annual review 2012 - sgkb · pdf filethe major central banks were active in the market, with...

Annual Review 2012

Hyposwiss Private Bank Ltd.

Stauffacherstrasse 41, CH-8021 Zurich

T +41 44 214 31 11, F +41 44 211 52 23

[email protected], www.hyposwiss.ch

Picture concept in this Annual Review

In our Annual Review we offer our clients, staff and business partners an overview of our performance

in the past year. The success of Hyposwiss Private Bank is due in no small measure to its innovative

capacity in developing selected products and in presenting itself to the outside world. In keeping with

this, the theme of innovation serves as the leitmotif for this Annual Review. We present four Swiss

companies which have received awards for their innovative prowess. The four companies in question

come from different industries and pursue distinct innovative approaches, each of which is successful

in its own way. As part of the picture concept of this Annual Review we present these four companies

and their respective sources of innovative inspiration.

Companies profiled in this report:

Koubachi – software / IT

Schoeller – textiles

Livesystems – advertising

Jumi – food production

Editorial

Investment report

Bank governing bodies

Organisation

Key figures 2012

Finance section

Overview

Balance sheet details

Income statement details

Personnel

Income statement 2012

Balance sheet as at December 31, 2012

Appropriation of disposable profit

Cash flow statement

Auditor’s report

3

4

5

9

13

17

17

18

20

22

23

24

29

30

31

Contents

Dear Clients

Ladies and Gentlemen

Over the past year, the persisting unrest in the Middle East,

the elections in China and the US and the euro crisis all

made headlines. The political and economic uncertainties

in the eurozone became a routine irritation. Central banks

intervened actively in the market, with the ECB and the

Fed in particular bolstering the stock markets through the

expansion of their extremely relaxed monetary policies.

2012 turned out to be a good year on the stock markets,

despite widespread pessimism at the beginning of the year.

In light of the uncertainties, our clients adopted a cau-

tious approach, preferring to keep their cash holdings

high or invest their assets in low-risk products. As a result,

our operating income declined by 7.3 % from CHF 76.4 to

CHF 70.8 million, mainly because of lower net commission

and fee income. By contrast, net profit grew by 12.6 % to

CHF 13.3 million. The increase is the result of the absence

of one-time costs incurred in 2011 in connection with

the relocation to our new offices in the “Apollo” building

and investments in a joint IT platform shared with our

parent company, St.Galler Kantonalbank.

International pressure on Switzerland as a financial centre

continued to mount in the past year. As part of a future

strategy, the concept of a flat-rate withholding tax offers

a useful and efficient solution as it preserves the Swiss

tradition of treating personal data as confidential, while

at the same time facilitating cooperation with other

countries in tax matters. The agreements with Austria and

the UK which came into force on 1 January 2013 represent

a fair solution for previously untaxed client assets. These

two international treaties – the first of their kind – required

intensive and comprehensive preparatory work on the

part of Hyposwiss Private Bank. In particular, this involved

communicating with potentially affected clients and

training for our client advisors.

As a consequence of the paradigm shift in the cross-

border asset management business and global shifts in

economic performance in favour of the emerging markets,

we have reviewed our strategic target markets. In future,

we shall be focusing our growth efforts on the Swiss

onshore business and on Russia. In order to make headway

in these strategic markets, Hyposwiss Private Bank will be

investing in human resources in particular. Our aim is to

set ourselves apart by virtue of our highly personal advice,

consistent customer care and first-class investment

expertise.

We regularly review our services with test clients. Recent

ratings of our bank highlight the individual advice we

offer as an especially positive attribute. Our new offices

also received a great deal of attention and much praise

in the tests, confirming that the move is paying off not

only for our staff but also for our clients. In order to

maintain and steadily improve this high quality of service,

staff at Hyposwiss Private Bank regularly attend continu-

ing professional development courses.

On behalf of all our staff, we would like to thank our

clients for the trust they place in us. We are proud and

pleased to assist them on a daily basis.

