Annual Report 2014 Our Results

Annual Report 2014
Our Results
Table of contents
Reports 2014
5
6
7
9
11
13
14
17
Foreword
Key figures
Overview of financial year 2014
Interview with the Executive Committee
Company portrait and organigram
Corporate structure
Expert opinions
Outlook
Annual financial statements
20
21
22
23
24
25
30
39
41
43
Balance sheet as of 31 December 2014
Income statement
Appropriation of profit
Cash flow statement
Information on business activities and personnel
Accounting and valuation principles
Information relating to the balance sheet
Information relating to off-balance-sheet transactions
Information relating to the income statement
Report of the statutory auditor on the financial statements
3
Foreword
Increasingly tightening regulation continues to pose chal-
With bank zweiplus by their side, our partners should sur-
lenges for the entire banking sector. Margin pressure is
mount the heavy pressure for change and meet the chal-
steadily mounting. Consolidation effects in our sector
lenges at the regulatory and political levels, paving the
have already had an impact on providers and jobs. The
way for them to systematically further develop their busi-
economic and political environment is tense – and will re-
ness models and structures.
main as such.
On behalf of the Board of Directors and Executive ComAmid these overall conditions, bank zweiplus succeeded
mittee, we would like to thank our partners for the
in realizing favorable results in the past financial year,
trust they have placed in our Bank. At the same time,
demonstrating that it has the capability to adapt to the
we also extend our appreciation to our employees for
fluctuating market effects. Following the achievement of
their commitment, together with which we achieve our
forming partnerships with Zurich Insurance Company Ltd.,
objectives.
Die Mobiliar and Skandia in the previous year, the financial year 2014 was marked by consolidation and focus on
our clients.
We perceive ourselves as an outsourcing partner, with the
capability to assume a central service efficiently and at
fair prices. Our capacity potential and flexibility enable
us to provide individual solutions. At the same time, as a
forward-looking organization, we track the developments
in our markets, strive to promptly anticipate the trends
and swiftly offer our partners target-specific solutions to
meet future challenges.
Thomas A. Müller
Markus Aisslinger
Chairman of the Board
Chief Executive Officer
of Directors
5
Key figures
9.9 million gross profit
120 000 clients
250 institutional business partners
CHF 4.5 billion assets under management
80.5 % cost-income ratio
10.5 % return on equity
24.37% core capital ratio
CHF 47million operating income
CHF 37.1 million operating expenses
112.9 employees
CHF
(tier 1 ratio)
(full-time equivalents)
6
Overview of financial year 2014
April
For the financial year 2013, bank zweiplus
reports a substantial surge in net profit and
a boost in client assets under management.
The strategic preparatory activities of the
previous years are bearing fruit. The Bank
continues to foster considerable confidence
and operating security, with the focus on existing business partners.
First quarter
October
Roughly 200 Swiss and German distribution partners accept bank zweiplus’s invitation to the fifth annual Investment Forum
in Zurich. The event is titled «The client in
2020 – should the financial sector reinvent
itself?»
Second quarter
Third quarter
May
bank zweiplus offers its partners the Pillar 3a
pension product on the Avaloq platform for
their clients. The specialists at Bank J. Safra
Sarasin Ltd. focus on the foundation management, while the distribution is organized via
bank zweiplus’s independent financial service providers.
«We don’t have to literally keep our ears to
the ground to know that political pundits are
preparing to first discredit domestic assets
as well, subsequently placing them under a
magnifying glass. They will insist on having
the same information disclosure rights as the
German or French tax investigators. Switzerland, a country with only money subject to
taxation, is not a hallucination, but rather a
forthcoming intention. The time is fast approaching when only ‹white money› will be
managed in Switzerland even by the Swiss»,
writes Roland Gassmann, Head of Intermediaries, in his column in profi plus – bank
zweiplus’s magazine for Swiss financial service providers.
Guest speakers Jens Korte, business correspondent, and Erwin Heri, Professor at the
University of Basel and founder of fintool.ch,
provided precise forecasts and striking outlooks. The two lecturers revealed interesting
paths into the future. The subsequent panel
discussion round, moderated by Reto Lipp,
actively further addressed various topics and
theories – with numerous interventions from
the audience as well.
Fourth quarter
November
The Investment Depot ++ Securities paves
the way for simple and transparent settlement of structured products. Financial service providers together with their clients can
purchase the structured products via an arbitrary issuer or through partner Leonteq Pension Solutions.
With «New Generation», bank zweiplus develops a model for its partners that paves the
way for client-specific, individual and transparent execution of the statutory requirements regarding retrocessions and, at the
same time, compensation for loss of earnings. «New Generation» provides financial
service providers with the opportunity to
carry out the automatic reimbursement of
retrocessions on an individual client basis.
End-clients are able to transparently recognize the amount of retrocessions per investment fund credited to their private account,
based on the reimbursements.
bank zweiplus updates the systems tailored
to its partners’ needs on an ongoing basis.
The most state-of-the-art Avaloq Release
3.9 available is implemented in the core
banking software as a pilot project. At the
same time, the data exchange offering with
partners is expanded as well.
7
«We have succeeded in prevailing amid
a challenging environment.»
How do you personally assess the financial year 2014
bank zweiplus has developed the «New Generation»
and bank zweiplus’s results?
compensation model, enabling transparent handling
Markus Aisslinger: The solid results are proof that we
of retrocessions. How does «New Generation» func-
have succeeded in prevailing amid a challenging environ-
tion?
ment. However, the decline in net interest income also
Markus Aisslinger: With «New Generation», financial ser-
demonstrates the challenges regarding the active and
vice providers obtain the opportunity to offer automatic
passive interest business, which have recently accentu-
credit of retrocessions on an individual client basis: i.e. cli-
ated further.
ents receive the entire retrocessions. «New Generation»
Fabian Zeier: The positive feedback on the part of our
is an offer that paves the way for individual structuring
partners confirms that we were able to further solidify
according to the entitlements and needs of clients, guar-
our position as a reliable bank partner for financial ser-
antees a stable fee system and fulfills all the demands for
vice providers.
transparency.
Roland Gassmann: The new model enables SME-financial
The environment is becoming increasingly more adverse
service providers to gradually convert to a service or ad-
for banks and particularly for their partners, independ-
visory fee system. In the past, clients regarded the advi-
ent asset managers and financial service providers as
sory services as free of charge since the retrocessions as
well, with regulations posing burdens. What trends do
source of revenues for clients were not transparent.
you expect to see?
Roland Gassmann: SME-financial service providers are
bank zweiplus boasts a high level of operating efficiency
monitoring the regulatory developments with suspicion,
in the so-called banking back office. Which partners
especially with regard to the Federal Financial Services
can benefit from this?
Act (FinSA) and Financial Institutions Act (FinIA). Expecta-
Fabian Zeier: We still see further potential for profes-
tions point to sharply surging costs in the client advisory
sional financial service providers, asset managers and in-
area. It will become increasingly more difficult for SME-fi-
surers and possibly smaller banks that are aiming to focus
nancial service providers and banks to afford retail clients.
on client advisory services and seeking an ideal partner
The question still remains: Where will this client segment
for transaction execution functions.
obtain advisory services?
To what extent is bank zweiplus’s core banking software
Can bank zweiplus provide support?
tailored to individual partners’ needs?
Markus Aisslinger: The numerous developments in the
Fabian Zeier: As a transaction execution bank, we update
area of tax transparency, provision of cross-border ser-
the system tailored to the needs of our partners on an
vices and new regulations regarding client advisory ser-
ongoing basis. Hence, we are in a position with our funds
vices and documentation necessitate relevant adjust-
platform, for example, to provide all the possible varia-
ments. At the same time, our partners are reaping rewards
tions for our partners and their clients. In addition to the
from synergies resulting from the solutions developed by
individual fund selection from more than 2 000 funds, we
bank zweiplus. Furthermore, bank zweiplus can rely on
also manage over 100 different defined strategies.
the know-how of its parent company.
