the equity mar-
kets performed surprisingly well in 2012, given enor-
mous political and economic uncertainties such as
the sovereign debt crisis, feeble growth in key devel-
oped markets and recession in some parts of Europe,
unsettled investors nonetheless kept trading volumes
low. An ongoing policy of low interest rates pursued
by central banks made fixed-income investments un-
attractive in 2012.
Despite these difficult market conditions, Notenstein
Private Bank made a successful debut. In its first year
of operations, the bank has already displayed impressive
stability and profitability. Although the financial year
2012 was marked by regulatory and structural changes
in Swiss private banking, low interest rates and generally
unsettled clients, Notenstein produced excellent results
with a gross profit of CHF 46.0 million at a cost income
ratio of 75 percent. Income of CHF 183.3 million in-
cluded commissions of CHF 99.9 million and a strong
trading result of CHF 35.6 million. Notenstein has a
profit margin of 93 basis points. Costs of CHF 137.3 mil-
lion were partly due to greater investment in risk man-
agement and controlling processes. Value adjustments
and provisions amounted to CHF 12.6 million, result-
ing in net profit of CHF 29.8 million for 2012.
Notenstein has a balance sheet of CHF 3.9 billion
and enjoys a solid capital base with an equity coverage
ratio of 245 percent and a tier 1 ratio of 19.6 percent.
These ratios would already satisfy the stricter require-
ments foreseen under Basel III.
c l i e n t lo yA lt y
Assets under management stood at CHF 20.5 billion
at year-end (including subsidiary 1741 Asset Manage-
ment). Notenstein not only stemmed the initial out-
flow of client assets, but also welcomed 1,500 new
clients to the bank. We attribute this positive response
to public awareness of our excellent services in wealth
management and investment advice, to the long-term
relationships between our clients and their advisors
and to organic growth in private banking. Thus we owe
our successful debut to our clients as well as to our
many long-term staff members who ensure the continu-
ity of our services.
Notenstein can be considered a very “Swiss” private
bank: some 70 percent of our clients (private and in-
stitutional) are domiciled in Switzerland. Our thirteen
branches across the country testify that we value close
proximity to our clients. Our services to foreign clients
are concentrated in selected key international markets.
Review of business results
9
f o c u S o n o u r c o r e B u S i n e S S
Notenstein seized the opportunity presented by the
change from a limited partnership to a limited company
to align its organisational structure more clearly with
its core business. The corporate structure was adjusted
to reflect its client orientation: the Private Banking
Switzerland division, which is divided into regional units,
has gained in importance, while cross-border business
with private clients (Private Banking International)
and services to institutional clients in Switzerland (In-
stitutional Clients Switzerland) are now independent
business units. A flat hierarchy promotes lean manage-
ment and swift decision-making.
In addition to our core business of personalised
wealth management and advisory services for private
and institutional clients, Notenstein continues to offer
financial and pension planning services. Notenstein is
also one of Switzerland’s most innovative participants
in the market for structured products.
t h i n k i n G i n S c e n A r i o S
In an environment beset with great political and eco-
nomic uncertainty, Notenstein Private Bank focuses on
forward-looking wealth management. Notenstein dis-
cusses potential positive and negative economic devel-
opments with clients within the context of various
scenarios, and incorporates the insights gained from
these scenarios into wealth management decisions.
Thinking in scenarios is based on a culture of dialogue
with our clients as well as empirically proven analysis.
In times like these, when wealth preservation is a key
concern, detailed scenarios – even threatening scenarios
– must be considered in any financial analysis. These
ideas, which we publicised in an advertising campaign
throughout Switzerland, are implemented in our clients’
portfolios according to individual client needs.
10
Auditor’s report
Report of the statutory auditor to the General Meeting of Notenstein Private Bank Ltd St. Gallen
Report of the statutory auditor on the financial statements
As statutory auditor, we have audited the financial statements of Notenstein Private Bank Ltd, which comprise the balance sheet, income statement and notes (pages 13 to 44), for the year ended 31 De-cember 2012.
The prior year figures were audited by another statutory auditor and an opinion without qualification was issued in their report dated 17 January 2012.
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 prepara-tion 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 poli-cies 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 con-ducted 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 appro-priate 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 account-ing 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 2012 comply with Swiss law and the company’s articles of incorporation.
PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich Telephone: +41 58 792 44 00, facsimile: +41 58 792 44 10, www.pwc.ch PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.
11
Report of the statutory auditor to the General Meeting of Notenstein Private Bank Ltd St. Gallen
Report of the statutory auditor on the financial statements
As statutory auditor, we have audited the financial statements of Notenstein Private Bank Ltd, which comprise the balance sheet, income statement and notes (pages 13 to 44), for the year ended 31 De-cember 2012.
The prior year figures were audited by another statutory auditor and an opinion without qualification was issued in their report dated 17 January 2012.
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 prepara-tion 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 poli-cies 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 con-ducted 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 appro-priate 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 account-ing 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 2012 comply with Swiss law and the company’s articles of incorporation.
PricewaterhouseCoopers Ltd, Birchstrasse 160, Postfach, CH-8050 Zürich, Switzerland Telephone: +41 58 792 44 00, Facsimile: +41 58 792 44 10, www.pwc.ch PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.
1
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 incompat-ible 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 AG Roman Berlinger Armin Müller Audit expert Audit expert Auditor in charge Zurich, 25 February 2013
12
assets
Before appropriation of profit
31.12.2012 Previous year *
Liquid assets 408,341,152 607,128
Amounts due from money-market instruments 68,300,000 –
Amounts due from banks 2,039,452,465 6,124,046
Amounts due from customers 148,023,049 –
Mortgage loans 343,598,000 –
Trading portfolios of securities and precious metals 184,548,778 3,540
Financial investments 543,107,913 8,510,850
Participating interests 20,547,885 –
Tangible fixed assets 47,593,259 425,850
Accrued income and prepaid expenses 11,727,522 123,514
Other assets 56,942,060 110,755
Total assets 3,872,182,083 15,905,683
Total amounts due from group companies and holders of qualified participations 401,122,067 2,105,392
* Figures for the previous year as at 31.12.2011 are based on the former Nettobank AG.
liaBilities
Before appropriation of profit
31.12.2012 Previous year *
Amounts due to banks 148,008,101 –
Amounts due to customers in savings or deposit accounts 2,417,198,188 112,870
Other amounts due to customers 891,770,603 1,489,805
Accrued expenses and deferred income 18,391,532 344,732
Other liabilities 19,152,593 36,165
Value adjustments and provisions 20,600,000 –
Reserves for general banking risks 176,000,000 –
Bank’s capital 20,000,000 20,000,000
General legal reserves 137,300,000 –
of which capital contribution reserves 137,300,000 –
Profit / loss carried forward – 6,077,889 –3,223,700
Profit / loss for the year 29,838,955 –2,854,189
Total liabilities 3,872,182,083 15,905,683
Total amounts due to group companies and holders of qualified participations 37,827,948 –
* Figures for the previous year as at 31.12.2011 are based on the former Nettobank AG.