Roland Ledergerber Siegfried R. Peyer

Chairman CEO

Editorial

Hyposwiss Private Bank Zurich | Annual Review 2012 3

2012 was a good year on the stock markets – despite wide-

spread pessimism at the beginning of the year. The markets

defied the eurozone crisis and even phases of economic

weakness only briefly dented their progress. After two years,

heightened political uncertainty in the eurozone has

become the norm. The major central banks were active in

the market, with the ECB and the Fed in particular bolstering

the stock markets through the expansion of their ultra-

relaxed monetary policies. The sustained moderate recovery

in the US also gave the markets more stable foundations.

Given that most analysts’ expectations on the economy

were at a low ebb at the beginning of the year, there was

considerable potential for pleasant surprises – and the stock

markets turned this to their advantage. Although most

market indices made overall gains of well over 15 %, market

performance was not a one-way street. There were long

periods of heightened uncertainty among investors and the

escalation of the problems in Spain and Greece sent share

prices tumbling in the second quarter. As expected, there

was no rise in Swiss inflation. On the contrary, retailers’

widespread euro discounts prompted by pressure from cross-

border shopping led to falling prices across a broad front.

As a result of this – coupled with the appeal of the Swiss

franc as a safe currency – interest rates continued to fall

and yields on Confederation bonds with maturities of up

to six years descended into the negative range.

The Swiss franc’s exchange rate floor against the euro

meant that it was no longer a major factor on the interna-

tional currency market. In the early part of the year, the

Swiss National Bank was forced to defend the floor of

1.20 per euro by buying euros on a massive scale. Its efforts

were successful and the situation has since calmed down

again somewhat. However, the franc is de facto pegged to

the euro and trades in parallel with the latter against other

currencies.

Owing to the persisting near-zero interest rates on the US

dollar, the price of gold fluctuated within a narrow band.

The performance of our asset management mandates was

very gratifying, with both equities and bonds contributing

to the positive result. By contrast, for once the impact of

exchange rate movements was minimal.

The funds of the SGKB Group, which are managed by

the Hyposwiss Investment Center, also benefited from the

positive market trend and made significant price gains.

The African Dawn and Danube Tigers funds also received

positive coverage in the media on a number of occasions.

