Notes to the consolidated financial statement

1 Interest income
in CHF 1,000	2015	2014	Variance absolute	Variance in %
Interest and discount income	174	71	103	145.1
Interest income from banks	5,549	12,316	–6,767	–54.9
Interest income from customers	75,443	68,529	6,914	10.1
Interest income from financial instruments measured at amortised cost	17,780	15,245	2,535	16.6
Interest-rate instruments	–4,159	–15,968	11,809	–74.0
Hedge accounting	–106	0	–106	n.a.
Loan commissions with the character of interest	849	737	112	15.2
Total interest income	95,530	80,930	14,600	18.0
Interest expenses on liabilities due to banks	–48	124	–172	–138.7
Interest expenses on liabilities due to customers	3,308	7,343	–4,035	–55.0
Interest expenses on medium-term bonds	1,902	2,458	–556	–22.6
Interest expenses on debenture bonds	5,881	5,454	427	7.8
Total interest expense	11,043	15,379	–4,336	–28.2

Total interest income	84,487	65,551	18,936	28.9

Fair-value hedges1
Movements arising from hedges	–2,840	0	–2,840	n.a.
• Micro fair-value hedges	–2,840	0	–2,840	n.a.
• Portfolio fair-value hedges	0	0	0	n.a.
Movements in underlying transactions	2,734	0	2,734	n.a.
• Micro fair-value hedges	2,734	0	2,734	n.a.
• Portfolio fair-value hedges	0	0	0	n.a.

Cash-flow hedges1
Result of effectively hedged cash-flow hedges (only ineffective portion)	0	0	0	n.a.

Total hedge accounting2	–106	0	–106	n.a.
1 Cash-flow hedge accounting as well as portfolio fair-value hedges were employed in neither the current nor the prior-year period. 2 Hedge ineffectiveness, disclosed in the income statement; further details in note 38.

2 Income from commission business and services
in CHF 1,000	2015	2014	Variance absolute	Variance in %
Commission income from credit business	1,059	815	244	29.9
Asset management and investment business 1	46,885	37,800	9,085	24.0
Brokerage fees	36,809	39,419	–2,610	–6.6
Securities account fees	17,979	14,993	2,986	19.9
Fund management fees	58,496	62,808	–4,312	–6.9
Fiduciary commissions	796	560	236	42.1
Miscellaneous commission and service income	18,257	17,670	587	3.3
Total income from commission business and services	180,281	174,065	6,216	3.6
Brokerage expenses	5,172	5,986	–814	–13.6
Other commission and services-related expenses	48,739	49,661	–922	–1.9
Total expenses from commission business and services	53,911	55,647	–1,736	–3.1
Total income from commission business and services	126,370	118,418	7,952	6.7
1 Income from corporate actions, asset-management commissions, investment advisory services, all-in fees, securities lending and borrowing.

3 Income from trading activities
in CHF 1,000	2015	2014	Variance absolute	Variance in %
Securities trading 1	–4,945	–4,240	–705	n.a.
Interest income from trading portfolios	8	9	–1	–11.1
Foreign currency	51,060	28,012	23,048	82.3
Banknotes, precious metals and other	–61	1,582	–1,643	–103.9
Total income from trading activities	46,062	25,363	20,699	81.6
1The results from derivatives for the purposes of risk minimisation (other than interest-rate derivatives) are included in this item.

4 Income from financial investments
in CHF 1,000	2015	2014	Variance absolute	Variance in %
Income from financial instruments at fair value	4,230	15,995	–11,765	–73.6
Income from financial instruments at amortised cost	–4,972	–3,502	–1,470	n.a.
Total income from financial investments	–742	12,493	–13,235	–105.9

Income from financial instruments at fair value
Results from FVTPL assets	–5,445	9,261	–14,706	–158.8
Interest income from FVTPL financial instruments	5,682	4,315	1,367	31.7
Dividend income from FVTPL financial instruments	1,197	952	245	25.7
Dividend income from FVTOCI financial instruments	2,796	1,467	1,329	90.6
thereof from FVTOCI financial instruments sold	0	0	0	n.a.
Total	4,230	15,995	–11,765	–73.6

Income from financial instruments at amortised cost
Revaluation gains/losses on financial instruments at amortised cost	–3,257	–3,495	238	n.a.
Realised gains/losses on financial instruments at amortised cost	–1,715	–7	–1,708	n.a.
Total	–4,972	–3,502	–1,470	n.a.