Balance sheet
Amounts in CHF
Amounts in CHF
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
13
off-BalaNce-sheet traNsactioNs
Before appropriation of profit
31.12.2012 Previous year *
Contingent liabilities 90,036,396 –
Irrevocable commitments 20,867,260 10,000
Liabilities for calls on shares and other equities – –
Commitment credits – –
Derivative financial instruments
Positive replacement values 8,975,386 –
Negative replacement values 9,155,765 –
Contract volumes 961,579,582 –
Fiduciary transactions 280,714,963 –
* Figures for the previous year as at 31.12.2011 are based on the former Nettobank AG.
Amounts in CHF
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
14
iNcoMe aNd expeNses froM ordiNary BaNkiNg operatioNs
Before appropriation of profit
2012 Previous year *
Result from interest operations
Interest and discount income 23,148,332 18,785
Interest and dividend income from trading positions 5,529,372 110
Interest and dividend income from financial investments 10,419,360 213,995
Interest expense –2,370,656 – 448
Subtotal for interest operations 36,726,408 232,442
Result from commission business and services
Commission income from lending activities 100,739 –
Commission income from securities trading and investment activities 115,001,123 68,098
Commission income from other services 604,979 –
Commission expense –15,792,021 –34,931
Subtotal for commission business and services 99,914,820 33,167
Result from trading activities 35,567,952 878
Other result from ordinary activities
Result from the disposal of financial investments 5,124,259 –
Income from participating interests 69,151 –
Result from real estate 2,360 –
Other ordinary income 6,796,853 203,704
Other ordinary expenses – 929,570 –133,921
Subtotal other result from ordinary activities 11,063,053 69,783
Operating expenses
Personnel expenses – 93,840,343 –1,579,362
General and administrative expenses – 43,453,891 –1,460,615
Subtotal operating expenses –137,294,233 –3,039,977
Gross profit 45,978,000 –2,703,707
* Figures for the year 2011 are based on the former Nettobank AG.
Income statement
Amounts in CHF
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
15
appropriatioN of profit
2012 Previous year *
Profit for the year 29,838,955 –2,854,189
Profit carried forward – 6,077,889 –3,223,700
Distributable profit 23,761,066 –6,077,889
Appropriation of profit
Distributions to the bank’s capital –20,000,000 –
Profit carried forward 3,761,066 –6,077,889
* Figures for the year 2011 are based on the former Nettobank AG.
profit for the year
Before appropriation of profit
2012 Previous year *
Profit for the year
Gross profit 45,978,000 –2,703,707
Depreciation and amortisation of fixed assets – 985,645 –141,950
Value adjustments, provisions and losses –13,252,596 –
Result before extraordinary items and taxes 31,739,758 –2,845,657
Extraordinary income 58,000 –
Extraordinary expenses – –
Taxes –1,958,804 – 8,532
Profit for the year 29,838,955 –2,854,189
* Figures for the year 2011 are based on the former Nettobank AG.
Amounts in CHF
Amounts in CHF
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
16
G e n e r A l
Raiffeisen Switzerland acquired 100 percent of Netto-
bank AG, previously a subsidiary of Wegelin & Co.
Private Bankers, on 27 January 2012. Prior to the trans-
action, Wegelin & Co. Private Bankers had transferred
its non-US business to Nettobank AG in a partial uni-
versal succession under the terms of Article 69 ff. of
the Swiss Merger Act. The transfer took place on 25 Jan-
uary 2012 with retroactive effect as from 1 January 2012.
Nettobank AG was subsequently renamed Notenstein
Private Bank Ltd. Results for the previous year are thus
the results of Nettobank AG. Since most of Wegelin’s
business activities were transferred to Nettobank AG,
subsequently Notenstein, a year-on-year comparison
is not meaningful and is not presented in the results.
Notenstein, with its 13 branches across Switzerland,
ranks among the country’s leading wealth management
banks.
Its subsidiary 1741 Asset Management Ltd develops
and manages quantitative investment strategies and
provides various services in the fund business. 1741 As-
set Management Ltd acts as investment manager for
the range of 1741 funds, including the Luxembourg fund
platforms “1741 Asset Management Funds SICAV”
and “1741 Specialised Investment Funds SICAV”.
B u S i n e S S A r e A S
The bank’s main activities fall into the following cate-
gories:
– Wealth management for private
and institutional clients
– Investment advisory services for
private and institutional clients
– Securities and currency trading
– Support services for external asset
managers
– Lending activities associated with
private banking
More than two-thirds of the bank’s clients are domi-
ciled in Switzerland. Services to foreign clients are con-
centrated in selected target markets.
c o m m i S S i o n B u S i n e S S A n d S e r v i c e S
Most activities in the commission business and services
fall under the wealth management and advisory ser-
vices categories. Other services include support for ex-
ternal asset managers and insourcing that Notenstein
provides to other banks.
t r A d i n G
Notenstein offers its clients execution and settlement
of all standard bank trading transactions. Moreover,
Notenstein trades on its own account with the usual fi-
nancial instruments. Proprietary debt trading mainly
involves bonds from first-class issuers, while equity trad-
ing principally involves Swiss and European shares.
The bank trades in foreign currencies on its own ac-
count mainly to ensure that transactions are carried
out smoothly. Such trading is limited to currencies for
which there is a liquid market.
Notes to the financial statementsExplanatory notes on business activities
17
l e n d i n G A c t i v i t i e S
Notenstein adheres to a restrictive credit policy, pro-
viding lombard loans against collateral of liquid secu-
rities in diversified portfolios. Accordingly, loan-to-value
ratios are conservative so as to minimise default risk.
Notenstein does not conduct its own mortgage business,
but does provide mortgage financing to major clients
and Notenstein staff members. The reported mortgage
loans are secured by Swiss real estate.
r i S k A S S e S S m e n t
A considered and careful approach to risk is key to
Notenstein’s long-term success. Notenstein aims for com-
prehensive risk management both for the bank and its
clients. Risk management is based on a risk policy de-
termined and periodically reviewed by the Board of
Directors. During the review, the board also defines the
bank’s risk capacity and sets overall limits.
The board monitors both the risk situation and
changes in risk-bearing capital on a quarterly basis, as
per the board’s risk report. This report provides com-
plete information on the risk situation, capitalisation,
adherence to overall limits and any measures necessary.