Roland Ledergerber

Chairman

Board of Directors

Jean-Luc de Buman

Deputy Chairman

Stefan Klinger Adolf E. Real Declan McAdams

Investment report

4 Hyposwiss Private Bank Zurich | Annual Review 2012

Board of Directors Expiry of term

Roland Ledergerber, St.Gallen, Chairman 2013

Jean-Luc de Buman, Cully, Deputy Chairman 2013

Stefan Klinger, St.Gallen 2013

Adolf E. Real, Vaduz 2014

Declan McAdams, le Grand-Saconnex 2014

Executive Board

Siegfried R. Peyer, CEO

Dr Thomas Stucki, deputy CEO, Managing Director

Andreas Moser, Managing Director

Stefan Betschart, Managing Director

Auditors

PricewaterhouseCoopers AG

Members of Senior Management

Managing Directors

Markus Holenstein, Caterina Minelle

Executive Directors

Hansjürg E. Christen, Oliver Egli, Kurt Frischknecht,

Manuel Graf, Christian Gwerder, Caroline Hilb

Paraskevopoulos, Marcel Jörger, Adrian Koller, Dr Milan

Kormanak, Stephan Lang, Michael Lenhardt, Peter Leu,

Rolf Müller, Stephan Peter, Daniel Reichmuth, Alex

Rinderknecht, Alfred Rüttimann, Daniel Schibli, Alfred

Steininger, Giuseppe Stella, Günter Stessel, Emil Ulrich,

Heinz von Dach, Konstantin Zalad

Directors

Stephan Bächli, Nicandro Barile, Philippe Bertholet,

Ricco Brusch, Marisa De Faveri Schweizer, Philipp Dubin,

Philipp Ess, Vasiliki Furian, Yves Guenot, Patrick Häfeli,

Roger P. Hugentobler, Doris Ingold, Markus Iseli,

Thomas Jäger, Karl Keller, Johannes Kobelt, Zeljko Korica,

Irène Lipp, Ueli Lott, Oliver Lyhs, Guido Malgaroli, Luca

Marchetti, Rui Meireles, Urs Merz, Anita Miccoli, Iurie

Moraru, Daniel Paravicini, Petar Petrov, Patrick Riedo,

Pascal Schmid, Stefan Spörndli, Roger Stalder, Patrycja

Szymonska, Patrick Unternährer, Anneliese Weber,

Robert Wenk, Markus Wolfmaier

Executive Board

Siegfried R. Peyer

CEO

Andreas Moser

Private Banking

Stefan Betschart

Services & Logistics

Dr Thomas Stucki

Investment Center

Bank governing bodies as at January 1, 2013


Hyposwiss Private Bank provides clients with comprehensive advice and offers access to a wide range of in-house and third-party products. The aim is to provide clients with transparent and comprehensible advice. Hyposwiss Private Bank helps clients simplify and at the same time optimize their individual asset, financial and succession planning.

About KoubachiBased in Zurich's Technopark, Koubachi AG was founded in 2009 as a spin-off of the Swiss Federal Institute of Technology (ETH) Zurich. In November 2010, Koubachi was granted the CTI Startup Label and received the Red Dot Design Award in 2012. The start-up realizes the vision of the “Internet of Things" with communication between human beings and intelligent objects at its heart.

About the Wi-Fi Plant Sensor productThe Koubachi Wi-Fi Plant Sensor measures soil moisture, temperature and light intensity. It then proceeds to determine the precise needs of plants on the basis of scientific models. The Wi-Fi Plant Sensor, which is permanently connected to the user's wireless LAN, enables real-time monitoring of a plant's most important needs. The plant sensor is operated via web interface or smartphone.

“I'm inspired by the problems of daily life. The question our inventions start from is always: how can we help people to simplify their day-to-day lives?”Philipp Bolliger, CEO Koubachi

Organisation as at January 1, 2013

Investment Center

Dr Thomas Stucki, MD *(Deputy: M. Jörger, ED)

Investment Strategy

Caroline Hilb Paraskevopoulus, ED

Sales Support

Christian Gwerder, ED

Portfolio Management

Marcel Jörger, ED **

Switzerland / Germany / Austria

Kurt Frischknecht, ED **

Equity & Fund Analysis

Alfred Steininger, ED

Services & Logistics

Stefan Betschart, MD *(Deputy: G. Stella, ED)

Loans

Alex Rinderknecht, ED**

Taxes

Guido Malgaroli, DI

Cash Desk

Philippe Bertholet, DI

Private Banking

Andreas Moser, MD *(Deputy: K. Frischknecht, ED)

Internal Services

Johannes Kobelt, DI

Business & IT Services

Giuseppe Stella, ED **

Executive Board

Siegfried R. Peyer, CEO*(Deputy: Thomas Stucki, MD)

Assistant to the CEO

Regula Schumacher, AD

Legal, Compliance & Risk

Daniel Schibli, ED **

Business Management ***

Hansjürg Christen, ED **

* Members of the Executive Board

** Member of the Extended Executive Board

*** Accounting, Controlling, Human Resources,

Marketing/Communications, Corporate Development

MD: Managing Director

ED: Executive Director

DI: Director

AD: Associate Director

Client Documentation

Mustafa Sert, AD

Central & Eastern Europe / Middle East

Manuel Graf, ED **

External Asset Manager

Oliver Egli, ED **

Latin America / Iberia

Michael Lenhardt, ED **

Senior Client Partners

Caterina Minelle, MD **


Hyposwiss Private Bank is always receptive to its clients’ needs. After all, being familiar with those needs is the most important precondition for ensuring that we will always be there for them as a professional and trustworthy partner.

Schoeller Textiles Schoeller Textiles is an international textile company based in Sevelen, Canton St.Gallen. The company specializes in the development and manufacture of innovative fabrics and smart textile technologies. Schoeller Textiles' roots can be traced back to 1867.

About the iLoad productiLoad® is a fabric developed by Schoeller Textiles which is equipped with a “donor layer" capable of absorbing skincare agents or medication and releasing them again in the right dose.

These newly developed donor fabrics can be individually loaded with beneficial or therapeutically active substances, then worn, washed and reloaded. iLoad® will initially be used in the areas of “cosmeto-textiles", workwear and sports clothing. In 2011, the Swiss Economic Forum recognized this textile innovation by conferring its Swiss Technology Award on Schoeller Textiles.