5 Other income
in CHF 1,000	Note	2015	2014	Variance absolute	Variance in %
Income from real estate1		–1,791	194	–1,985	n.a.
Income from associated companies		–9	24	–33	–137.5
Bargain purchase arising upon acquisition	45	49,982	0	49,982	n.a.
Miscellaneous other income		2,195	614	1,581	257.5
Total other income		50,377	832	49,545	n.a.
1 Includes a result of CHF –1.7 million from the planned sale of real estate (note 24).

6 Personnel expenses
in CHF 1,000	2015	2014	Variance absolute	Variance in %
Salaries and wages	106,107	94,859	11,248	11.9
Social contributions required by law	8,807	8,206	601	7.3
Contributions to pension plans / defined-benefit plans1	2,019	10,185	–8,166	–80.2
Contributions to pension plans / defined-contribution plans	1,208	1,223	–15	–1.2
Other personnel expenses	3,739	4,026	–287	–7.1
Total personnel expenses	121,880	118,499	3,381	2.9
1 Includes profit of CHF 8.5 million net from the conversion rate reduction and the integration of Centrum Bank (note 41 and note 45).

7 General and administrative expenses
in CHF 1,000	2015	2014	Variance absolute	Variance in %
Occupancy expenses	8,097	7,860	237	3.0
Insurance	912	858	54	6.3
Professional fees	12,653	9,138	3,515	38.5
Financial information procurement	6,453	5,287	1,166	22.1
Telecommunication and postage	1,229	1,045	184	17.6
IT systems	20,961	13,195	7,766	58.9
Marketing and public relations	4,020	3,391	629	18.5
Capital taxes	154	105	49	46.7
Other general and administrative expenses	5,756	5,893	–137	–2.3
Total general and administrative expenses	60,235	46,772	13,463	28.8

8 Depreciation and amortisation
in CHF 1,000	Note	2015	2014	Variance absolute	Variance in %
Depreciation and amortisation of property and equipment	22	11,678	10,787	891	8.3
Amortisation of intangible assets	23	26,575	18,561	8,014	43.2
Total depreciation and amortisation		38,253	29,348	8,905	30.3

9 Valuation allowances, provisions and losses
in CHF 1,000	Note	2015	2014	Variance absolute	Variance in %
Credit risks1	16	23,221	12,069	11,152	92.4
Legal and litigation risks		1,084	742	342	46.1
Other2		14,612	2,666	11,946	448.1
Release of valuation allowances and provisions no longer required		–12,889	–8,061	–4,828	59.9
Total valuation allowances, provisions and losses		26,028	7,416	18,612	251.0
1 Additions including currency effects. 2 Includes restructuring provisions in connection with the Centrum Bank merger, of which CHF 7.9 million for cancellation of an outsourcing contract and CHF 4.1 million for employees, e.g. social plan (note 29).

10a Taxes on income
in CHF 1,000		2015	2014
Domestic
Current taxes		1,592	1,057
Deferred taxes		–3,113	–886

Foreign
Current taxes		–363	1,601
Deferred taxes		–2,014	–1,175

Total current taxes		1,229	2,658
Total deferred taxes		–5,127	–2,061
Total taxes on income		–3,898	597
Actual payments for domestic and foreign taxes made by the Group in 2015 totalled CHF 1.4 million (2014: CHF 0.7 million).
Proof – taxes on income All anticipated liabilities arising in connection with taxes on income earned during the reporting period are reflected in the financial statements. They are computed in accordance with the laws governing taxation in the respective countries. Deferred tax liabilities arising from differences between the values in the financial statements drawn up for legal and/or tax purposes and those in the consolidation are computed using the following tax rates:
		2015	2014
Liechtenstein		12.5%	12.5%
Switzerland		25.0%	20.0%
Luxembourg		18.2%	18.2%
British Virgin Islands		0.0%	0.0%
Singapore		10.0%	10.0%
Hong Kong		16.5%	16.5%
Pre-tax results, as well as differences between the tax charge in the income statement and the tax charge arrived at on the basis of a standard assumed average rate of 15 per cent (prior year: 15 per cent), may be analysed as follows:
in CHF 1,000	Note	2015	2014
Income before income tax
Domestic		61,376	14,482
Foreign		–1,218	6,140
Taxes on income using an assumed average charge		9,024	3,093