The Risk Controlling department provides inde-
pendent oversight of the bank’s risk exposure. It estab-
lishes and implements appropriate risk control systems
and provides the necessary information to set risk pol-
icy and risk limits. The risk assessment process focuses
on operational risk, market and credit risk in bank and
trading operations, as well as liquidity risk.
r i S k m A n A G e m e n t
The Board of Directors bears ultimate responsibility
for risk in its capacity of executive management, over-
sight and control. The board defines the bank’s risk
capacity and, based on this assessment, sets the bank’s
risk policy. This specifies the overall limits per risk cate-
gory and business activity and sets standards for risk
management and risk control processes.
The board is responsible for establishing, monitoring
and regularly reviewing suitable internal controls based
on documented, systematic risk analysis that is adapted
to the size, complexity, structure and risk profile of the
bank. The board ensures that all significant risks within
the bank are identified, limited and monitored.
The Executive Board is responsible for implement-
ing the risk policy set by the Board of Directors, setting
standards for risk management and risk control pro-
cesses and applying the board’s recommendations to
each risk category and business activity.
Risk management entails a systematic process with
several steps: identification, measurement and assess-
ment, management and monitoring. Risk management
guidelines and fundamentals are periodically reviewed
for their suitability and effectiveness, and adjusted as
necessary.
Notes to the financial statementsExplanatory notes on business activities
18
m A r k e t r i S k
Market risk is the risk that losses may be incurred due
to changes in the market price of positions held.
Market risk is assessed using methodologies such
as value at risk models, nominal exposure and sensitiv-
ity, as well as stress tests and interest rate sensitivity
under normal and stress scenarios. The bank manages
its own market risk within limits defined by the Board
of Directors, and the Executive Board then draws up
investment guidelines within these limits. The Risk Con-
trolling department monitors market risk.
Notenstein has no significant positions in deriva-
tive instruments on its own account, and none at all in
markets where liquidity is limited.
c r e d i t r i S k
Credit risk is the risk that losses may be incurred when
clients or other counterparties cannot fulfil their contrac-
tually agreed payment obligations.
Notenstein limits its credit risk by requiring ap-
proval of counterparties in the interbank market and of
indirect counterparties (brokers, clearing agents and de-
positories). Credit risk is measured and evaluated ac-
cording to appropriate and established procedures. The
risk measurement process and the applicable parame-
ters are binding. Credit risks are measured according to
value at risk. The Board of Directors sets counterparty
risk limits for the bank as a whole and for individual
business units, while the Executive Board formulates in-
dividual limits and investment guidelines. Risk man-
agement involves careful selection and detailed financial
evaluation of counterparties, prudent structuring of
business transactions and close monitoring. The Risk
Controlling department is responsible for such moni-
toring.
Credit is extended in cases where top quality collat-
eral is available and readily realisable, or against do-
mestic real estate. Unsecured loans or loans secured by
collateral that is not readily realisable are approved
in exceptional cases, if justified.
Notes to the financial statements – explanatory notes on business activities19
l i q u i d i t y r i S k
Liquidity risk is the risk that the bank will not be able
to fulfil its payment obligations.
Liquidity risk is measured, managed and monitored
by observing generally accepted ratios. The treasury
department manages the bank’s liquidity. The Board of
Directors sets the appropriate overall limits and No-
tenstein continuously monitors its exposure to liquid-
ity risk.
Notenstein maintains high levels of liquidity that
considerably exceed the minimum requirements as
defined by the Swiss Financial Market Supervisory
Authority (FINMA).
o p e r At i o n A l r i S k
Operational risk is the risk of financial losses, non-
compliance or damage to reputation stemming from in-
appropriate or failed internal processes, staff mem-
bers, IT systems, buildings and facilities, or as a result
of external incidents or the actions of third parties.
Risks are assessed according to the existing meas-
ures to reduce risk and the criteria defined by the Exec-
utive Board. Avoidance or reduction of operational
risk is primarily the responsibility of the unit where such
risks originate. Risk management also entails defining
and implementing controls, with an appropriate balance
between the anticipated risk-reducing effects of a meas-
ure and its cost. The most critical processes are identi-
fied and their continuation ensured with emergency
and contingency plans.
Notenstein has an internal regulatory framework
as well as an extensive system of controls to limit and
monitor operational risk.
o u t S o u r c i n G
Notenstein Private Bank Ltd does not outsource any
business operations.
e m p lo y e e S
At the end of 2012, Notenstein employed 663 staff (pre-
vious year: 9). Adjusted for part-time employees, the
figure corresponds to 588 full-time employees (previous
year: 7).
20
G e n e r A l p r i n c i p l e S
The book-keeping, accounting and valuation principles
are based on the provisions stipulated by the Swiss
Code of Obligations (CO) and banking legislation, and
on other statutory provisions together with the Guide-
lines issued by FINMA (the Swiss Financial Market Su-
pervisory Authority).
Raiffeisen Switzerland, Notenstein’s parent com-
pany, publishes the consolidated annual financial state-
ment of the Raiffeisen Group in a separate annual
report. Unlike statements prepared in accordance with
the “true and fair view” principle, the individual finan-
cial statement may be influenced by hidden reserves.
c o n S o l i d At i o n
Notenstein is fully consolidated with its subsidiary com-
pany, 1741 Asset Management Ltd, within the Raiffeisen
Group.
r e c o r d i n G o f B u S i n e S S t r A n S A c t i o n S
All transactions concluded as of the balance sheet date
are recorded on a day-end basis and are valued on the
balance sheet and the income statement in accordance
with the defined valuation principles. Spot transactions
entered into but not yet settled are recognised accord-
ing to the trade date accounting principle.
f o r e i G n c u r r e n c i e S
Receivables and liabilities as well as cash and cash
equivalents in foreign currencies are translated at the
rate prevailing on the balance sheet date. Price gains
and losses resulting from such valuations are recog-
nised in the “results from trading activities” position.
Transactions in foreign currencies during the year are
translated using the rate prevailing at the time of such
transactions.
The main foreign currencies for balance sheet
purposes were translated at the following rates on the
balance sheet date:
Currency 31.12.12 31.12.11
EUR 1.206 1.214
GBP 1.488 1.453
USD 0.915 0.935
l i q u i d A S S e t S , A m o u n t S d u e A r i S i n G f r o m
m o n e y - m A r k e t i n S t r u m e n t S , d e p o S i t S
These items are recognised on the balance sheet at
nominal or acquisition value. As yet unearned discounts
on money-market instruments, and premiums and dis-
counts on own borrowings, are allocated over the term
of the instrument.
Notes to the financial statementsAccounting and valuation principles
21
A m o u n t S d u e f r o m B A n k S A n d c u S t o m e r S ,
m o r t G A G e lo A n S
These items are recognised on the balance sheet at
nominal value. Proper accrual is applied in respect of
interest income. Receivables in cases where the bank
considers it unlikely that the debtor will be able to
meet its contractual obligations in full are deemed to
be impaired. Impaired receivables and collateral (if
any) are valued at liquidation value.