“I find inspiration everywhere because I always keep my eyes and ears open. This is the only way to identify people's needs.”Roland Lottenbach (Head of Research & Development)

Key financial figures 2012

Key figures 2012in 1 000 CHF 2012 2011 2010

Net interest income 13 678 13 874 11 534

Net commission and fee income 42 006 46 747 50 105

Net income from trading positions 10 016 10 012 9 429

Other ordinary income 5 085 5 746 6 494

Operating income 70 785 76 379 77 562

Personnel expenses 29 590 30 156 34 286

Other operating expenses 20 539 29 684 19 023

Total operating expenses 50 129 59 840 53 309

Gross profit 20 656 16 539 24 253

Depreciation of fixed assets 1 923 1 530 818

Value adjustments, provisions and losses 1 831 237 67

Operating profit 16 902 14 772 23 368

Extraordinary income 43 396 4 344

Taxes 3 681 3 385 6 030

Net profit for the year 13 264 11 783 21 682

Shareholders’ equity (after appropriation of profit) 123 557 113 293 112 510

Assets under management (incl. double counts) 7 180 392 7 959 867 9 111 910

Cost / income ratio (%) 73.5 80.3 69.8

Employees (number of FTEs) 159 155 162


Hyposwiss Private Bank has a congenial corporate culture with a flat hierarchy. This environment encourages staff to express creative ideas and suggest ways of improvement so as to further enhance the bank’s focus on clients’ needs.

About Livesystems AGThe Berne-based IT company Livesystems was founded in 2007 by Yves Kilchenmann and Olivier Chuard. The start-up, which now employs 25 staff, is currently the Swiss market leader for multimedia video communications on public transport.

About the passengertv productThe innovative aspect of passengertv lies not so much in the product itself, but in the business model underpinning it. The three joint CEOs Olivier Chuard, Yves Kilchenmann and Christian Imhof provide public transport operators with free software and content which is presented on dual displays in buses, trams and trains. One display shows route-related information, while the other provides real-time data such as information on connections or operational updates, along with regional news, features on culture and the arts and advertising. Livesystems makes money from advertising revenues which it shares with the transport operators. In 2012, passengertv won the Swiss Economic Award for the service sector.

“Our staff know that their ideas are taken seriously. A pleasant and playful environment is conducive to the inspiration that gives rise to new ideas.”Olivier Chuard (founder and member of management)

Finance section

Overview

Hyposwiss Private Bank, too, was unable to escape the

turmoil in the financial sector during the 2012 financial

year. The continuing repercussions of the debt and currency

crisis and the mounting pressure on the Swiss banking

sector and banking secrecy played a key part in shaping

our annual results, as well as adding to the sense of un-

certainty among our clients. Whereas the previous year a

decline in net commission and fee income had been off-

set by an increase in interest operations, there was no such

effect during the year under review owing to a smaller

volume of fixed advances on the one hand and record low

interest rates on the other hand. The result was a 7.3 %

year-on-year decrease in operating income from CHF 76.4

million to CHF 70.8 million. The measures taken in previous

years, such as the outsourcing of back office operations and

investments in a more efficient IT platform, led to a year-

on-year reduction in operating expenses by CHF 9.7 million

or 16.2 % to CHF 50.1 million. This meant that gross profit

increased by a substantial 24.9 % from CHF 16.5 million

to CHF 20.7 million.

At the end of the financial year, the balance sheet total

of Hyposwiss Private Bank amounted to CHF 2 356.9 million.

This equates to an increase of CHF 292.7 million, or 14.2 %,

compared with the figure of 2 064.2 million in the previous

year. The bank’s reported equity capital after the appropria-

tion of profits amounted to CHF 123.6 million.

The assets under the management of Hyposwiss Private

Bank decreased over the course of the financial year from

CHF 7 959.9 million to CHF 7 180.4 million. Of this figure,

CHF 572.5 million is accounted for by the investment funds

managed by the Investment Center of Hyposwiss Private

Bank. A net new money outflow of CHF 989.0 million was

recorded during the financial year.