The Executive Committee of bank zweiplus:
Fabian Zeier, COO / Head of Banking Services,
Markus Aisslinger, CEO, Roland Gassmann,
Head of Intermediaries (from left to right).
9
On which services and additional support for your partners do you place special emphasis?
Fabian Zeier: Reliability, cost and process efficiency …
Roland Gassmann: … high-quality services, in addition to
interesting products and services such as data interfaces
for our business partners. Generally speaking, we place
emphasis on solutions-oriented support with a high level
of continuity.
Efficiency as a services feature from bank zweiplus: How
do you measure process efficiency?
Fabian Zeier: We have defined a set of so-called key performance indicators (KPIs), with which we measure the
achievement of and adherence to fixed targets.
With what regularity do you assess the KPIs?
Fabian Zeier: Various evaluations are carried out on a
daily basis, and the review of all KPIs is normally conducted monthly. Individual time-series analyses enable
substantiated assertions regarding developing trends
only over a longer period of time, for example, on a semiannual basis.
What is your focal point particularly directed at internally in 2015?
Markus Aisslinger: Our joint venture «cash – banking by
bank zweiplus» as well as our offering for financial service providers in Switzerland and Germany have exhibited
rising volumes in recent months. We will do everything we
can to maintain and continue to positively develop this
trend.
10
Board of Directors and Executive Committee
Chairman of the Board of Directors
Thomas A. Müller, Bank J. Safra Sarasin Ltd.
Members of the Board of Directors
Tobias Unger, Falcon Private Bank Ltd., Vice-Chairman
Mary Antenen, Falcon Private Bank Ltd. (until 31.12.2014)
Dr. Urs Zgraggen, Falcon Private Bank Ltd. (since 01.01.2015)
Salomon Sebban, Bank J. Safra Sarasin AG
Dr. Cédric Chapuis, Bär & Karrer AG, Attorney at Law
Internal Audit
Chief Executive Officer of bank zweiplus ltd
Markus Aisslinger
Intermediaries
Banking Services
cash zweiplus ltd
Roland Gassmann
Fabian Zeier
Urban Scherrer, Marcel Gamper
Banking / Client Advisory
Finance
Account & Service Management
Business Support
Human Resources
Business & Product Management
Central File
Legal & Compliance & OP Risk
Sales Germany
IT & Business Engineering
Marketing & Communications
Service Line
Operations Services
Services / Reception
Executive Directors
Directors
Pascal Agustoni, Head of Legal, Compliance & Operational Risk
Andreas Ackermann, Team Leader Application Management
Georges Bingert, COO Intermediaries
Roland Donder, Head of Sales Germany
Patrick Giger, Head of Finance
Marc Heinzmann, Team Leader Business Projects
François Seuret, Head of IT & Business Engineering
Markus Hiltebrand, Team Leader Legal & Operational Risk
Oliver Honigmann, Sales Manager Germany
Susanne Huber, Head of Human Resources
Michael Mosimann, Team Leader International Clients
Danka Nikic, Head of Operations Services
Fabio Nuzzo, Team Leader Client Services Switzerland
Cordelia Schütte, Head of Service Line
Magnus Seeck, Team Leader Banking Line
Jacqueline Sprenger, Head of Marketing & Communications
Andreas Willimann, Head of Business & Product Management
bank zweiplus ltd, with its registered office in Zurich, is the
bank zweiplus is able to flexibly surmount highly complex
leading independent financial product and transaction ex-
challenges. Furthermore, the Bank boasts vast know-how
ecution platform for financial service providers. The Bank
and an acknowledged wealth of experience regarding its
offers a solution-focused and modular range of services
partners’ core business.
oriented to the needs of qualified financial service providers, asset managers and insurance companies.
As of end-2014, bank zweiplus held client assets under
Thanks to the expertise of its team of specialists, coupled
staff of 112.9 persons (full-time equivalents). bank zweiplus
with versatile infrastructure, bank zweiplus is positioned
was founded on 1 July 2008 and is a joint enterprise of
to provide proven high-quality services focused on the
Bank J. Safra Sarasin Ltd, Basel (57.5 % stake) and Falcon
demands of its partners. As a transaction-oriented bank,
Private Bank Ltd., Zurich (42.5 % stake).
management amounting to CHF 4.5 billion and employed a
11
With a streamlined, target-oriented structure
bank zweiplus’s organization is streamlined and divided into three divisions,
each managed by a member of the Executive Committee who bears the responsibility for the respective business.
The CEO & Corporate Center division comprises the central and, at the same
time, support areas of Finance, Commissioning, Credits, Legal, Compliance & Operational Risk, Services, Marketing & Communications, Documentation Management and Human Resources. Here, decisions are made and executed regarding
financial, legal, communications and personnel-strategic matters. The division
also compiles group reporting and supervisory reporting to the Swiss Financial Market Supervisory Authority (FINMA) as well as the Swiss National Bank
(SNB).
The Intermediaries division is responsible for the Account & Service Management activities in Switzerland and Germany, providing assistance, support and
training to partners. The Service Line supplies information via telephone to
partners and financial service providers’ clients. This division also develops
product and services innovations, optimizes and controls the distribution processes as well as monitors the market and trends.
The Banking Services division is responsible for providing the operating and
qualitative services for internal and external partners, which comprise setting
up and managing client master data as well as executing the transaction settlement process with regard to investing, saving, pension and paying. In addition, the division carries out complex mass-processing services and executes
systematic controlling and reporting. Banking Services is also responsible for
the operation and continuous expansion of IT activities and provides information security instructions.
13
How professionals in the financial sector meet today’s challenges
«Client-retaining and confidence-building measures, the advantages of independence,
expert know-how and a fair fee model clear a path for a win-win situation for clients and
financial intermediaries. In this way, companies can gain additional market share in an
advisory-intensive business environment in the future as well.»
Patrick Liebi, Owner, Patrick Liebi & Partner, Wettingen
«The responsibility of financial service providers is greater
than ever. The complexity and volatility of the markets is
steadily growing, and it is becoming increasingly more difficult
for our clients to find attractive and – at the same time – safe
investment and pension solutions. Amid these challenging
times, our duty is to provide our clients with competent,
comprehensive and transparent advisory services.»
Thomas Gerber, Head of Life Insurance,
Member of Management, AXA Winterthur
«Each acquisition of a product or service that is subject to
analysis of the respective capabilities and strengths is
outsourcing. The emerging room for maneuver conserves our
own resources, creates space for creativity and paves the
way for streamlined structures and focus on in-house core
competencies. Clients reap benefits from the targetspecific mix of expertise and synergies.»
Mario Huber, Co-Founder and Executive Partner,
Financial Advisory Firm Huber & Bruderer AG, Zurich
«Regulations and regulatory intentions – national and international – are increasingly growing. However,
regulations themselves are often not really the problem, but rather their implementation by supervisory authorities.
Particularly in Switzerland, legislators are exhibiting a kind of anticipatory obedience (Swiss finish) as measured
by international requirements – a regulatory climate that will continue to tighten with additional regulations imposed
by supervisory bodies. For SME-financial service providers as well as for their clients, this results in administrative
expenses that can hardly be surmounted any longer. How can we improve this situation?»
Willy Graf, Owner, VVK Vorsorge- und Vermögenskonzepte AG, Teufen
14
«The risk of massive and needless over-regulation looms. Smaller companies
are particularly affected in this regard, which especially suffer severely from the
additional internal and external costs of regulation. A significant share of
these additional expenses and costs is fixed and therefore quantitatively critical.