Individual value adjustments are applied for im-
paired receivables. Such adjustments are based on reg-
ular analyses of the individual credit exposures, taking
account of the debtor’s creditworthiness and/or the
counterparty risk, as well as the estimated net liquida-
tion value of the collateral. Where the recovery of the
receivable is dependent exclusively on the liquidation
proceeds value of the collateral, an allowance must be
established to cover the unsecured portion in full.
Interest and relevant commissions due for more
than 90 days are deemed to be overdue. In the case of
overdrafts, interest and commissions are considered
overdue where the assigned overdraft limit has been
exceeded for more than 90 days. Receivables are de-
recognised at the point when a legal title confirms the
conclusion of the liquidation process, if not before.
Impaired claims are again rated as fully recover-
able (i.e. the value adjustment is released) when the
outstanding capital sums and interest are again paid
promptly as per contractual agreements, and other
creditworthiness criteria are met.
All value adjustments are reported in the “value
adjustments and provisions” position.
S e c u r i t i e S l e n d i n G A n d B o r r o W i n G
t r A n S A c t i o n S
Securities lending and borrowing transactions are
reported at the value of the cash collateral received or
given, including accumulated interest.
Borrowed securities or securities obtained as col-
lateral are recognised on the balance sheet only if
Notenstein gains control over the contractual rights
which these securities contain. Securities lent or pro-
vided as collateral are taken off the balance sheet only
if Notenstein loses the contractual rights associated
with these securities. The market values of the securi-
ties borrowed and lent are monitored on a daily basis
so that additional collateral may be provided or re-
quested as necessary.
Fees received or paid in respect of securities borrow-
ing and lending transactions are recorded as commis-
sion income or commission expense in the correspond-
ing periods. Notenstein does not engage in securities
lending with instruments held in clients’ safekeeping
accounts.
22
r e p u r c h A S e A n d r e v e r S e r e p u r c h A S e
t r A n S A c t i o n S
Purchases of securities subject to an obligation to resell
(reverse repurchase transactions) and sales of securities
subject to an obligation to repurchase (repurchase trans-
actions) are treated as collateralised financing transac-
tions and are recognised at the value of the cash collat-
eral received or given, including accumulated interest.
Securities received and delivered are not recognised
or derecognised on the balance sheet unless control of
the contractual rights contained in such securities is re-
linquished. The market values of the securities re-
ceived or delivered are monitored on a daily basis so
that additional collateral may be provided or requested
as necessary.
Interest income from reverse repurchase transac-
tions and interest expense arising from repurchase
transactions is accrued in the corresponding periods
over the terms of the underlying transactions.
t r A d i n G p o r t f o l i o S o f S e c u r i t i e S A n d
p r e c i o u S m e tA l S
Trading portfolios are valued at fair value. Positions
for which there is no representative market are valued
according to the lower of cost or market principle.
Gains and losses resulting from this valuation, and gains
and losses realised during the period, are recognised
as “result from trading activities”. Interest on and div-
idends from trading positions are booked as “interest
and dividend income from trading positions”, under the
“result from interest operations” position.
Precious metal positions are valued at the market
values prevailing on the balance sheet date. If, in excep-
tional cases, no fair value is available, they are valued
according to the lower of cost or market principle.
f i n A n c i A l i n v e S t m e n t S
Investments outside of the trading portfolio are valued
according to the lower of cost or market principle. A
monthly market valuation is carried out, and the gains
or losses in value are booked as appropriate on the
income statement, in the “other ordinary expenses” or
“other ordinary income” positions.
Real estate and participating interests assumed
from lending activities and designated for resale are
recognised under financial investments and are valued
according to the lower of cost or market principle.
The lower value is deemed to be the lower of acquisi-
tion cost and liquidation value.
pA r t i c i pAt i n G i n t e r e S t S
All equities and other securities in companies held
with the intention of long-term investment, regardless
of the proportion of voting shares, are recognised as
participating interests. All participating interests in
communal facilities and institutions are also recognised
on the balance sheet in this position. The valuation is
effected in accordance with the acquisition value prin-
ciple, i.e. at purchase cost minus any writedowns re-
quired for operational purposes. Participating interests
may include hidden reserves.
Notes to the financial statements – accounting and valuation principles23
tA n G i B l e f i x e d A S S e t S
Tangible fixed assets are recognised at acquisition cost
plus any investment that increases the value of the as-
set, and are depreciated using the straight-line method
over their estimated useful life as follows:
Real estate Maximum: 66 years
Conversions of and installations in rented
premisesMaximum: 15 years
Software, EDP hardware Maximum: 3 years
Furnishings and fittings Maximum: 8 years
Other tangible fixed assets Maximum: 5 years
Minor investments are booked directly through business
expenditure. Comprehensive renovations which in-
crease the value of the property are capitalised, whereas
maintenance and repairs are reported as expenses.
Tangible fixed assets may include hidden reserves.
Properties and assets under construction are depreci-
ated only as from the date when they are brought into
use.
Tangible fixed assets are reviewed for impairment
losses whenever events or changes in circumstances
suggest that the carrying amount may not be recover-
able. Any impairment losses are recognised in the in-
come statement, under the “depreciation and amortisa-
tion of fixed assets” position. If the impairment review
of a tangible fixed asset reveals a change in useful life,
the residual book value is then depreciated as planned
over the revised useful life of the asset.
p e n S i o n B e n e f i t o B l i G At i o n S
The pension fund for Notenstein employees is accom-
modated within a specific foundation for this purpose
– “Katharinen Pensionskasse I”. The bank pays the costs
of occupational pension provision for all employees
and their survivors in accordance with statutory provi-
sions. The defined contribution system is in place. The
organisation, management and financing of the pension
plans is based on the statutory provisions, the Founda-
tion Deed and the pension rules that are in force. The
employer’s contributions are booked to personnel ex-
penses.
The “Katharinen Pensionskasse II”, a supplementary,
partially autonomous extra-mandatory pension fund,
was set up in 2009. This enables individual investment
of that portion of the annual salary which is to be insured
on an extra-mandatory basis, with no need to take ac-
count of a minimum interest rate. As well as generating
new options for purchase of benefits, this gives insured
persons the choice of a lump-sum payment or an an-
nuity on retirement.
Determination of the actual economic effects of
pension benefit obligations is based on the annual fi-
nancial statements of the employee benefit institu-
tions, which are drawn up in compliance with Swiss
GAAP FER 26. An assessment is made as to whether
any underfunding or overfunding of the pension funds
could entail economic risks or benefits from the bank’s
viewpoint.
Any economic benefit, or any employer’s contribu-
tion reserves in existence, are not capitalised; however,
provisions for economic risks are included on the bal-
ance sheet.
