semi annual report notenstein 2014
DESCRIPTION
In the latest semi-annual report of Notenstein Private Bank you will find our key figures and explanatory notes on our business results.TRANSCRIPT
2014
Semi-annual report
Review of business results
2
Grow th in asset s under manaGement
The growth initiatives launched last year are already
generating measurably positive results. In the first
half of 2014, Notenstein Private Bank lifted its assets
under management by nearly five percent to around
CHF 20.8 billion. New clients in its core Swiss Private
Banking business accounted for some of the increase,
while the recently expanded Institutional Clients divi-
sion also made a significant contribution. Including its
Asset Management subsidiaries, Notenstein managed
assets of around CHF 29 billion at mid-2014.
s t r o n G i n c r e a s e i n i n co m e
Despite the persistently challenging market environ-
ment, gross income was 13 percent higher in the
first six months of the year. This significant increase
stems mainly from higher income from commissions,
services and trading activities. Operating expenses
increased as expected due to the successful integra-
tion of new staff members and investments in systems
and processes in the core Private Banking Switzer-
land and Institutional Asset Management divisions.
While gross profit of around CHF 6 million is in line
with the previous year’s figure, net profit is more than
six times higher, due to divestments of shareholdings
within the Raiffeisen Group. For one, the former
subsidiary 1741 Asset Management Ltd was incor-
porated into the TCMG Asset Management AG
multi-boutique platform.
s ucces s ful l aunch of s tructured pr oduct s
In March 2013, Notenstein began issuing its own
structured products in cooperation with Raiffeisen
and Leonteq. The initiative soon proved to be a
growth driver, and more than one year later the trend
remains clearly positive. The current volume of out-
standing instruments is around CHF 900 million.
In June Notenstein announced the establishment
of Notenstein Finance (Guernsey) Ltd, a fully-owned
subsidiary designed to meet market demand for
withholding-tax-exempt investment products.
lo n G - t e r m G r o w t h s t r at e G y
The strategy launched last year has already set several
positive trends in motion, encouraging Notenstein
to continue implementing its long-term-oriented
growth strategy. The current focus is to strengthen
the bank’s market position, with economies of scale
and efficiency gains to follow at a later period. With
its established brand and growing, profitable busi-
nesses, Notenstein is advancing further towards its
goal of becoming one of the best three private banks
in Switzerland.
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.
Key figures
NoteNsteiN at a glaNce
1.1. – 30.6.2014
in CHF millions
1.1. – 30.6.2013
in CHF millions
1.7. – 31.12.2013
in CHF millions
Performance indicators
Operating income 83 73 75
Operating expenses 77 67 68
Gross profit 6 6 7
Cost income ratio 92.8% 91.2% 90.4%
Own capital
Equity capital 407 341 395
Core capital ratio 13.0% 12.5% 13.8%
Client assets
Assets under management (excluding subsidiaries) 20,757 19,196 19,782
Assets under management (including subsidiaries) 29,003 20,527 28,339
Resources
Staff 682 645 698
Full-time positions 619 572 628
Branches 12 12 12
3
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
4
assets
30.6.2014
in CHF
31.12.2013
in CHF
Change
in CHF
Change
in percent
Liquid assets 276,089,414 359,015,898 –82,926,484 –23.1
Amounts due from money-market instruments 298,566,287 318,931,990 –20,365,703 –6.4
Amounts due from banks 2,413,219,048 2,049,688,900 363,530,148 17.7
Amounts due from customers 203,849,341 129,444,316 74,405,025 57.5
Mortgage loans 407,918,400 387,965,000 19,953,400 5.1
Trading portfolios of securities and precious metals 143,769,971 197,480,697 –53,710,726 –27.2
Financial investments 750,455,374 629,286,113 121,169,260 19.3
Participating interests 116,595,260 104,930,061 11,665,200 11.1
Tangible fixed assets 47,386,202 48,245,566 –859,363 –1.8
Accrued income and prepaid expenses 39,430,159 22,009,975 17,420,184 79.1
Other assets 88,092,869 76,790,405 11,302,464 14.7
Total assets 4,785,372,324 4,323,788,919 461,583,405 10.7
Total amounts due from group companies and holders of qualified participations 1,511,564,404 912,637,321 598,927,083 65.6
liabilities
30.6.2014
in CHF
31.12.2013
in CHF
Change
in CHF
Change
in percent
Liabilities from money-market instruments 94,916,340 83,662,247 11,254,093 13.5
Amounts due to banks 137,329,427 202,476,391 –65,146,963 –32.2