Those affected the most extensively have the least to do with the undesirable
developments within the sector.»
Markus Glauser, Partner, Glauser+Partner Vorsorge AG, Berne
«Both worlds will continue to endure. From the clients’ perspective, an all-rounder that functions as gate
keeper and garners additional expertise on a case-to-case basis is valuable. A central contact person can handle
and execute clients’ requests comprehensively. From the producers’ perspective, business models should be
optimized and settlements executed online or delegated to clients. Their focus is mostly directed at cost-savings
through concentration on profitable business units such as pure online banking without branch networks.
I see potential here for the all-rounder that can provide the «right» business model and pass its advantages
on to the clients.»
Rolf Schnyder, Management, Schnyder & Nagel GmbH, Gossau
«Our cooperative foundation compels us toward taking
sustainable and responsible actions. Only satisfied clients
will continue to recommend us. And we acquire an
additional 40 000 new clients per year.»
Michèle Bergkvist-Rodoni, Member of Management,
Swiss Mobiliar Insurance Company AG., Berne
«Financial clients are becoming increasingly more
self-determined and cost-conscious. They want to decide
about their financial needs themselves, which leads to
simplification and cost-efficient offerings that combine
traditional services with state-of-the-art technology.
An optimal price-performance ratio is mandatory for such
offerings.»
Marcel Gamper, Chief Customer Officer,
Deputy CEO, cash zweiplus ltd, Zurich
«Swiss financial service providers have gradually lost bank-client confidentiality
and therefore also relinquished key locational and competitive advantages amid a tough
battle for allocation. ‹Swiss banking› remains a qualitative term worldwide. However,
this Swiss banking must be increasingly underpinned by services, performance
and innovative strength. Only then can it succeed in maintaining its competitive edge.»
Hans-Jürgen Bretzke, Board of Directors’ Member, FondsKonzept AG, Germany
15
Combining traditional values with
modern technology
Much has happened in just a short time. The financial ser-
Today’s clients are increasingly pushing for such an ex-
vices market today is no longer the same as it was a few
change. For modern clients have opinions, attitudes and
years ago, and it will continue to change under the ef-
ideas. More and more they are insisting on dialogue and
fects of financial and political instability. In this context,
added value. We are living in an age of Internet services
two developments constitute the central drivers: further
and social media, of blogs and online forums, of virtual
political intervention in the form of regulations as well as
networking, easy opportunities for comparison and swift
increasing digitalization.
recommendations. The growing digitalization is leading to
new financial products and services, in addition to new
The financial sector generally ranks among the most reg-
business models.
ulated industries overall. Moreover, the number of regulations will continue to increase, particularly in areas such
At the same time, digitalization supports and simplifies
as transparency and controlling. With all the regulations,
the permanent dialogue with clients. However, digitali-
financial service providers are incurring significant ad-
zation cannot replace the personal exchange. While digi-
ditional expenses on financial and human resources, as
talization can accelerate the flow of information and cir-
well as eroding key revenues. For instance, retrocessions
culation of knowledge, inspiration and innovation still
have become practically a waste. In fact, retrocessions
continue to emerge from personal dialogue to a very sig-
in the asset management business belong to the clients
nificant extent. Against this backdrop, financial service
and must be reported on a detailed and transparent basis.
providers and their clients can then meet on a level play-
The «New Generation» compensation model from bank
ing field as well.
zweiplus is a legally compliant and trail-blazing solution
that paves the way for individual structuring according to
the entitlements and needs of clients, guarantees a stable
fee system and fulfills all the demands for transparency.
At the same time, a service fee charged to the client is introduced that clears a path for distribution partners to recoup losses in profitability. This service fee is defined as
compensation for services rendered by financial service
providers, such as advising, tracking and selecting investment funds.
Financial service providers are facing their clients on a
level playing field with «New Generation». Indeed, they
are no longer providing any services that previously were
commonly assessed as «free». Advisory services are
therefore ascribed the value they deserve. This requires
self-determination and a sense of responsibility on the
part of clients, as well as the mutual exchange between
clients and financial service providers.
17
Financial statements
19
Balance sheet as of 31 December
in CHF 1 000
Notes
2014
2013
217 793
9 467
Assets
Cash and cash equivalents
Due from banks
1
224 235
758 496
Due from customers
2
13 801
16 963
Mortgages
2
88 730
96 437
Trading portfolio of securities and precious metals
3.1
1 486
673
Financial investments
3.2
31 921
57 700
3.3 / 4
500
3 398
5
4 164
4 427
Participations
Tangible fixed assets
Accrued income and prepaid expenses
Other assets
6
Total assets
Total subordinated claims
Total due from group companies and holders of qualified participations
7 286
9 950
2 819
2 498
592 735
960 009
—
3 100
224 652
162 808
Liabilities and equity
3 302
169 371
Due to customers in savings and investment form
Due to banks
251 693
468 821
Other amounts due to customers
263 787
245 167
10 096
12 585
9 086
8 504
Accrued expenses and deferred income
Other liabilities
Value adjustments and provisions
6
9
2 521
2 454
Share capital
10
35 000
35 000
General legal reserve
11
2 200
1 600
Other reserves
11
5 300
5 300
Profit carried forward
11
6 607
5 188
Profit for the year
11
3 143
6 019
592 735
960 009
—
—
6 552
173 728
2013
Total liabilities
Total subordinated liabilities
Total due to group companies and holders of qualified participations
Off-balance sheet transactions as of 31 December
in CHF 1 000
Notes
2014
Contingent liabilities
2 / 16
157
157
Irrevocable commitments
2 / 17
5 330
6 054
– Positive replacement values
2 572
1 499
– Negative replacement values
2 571
1 497
22 729
54 651
—
270
Derivative financial instruments
18
– Contract volumes
Fiduciary transactions
20
19
Income statement
in CHF 1 000
Income and expenses from ordinary banking operations
Notes
2014
2013
4 933
8 563
Net interest income
Interest and discount income
Interest and dividend income from financial investments
547
833
Interest expenses
2 653
4 045
Subtotal net interest income
2 827
5 351
Commission and services income
Commission income on lending activities
2
2
30 607
31 043
Commission income on other services
9 022
9 635
Commission expenses
4 892
4 296
34 739
36 384
8 974
8 594
49
53
Commission income on securities and investment transactions
Subtotal commissions and services income
Trading income
21
Other ordinary income
Real estate income
Ordinary income from other sources
447
808
Subtotal other ordinary income
496
861
19 829
Operating expenses
Personnel expenses
22
18 102
General administrative expenses
23
19 008
19 966
37 110
39 795
9 926
11 395
9 926
11 395
1 492
1 655
Subtotal operating expenses
Gross profit
Profit for the year
Gross profit
Depreciation and amortization of fixed assets
5
Value adjustments, provisions and losses
4 480
2 024
Profit before taxes
3 954
7 716
130
23
Extraordinary income
25
Taxes
24
Profit for the year
941
1 720
3 143
6 019
21
Appropriation of profit
in CHF 1 000
Profit for the year
2014
2013
3 143
6 019
Profit carried forward
6 607
5 188
Balance sheet profit
9 750
11 207
Appropriation of profit
Allocation to general legal reserve
Dividend
Profit carried forward to new account
22
– 200
– 600
—
– 4 000
9 550
6 607
Cash flow statement
in CHF 1 000
2014
2013
Cash flow
source
Cash flow
appropriation
Cash flow
source
Cash flow
appropriation
Cash flow from operating activities (internal financing)
Profit for the year
3 143
—
6 019
—
Depreciation and amortization of fixed assets
1 492
—
1 655
—
Value adjustments and provisions
3 667
—
1 944
—
Accrued income and prepaid expenses
2 664
—
470
—
—
2 489
—
369
Accrued expenses and deferred income
Dividend previous year
Balance
—
4 000
—
—
10 966
6 489
10 088
369
2 898
—
—
—
465
Cash flow from investing activities
Investments
Software
—
80
—
Other intangible assets
—
1 149
—
—
2 898
1 229
—
465
Balance
Cash flow from banking activities
Medium- and long-term activities (> 1 year)
7 313
22 286
8 477
5 984
Due to customers
—
2 286
—
3 627
Due from banks
—
20 000
7 241
—
Due from customers
—
—
191
—
6 708
—
—
2 357
605
—
1 045
—
581 016
363 863
29 757
45 575
—
166 069
—
6 222
Mortgages
Financial investments
Short-term activities (< 1 year)
Due to banks
Due to customers
Due from banks
Due from customers
Mortgages
Financial investments
Other assets
Other liabilities
—
196 222
26 824
—
554 261
—
—
31 017
—
438
1 083
—
999
—
—
5 272
25 174
—
—
—
—
321
1 578
—
582
—
—
3 064
Trading portfolio of securities and precious metals
—
813
272
—
Cash and equivalents
—
208 326
4 071
—
Cash at end of period
—
208 326
4 071
—
602 193
602 193
52 393
52 393
Balance
23
Information on business activities and personnel
General
Commission and services business
bank zweiplus with its registered office in Zurich is an
The commission and services business is bank zweiplus’s
independent product and transaction platform offering
core operating activity. bank zweiplus is distinguished as
tailor-made financial solutions to qualified financial ser-
a bank for investors in the lower-to-mid-net-worth seg-
vice providers, asset managers and insurance companies.