24
vA lu e A d j u S t m e n t S A n d p r o v i S i o n S
For all identifiable risks existing at the balance sheet
date, individual value adjustments and provisions are
established on a prudent basis. The other provisions
may include hidden reserves.
r e S e r v e S f o r G e n e r A l B A n k i n G r i S k S
Reserves may be formed for general banking risks. These
are prudent reserves formed in accordance with the
accounting rules, which are established to cover latent
risks in the operating activities of the bank. Pursuant
to article 18, letter b of the Swiss Capital Adequacy Or-
dinance (CAO), such reserves are counted as capital
and are not taxed (see the appended table: “value ad-
justments and provisions”).
c o n t i n G e n t l i A B i l i t i e S , i r r e v o c A B l e
c o m m i t m e n t S , l i A B i l i t i e S f o r c A l l S o n
S h A r e S A n d o t h e r e q u i t i e S
These items are recognised as off-balance-sheet trans-
actions at nominal value. Provisions are formed for
foreseeable risks.
d e r i vAt i v e f i n A n c i A l i n S t r u m e n t S
Trading transactions: all derivative financial instruments
are valued at fair value (except for derivatives used in
connection with hedging transactions). Such instruments
are recognised under “other assets” or “other liabilities”
with positive or negative replacement values. The fair
value is based on market prices, price quotations from
brokers, and on discounted cashflow and option price
models. For transactions involving derivative financial in-
struments entered into for trading purposes, the income
realised is booked under “result from trading activities”.
Income from the issuance of structured products on
a commission basis is recognised in the “result from
trading activities” position.
The bank also uses derivative financial instruments
in connection with asset and liability management in
order to control interest rate change risks.
tA x
Taxes are calculated and booked on the basis of the
result for the reporting year.
y e A r - o n - y e A r c h A n G e S
The current reporting year represents Notenstein’s
first financial year. The accounting and valuation prin-
ciples were adapted to the principles of the parent com-
pany (Raiffeisen Switzerland) in relation to the open-
ing balance sheet (previous year: Nettobank AG).
There is no material impact on the result for the period.
e v e n t S A f t e r t h e B A l A n c e S h e e t d At e
Up to the date when the annual financial statements
were drawn up, no material events occurred which
would require mandatory disclosure on the balance
sheet or in the notes as at 31 December 2012.
Notes to the financial statements – accounting and valuation principles25
2626
1. Information on the balance sheet
1.1 overview of collateral for loaNs aNd off-BalaNce-sheet traNsactioNs
1 . 1 . 1 o v e r v i e W A c c o r d i n G t o c o l l At e r A l – lo A n S A n d A d vA n c e S
Secured by
mortgage
Other
collateral Unsecured Total
Amounts due from customers – 112,601 35,422 148,023
Mortgage loans
Residential property 306,881 – 1,200 308,081
Office and business premises 10,880 – – 10,880
Trade and industry 24,637 – – 24,637
Other – – – –
Total loans and advances in current year 342,398 112,601 36,622 491,621
Total loans and advances in previous year – – – –
1 . 1 . 2 o v e r v i e W B y c o l l At e r A l t y p e – o f f - B A l A n c e - S h e e t
Secured by
mortgage
Other
collateral Unsecured Total
Contingent liabilities – 88,499 1,538 90,037
Irrevocable commitments – 10,849 10,018 20,867
Liabilities for calls on shares and other equities – – – –
Commitment credits – – – –
Total off-balance-sheet in current year – 99,348 11,556 110,904
Total off-balance-sheet in previous year – – 10 10
1 . 1 . 3 d i S c lo S u r e S o f i m pA i r e d lo A n S / r e c e i vA B l e S
Gross debt
amount
Estimated
liquidation
proceeds of
collateral
Net debt
amount
Individual
value
adjustments
Impaired loans/receivables in current year 2,456 1,256 1,200 1,200
Impaired loans / receivables in previous year – – – –
Amounts in CHF thousands
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
27
Amounts in CHF thousands
1.2 BreakdowN of tradiNg portfolios of securities aNd precious Metals, fiNaNcial iNvestMeNts aNd
participatiNg iNterests
1 . 2 . 1 t r A d i n G p o r t f o l i o S o f S e c u r i t i e S A n d p r e c i o u S m e tA l S
Current year Previous year
Debt securities 142,183 –
listed 133,188 –
unlisted 8,995 –
Equity securities 32,201 4
of which own equities shares – –
Precious metals 10,164 –
Total trading portfolios of securities and precious metals 184,548 4
of which securities eligible for repo transactions in accordance with liquidity regulations 23,810 –
1 . 2 . 2 f i n A n c i A l i n v e S t m e n t S
Book value Fair value
Current year Previous year Current year Previous year
Debt securities 529,745 8,511 535,768 8,511
of which held until maturity – – – –
of which recognised in accordance with the lower of cost or market principle 529,745 8,511 535,768 8,511
Equity securities 10,779 – 10,780 –
of which qualified participations – – – –
Precious metals 584 – 609 –
Real estate 2,000 – 2,000 –
Total financial investments 543,108 8,511 549,157 8,511
of which securities eligible for repo transactions in accordance with liquidity regulations 434,994 6,929 439,717 6,929
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1 . 2 . 3 pA r t i c i pAt i n G i n t e r e S t S
Current year Previous year
Without listed value 20,548 –
Total participating interests 20,548 –
28
1.3 disclosures of sigNificaNt participatiNg iNterests
Current year Previous year
Company name, registered office Business activities Capital Share Capital Share
Recognised under participating interests:
1741 Asset Management Ltd, St. Gallen Asset management / fund business 5,000 100 % – –
Amounts in CHF thousands
Amounts in CHF thousands
1. Information on the balance sheet
1.4 stateMeNt of fixed asset additioNs aNd disposals
Current year
Cost value
Accumulated
depreciation
Book value
previous
year end Additions Disposals Depreciation
Book value
current year
end
Participating interests
Majority participations – – – 20,000 – – 20,000
Minority participations – – – 686 – –138 548
Total participating interests – – – 20,686 – –138 20,548
Tangible fixed assets
Real estate
Bank buildings * – – 46,000 – –173 45,828
Other real estate – – – – – – –
Other tangible fixed assets 100 – 40 60 2,014 – – 553 1,522
Finance lease assets – – – – – – –
Other 610 –244 366 – – –122 244
Total tangible fixed assets 710 –284 426 48,014 – –847 47,593
* Purchase of bank buildings from Wegelin & Co. in 4th quarter of 2012.