Balance sheet details

AssetsBalance sheet total 2 356 916 (in 1 000 CHF)

Assets

Receivables due from customers declined from CHF 524.6

million to 505.3 million. In detail, fixed advances de-

creased from CHF 490.9 million to CHF 475.4 million and

current account receivables declined by CHF 4.1 million to

CHF 29.9 million as at the end of December. Receivables

due from our customers are largely secured by collateral

loan business or are covered by pledged fiduciary

investments.

Mortgage loans increased from CHF 353.2 million to

CHF 449.0 million, which reflects the successful expansion

of our business with high-net-worth private individuals

in Switzerland.

The sale of the “Sihlcenter” property and the current

depreciations reduced fixed assets from CHF 17.7 million

to CHF 14.0 million.

Mortgages

448 972

Due from banks

1 140 367

Cash and cash equivalents

220 863

0.8 %

48.4 %

9.4 %

Securities trading portfolio,

financial investments and participations

19 010

Other assets

22 4141.0 %

19.0 %

Due from customers

505 290 21.4 %


LiabilitiesBalance sheet total 2 356 916 (in 1 000 CHF)

Liabilities

Other amounts due to customers increased from 1 675.9

million to 1 917.4 million. The largest item was “Other

amounts due to customers at sight”, at CHF 1 759.4 million.

A further CHF 157.9 million was attributable to time

and call money deposits with our bank. Amounts due to

customers in savings and deposit accounts totalled

CHF 43.6 million at the year end.

Amounts due to banks increased by CHF 61.1 million to

CHF 242.2 million compared to the previous year. Of

this sum, CHF 223.7 million was assumed by our parent

company for refinancing purposes.

Impaired loans are at a low level and amount to

CHF 576 000 (previous year CHF 42 000). After deduction

of the estimated proceeds from the realization of collate-

ral, the result is net debt amounting to CHF 318 000

(previous year CHF 0); provisions for default risks were

created in the same amount. Together with the creation of

other provisions for CHF 1.5 million, value adjustments and

provisions increased from CHF 5.5 million to CHF 7.3 million.

The share capital remained unchanged at CHF 26.0 million,

while the statutory and other reserves after appropriation

of profit amounted to CHF 84.5 million.

Due to banks

242 21710.3 %

Other liabilities

40 488

Shareholders’ equity

113 293

1.7 %Due to customers in savings

and deposit accounts

43 5551.8 %

81.4 %

Other amounts due to customers

1 917 363

4.8 %


Income statement details

IncomeTotal 70 828 (in 1 000 CHF)

Net commission and fee income

42 00659.3 %

Net other ordinary income

5 085 7.2 %

Net income from trading positions

10 016 14.1 %

Net interest income

13 67819.3 %

Extraordinary income

430.1 %

Depreciation and provisions

3 754 5.3 %

41.8 %

Personnel expenses

29 590

ExpensesTotal 70 828 (in 1 000 CHF)

Other operating expenses

20 539 29.0 %

Taxes

3 681 5.2 %

Net profit

13 264 18.7 %


In the year under review net interest income decreased

slightly by CHF 0.2 million to CHF 13.7 million. While

mortgage interest increased by 0.7 million year-on-year

to CHF 6.5 million, record-low interest rates led to a

decline in interest income on receivables due from banks

and receivables due from customers.

The fee and commission business bore the brunt of the

various negative influences in 2012. While income from

the securities business declined by 8.5 % to CHF 14.6

million owing to the continuing debt and currency crisis

and whereas the decline in fiduciary business from

CHF 2.9 million to CHF 1.2 million reflects low interest

rates, the fall in income from investment management

business by CHF 2.7 million to CHF 8.0 million was

due to significant outflows of customer deposits from our

core markets. Against this backdrop, net fee and com-

mission income in the reporting year came in at CHF 42.0

million, or 10.1 % below the prior-year figure.

Income from trading positions, which is largely de-

termined by foreign exchange trading, stagnated at

CHF 10.0 million.

The year-on-year decrease in net other ordinary income

from CHF 5.9 million to CHF 5.1 million reflects lower

offsetting under the Service Level Agreement with Group

companies for services provided by the Investment

Center.