Reasons for increased/decreased taxable income
Difference between actual and assumed tax rates		–1,896	–436
Lower tax charges as a result of changes in laws or taxation agreements		–4,835	–1,663
Deferred taxes on capitalised client assets	45	–4,256	0
Use of tax loss carry-forwards		–1,935	–397
Total income tax		–3,898	597

10b Deferred tax assets and liabilities
in CHF 1,000	Note	2015	2014
Deferred tax assets
Real estate and property and equipment		4,678	4,140
Tax loss carry-forwards1		5,179	0
Defined-benefit pension plans		10,082	8,577
Securities		3,939	3,519
Other		0	0
Total deferred tax assets		23,878	16,236

Deferred tax liabilities
Real estate and property and equipment		5,284	3,541
Financial instruments		2,439	2,452
Financial instruments directly offset within shareholders’ equity		384	219
Valuation allowances for credit risks		1,053	717
Other provisions		4,993	1,826
Total deferred tax liabilities		14,153	8,755

Deferred tax assets
Balance at the beginning of the financial year		16,236	11,319
Offset within shareholders’ equity		1,462	3,869
Tax loss carry-forwards1		0	0
Charged to income statement		1,001	1,445
Changes in scope of consolidation	45	5,179	0
Released to income statement		0	–397
Total deferred tax assets		23,878	16,236


in CHF 1,000	Note	2015	2014
Deferred tax liabilities
Balance at the beginning of the financial year		8,755	9,901
Reclassifications		–4,092	–133
Charged to income statement		3,421	837
Changes in scope of consolidation	45	9,360	0
Released to income statement		–1,943	–1,850
Effects of changes in deferred tax rates		–1,348	0
Total deferred tax liabilities		14,153	8,755
1Providing that the realisation of future tax benefits is considered probable, these must be treated as an asset. The offset of deferred tax assets and liabilities is only possible if they are due to/from the same taxing authority.
Deferred taxes arise because of timing differences between the IFRS financial statements and the statutory accounts as a result of differing valuation policies.
Loss carry-forwards not reflected in the balance sheet expire as follows:
Within 1 year		0	287
Within 2 to 4 years		589	426
After 4 years		318	481
Total		907	1,195

10c Tax assets and liabilities
in CHF 1,000	Note	31.12.2015	31.12.2014
Tax assets
Amounts receivable arising on current taxes on income		1,760	569
Deferred tax assets	10b	23,878	16,236
Total tax assets		25,638	16,805

Tax liabilities
Liabilities arising on current taxes on income		2,641	2,467
Deferred tax liabilities	10b	14,153	8,755
Total tax liabilities		16,794	11,222

11 Earnings per share
	2015	2014
Consolidated earnings per share of VP Bank Ltd, Vaduz
Net income (in CHF 1,000) 1	64,056	20,025
Weighted average of bearer shares	5,706,486	5,208,774
Weighted average of registered shares	5,924,810	5,985,689
Total weighted average number of bearer shares	6,298,967	5,807,343
Undiluted consolidated earnings per bearer share	10.17	3.45
Undiluted consolidated earnings per registered share	1.02	0.34

Fully diluted consolidated earnings per share of VP Bank Ltd, Vaduz
Net income (in CHF 1,000) 1	64,056	20,025
Adjusted consolidated net income (in CHF 1,000)	64,056	20,025
Number of shares used to compute the fully diluted consolidated net income	6,298,967	5,807,343
Fully diluted consolidated earnings per bearer share	10.17	3.45
Fully diluted consolidated earnings per registered share	1.02	0.34
1On the basis of Group profits attributable to the shareholders of VP Bank Ltd, Vaduz.

12 Dividend
	2015	2014
Approved and paid dividend of VP Bank Ltd, Vaduz
Dividend (in CHF 1,000) for the financial year 2014 (2013)	19,846	20,702
Dividend per bearer share	3.00	3.50
Dividend per registered share	0.30	0.35
Payout ratio (in %)	n.a.	53.2

Proposed dividend to be approved by the annual general meeting of VP Bank Ltd, Vaduz (not reflected as a liability as of 31 December)
Dividend (in CHF 1,000) for the financial year 2015	26,462
Dividend per bearer share	4.00
Dividend per registered share	0.40
Payout ratio (in %)	39.3