Amounts due to customers in savings or deposit accounts 2,468,953,413 2,490,768,026 –21,814,613 –0.9
Other amounts due to customers 776,981,194 713,297,405 63,683,789 8.9
Bond issues and central mortgage institution loans 781,117,153 338,554,163 442,562,991 130.7
Accrued expenses and deferred income 22,687,817 16,078,072 6,609,745 41.1
Other liabilities 71,457,110 58,664,568 12,792,543 21.8
Value adjustments and provisions 24,621,996 25,154,219 –532,223 –2.1
Reserves for general banking risks 176,000,000 176,000,000 – –
Bank’s capital 22,200,000 22,200,000 – –
share capital 20,000,000 20,000,000 – –
participation capital 2,200,000 2,200,000 – –
General legal reserves 57,198,166 57,198,166 – –
capital contribution reserves 18,260,000 18,260,000 – –
capital contribution reserves (participation capital) 38,938,166 38,938,166 – –
Other reserves 119,040,000 119,040,000 – –
Profit / loss carried forward 4,695,664 3,761,066 934,598 24.8
Profit 28,174,043 16,934,598 11,239,446 66.4
Total liabilities 4,785,372,324 4,323,788,919 461,583,405 10.7
Total amounts due to group companies and holders of qualified participations 7,011,886 12,210,805 –5,198,919 –42.6
Balance sheet
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
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off-balaNce-sheet traNsactioNs
30.6.2014
in CHF
31.12.2013
in CHF
Change
in CHF
Change
in percent
Contingent liabilities 37,164,678 14,740,159 22,424,519 152.1
Irrevocable commitments 25,018,840 21,077,440 3,941,400 18.7
Derivative financial instruments
positive replacement values 64,556,843 50,867,170 13,689,673 26.9
negative replacement values 65,820,354 50,476,329 15,344,025 30.4
contract volumes 531,209,258 578,701,201 –47,491,943 –8.2
Fiduciary transactions 264,364,137 301,988,855 –37,624,718 –12.5
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
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iNcome aNd expeNses from ordiNary baNkiNg operatioNs
1.1. – 30.6.2014
in CHF
1.1. – 30.6.2013
in CHF
Change
in CHF
Change
in percent
Result from interest operations
Interest and discount income 9,741,297 9,836,164 –94,866 –1.0
Interest and dividend income from trading positions 1,566,540 2,298,008 –731,468 –31.8
Interest and dividend income from financial investments 3,744,028 3,608,866 135,162 3.7
Interest expense –766,669 –978,525 211,856 –21.7
Subtotal for interest operations 14,285,196 14,764,513 –479,317 –3.2
Result from commission business and services
Commission income from lending activities 55,929 65,920 –9,992 –15.2
Commission income from securities trading and investment activities 58,616,818 53,529,423 5,087,395 9.5
Commission income from other services 265,472 292,751 –27,279 –9.3
Commission expense –5,142,563 –6,045,207 902,644 –14.9
Subtotal for commission business and services 53,795,656 47,842,888 5,952,768 12.4
Result from trading activities 8,534,548 5,616,616 2,917,932 52.0
Other result from ordinary activities
Result from the disposal of financial investments –971,540 –646,381 –325,159 50.3
Income from participating interests 5,635,924 3,195,524 2,440,400 76.4
Result from real estate 25,936 26,430 –494 –1.9
Other ordinary income 1,620,409 2,408,215 –787,806 –32.7
Other ordinary expenses 25,220 119,110 –93,890 –78.8
Subtotal other result from ordinary activities 6,335,949 5,102,898 1,233,051 24.2
Gross income 82,951,349 73,326,915 9,624,434 13.1
Operating expenses
Personnel expenses –53,521,238 –45,473,312 –8,047,926 17.7
General and administrative expenses –23,436,431 –21,429,141 –2,007,290 9.4
Subtotal operating expenses –76,957,669 –66,902,454 –10,055,216 15.0
Gross profit 5,993,679 6,424,461 –430,782 –6.7
Income statement
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
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profit as at 30.6.2014
1.1. – 30.6.2014
in CHF
1.1. – 30.6.2013
in CHF
Change
in CHF
Change
in percent
Gross profit 5,993,679 6,424,461 –430,782 –6.7
Depreciation and amortisation of fixed assets –1,033,861 –793,767 –240,094 30.2
Value adjustments, provisions and losses –425,358 –328,072 –97,286 29.7
Result before extraordinary items and taxes 4,534,460 5,302,622 –768,161 –14.5
Extraordinary income 25,501,820 n.a. 25,501,820 n.a.
Extraordinary expenses – – – –
Taxes –1,862,237 –1,062,959 –799,278 75.2
Profit as at 30.6.2014 28,174,043 4,239,663 23,934,381 564.5
All stated amounts are rounded, which may lead to minor discrepancies in the total amounts.
B a s e l , 4051
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[email protected], www.notenstein.ch
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Contact
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