1 . 4 . 1 f i r e i n S u r A n c e vA lu e S
Current year
Fire insurance value of real estate 50,915
Fire insurance value of other fixed assets 27,245
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
29
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1.5 other assets aNd other liaBilities
Current year Previous year
Other assets Other liabilities Other assets Other liabilities
Replacement value of derivative financial instruments
Contracts as principal
Trading portfolios – – – –
Asset and liability management – 250 – –
Contracts as commission agent 8,975 8,906 – –
Total derivative financial instruments 8,975 9,156 – –
Indirect taxes 748 9,400 111 –
Clearing accounts 32,162 550 – –
Unredeemed coupons, cash bonds and bonds 17 47 – –
Other assets and liabilities 15,040 – – 36
Total other assets and other liabilities 56,942 19,153 111 36
Amounts in CHF thousands
Amounts in CHF thousands
1.6 pledged or assigNed assets to secure owN coMMitMeNts aNd of assets suBject to reteNtioN of title
1 . 6 . 1 p l e d G e d o r A S S i G n e d A S S e t S A n d A S S e t S S u B j e c t t o r e t e n t i o n o f t i t l e , e x c lu d i n G l e n d i n G
t r A n S A c t i o n S A n d S e c u r i t i e S r e p u r c h A S e A G r e e m e n t S
Current year Previous year
Amount due /
book value
Of which
claimed
Amount due /
book value
Of which
claimed
Pledged assets
Amounts due from money-market instruments 10,000 –
Financial investments 275,949 3,573 – –
Tangible fixed assets / other assets (guarantees) 416 – – –
Total pledged assets 286,365 3,573 – –
30
1 . 6 . 2 d i S c lo S u r e o f S e c u r i t i e S l e n d i n G A n d r e p u r c h A S e t r A n S A c t i o n S
Current year Previous year
Book value of receivables from cash collateral in securities borrowing and reverse repurchase agreements 515,100 –
Book value of obligations from cash collateral in securities lending and repurchase agreements 30,360 –
Book value of securities lent in securities lending or delivered as collateral in securities borrowing as well as securities in own
portfolio transferred in repurchase agreements 30,383 –
of which with unrestricted right to resell or pledge 30,383 –
Fair value of securities received and serving as collateral in securities lending or securities borrowed in securities borrowing as
well as securities received in reverse-repurchase agreements with an unrestricted right to resell or repledge 515,330 –
fair value of associated resold or repledged securities 30,383 –
Amounts in CHF thousands
1.7 liaBilities relatiNg to owN peNsioN aNd welfare fuNds
1 . 7 . 1 G e n e r A l
The personnel of Notenstein Private Bank Ltd are insured in the “Katharinen Pensionenskasse I” and “Katharinen Pensionenskasse II” pension funds. The benefits paid
are calculated on the basis of contributions made (defined contribution plan). All employees are insured from the minimum annual wage defined in the Occupational
Pensions Act and therefore entitled to benefits. More than half of the occupational pension premiums are covered by the employer. The employer has no further obliga-
tions to provide benefits. The “Katharinen Pensionskasse II” fund provides for extra-mandatory pensions in which a personal investment strategy can be implemented.
1 . 7 . 2 l i A B i l i t i e S r e l At i n G t o o W n p e n S i o n A n d W e l fA r e f u n d S
Current year Previous year
Recognised under:
Other amounts due to customers 4,390 –
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1. Information on the balance sheet31
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1 . 7 . 3 e c o n o m i c B e n e f i t / e c o n o m i c o B l i G At i o n A n d p e n S i o n e x p e n S e S
According to the most recent audited annual financial statements (pursuant to Swiss GAAP FER 26) of the “Katharinen Pensionskasse”, the funding ratio is:
(no recognition of overfunding; underfunding, where applicable, is recognised in the balance sheet)
31.12.2011 31.12.2010
Pension fund “Katharinen Pensionskasse I” 102.3% 108.9 %
Pension fund “Katharinen Pensionskasse II” 107.5% 112.5%
1 . 7 . 4 e m p lo y e r c o n t r i B u t i o n r e S e r v e S o f t h e “ k At h A r i n e n p e n S i o n S k A S S e ”
As at 31.12.2012, Notenstein Private Bank Ltd holds no employer contribution reserves.
1.8 value adjustMeNts aNd provisioNs, fluctuatioN reserve for credit risks aNd reserves for geNeral
BaNkiNg risks
Balance at
previous
year end
Values
from take-
over **
Use in
conformity
with des-
ignated
purpose
Redesig-
nation of
purpose
(reclassifi-
cations)
Recoveries,
past due
interest,
currency
translation
differences
New
provisions
charged
to income
Releases to
income
Balance
at current
year end
Value adjustments and provisions for default
and other risks:
value adjustments and provisions for default risks
(collection and country risks) – 8,000 – – 6,800 – – – 1,200
value adjustments and provisions for other
business risks * – – – 6,800 – 12,600 – 19,400
other provisions – 146,000 – –146,000 – – – –
Total value adjustments and provisions – 154,000 – –146,000 – 12,600 – 20,600
Reserves for general banking risks (untaxed) – 30,000 – 146,000 – – – 176,000
* Provisions to a total of CHF 19.4 million have been created in relation to possible obligations arising from trailer fees as well as a pending law case. CHF 12.6 million of this amount has been booked
to the income statement and CHF 6.8 million transferred via a redesignation of purpose of provisions that are no longer necessary. The provisions that are no longer necessary pertain to general
provisions of Wegelin & Co. on collateralised loans that are not required under the accounting and valuation policies of Notenstein Private Bank.