13 Cash and cash equivalents
in CHF 1,000	31.12.2015	31.12.2014
Cash on hand	13,815	18,092
At-sight balances with national and central banks	2,941,712	1,908,876
Total cash and cash equivalents	2,955,527	1,926,968

14 Receivables arising from money-market paper
in CHF 1,000	31.12.2015	31.12.2014
Money-market paper (qualifying for refinancing purposes)	14,652	22,027
Other money-market paper	0	0
Total receivables arising from money-market paper	14,652	22,027

15 Due from banks and customers
in CHF 1,000	Note	31.12.2015	31.12.2014
By type of exposure
Due from banks – at-sight balances		445,662	665,472
Due from banks – term balances		1,616,355	2,619,747
Valuation allowances for credit risks	16	–1,747	–2,993
Due from banks		2,060,270	3,282,226

Mortgage receivables		3,355,131	2,942,709
Other receivables		1,712,760	1,365,380
Valuation allowances for credit risks	16	–60,882	–44,146
Due from customers		5,007,009	4,263,943
Total due from banks and customers		7,067,279	7,546,169

Due from customers by type of collateral
Mortgage collateral		3,352,140	2,888,462
Other collateral		1,490,306	1,188,889
Without collateral		225,445	230,738
Subtotal		5,067,891	4,308,089
Valuation allowances for credit risks		–60,882	–44,146
Total due from customers		5,007,009	4,263,943

16 Valuation allowances for credit risks
in CHF 1,000		Note	2015	2014
Balance at the beginning of the financial year			47,139	44,663
Amounts written off on loans / utilisation in accordance with purpose			–603	–5,042
Creation of valuation allowances and provisions for credit risks		9	23,045	11,856
Release of valuation allowances and provisions for credit risks			–11,906	–4,551
Changes in scope of consolidation			4,778	0
Foreign-currency translation differences and other adjustments		9	176	213
Balance at the end of the financial year			62,629	47,139
As valuation adjustment for due from banks			1,747	2,993
As valuation adjustment for due from customers			60,882	44,146
Total valuation allowances for credit risks			62,629	47,139


in CHF 1,000	Banks	Mortgage receivables	Other receivables 1	Total 2015
By type of exposure
Balance at the beginning of the financial year	2,993	16,168	27,978	47,139
Amounts written off on loans / utilisation in accordance with purpose	0	–319	–284	–603
Creation of valuation allowances and provisions for credit risks	16	6,044	16,985	23,045
Release of valuation allowances and provisions for credit risks	–1,844	–5,490	–4,572	–11,906
Changes in scope of consolidation	582	998	3,198	4,778
Foreign-currency translation differences and other adjustments	0	15	161	176
Balance at the end of the financial year	1,747	17,416	43,466	62,629

of which
Individual valuation allowances	0	10,782	27,456	38,238
Lump-sum valuation allowances	1,747	6,634	16,010	24,391
Total	1,747	17,416	43,466	62,629
1 Other receivables primarily comprise lombard loans, debit balances on accounts and unsecured loans.


in CHF 1,000	Banks	Mortgage receivables	Other receivables	Total 2014
By type of exposure
Balance at the beginning of the financial year	3,008	15,011	26,644	44,663
Amounts written off on loans / utilisation in accordance with purpose	0	–4,574	–468	–5,042
Creation of valuation allowances and provisions for credit risks	1,228	7,377	3,251	11,856
Release of valuation allowances and provisions for credit risks	–1,244	–1,835	–1,472	–4,551
Foreign-currency translation differences and other adjustments	1	189	23	213
Balance at the end of the financial year	2,993	16,168	27,978	47,139

of which
Individual valuation allowances	0	10,500	12,294	22,794
Lump-sum valuation allowances	2,993	5,668	15,684	24,345
Total	2,993	16,168	27,978	47,139


in CHF 1,000	Individual 2015	Lump-sum 2015	Individual 2014	Lump-sum 2014
By type of valuation allowance
Balance at the beginning of the financial year	22,794	24,345	22,497	22,166
Amounts written off on loans / utilisation in accordance with purpose	–603	0	–5,042	0
Creation of valuation allowances and provisions for credit risks	20,858	2,187	8,317	3,539
Release of valuation allowances and provisions for credit risks	–6,303	–5,603	–3,125	–1,426
Changes in scope of consolidation	1,333	3,445	0	0
Foreign-currency translation differences and other adjustments	159	17	147	66
Balance at the end of the financial year	38,238	24,391	22,794	24,345
Individual valuation allowances relate to loans that are not covered by the liquidation proceeds of collateral or unsecured loans.
Value-impaired loans Value-impaired loans are amounts outstanding from customers and banks where it is improbable that the debtor can meet its obligations.
in CHF 1,000			2015	2014
Value-impaired loans 1			76,784	69,798
Amount of valuation allowances for credit losses from non-performing loans			38,238	22,794
Net amounts due			38,546	47,004
Estimated realisable value of value-impaired loans			38,546	47,004
Average amount of value-impaired loans			73,291	56,028