At CHF 29.6 million, personnel expenses were down by

CHF 0.6 million – a 1.9 % decrease from the previous

year. This decline, despite an increase in the number of

staff, is attributable partly to the fact that most of the

new staff were only recruited during the second half

of the year and partly to the departure of specific senior

client advisors.

At CHF 20.5 million, other operating expenses were down

by CHF 9.1 million, i.e. 30.8 %, on the previous year. Higher

legal and auditing costs contrast with lower costs for

the maintenance of IT infrastructure and lower expendi-

ture on premises and marketing. The decline in other

operating expenses is mainly explained by the previous

year’s investment in IT infrastructure.

In addition to expenses of CHF 0.1 million from settle-

ment differences, the “value adjustments, provisions

and losses” item also includes the formation of a provision

amounting to CHF 0.2 million for default risks and a

provision of CHF 1.5 million for sales remuneration on

funds.

Extraordinary income includes net profit of CHF 43 000

from the sale of the “Sihlcenter” property, which had

become surplus to requirements.



Personnel

Promotions

We are pleased to report our promotions as of January 1,

2013. Congratulations!

Executive Directors:

Christian Gwerder, Caroline Hilb Paraskevopoulos,

Adrian Koller, Peter Leu, Emil Ulrich, Konstantin Zalad

Directors:

Stephan Bächli, Marisa De Faveri Schweizer, Vasiliki Furian,

Thomas Jäger, Zeljko Korica, Irène Lipp, Daniel Paravicini,

Patrick Riedo

Compensation model

In the spring of 2009, the bank’s compensation system

was enhanced with a long-term participation programme

for the Executive Board and key members of senior mana-

gement (Long Term Incentive Plan, LTI). In principle,

participants will be awarded a number of options each

year as part of their variable compensation, with the

actual number of options awarded being at the discretion

of the Board of Directors. The options cannot be exercised

for four years from the date of receipt (i.e. a blocking

period of four years applies), but may then be exercised

over the following six years. The aim of the programme

is to retain over the long term the services of the staff

members in question and to promote entrepreneurial

conduct, which is why the LTI allows participants in the

plan to participate in the company’s success only if they

stay with the firm and provided that the bank’s enter-

prise value increases. This will help to promote business

practices with a long-term focus.

The basis for determining the value of the options is an

annual valuation of the bank by a recognized manage-

ment consultancy firm. During the year under review, we

slightly reduced the provisions of CHF 0.1 million created

in the previous years.

In addition to this programme, a proportion of the variable

compensation (CEO 50 %, Executive Board and members

of senior management 25 %, Associate Directors 20 %)

has been paid in the form of shares in St.Galler Kantonal-

bank ever since the bank became part of St.Galler Kanto-

nalbank Group. These shares are subject to a blocking

period of three years.

Zurich, February 21, 2013

On behalf of:

Board of Directors: Executive Board:

Roland Ledergerber, Chairman Siegfried R. Peyer, CEO


Income statement 2012

Income and expenses from ordinary banking businessin 1 000 CHF 2012 2011

Interest and discount income 19 047 18 590

Interest and dividend income on trading positions 62 9

Interest and discount income on financial investments 248 187

Interest expenses 5 679 4 912

Net interest income 13 678 13 874

Commission income from lending activities 227 218

Commission income from securities and investment activities 44 586 50 690

Commission income from other service fee activities 928 412

Commission expenses 3 735 4 573

Net commission and fee income 42 006 46 747

Income from trading positions 10 016 10 012

Participation income 16 14

Other ordinary income 5 071 5 905

Other ordinary expenses 2 173

Net other ordinary income 5 085 5 746

Operating income 70 785 76 379

Personnel expenses 29 590 30 156

Other operating expenses 20 539 29 684

Total operating expenses 50 129 59 840

Gross profit 20 656 16 539

Depreciation and amortization of fixed assets 1 923 1 530

Value adjustments, provisions and losses 1 831 237

Subtotal 16 902 14 772

Extraordinary income 43 396

Taxes 3 681 3 385

Net profit for the year 13 264 11 783


Balance sheet as at 31 December 2012 before appropriation of profit Assets

Assets in 1 000 CHF 2012 2011

Cash and cash equivalents 220 863 17 028

Due from banks 1 140 367 1 122 546

Due from customers 505 290 524 590

Mortgages 448 972 353 164

Securities trading portfolios 345 226

Financial investments 18 623 9 051

Participations 42 42

Fixed assets 14 050 17 724

Accrued income and prepaid expenses 3 159 3 839

Other assets 5 205 15 973

Total assets 2 356 916 2 064 183

Total receivables from group companies and qualified participants 959 210 917 949