ment, offering customized financial solutions to its own
As of end-2014, bank zweiplus held customer assets of
customers as well as those of certified financial service
CHF 4.5 billion. bank zweiplus was founded on 1 July 2008
providers.
and is a joint enterprise of Bank J. Safra Sarasin Ltd, Basel
(57.5 %) and Falcon Private Bank Ltd., Zurich (42.5 %).
Outsourcing of business activities
The Bank’s headcount was 112.9 employees as of end-
bank zweiplus outsources a significant share of its settle-
2014, adjusted for part-time staff (previous year: 123.75
ment processes in middle- and back-office operations to
employees). Many of bank zweiplus’s transaction pro-
Bank J. Safra Sarasin Ltd in Basel, particularly regarding
cesses are outsourced to the majority shareholder Bank
IT infrastructure with the core banking application Avaloq,
J. Safra Sarasin Ltd in Basel.
securities management, payment transactions, finance
The commission and services business is the core operat-
and accounting as well as risk management. The Bank has
ing activity and also the primary source of revenue, ac-
also outsourced its mortgage processing to Hypotheken
counting for roughly 74 % of ordinary income. Trading and
Services AG in Zurich, while the internal post and trans-
the interest business contribute around 19 % and 6 % re-
port services and scanning of physical documents have
spectively to ordinary income. The core operating activi-
been outsourced to Swiss Post Solutions Ltd in Zurich.
ties of the individual business units are characterized as
These outsourcing activities are specifically regulated
follows:
through service level agreements in accordance with
the provisions of the Swiss Financial Market Supervisory
Lending business
Authority (FINMA). Since all employees of the service
bank zweiplus currently operates the lending business as
providers are also subject to Swiss banking secrecy law,
a supplement to the commission and services business.
confidentiality of the data is of course ensured.
Loans to customers are secured by either marketable securities or on a mortgage basis. By way of exception, unsecured loans can be granted after a special investigation
into the background and affordability. In the business
with financial service providers, a proportion of the still
outstanding, contractually stipulated set-up fees are not
secured by readily realizable assets. Loans to public-sector entities as well as purely commercial corporate loans
are not part of the core business activities.
Trading
bank zweiplus focuses its securities and foreign exchange
trading almost exclusively on the customer business.
24
Accounting and valuation principles
General principles
Cash and cash equivalents, receivables from money
The accounting and valuation principles applied by bank
market instruments, receivables from banks, deposits
zweiplus comply with the provisions of the Swiss Code of
These items are recognized in the balance sheet at nomi-
Obligations, the Swiss Federal Law on Banks and Savings
nal value or historical cost less itemized valuation allow-
Banks, the statutory regulations as well as the guidelines
ances for bad debts. Unrealized gains on money market
of the Swiss Financial Market Supervisory Authority
instruments and the balance from issuing costs, premiums
(FINMA Circular 08/2 Accounting – Banks). The annual fi-
and discounts on own-account loans are accrued over the
nancial statements comprise the balance sheet, income
term in the relevant balance sheet item.
statement, cash flow statement and notes to the financial
statements. The annual financial statements are prepared
Loans (receivables from customers and mortgage
in compliance with the «substance over form» principle,
receivables)
according to which the substance of an economic phe-
These items are recognized in the balance sheet at nomi-
nomenon is represented rather than solely its legal form.
nal value. Value adjustments are made for recognizable
risks in accordance with the principle of prudence. Im-
Posting and recognition of business transactions
paired and non-performing loans, including outstand-
Business transactions are recognized according to the
ing off-balance sheet transactions (such as firm commit-
closing date principle and are measured from this date for
ments, guarantees, derivative financial instruments) are
the purpose of calculating the profit.
valued item-by-item, with impairment accounted for by
Foreign exchange transactions, money market transac-
itemized valuation allowances for bad debts. Loans are
tions, credit transactions, purchases of newly issued se-
assessed as non-performing no later than the date on
curities and payments are recognized according to the
which the contractually stipulated payments for capital,
settlement date accounting principle. This means that
commission and/or interest are overdue, in whole or in
these particular business transactions are posted as off-
part, for more than 90 days. Past due interest and inter-
balance sheet items between the reporting and settle-
est where collection is doubtful are no longer recognized
ment dates and are not recognized in the balance sheet
as income but are charged directly to «Value adjustments
until the actual settlement date.
and provisions». Loans are recognized as non-interest
bearing where collection of the interest is doubtful and
Foreign currencies
accrual is no longer considered sensible.
Transactions in foreign currency are recognized at the rele-
Impairment is calculated as the difference between the
vant daily exchange rates. All balance sheet items in foreign
carrying amount of the doubtful receivable and the esti-
currency are translated into Swiss francs at the relevant
mated collectible amount, taking into account the coun-
daily exchange rates on the relevant reporting date. Any
terparty risk and estimated net proceeds from the liquida-
resulting translation gains or losses are recognized as
tion of collateral. If the liquidation process is expected to
trading income. The following exchange rates were used
take longer than one year, the estimated proceeds from
for foreign currency translation:
liquidation are discounted as of the reporting date.
In addition to itemized valuation allowances for bad debts,
31.12.2014
31.12.2013
Euro (EUR)
1,2024
1,2255
US dollar (USD)
0,9937
0,8894
a provision for doubtful accounts is also raised if required
to cover any experience-based and expected latent risks
that cannot be measured individually.
Itemized valuation allowances for bad debts are reversed
General valuation principles
once the outstanding amounts for capital, commission
The individual positions included in a balance sheet
and interest are paid before the due dates again in ac-
item are measured on an individual basis (item-by-item
cordance with the contractually stipulated agreements
valuation).
and the creditworthiness criteria are fulfilled once again.