Recoveries from loans already written off (other income)			200	11
1Interest receivable on non-performing loans in 2015 was CHF 1.125 million (2014: CHF 0.553 million).

Non-performing loans A loan is classified as non-performing as soon as the capital repayments and/or interest payments contractually stipulated are outstanding for 90 days or more. Such loans are not to be classified as value-impaired if it can be assumed that they are still covered by existing collateral.
in CHF 1,000			2015	2014
Non-performing loans			19,663	12,348
Amount of valuation allowances for credit losses from non-performing loans			12,630	2,354
Net amounts due			7,033	9,994
Average amount of non-performing loans			16,006	16,925

Valuation allowances on non-performing loans at the beginning of the financial year			2,354	9,378
Net decrease/increase			10,288	–2,080
Amounts written off and disposals / utilisation in conformity with purpose			–12	–4,944
Valuation allowances on non-performing loans at the end of the financial year			12,630	2,354


in CHF 1,000			31.12.2015	31.12.2014
According to type of exposure
Banks			0	0
Mortgage receivables			7,601	11,938
Other receivables			12,062	410
Customers			19,663	12,348
Total non-performing loans			19,663	12,348

According to region (domicile of debtor)
Liechtenstein and Switzerland			8,828	11,906
Rest of Europe			10,707	342
North and South America			0	10
Other countries			128	90
Total non-performing loans			19,663	12,348

17 Trading portfolios
in CHF 1,000	31.12.2015	31.12.2014
Debt securities valued at fair value
Other public-law institutions	0	0
Exchange-listed	0	0
Total	0	0

Equity securities / investment-fund units valued at fair value
Exchange-listed	0	0
Non-exchange-listed	0	0
Total	0	0
Other	154	189
Total trading portfolios	154	189

18 Derivative financial instruments
31.12.2015 in CHF 1,000	Positive replacement values	Negative replacement values	Contract volumes
Interest-rate instruments
Forward contracts
Swaps		26,152	276,775
Futures			60,245
Options (OTC)
Options (exchange-traded)
Total interest rate instruments 31.12.2015	0	26,152	337,020

Foreign currencies
Forward contracts	6,603	8,898	885,008
Combined interest rate/currency swaps	28,365	16,224	3,621,898
Futures
Options (OTC)	1,456	1,430	177,875
Options (exchange-traded)
Total foreign currencies 31.12.2015	36,424	26,552	4,684,781

Equity securities/indices
Forward contracts
Futures			2,918
Options (OTC)
Options (exchange-traded)		159	7,903
Total equity securities/indices 31.12.2015	0	159	10,821

Precious metals
Forward contracts
Swaps	87		4,443
Options (OTC)	372	372	31,838
Options (exchange-traded)
Total precious metals 31.12.2015	459	372	36,281

Total derivative financial instruments 31.12.2015	36,883	53,235	5,068,903
The fair value of derivative financial instruments without market value is arrived at by recognised valuation models. These models take account of the relevant parameters such as contract specifications, the market price of the underlying security, the yield curve and volatility.

31.12.2014 in CHF 1,000	Positive replacement values	Negative replacement values	Contract volumes
Interest-rate instruments
Forward contracts
Swaps		31,433	377,847
Futures			74,239
Options (OTC)
Options (exchange-traded)
Total interest rate instruments 31.12.2014	0	31,433	452,086

Foreign currencies
Forward contracts	3,266	3,240	303,188
Combined interest rate/currency swaps	51,653	9,497	2,845,589
Futures
Options (OTC)	842	842	99,005
Options (exchange-traded)
Total foreign currencies 31.12.2014	55,761	13,579	3,247,782