Liabilitiesin 1 000 CHF 2012 2011

Liabilities from money market securities 2 765 731

Due to banks 242 217 181 096

Due to customers in savings and deposit accounts 43 555 43 576

Other amounts due to customers 1 917 363 1 675 881

Accrued expenses and deferred income 9 354 10 821

Other liabilities 7 842 22 317

Value adjustments and provisions 7 263 5 468

Reserves for general banking risks 1 700 1 700

Share capital 26 000 26 000

General statutory reserves 45 500 45 500

Other reserves 39 000 39 000

Retained earnings brought forward 1 093 310


Total liabilities 2 356 916 2 064 183

Total liabilities to group companies and qualified participants 228 674 182 824

Off-balance-sheet transactions

Contingent liabilities 29 160 35 271

Irrevocable commitments 10 250 7 462

Derivative instruments 717 847 538 620

positive replacement values 5 007 11 719

negative replacement values 4 688 11 885

Fiduciary transactions 753 956 1 352 027

Whether in financial services or in the food sector – the success of any innovation is determined by customers. Their changing needs will always call for the development of new products and services. Hyposwiss Private Bank is able to rise to this challenge thanks to its client focus and innovative spirit.

About JumiFounded in 2006 as the outcome of cooperation between farmer Jürg Wyss and cheesemaker Mike Glauser, Jumi now employs 19 staff and is based in Boll, Canton Berne. The company, specialized in high-quality cheese and meat products, keeps coming up with new ideas. In 2012, Jumi received the Swiss Economic Award.

ProductsJürg Wyss and Mike Glauser develop new types of regional products working closely with cheesemakers and farmers. The quality of the basic ingredients used is a high priority, as are humane methods of animal husbandry. The best-known product made by Jumi, which now operates internationally, is the “Belper Knolle”, a tennis ball-sized spherical cheese from Belp, Canton Berne.

“Our team and our customers are the key to Jumi's success. They drive our development. Our inno-vative cheese and meat products are sold through our own market stalls in Berne and London. These serve as a barometer of our customers' taste.”Jürg Wyss and Mike Glauser, founders of Jumi

Appropriation of disposable profit

Appropriation of disposable profit in 1 000 CHF 2012 2011


Retained earnings brought forward from previous year 1 093 310

Profit at the disposal of the General Meeting 14 357 12 093

The Board of Directors proposes the following appropriation:

a) Distribution of a dividend 3 000 11 000

b) Allocation to the general statutory reserve 0 0

c) Allocation to the other reserves 0 0

d) Balance brought forward to new account 11 357 1 093

Total 14 357 12 093

Following authorization of this proposal, total shareholders’ equity is as follows:

Share capital 26 000 26 000

General legal reserve 45 500 45 500

Other reserves 39 000 39 000

Reserves for general banking risks 1 700 1 700

Retained earnings brought forward to new account 11 357 1 093

Total 123 557 113 293



Cash flow statement 2012

in 1 000 CHF 2012 2011

Source Application Balance Source Application Balance


Depreciation on fixed assets 1 923 1 530

Value adjustments and provisions 1 795 3 706

Accrued income and prepaid expenses 680 136

Accrued expenses and deferred income 1 467 4 607

Dividend in the previous year 11 000 20 000

Cash flow from operating activities (internal financing)