25
Accounting and valuation principles
Trading portfolio of securities and precious metals
Participations
Securities and precious metals held for trading are meas-
Participations are recognized at historical cost less accu-
ured and recognized at fair value.
mulated depreciation. Depreciation is considered neces-
The fair value is usually the price for which a security is
sary if the intrinsic value falls below the historical cost.
traded or offered on a recognized stock exchange or representative market on the reporting date. If, by way of
Tangible assets
exception, no reliable fair value is available, securities are
Investments in new tangible assets are capitalized and
measured in accordance with the lowest cost principle
measured in accordance with the historical cost conven-
(lower of cost or net realizable value).
tion if they are used over more than one accounting pe-
Valuation gains and losses as well as realized gains and
riod and exceed the defined capitalization limits. Invest-
losses are recognized as trading income.
ments in existing tangible fixed assets are capitalized if
the market value or value in use is sustainably increased
Financial investments
or the useful life is significantly extended. However, low-
Fixed-income debt securities and convertible and option
value acquisitions as well as renovation and maintenance
bonds are classified to two categories upon acquisition
costs that do not add value are charged directly to mate-
and measured as follows:
rial expenses.
– No intention to hold to maturity: These are measured
After initial recognition, tangible assets are recognized in
according to the lower of cost or net realizable value.
the balance sheet at historical cost less accumulated de-
Value adjustments are recognized on the starting bal-
preciation. Depreciation is charged on a straight-line ba-
ance through other ordinary expenses or other ordinary
sis over the carefully estimated useful life of the tangible
income. The value is written up to the historical cost at
asset. Tangible assets are tested for impairment on every
most if the market value which had dropped below his-
reporting date. If this impairment test results in any
torical cost subsequently rises again.
change in useful life or impairment of tangible assets, the
– With the intention to hold to maturity: These are meas-
residual carrying amount is depreciated over the remain-
ured in accordance with the historical cost convention,
ing useful life or the value of the asset is written down.
with the accrual method applied to any premium or dis-
Depreciation and writedowns are charged to the income
count over the term to maturity. The premium or discount
statement. If a writedown is no longer justified, the value
included in the balance sheet item is accrued over the
is written up again. The estimated useful life for the indi-
term to final maturity. Realized gains or losses from an
vidual categories of tangible assets is:
early sale or redemption are accrued over the residual
term to maturity.
Term of lease
or maximum
10 years
Equity securities are measured at the lower of cost or net
Fixed assets in leased properties
realizable value. The value is written up to the historical
Furniture
5 years
cost at most if the market value which had dropped below
Other tangible assets
5 years
historical cost subsequently rises again.
Information technology and communications
equipment (hardware)
3 years
Software
3 years
Real estate acquired through the credit business and held
for sale is also measured according to the lower of cost
or net realizable value, with the value determined as the
Realized gains and losses from the sale of tangible fixed
lower of historical cost or liquidation value.
assets are recognized as extraordinary income or expenses.
26
Intangible assets
Pension liabilities
Goodwill
The employees of bank zweiplus are affiliated with the
If the acquisition cost for a company exceeds the net
Pension Fund of Bank Sarasin & Co. Ltd. bank zweiplus
assets acquired, the remaining amount is capitalized as
bears the pro rata costs of the employee benefits insur-
goodwill. Goodwill is generally amortized on a straight-
ance in accordance with the pension regulations. The or-
line basis over five years. Goodwill is tested for impair-
ganizational structure, funding and management of the
ment annually. If the impairment test results in any
Pension Fund are governed by the statutory provisions,
change in useful life or impairment, the residual carrying
the deed of foundation and the applicable pension regula-
amount is depreciated over the remaining useful life or
tions. bank zweiplus charges the employer contributions
the value of the goodwill is written down.
to personnel expenses.
In accordance with FINMA Circular 08/2 Accounting –
Other intangible assets
Banks, bank zweiplus does not capitalize any economic
(licenses, acquired customer lists)
benefits from pension plans. An economic obligation,
Acquired intangible assets are capitalized if they bring
however, is capitalized as a liability if the conditions for
measurable benefits to the Bank over a period of several
raising a provision have been met.
years. Internally produced intangible assets are not recognized in the balance sheet. Intangible assets are recog-
Value adjustments and provisions
nized in the balance sheet at historical cost and are am-
Based on the principle of prudence, itemized valuation
ortized on a straight-line basis over their useful life, as
allowances and provisions are raised for all identifiable
follows:
risks of loss. Value adjustments and provisions that are
no longer needed are reversed in the income statement
Licenses and brands
5 years
Acquired client assets
5 years
through extraordinary income.
Taxes (income and capital taxes)
Other intangible assets are tested for impairment annu-
Annual income tax on the net profit for the period in ques-
ally. If the impairment test results in any change in useful
tion is calculated in accordance with the local tax provi-
life or impairment of other intangible assets, the residual
sions on the determination of profits and recognized as
carrying amount is depreciated or written down.
an expense for the accounting period in which the profit
was earned. Direct tax owed on the current profit and
capital as of the reporting date is posted as an accrued
expense. If the total advances paid exceed the amount
due, the surplus is reported in accrued income and prepaid expenses.
Contingent liabilities, irrevocable commitments and
payment obligations
These are reported at nominal value in the off-balance
sheet. Provisions are raised for identifiable risks.
27
Accounting and valuation principles
Derivative financial instruments
Risk management
Trading transactions
The risk policy of bank zweiplus is documented in writ-
Positive and negative replacement costs from derivative
ing and is reviewed and approved by the Board of Direc-
financial instruments are measured at fair value and rec-
tors on an annual basis. The risk policy forms the basis of
ognized in the balance sheet as other assets or other li-
risk management by bank zweiplus. Limits are defined for
abilities. Fair value is based on market prices. Where no
all relevant risk types and compliance with these limits
market prices are available, the fair value is determined
is monitored on an ongoing basis. The Board of Directors
with discounted cash flow or option price models. Posi-
periodically carries out a thorough risk assessment and
tive and negative replacement costs are generally not set
initiates all measures required to ensure that the risk of
off. Traded options and warrants bought for customers on
any material misstatements in the financial statements
commission are neither recognized in the balance sheet
is minimal.
nor disclosed in the notes to the financial statements.
Realized and unrealized gains from trading transactions
Default and country risks
are recognized as trading income.
Default risk is defined as the potential for loss incurred by
the Bank resulting from the insolvency of a counterparty.
Hedging transactions
Loans to customers are preferably granted as part of the
The measurement of hedging transactions is based on
securities and asset management business. These loans
the underlying transaction. The hedging gain is allocated
are secured by either marketable securities or on a mort-
to the same income item as the gain on the underlying
gage basis.
transaction. Unrealized gains and losses on such transac-
bank zweiplus’s interbank, trading and derivatives trans-
tions are recognized in the compensation account. Real-
actions are executed with first-class institutions, in par-
ized gains from the early termination of hedging trans-
ticular the shareholder banks and the Rabobank Group.
actions are accrued over the term of the underlying
transaction. The Bank documents the hedge accounting
Market risks
and hedge objectives and strategies upon conclusion of
Market risk is defined as the risk for loss by the Bank due
the derivative hedging transaction. The effectiveness of
to changes in market variables (e.g. share prices, interest
hedge accounting is tested periodically. The ineffective
rates and exchange rates). The Bank does not engage in
component of hedging transactions for which a hedge is
any own-account trading. Risks related to changes in in-
no longer fully or partially effective is classified as a trad-
terest rates derived from balance sheet and off-balance
ing transaction.
sheet activities are monitored and managed centrally.
At the same time bank zweiplus strives for a congruent
maturity structure in lending and deposit operations. The
Bank also has only modest foreign exchange exposure in
order to meet the needs of customers.
Liquidity risks
Liquidity risk is the risk that the Bank is unable to guarantee that it can fulfill its assumed obligations at all times.
Liquidity risks are monitored and managed in accordance
with the provisions of banking law.