Equity securities/indices
Forward contracts
Futures			10,910
Options (OTC)
Options (exchange-traded)		509	17,095
Total equity securities/indices 31.12.2014	0	509	28,005


31.12.2014 in CHF 1,000	Positive replacement values	Negative replacement values	Contract volumes
Precious metals
Forward contracts		31	1,131
Futures
Options (OTC)	365	365	29,233
Options (exchange-traded)
Total precious metals 31.12.2014	365	396	30,364

Total derivative financial instruments 31.12.2014	56,126	45,917	3,758,237

19 Financial instruments at fair value
in CHF 1,000	31.12.2015	31.12.2014
Debt instruments
Public-law institutions in Liechtenstein and Switzerland	0	0
Public-law institutions outside Liechtenstein and Switzerland	42,651	37,951
Exchange-listed	272,408	231,753
Non-exchange-listed	0	21,904
Total	315,059	291,608

Equity shares / investment fund units
Exchange-listed	32,398	39,694
Non-exchange-listed	46,962	39,843
Total	79,360	79,537

Structured products
Exchange-listed	0	0
Non-exchange-listed 1	2,458	96
Total	2,458	96

Total financial instruments at fair value	396,877	371,241
1Principally structured credit notes (credit-linked notes and credit-default notes).
The fair value of non-exchange-listed financial instruments is determined exclusively on the basis of traders’ quotations or external pricing models based upon prices and interest rates of a supervised, active and liquid market. Management is convinced that the prices arrived at by these techniques constitute the most appropriate value for the balance sheet as of the date of the transactions, as well as for the related revaluation entries in the income statement.

20 Financial instruments at amortised cost
in CHF 1,000	31.12.2015	31.12.2014
Debt instruments
Public-law institutions in Liechtenstein and Switzerland	4,000	4,000
Public-law institutions outside Liechtenstein and Switzerland	789,643	393,922
Exchange-listed	819,660	632,214
Non-exchange-listed	52,304	43,973
Total	1,665,607	1,074,109

Total financial instruments at amortised cost	1,665,607	1,074,109

21 Associated companies

in CHF 1,000

31.12.2015

31.12.2014

Balance at the beginning of the financial year

Additions

–9

Value impairments

Balance as of balance-sheet date

Details of material companies reflected in the consolidation using the equity method
Name	Registered office	Activity	Share capital	% of capital held
				31.12.2015	31.12.2014
VAM Corporate Holdings Ltd.	Mauritius	Fund promoter company	GBP 50,000	20	20
Data Info Services AG	Vaduz	Procurement, trade and exchange of goods and services	CHF 50,000	50	50

22 Property and equipment
in CHF 1,000	Bank buildings	Other real estate	Furniture and equipment	IT systems	Total 2015
Acquisition cost
Balance on 01.01.	200,851	22,176	20,184	19,569	262,780
Additions	1,482	195	147	2,472	4,296
Disposals/derecognitions 1		–17,214	–26	–500	–17,740
Changes in scope of consolidation				11,736	11,736
Foreign-currency translation	7	3	4	8	22
Balance on 31.12.	202,340	5,160	20,309	33,285	261,094

Accumulated depreciation and amortisation
Balance on 01.01.	–112,720	–5,171	–18,196	–14,076	–150,163
Depreciation and amortisation	–6,024	–199	–1,153	–4,302	–11,678
Valuation allowances					0
Disposals/derecognitions 1		714	26	500	1,240
Changes in scope of consolidation				–10,857	–10,857
Foreign-currency translation	–5	–5	–5	–10	–25
Balance on 31.12.	–118,749	–4,661	–19,328	–28,745	–171,483

Net book values on 31.12.	83,591	499	981	4,540	89,611


in CHF 1,000	Bank buildings	Other real estate	Furniture and equipment	IT systems	Total 2014
Acquisition cost
Balance on 01.01.	198,815	22,038	20,533	28,542	269,928
Additions	2,201	94	181	3,586	6,062
Disposals/derecognitions 1	–257		–591	–12,690	–13,538
Changes in scope of consolidation					0
Foreign-currency translation	92	44	61	131	328
Balance on 31.12.	200,851	22,176	20,184	19,569	262,780

Accumulated depreciation and amortisation
Balance on 01.01.	–107,077	–4,873	–17,518	–23,281	–152,749
Depreciation and amortisation	–5,900	–264	–1,229	–3,394	–10,787
Valuation allowances					0
Disposals/derecognitions 1	257		591	12,690	13,538
Changes in scope of consolidation					0
Foreign-currency translation		–34	–40	–91	–165
Balance on 31.12.	–112,720	–5,171	–18,196	–14,076	–150,163

Net book values on 31.12.	88,131	17,005	1,988	5,493	112,617
1Includes the derecognitions of completely depreciated and amortised assets.


