Private Banking International
in CHF 1,000 | 2012 | 2011 | Variance | Variance |
Total interest income | 20,484 | 22,017 | –1,533 | –7.0 |
Total income from commission business and services | 33,756 | 36,864 | –3,108 | –8.4 |
Income from trading activities | 8,034 | 8,845 | –811 | –9.2 |
Income from financial investments | 2,055 | –291 | 2,346 | n.a. |
Other income | 2,856 | 430 | 2,426 | 564.2 |
Total net operating income | 67,185 | 67,865 | –680 | –1.0 |
Personnel expenses | 47,516 | 43,946 | 3,570 | 8.1 |
General and administrative expenses | 18,605 | 17,295 | 1,310 | 7.6 |
Services to/from other segments | 16,097 | 13,382 | 2,715 | 20.3 |
Operating expenses | 82,218 | 74,623 | 7,595 | 10.2 |
Gross income | –15,033 | –6,758 | –8,275 | –122.4 |
Depreciation and amortisation | 2,612 | 3,222 | –610 | –18.9 |
Valuation allowances, provisions and losses | 4,824 | 3,124 | 1,700 | 54.4 |
Divisional earnings before income tax | –22,469 | –13,104 | –9,365 | –71.5 |
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Additional information |
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Operating expenses excluding depreciation and amortisation / total operating income (in %) | 122.4 | 110.0 |
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Operating expenses including depreciation and amortisation / total operating income (in %) | 126.3 | 114.7 |
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Client assets under management (in CHF billion) | 10.4 | 9.8 |
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Change in client assets under management compared to previous year (in %) | 7.0 | 8.9 |
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Net new money (in CHF billion) | 0.2 | 1.5 |
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Gross income / average client assets under management (bp) 1 | 66.5 | 72.4 |
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Divisional result / average client assets under management (bp) 1 | –22.2 | –14.0 |
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Cost/income ratio operating income (in %) 2 | 132.0 | 110.2 |
| 19.8 |
Headcount (number of employees) | 261 | 265 | –4 | –1.5 |
Headcount (expressed as full-time equivalents) | 249.7 | 255.5 | –5.8 | –2.3 |
Structure
The business segment Private Banking International comprises the private-banking business in international locations. VP Bank (Schweiz) AG, VP Bank (Luxembourg) S.A., VP Bank and Trust Company (BVI) Ltd., VP Bank (Singapore) Ltd. and VP Wealth Management (Hong Kong) Ltd. are allocated to this business segment. Additionally, Investment Service Center is allocated to this division.
Segment results
The strong Swiss franc, uncertainties on financial markets, the economic outlook as well as the costs of intense market-development activities adversely impacted the segment results of International Private Banking. On the other hand, market development activities developed positively (net new money inflow of CHF 0.2 billion).
Year-on-year, the pre-tax segment results recorded a drop of CHF 9.4 million from CHF –13.1 to CHF –22.5 million.
The gross margin fell to 66.5 basis points (prior-year period: 72.4 basis points). The cost/income ratio increased from 110.2 to 132.0 per cent. The lower level of client activities resulting from economic uncertainties adversely impacted commission and service income. This led to a moderate decline of 1.0 per cent in total operating income to CHF 67.2 million (prior-year period: CHF 67.9 million).
Operating expenses rose by 10.2 per cent from CHF 74.6 million to CHF 82.2 million as a result of a broadening of market-development activities. Valuation allowances, provisions and losses increased in total by CHF 1.7 million to CHF 4.8 million.
As of 31 December 2012, client assets stood at CHF 10.4 billion (31 December 2011: CHF 9.8 billion). The employee headcount fell from 255.5 (31 December 2011) to 249.7 positions.