** Integration in Notenstein Private Bank Ltd (transaction: take-over of non-US client business of Wegelin & Co.).
Amounts in CHF thousands
32
1 . 9 . 1 S i G n i f i c A n t S h A r e h o l d e r S A n d G r o u p S o f S h A r e h o l d e r S W i t h p o o l e d v o t i n G r i G h t S
Current year Previous year
Nominal % of equity Nominal % of equity
Raiffeisen Switzerland Cooperative 20,000 100 % – –
Wegelin & Co. Ltd – – 20,000 100 %
1.9 BaNk’s capital aNd shareholders of iNterests exceediNg 5% of all votiNg rights
Current year Previous year
Total par value
No. of shares /
interests
Capital eligible
for dividend Total par value
No. of shares /
interests
Capital eligible
for dividend
Bank’s capital
Share capital 20,000 20,000 20,000 20,000 20,000 20,000
Total bank’s capital 20,000 20,000 20,000 20,000 20,000 20,000
Participation capital – – – – – –
Total bank’s capital 20,000 20,000 20,000 20,000 20,000 20,000
Authorised capital – – – – – –
of which capital increases completed – – – – – –
Conditional capital – – – – – –
of which capital increases completed – – – – – –
Amounts in CHF thousands
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1. Information on the balance sheet33
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1.10 stateMeNt of shareholders’ equity
Equity at beginning of current year
Paid-up capital 20,000
Distributable profit / accumulated loss – 6,078
Total equity at beginning of current year (before appropriation of profit) 13,922
+ Capital investment 137,300
+ Other transfers to / from reserves 176,000
+ Profit for the current year 29,839
Total equity at end of current year (before appropriation of profit) 357,061
Of which:
paid-up capital 20,000
General legal reserve 137,300
reserves for general banking risks 176,000
distributable profit 23,761
Amounts in CHF thousands
34
Amounts in CHF thousands
1.11 Maturity aNalysis of curreNt assets aNd third-party liaBilities
Due
At sight
Cancel-
lableWithin
3 months
Within 3 to
12 months
Within 12
months to
5 years
After 5
years
No
maturity Total
Current assets
Liquid assets 408,341 – – – – – – 408,341
Amounts due from money-market instruments – – – 68,300 – – – 68,300
Amounts due from banks 56,469 220,272 1,273,807 388,904 100,000 – – 2,039,452
Amounts due from customers – 17,798 57,110 70,492 2,623 – – 148,023
Mortgage loans – 8,362 90,127 45,703 182,629 16,778 – 343,599
Trading portfolios of securities and precious metals 184,549 – – – – – – 184,549
Financial investments 11,363 – 98,231 108,986 310,507 12,021 2,000 543,108
Total current assets in current year 660,722 246,432 1,519,275 682,385 595,759 28,799 2,000 3,735,372
Total current assets in previous year 2,716 4,018 2,009 1,519 4,983 – – 15,245
Third-party capital
Amounts due to banks 100,857 16,791 30,360 – – – – 148,008
Amounts due to customers in savings or deposit
accounts – 2,417,198 – – – – – 2,417,198
Other amounts due to customers 85,258 705,063 97,148 4,301 – – – 891,770
Total third-party capital in current year 186,115 3,139,052 127,508 4,301 – – – 3,456,976
Total third-party capital in previous year 113 1,490 – – – – – 1,603
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1. Information on the balance sheet
1.12 aMouNts due froM / to related coMpaNies as well as loaNs to MeMBers of goverNiNg Bodies
Current year Previous year
Amounts due from related companies – 2,105
Amounts due to related companies – –
Loans to members of governing bodies 2,855 –
Amounts in CHF thousands
35
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1 . 1 2 . 1 t r A n S A c t i o n S W i t h r e l At e d pA r t i e S
The extension of loans to members of governing bodies is subject to the usual banking assessment criteria that apply to third parties. Fee-based transactions (payment
services, stock transactions), loans and interest on bank accounts are provided to related parties at personnel rates.
1.13 aNalysis of assets aNd liaBilities By doMestic aNd foreigN origiN
Current year Previous year
Domestic Foreign Domestic Foreign
Assets
Liquid assets 408,341 – 607 –
Amounts due from money-market instruments – 68,300 – –
Amounts due from banks 1,024,659 1,014,794 6,124 –
Amounts due from customers 92,546 55,477 – –
Mortgage loans 343,598 – – –
Trading portfolios of securities and precious metals 74,513 110,036 3 –
Financial investments 155,575 387,533 8,511 –
Participating interests 20,539 8 – –
Tangible fixed assets 47,593 – 426 –
Accrued income and prepaid expenses 11,113 615 124 –
Other assets 56,887 55 111 –
Unpaid-up capital – – – –
Total assets 2,235,364 1,636,818 15,906 –
Amounts in CHF thousands
Liabilities
Amounts due to banks 138,485 9,523 – –
Amounts due to customers in savings or deposit accounts 1,391,993 1,025,205 113 –
Other amounts due to customers 297,897 593,874 1,490 –
Accrued expenses and deferred income 17,517 875 345 –
Other liabilities 18,978 174 36 –
Value adjustments and provisions 20,600 – – –
Reserves for general banking risks 176,000 – – –
Bank’s capital 20,000 – 20,000 –
General legal reserves 137,300 – – –
Profit / loss carried forward – 6,078 – –3,224 –
Profit / loss for the year 29,839 – –2,854 –
Total liabilities 2,242,531 1,629,651 15,906 –
36
Amounts in CHF thousands
1.14 aNalysis of assets By couNtry / group of couNtries
Current year Previous year
Share as % Share as %
Assets
Switzerland 2,303,301 59 % 15,906 100 %
Europe 1,438,531 37% – 0 %
North America 19,296 0 % – 0 %
Caribbean 18,864 0 % – 0 %
Asia 32,883 1% – 0 %
Other 59,307 2 % – 0 %
Total assets 3,872,182 100% 15,906 100%
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
1. Information on the balance sheet37
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
Amounts in CHF thousands
1.15 aNalysis of assets aNd liaBilities accordiNg to curreNcy
CHF EUR USD Other
Assets
Liquid assets 392,846 13,906 998 591
Amounts due from money-market instruments 50,000 – 18,300 –
Amounts due from banks 584,392 527,409 822,225 105,427
Amounts due from customers 69,958 28,087 25,514 24,464
Mortgage loans 343,598 – – –
Trading portfolios of securities and precious metals 128,575 14,509 11,866 29,598
Financial investments 505,704 36,844 – 560
Participating interests 20,539 8 – –
Tangible fixed assets 47,593 – – –
Accrued income and prepaid expenses 10,264 472 590 402
Other assets 56,938 4 – –
Unpaid-up capital – – – –
Total assets shown in balance sheet 2,210,407 621,239 879,493 161,042
Delivery entitlements from spot exchange, forward forex and forex options transactions 351,909 115,758 300,662 50,429
Total assets 2,562,316 736,997 1,180,155 211,471
Liabilities
Amounts due to banks 49,537 44,900 38,802 14,769
Amounts due to customers in savings or deposit accounts 1,433,028 452,989 426,364 104,817
Other amounts due to customers 320,691 124,649 417,348 29,082
Accrued expenses and deferred income 18,374 8 2 7
Other liabilities 19,106 23 6 17
Value adjustments and provisions 20,600 – – –
Reserves for general banking risks 176,000 – – –
Bank’s capital 20,000 – – –
General legal reserves 137,300 – – –