28
Operational risks
Operational risk refers to the risk of loss occurring as a consequence of the inadequacy or failure of internal procedures, people or systems or as a consequence of external
events. This definition covers all legal risks, including
fines levied by supervisory authorities and settlements.
The fundamental process of monitoring operational risk
is guided by directives, specific training given to the employees and level-appropriate reporting.
Compliance and legal risks
bank zweiplus has its own legal department, which ensures that the Bank’s business activities adhere to the
relevant regulatory provisions and due diligence obligations of a financial intermediary. The legal department
also ensures that the regulations and directives of bank
zweiplus are adapted to and comply with regulatory developments.
Changes in accounting and valuation principles
None.
29
Information relating to the balance sheet
in CHF 1 000
Note 1 – Due from banks
31.12.2014
31.12.2013
174 298
682 249
—
595 000
Due from banks, sight deposits
– of which due from Rabobank Group 1
Due from banks, time deposits
Total due from banks
1
49 937
76 247
224 235
758 496
These receivables are fully secured.
Note 2 – Overview of collateral for loans and off-balance sheet transactions
Mortgages
Other
collateral
Unsecured
Total
Loans
Due from customers 1
—
13 774
27
13 801
Mortgages
88 730
—
—
88 730
– Residential properties
85 565
—
—
85 565
3 165
—
—
3 165
Total loans as of 31.12.2014
– Office and commercial properties
88 730
13 774
27
102 531
Total loans as of 31.12.2013
96 437
13 824
3 139
113 400
Contingent liabilities
—
157
—
157
Off-balance sheet
1
Irrevocable commitments
—
5 330
—
5 330
Total off-balance sheet transactions as of 31.12.2014
—
5 487
—
5 487
Total off-balance sheet transactions as of 31.12.2013
—
5 711
500
6 211
Gross debt
Estimated
proceeds from
liquidation
of collateral
Net debt
Itemized
valuation
allowance
Total non-performing loans as of 31.12.2014
3 600
—
3 600
3 600
Total non-performing loans as of 31.12.2013
—
—
—
—
ased on the general pledge and offset right stipulated in the General Terms and Conditions of bank zweiplus ltd, available account balances
B
may be credited as security for relevant customer investments.
Note 3 – Trading portfolio of securities and precious metals,
financial investments and participations
Note 3.1 – Trading portfolio of securities and precious metals
31.12.2014
31.12.2013
64
63
Shares and fund units
– Listed on stock exchange
– Not listed on stock exchange
Total
25
88
Precious metals
1 342
585
Total securities and precious metals held for trading
1 486
673
—
—
– of which securities eligible for repo transactions pursuant to liquidity provisions
30
80
144
Note 3.2 – Financial investments
Carrying amount
Fair value
31.12.2014
31.12.2013
31.12.2014
31.12.2013
Debt securities (to be held to maturity)
31 921
57 700
31 249
57 816
– Listed on stock exchange
31 921
57 700
31 249
57 816
—
—
—
—
Total financial investments
31 921
57 700
31 249
57 816
– of which securities eligible for repo transactions pursuant to
liquidity provisions
25 883
48 528
26 311
48 674
31.12.2014
31.12.2013
—
—
– Not listed on stock exchange
Note 3.3 – Participations
With market value
Without market value
500
3 398
Total investments in other companies
500
3 398
Note 4 – Disclosure of significant participations
Company name, domicile
Business activity
31.12.2014
31.12.2013
Share capital
Quota 3
Quota 3
1 000 000
50 %
50 %
100 000
0%
100 %
Recognized as participations on
the balance sheet
cash zweiplus ltd, Zurich 1
Operation of electronic platform as well
as website with information compiled by
journalists mainly concerning financial
and investment topics
Antillia Services AG, Zurich 2
Provision and brokerage of financial
services
c ash zweiplus ltd commenced its operating activities on 16 April 2012.
Antillia Services AG was merged with bank zweiplus ltd on 1 January 2014.
3
Voting as well as capital rights.
1
2
Note 5 – Statement of fixed assets
2014
Historical
cost
Accumulated
depreciation
Book value
01.01.2014
Investments
Divestments
Depreciation
Book value
31.12.2014
Tenant fittings in leased
properties
5 609
– 3 027
2 582
—
—
– 561
2 021
Other tangible assets
2 736
– 1 706
1 030
—
—
– 240
790
Software
2 189
– 1 733
456
80
—
– 272
264
Other intangible assets
2 605
– 2 245
360
1 149
—
– 420
1 089
13 139
– 8 711
4 427
1 229
—
– 1 492
4 164
2014
2013
Tangible fixed assets
Total tangible fixed assets
Fire insurance values
The tenant fittings in leased properties and other tangible assets are covered by a group insurance policy of J. Safra Sarasin Holding Ltd.
and reported in the annual report of the J. Safra Sarasin Holding Ltd. Group.
Liabilities: future lease payments for operating leases
Liabilities: future lease payments for operating leases
72
201
31
Information relating to the balance sheet
in CHF 1 000
Note 6 – Other assets and other liabilities
31.12.2014
Replacement values from derivative financial instruments
Settlement accounts
Value added tax and other tax receivables and tax liabilities
Retained commissions for financial service providers
Amounts due from reverse provisioning from financial service
providers, net
Settlement account financial service providers
Other items
31.12.2013
Other
assets
Other
liabilities
Other
assets
Other
liabilities
1 497
—
2 571
5
2 571
—
1494
—
131
2 096
153
2 150
—
190
—
311
82
—
54
—
—
4 102
—
4 051
35
127
792
495
2 819
9 086
2 498
8 504
31.12.2014
31.12.2013
Carrying amount of receivables from cash collateral for securities borrowing and
reverse repurchase agreements
—
—
Carrying amount of liabilities from cash collateral for securities lending and repurchase agreements
—
—
Carrying amount of Bank-owned securities loaned for securities lending or provided as collateral
for securities borrowing agreements and transferred under repurchase agreements
15 207
40 643
– For which an unrestricted right of subsequent sale or pledge has been granted
Total other assets and liabilities
Note 7 – Disclosure of pledged or assigned assets and assets subject to
ownership reservation to secure the Bank’s liabilities
Securities lending and repurchase agreements
32
15 207
40 643
Fair value of securities provided as collateral for securities lending or borrowed in securities
borrowing agreements or received under reverse repurchase agreements for which an unrestricted
right of subsequent sale or pledge was granted
—
—
– Fair value of resold or pledged securities
—
—
Note 8 – Information on the Bank’s pension plans
Funding surplus/
deficiency
Economic benefit
for Bank
Change
recognized
in income
statement
Accrued
expenses/
deferred
income
Pension
cost
Pension Fund of Bank Sarasin & Co. Ltd., Basel
bank zweiplus ltd sub-fund
—
—
—
222
1 617
Total economic benefit/obligation
as of 31.12.2014
—
—
—
222
1 617
Total economic benefit/obligation
as of 31.12.2013
—
—
—
178
1 734
Economic benefit/obligation
All employees of bank zweiplus ltd who are 17 or older are
26. The assessment of the economic impact is based on the
insured with a defined contribution pension plan which is
pension plan’s financial situation. The pension plan’s fund-
incorporated into the Pension Fund of Bank Sarasin & Co Ltd.,
ing ratio was not yet available at the time of publication of
Basel. The Pension Fund of Bank Sarasin & Co. Ltd. prepares
the Annual Report of bank zweiplus. According to the cur-
its annual financial statements in accordance with the Ac-
rent estimate, however, the funding ratio should be around
counting and Reporting Recommendations Swiss GAAP FER
111 %.