17 662 12 467 5 195 13 313 28 449 -15 136

Fixed assets 1 751 13 708

Cash flow from fixed asset operations

1 751 0 1 751 0 13 708 -13 708

Liabilities from money market securities 2 034 25

Due to banks 61 121 17 302

Due from banks 17 821 129 735

Securities trading portfolios 119 167

Interbank transactions 63 155 17 940 45 215 25 147 204 -147 179

Medium-term notes 230

Due to customers in savings and deposit accounts

21 873

Other amounts due to customers 241 482 171 433

Due from customers 19 300 80 334

Mortgages 95 808 86 445

Customer business 260 782 95 829 164 953 251 767 87 548 164 219

Financial investments 9 572 142

Capital market business 0 9 572 -9 572 142 0 142

Other assets 10 768 5267

Other liabilities 14 475 743

Other balance sheet items 10 768 14 475 -3 707 6 010 0 6 010

Cash flow from banking business 334 705 137 816 196 889 257 944 234 752 23 192

Liquid assets 203 835 -203 835 5 652 5 652

Total source of funds 354 118 276 909

Total application of funds 354 118 276 909


Report of the statutory auditors

Auditor’s report on the annual accounts

In our capacity as auditor we have audited the annual

accounts of Hyposwiss Private Bank Ltd, consisting of

balance sheet, income statement, cash flow statement

and notes to the accounts (pages 23 to 48 of the annual

report), for the financial year ended December 31, 2012.

Responsibility of the Board of Directors

The Board of Directors is responsible for preparing the

annual accounts in compliance with the legal require-

ments and articles of association. This responsibility

includes the design, implementation and upkeep of

an internal control system to allow the preparation of

annual accounts that are free of significant false state-

ments as a result of violations or errors. Furthermore,

the Board of Directors is responsible for the selection

and application of appropriate accounting methods

and for making appropriate estimates.

Auditor’s responsibility

Our responsibility is to issue an audit opinion on the

annual accounts based on our audit. We conducted our

audit in compliance with Swiss law and Swiss auditing

standards. On the basis of these standards, audits are

to be planned and performed in such a way that material

misstatements in the annual accounts are reasonably

certain to be recognised.

An audit includes the performance of audit activities to

obtain audit evidence for the valuations contained in

the annual accounts and other information. The selection

of issues to be examined depends of the due judgment of

the auditor. This incorporates an assessment of the risks

of significant false information in the annual accounts as

a result of violations or errors. In assessing these risks,

the auditor takes into account the internal control system

(to the extent that it is significant for the preparation of

the annual accounts) in order to define the audit activities

appropriate for the circumstances, but not, however, to

issue an audit opinion on the effectiveness of the internal

control system. The audit also incorporates an assessment

of the appropriateness of the accounting methods used,

the plausibility of the estimates made and an evaluation

of the overall picture presented by the annual accounts.

We are of the view that the audit evidence obtained

by us provides a sufficient and appropriate basis for our

audit opinion.

Audit opinion

In our view, the annual accounts for the financial year

ended December 31, 2012 are in compliance with Swiss

law and the articles of association.

Reporting due to additional statutory regulations

We confirm that we meet the statutory requirement in

respect of authorisation according to the Federal Act

on Licensing and Oversight of Auditors (Revisionsauf-

sichtsgesetz, RAG) and independence (Article 728 SCO

and Article 11 RAG) and that there are no circumstances

inconsistent with our independence.

In compliance with Article 728a (1) figure 3 SCO and

the Swiss Audit Standard 890 we confirm that an internal

control system exists for the preparation of the annual

accounts that has been designed in accordance with the

guidelines from the Board of Directors.

We further confirm that the application for the appropri-

ation of net retained profits is in compliance with Swiss

law and the articles of association and recommend that the

annual accounts be adopted.

Zurich, February 21, 2013

PricewaterhouseCoopers AG

Beat Rütsche Thomas Kleger

Audit specialist Audit specialist

Chief Auditor

The following Auditor’s report refers to the 2012 annual report, which is available from


Publishing details

© 2013 Hyposwiss Private Bank Ltd.

Concept and text

Sensus Investor & Public Relations

Design

TGG Hafen Senn Stieger, St.Gallen

Photos

Bodo Rüedi Fotografe, St.Gallen

Print

Typotron AG, St.Gallen


Stauffacherstrasse 41, CH-8021 Zurich

T +41 44 214 31 11, F +41 44 211 52 23

[email protected], www.hyposwiss.ch

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