Profit / loss carried forward 29,839 – – –
Profit / loss for the year – 6,078 – – –
Total liabilities shown in balance sheet 2,218,397 622,569 882,522 148,692
Delivery entitlements from spot exchange, forward forex and forex options transactions 351,775 115,871 300,638 50,404
Total liabilities 2,570,172 738,440 1,183,160 199,096
Net position per currency –7,856 –1,443 –3,005 12,375
38
2. Information on off-balance-sheet transactions
2.1 coNtiNgeNt liaBilities
Current year Previous year
Guarantees to secure credits 3,210 –
Other contingent liabilities 86,826 –
Total contingent liabilities 90,036 –
Amounts in CHF thousands
Amounts in CHF thousands
2.2 outstaNdiNg derivative fiNaNcial iNstruMeNts
Trading instruments Hedging instruments
Positive
replacement
values
Negative
replacement
values
Contract
volumes
Positive
replacement
values
Negative
replacement
values
Contract
volumes
Interest-rate-related instruments
Forward contracts (including FRAs) – – – – – –
Swaps – 250 99,750 – – –
Futures – – – – – –
Options (OTC) – – – – – –
Options (exchange-traded) – – – – – –
Total – 250 99,750 – – –
Foreign exchange
Forward contracts (including FRAs) 7,364 7,354 607,460 – – –
Combined interest / currency swaps 1,524 1,464 207,382 – – –
Futures – – – – – –
Options (OTC) 68 68 11,518 – – –
Options (exchange-traded) – – – – – –
Total 8,956 8,886 826,361 – – –
Precious metals
Forward contracts – – – – – –
Swaps – – – – – –
Futures – – 10,857 – – –
Options (OTC) 6 6 645 – – –
Options (exchange-traded) – – – – – –
Total 6 6 11,502 – – –
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
39
Trading instruments Hedging instruments
Positive
replacement
values
Negative
replacement
values
Contract
volumes
Positive
replacement
values
Negative
replacement
values
Contract
volumes
Equity securities/ indices
Forward contracts – – – – – –
Swaps – – – – – –
Futures – – 22,786 – – –
Options (OTC) 14 14 1,181 – – –
Options (exchange-traded) – – – – – –
Total 14 14 23,967 – – –
Total before netting contracts in current year 8,975 9,156 961,580 – – –
Total before netting contracts in previous year – – – – – –
2 . 2 . 1 t o tA l A f t e r n e t t i n G c o n t r A c t S
Positive
replacement
values
(cumulative)
Negative
replacement
values
(cumulative)
Total in current year 8,975 9,156
Total in previous year – –
2.3 fiduciary traNsactioNs
Current year Previous year
Fiduciary deposits at third-party banks 250,888 –
Fiduciary lending 29,827 –
Total fiduciary transactions 280,715 –
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
Amounts in CHF thousands
40
2. Information on off-balance-sheet transactions
2.4 clieNt assets
Current year Previous year
Type of client assets
Assets in funds managed by the bank – –
Assets under discretionary asset management agreements 7,830,310 19,107
Other client assets 11,808,081 –
Total client assets (including double-counting) * 19,638,391 19,107
Of which double-counted items 228,305 –
Net new money inflow / outflow ** –1,874,234 3,128
Client assets includes all assets managed or held for investment purposes of private, business and institutional clients as well as assets in funds managed by the bank. Essentially, it includes all amounts
due to customers, time deposits and fiduciary investments as well as all valued assets including net values from outstanding derivative financial instruments. Client assets as well as assets in investment
funds deposited with third parties are also included on the condition that they are managed by the bank. Assets of other banks that are deposited at Notenstein (custody only) are not included in the
client assets. Fund units of funds managed by the bank that are held in client safekeeping accounts, and client safekeeping accounts managed by the bank but held at third-party banks are reported
under double-counting.
* Excluding 1741 Asset Management Ltd.
** Excluding inflows from the transfer of clients of Wegelin & Co. Private Bankers to Notenstein Private Bank Ltd (CHF 21,960 million).
Amounts in CHF thousands
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
41
42
3. Information on the income statement
3.1 result froM tradiNg activities
Current year Previous year
Foreign exchange trading and trading in foreign notes and coins 17,951 –
Precious metals trading 3,635 –
Securities trading 13,982 1
Total result from trading activities 35,568 1
Amounts in CHF thousands
Amounts in CHF thousands
3.2 persoNNel expeNses
Current year Previous year
Bank authorities, meeting attendance fees and other retainers 191 –
Salaries and benefits 77,925 1,158
AHV, IV, ALV (old age, survivors, invalidity and unemployment insurance) and other statutory contributions 7,175 159
Contributions to employee benefit schemes 4,284 259
Ancillary personnel expenses 4,265 3
Total personnel expenses 93,840 1,579
3.3 geNeral aNd adMiNistrative expeNses
Current year Previous year
Office space expenses 10,229 70
IT expenses, machinery, furniture, motor vehicles, and other equipment and fixtures 9,481 705
Other business expenses 23,744 686
Total general and administrative expenses 43,454 1,461
Amounts in CHF thousands
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
43
3.4 explaNatory Notes oN extraordiNary iNcoMe aNd expeNses, sigNificaNt releases of hiddeN reserves,
reserves for geNeral BaNkiNg risks, aNd value adjustMeNts aNd provisioNs No loNger required
In the current year, operationally essential provisions of CHF 19.4 million were created. These were established through a redesignation of purpose of provisions
that are no longer necessary totalling CHF 6.8 million and a further CHF 12.6 million that is reflected in the income statement position “value adjustments, provisions
and losses”.
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
44
n o t e n S t e i n p r i vAt e B A n k lt d
Bohl 17, 9004 St.Gallen, telephone +41 (0)71 242 50 00, fax +41 (0)71 242 50 50
[email protected], www.notenstein.ch
B A S e l , 4 0 5 1
Holbeinstrasse 102
Telephone +41 (0)61 201 17 17
B e r n e , 3 0 1 1
Spitalgasse 3
Telephone +41 (0)31 321 14 14
c h i A S S o, 6 8 3 0
Corso San Gottardo 44
Telephone +41 (0)91 696 19 19
c h u r , 7 0 0 2
Aquasanastrasse 8
Telephone +41 (0)81 287 15 15
G e n e vA , 1 2 1 1
Bd Georges-Favon 5
Telephone +41 (0)22 307 21 21
l A u S A n n e , 1 0 0 1
Av. du Théâtre 1
Telephone +41 (0)21 313 26 26
lo c A r n o, 6 6 0 0
Lungolago Motta 2
Telephone +41 (0)91 756 12 12
lu G A n o, 6 9 0 0
Via Canova 12
Telephone +41 (0)91 912 11 11
lu c e r n e , 6 0 0 4
Mühlenplatz 9
Telephone +41 (0)41 227 16 16
S c h A f f h A u S e n , 8 2 0 1
Fronwagplatz 22
Telephone +41 (0)52 630 18 18
W i n t e r t h u r , 8 4 0 1
Turnerstrasse 1
Telephone +41 (0)52 742 24 24
Z u r i c h , 8 0 2 2
Rennweg 57/Fraumünsterstrasse 27
Telephone +41 (0)44 218 13 13
Contact
45
N O T E N S T E I N P R I VAT E B A N K LT D
S T. G A L L E N B A S E L B E R N E C H I A S S O C H U R G E N E VA L A U S A N N E L O C A R N O L U C E R N E
L U G A N O S C H A F F H A U S E N W I N T E R T H U R Z U R I C H