Note 9 – Value adjustments and provisions
2014
As of
01.01.2014
Designated
use
Change in
designated
use
(restatement)
Recoveries,
past due
interest,
translation
differences
New items
debited to
income
statement
Reversals
credited to
income
statement
As of
31.12.2014
130
—
—
—
3 600
– 130
3 600
1 944
– 733
—
—
750
—
1 961
– 733
—
—
4 400
– 130
6 121
Value adjustments and provisions for
default and other risks
Value adjustments and provisions for default
risks (credit and country risk) 1
Value adjustments and provisions for other
business risks 2
Other provisions 3
Total value adjustments and provisions
Less direct charge-offs against specific assets
Total value adjustments and provisions
according to balance sheet
1
2
3
510
2 583
50
560
130
—
—
—
—
—
3 600
2 453
—
—
—
—
—
2 521
Value adjustments and provisions for default risks comprise receivables from cash zweiplus ltd, Zurich that have been fully written down.
Value adjustments and provisions for other business risks primarily concern provisions for legal risks.
Other provisions mainly comprise provisions relating to legal disputes arising from ordinary business activities for which value adjustments of
50 % or 100 % are recognized, depending on the probability of default.
33
Information relating to the balance sheet
in CHF 1 000
Note 10 – Capital stock and shareholders with shareholdings of more than 5 %
of all voting rights
31.12.2014
31.12.2013
Nominal
value
Number of
shares
Dividendbearing
capital
Nominal
value
Number of
shares
Dividendbearing
capital
Share capital
35 000
3 500 000
35 000
35 000
3 500 000
35 000
Total shareholders' equity
35 000
3 500 000
35 000
35 000
3 500 000
35 000
Shareholders’ equity
31.12.2014
Nominal
31.12.2013
Share in %
Nominal
Share in %
Major stakeholders with voting rights
Bank J. Safra Sarasin Ltd, Basel
20 125
57,50
20 125
57,50
Falcon Private Bank Ltd., Zurich
14 875
42,50
14 875
42,50
Note 11 – Statement of changes in shareholders’ equity
Paid-up share capital
35 000
General legal reserve
1 600
Other reserves
5 300
Reserves for general banking risks
—
Balance sheet profit
11 207
Total shareholders’ equity as of 01.01.2014
53 107
Profit for the year 2014
Dividends paid
Total shareholders' equity as of 31.12.2014 (before appropriation of profit)
3 143
– 4 000
52 250
of which
Paid-up share capital
35 000
General legal reserve
2 200
Other reserves
5 300
Reserves for general banking risks
Balance sheet profit
—
9 750
With regard to the disclosure of capital requirements in accordance with FINMA Circular 08/22 Rz3, reference is made
to the information contained in the consolidated financial statements of Bank J. Safra Sarasin Holding Ltd.
34
Note 12 – Maturity structure of current assets and borrowed capital
At sight
Callable
Due within
3 months
Due in 3 to
12 months
Due in 1 to
5 years
Due after
5 years
Total
31.12.2014
Current assets
Cash and cash equivalents
217 793
—
—
—
—
—
217 793
Due from banks
174 298
—
29 937
—
20 000
—
224 235
1 901
—
5 232
6 668
—
—
13 801
Due from customers
Mortgages
—
3 789
9 847
5 465
27 327
42 302
88 730
1 486
—
—
—
—
—
1 486
—
—
—
—
31 921
—
31 921
Total current assets as of 31.12.2014
395 478
3 789
45 016
12 133
79 248
42 802
577 966
Total current assets as of 31.12.2013
703 184
—
104 345
23 344
57 173
51 690
939 736
Trading portfolio of securities and
precious metals
Financial investments
Borrowed capital
Due to banks
Due to customers in savings and
investment form
3 302
—
—
—
—
—
3 302
212 435
39 258
—
—
—
—
251 693
Other amounts due to customers
238 279
—
2 864
2 504
20 140
—
263 787
Total borrowed capital as of 31.12.2014
454 016
39 258
2 864
2 504
20 140
—
518 782
Total borrowed capital as of 31.12.2013
458 922
245 778
152 341
3 892
22 426
—
883 359
35
Information relating to the balance sheet
in CHF 1 000
Note 13 – Breakdown of balance sheet by domestic and foreign operations
31.12.2014
Switzerland
31.12.2013
International
Switzerland
International
Assets
Cash and cash equivalents
217 793
—
9 467
—
Due from banks
223 764
471
162 680
595 816
9 138
4 663
11 512
5 451
86 760
1 970
94 309
2 128
1 358
128
599
74
—
31 921
6 187
51 513
—
Due from customers
Mortgages
Trading portfolio of securities and precious metals
Financial investments
Participations
500
—
3 398
Tangible fixed assets
4 164
—
4 427
—
Accrued income and prepaid expenses
6 566
720
9 948
2
Other assets
2 807
12
2 454
44
Total assets
552 850
39 885
304 981
655 028
Liabilities
Due to banks
3 302
—
169 279
92
Due to customers in savings and investment form
240 208
11 485
454 130
14 691
Other amounts due to customers
188 197
75 590
156 368
88 799
Accrued expenses and deferred income
10 095
1
12 584
1
Other liabilities
6 428
2 658
5 725
2 779
Value adjustments and provisions
2 521
—
2 454
—
Share capital
35 000
—
35 000
—
General legal reserve
2 200
—
1 600
—
Other reserves
5 300
—
5 300
—
Profit carried forward
6 607
—
5 188
—
Profit for the year
3 143
—
6 019
—
503 001
89 734
853 647
106 362
Total liabilities
36
Note 14 – Breakdown of assets by country and region
31.12.2014
31.12.2013
Absolute
Share in %
Absolute
Share in %
Europe
552 850
93,3
304 981
31,8
– Russia
– Switzerland
6 041
1,0
6 165
0,6
– France
5 505
0,9
5 631
0,6
– Germany
5 283
0,9
6 436
0,7
– Netherlands
493
0,1
602 203
62,7
– Austria
251
0,0
1 656
0,2
– United Kingdom
211
0,0
2 178
0,2
Other Europe
215
0,0
163
0,0
Total Europe
570 850
96,3
929 413
96,8
15 208
2,6
24 443
2,5
6 677
1,1
6 153
0,7
Outside Europe
– United States of America
Other countries outside Europe
Total outside Europe
Total assets
21 885
3,7
30 596
3,2
592 735
100,0
960 009
100,0
The breakdown follows the principle of counterparty domicile.
37
Information relating to the balance sheet
in CHF 1 000
Note 15 – Breakdown of assets and liabilities by the Bank’s most significant currencies
CHF
EUR
USD
Other
Total 31.12.2014
Assets
Cash and cash equivalents
216 842
930
17
4
217 793
Due from banks
133 350
69 048
16 967
4 870
224 235
Due from customers
10 367
3 134
164
136
13 801
Mortgages
88 730
—
—
—
88 730
287
87
39
1 073
1 486
25 883
6 038
—
—
31 921
Trading portfolio of securities and precious metals
Financial investments
Participations
500
—
—
—
500
Tangible fixed assets
4 164
—
—
—
4 164
Accrued income and prepaid expenses
7 127
157
2
—
7 286
Other assets
2 755
12
—
52
2 819
Total assets
490 005
79 406
17 189
6 135
592 735
Liabilities
Due to banks
2 583
—
—
719
3 302
Due to customers in savings and investment form
245 160
6 533
—
—
251 693
Other amounts due to customers
172 451
68 759
16 877
5 700
263 787
Accrued expenses and deferred income
10 096
—
—
—
10 096
Other liabilities
6 187
2 879
20
—
9 086
Value adjustments and provisions
2 521
—
—
—
2 521
Share capital
35 000
—
—
—
35 000
General legal reserve
2 200
—
—
—
2 200
Other reserves
5 300
—
—
—
5 300
Profit carried forward
6 607
—
—
—
6 607
Profit for the year
3 143
—
—
—
3 143
491 248
78 171
16 897
6 419
592 735
– 1 243
1 235
292
– 284
—
Total liabilities
Net position per currency
38
Information relating to off-balance-sheet transactions
in CHF 1 000
Note 16 – Breakdown of contingent liabilities
Credit guarantees
Other contingent liabilities
Total contingent liabilities
31.12.2014
31.12.2013
132
132
25
25
157
157
bank zweiplus ltd is affiliated with the value-added tax (VAT) group of Bank J. Safra Sarasin Ltd, Basel and as such is
jointly and severally liable for VAT obligations to the relevant tax authorities.
Note 17 – Breakdown of irrevocable commitments
Payment obligations to depositor protection schemes
Payment obligations to customers
Payment obligations to group companies
Total irrevocable commitments
31.12.2014
31.12.2013
5 330
5 064
—
490
—
500
5 330
6 054
Note 18 – Breakdown of open derivative financial instruments
Trading instruments
Hedging instruments
Positive
replacement
values
Negative
replacement
values
Contract
volume
Positive
replacement
values
Negative
replacement
values
Contract
volume
Forward contracts
—
—
—
—
—
—
Swaps
—
—
—
2 572
2 571
22 723
Futures
—
—
—
—
—
—
Options (OTC)
—
—
—
—
—
—
Interest rate instruments
Options (exchange traded)
—
—
—
—
—
—
Total interest rate instruments
as of 31.12.2014
—
—
—
2 572
2 571
22 723
Total interest rate instruments
as of 31.12.2013
—
—
—
1 494
1 494
52 723
Foreign exchange /
precious metals
Forward contracts
—
—
6
—
—
—
Swaps
—
—
—
—
—
—
Futures
—
—
—
—
—
—
Options (OTC)
—
—
—
—
—
—
Options (exchange traded)
—
—
—
—
—
—
Total foreign exchange / precious metals as of 31.12.2014
—
—
6
—
—
—
Total foreign exchange / precious metals as of 31.12.2013
5
3
1 928
—
—
—
Reporting year
—
—
6
2 572
2 571
22 723
Previous year
5
3
1 928
1 494
1 494
52 723
Total before netting contracts
Total after netting contracts
Reporting year
—
—
—
2 572
2 571
—
Previous year
5
3
—
1 494
1 494
—
39
Information relating to off-balance-sheet transactions
in CHF 1 000
Note 19 – Fiduciary transactions
31.12.2014
31.12.2013
Fiduciary deposits at third-party banks
—
270
Total fiduciary transactions
—
270
31.12.2014
31.12.2013
1 290
1 363
Note 20 – Client assets
in CHF million
Assets with management mandate
Other client assets
3 208
3 575
Total client assets
4 498
4 938
of which counted twice
Net new money inflows/outflows
—
169
The calculation and statement of client assets comply with
Net new money inflows/outflows comprise the acquisition
the guidelines of the Financial Market Supervisory Author-
of new customers, loss of existing customers and inflows
ity (FINMA) on accounting standards. Client assets include
and outflows of assets of existing customers. Net new
all assets of customers managed or held for investment
money inflows/outflows do not include securities- and
purposes. These basically include all liabilities to custom-
currency-based market changes, interest and dividend
ers in savings and investment form, fixed-term and fiduci-
payments and paid fees.
ary deposits and all assets of value.
40
—
– 658
Information relating to the income statement
in CHF 1 000
Note 21 – Trading income
2014
Securities
2013
62
6
Foreign exchange and precious metals
8 912
8 588
Total net trading income
8 974
8 594
2014
2013
Note 22 – Personnel expenses
Salaries
14 350
15 795
Social benefits
2 614
2 787
Other personnel expenses
1 138
1 247
18 102
19 829
2014
2013
Total personnel expenses
Note 23 – General administrative expenses
Office space
1 302
1 468
Expenditure on IT, machinery, furnishings, vehicles and other equipment
637
460
Advertising costs
497
572
14 421
15 524
Consulting and services
Other operating expenses
Total general administrative expenses
2 151
1 942
19 008
19 966
Consulting and services include outsourcing costs of CHF 13 824 (previous year: CHF 14 633).
Note 24 – Tax expenses
2014
2013
Expenses for current income and capital tax
941
1 720
Total tax expenses
941
1 720
41
Information relating to the income statement
in CHF 1 000
Note 25 – Extraordinary income
Reversal of value adjustments and provisions for default risks
Other non-operating and irregular income
Total extraordinary income
42
2014
2013
130
22
—
1
130
23
Report of the statutory auditor on the annual
financial statements
Report of the statutory auditor to the
Annual General Meeting of bank zweiplus ltd,
Zurich
the financial statements. We believe that the audit evi-
As statutory auditor we have audited the financial state-
Audit opinion
ments of bank zweiplus ltd, comprising the balance sheet,
In our opinion, the financial statements for the year ended
income statement and notes for the financial year ended
31 December 2014 comply with Swiss law and the com-
on 31 December 2014.
pany’s articles of incorporation.
Board of Directors’ responsibility
Report on other legal requirements
The Board of Directors is responsible for the preparation of
dence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
the financial statements in accordance with the require-
We confirm that we meet the legal requirements on li-
ments of Swiss law and the company’s articles of incorpo-
censing according to the Auditor Oversight Act (AOA) and
ration. This responsibility includes designing, implement-
independence (article 728 CO) and that there are no cir-
ing and maintaining an internal control system relevant
cumstances incompatible with our independence.
to the preparation of financial statements that are free
from material misstatement, whether due to fraud or er-
In accordance with article 728a paragraph 1 item 3 CO
ror. The Board of Directors is further responsible for se-
and Swiss Auditing Standard 890, we confirm that an in-
lecting and applying appropriate accounting policies and
ternal control system exists, which has been designed for
making accounting estimates that are reasonable in the
the preparation of financial statements according to the
circumstances.
instructions of the Board of Directors.
Auditors’ responsibility
Furthermore, we confirm that the proposed appropriation
Our responsibility is to express an opinion on these fi-
of profit complies with Swiss law and the company’s arti-
nancial statements based on our audit. We have to carry
cles of incorporation. We recommend that these financial
out our audit in compliance with Swiss laws and Swiss
statements be approved.
auditing standards. These standards require that we plan
and perform the audit to obtain reasonable assurance
whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend
Deloitte AG
on the auditor’s judgment, including the assessment of
the risks of material misstatement in the annual financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers the internal
Erich Schärli
control system relevant to the entity’s preparation of the
Licensed Audit Expert (Auditor in Charge)
financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of
the entity’s internal control system. An audit also includes
Simon Schmid
evaluating the appropriateness of the accounting policies
Licensed Audit Expert
used and the reasonableness of accounting estimates
made, as well as evaluating the overall presentation of
Zurich, 5 March 2015
43
Imprint
Publisher bank zweiplus ltd, P.O. Box, Bändliweg 20, CH-8048 Zurich, www.bankzweiplus.ch Concept & contents bank zweiplus ltd, Marketing & Communication
| Bruseghini Public Relations, Zurich Design metaphor, Zurich Photos Urs Pichler, Adliswil | Jos Schmid, Zurich Production integrated communication solutions,
Scherz | Erni Druck and Media AG, Kaltbrunn Frequency of publication This Annual Report is published (500 hardcopies) in German and available in English as
PDF file as well as online at www.bankzweiplus.ch/geschaeftsbericht.
This bank zweiplus Annual Report refers to gender-specific terms using the masculine form for the benefit of improved readability, but of course always infers
both genders.
1504_p_co_30016_en
bank zweiplus ltd
P.O. Box, CH-8048 Zurich
www.bankzweiplus.ch