Additional information regarding property and equipment
in CHF 1,000				2015	2014
Fire insurance value of real estate				182,202	182,703
Fire insurance value of other property and equipment				38,537	38,637
Fair value of other real estate				499	17,005
There is no property and equipment arising from financing leasing contracts.

23 Goodwill and other intangible assets
in CHF 1,000	Software	Other intangible assets capitalised	Goodwill	Total 2015
Acquisition cost
Balance on 01.01.	142,105	10,078	46,112	198,295
Additions	6,390	34,045		40,435
Disposals/derecognitions	–151			–151
Changes in scope of consolidation	9,625			9,625
Foreign-currency translation	28			28
Balance on 31.12.	157,997	44,123	46,112	248,232

Accumulated amortisation
Balance on 01.01.	–122,406	–2,180	–35,302	–159,888
Depreciation and amortisation	–21,155	–5,420		–26,575
Valuation allowances				0
Disposals/derecognitions	147			147
Changes in scope of consolidation	–3,905			–3,905
Foreign-currency translation	–43			–43
Balance on 31.12.	–147,362	–7,600	–35,302	–190,264

Net book values on 31.12.	10,635	36,523	10,810	57,968


in CHF 1,000	Software	Other intangible assets capitalised	Goodwill	Total 2014
Acquisition cost
Balance on 01.01.	144,067	10,037	46,112	200,216
Additions	3,635	41		3,676
Disposals/derecognitions	–6,000			–6,000
Changes in scope of consolidation				0
Foreign-currency translation	403			403
Balance on 31.12.	142,105	10,078	46,112	198,295

Accumulated amortisation
Balance on 01.01.	–111,526	–167	–35,302	–146,995
Depreciation and amortisation	–16,548	–2,013		–18,561
Valuation allowances				0
Disposals/derecognitions	6,000			6,000
Changes in scope of consolidation				0
Foreign-currency translation	–332			–332
Balance on 31.12.	–122,406	–2,180	–35,302	–159,888

Net book values on 31.12.	19,699	7,898	10,810	38,407
There are no other capitalised intangible assets on the consolidated balance sheet of VP Bank Group with an unlimited estimated useful life.
Review of impairment in value of goodwill The existing goodwill of CHF 10.810 million arises from the acquisition of VP Bank (Luxembourg) SA in 2001 and is allocated to the cash-generating unit Client Business International. Since 1 January 2005, this goodwill amount has no longer been subject to amortisation, but rather to an annual impairment test. For the purposes of the impairment test carried out in 2015, the realisable amount was based upon the fair value (Level 3), minus selling costs. The level of the implicit premium (74 basis points) for client assets was computed on the basis of stock exchange quotes for enterprises which focus on the business of asset management, as well as acquisition prices paid on the occasion of corporate mergers, and was used to determine the recoverable amount. The recoverable amount exceeded the book value to such an extent that a decline in the value of the goodwill could be viewed as improbable. For this reason, a supplementary computation of the recoverable amount based upon the value in use was dispensed with.

24 Assets held for sale

The municipality of Vaduz is purchasing real estate from VP Bank in the municipality of Vaduz. At the balance sheet date all the formalities have not yet been completed and therefore the property is disclosed as an asset held for sale. The sale is expected to be completed at the start of 2016.
in CHF 1,000	31.12.2015	31.12.2014
Real estate held for sale	15,000	0
Total assets held for sale	15,000	0

25 Other assets
in CHF 1,000	31.12.2015	31.12.2014
Value-added taxes and other tax receivables	1,648	2,550
Miscellaneous other assets 1	9,435	12,787
Total other assets	11,083	15,337
1 Compensation accounts, settlement accounts and miscellaneous other assets.

26 Medium-term notes
in CHF 1,000 Maturity	Interest rate 0–0.9999%	Interest rate 1–1.9999%	Interest rate 2–2.9999%	Interest rate 3–3.9999%	Total
2016	13,177	59,389	0		72,566
2017	56,612	21,154	87		77,853
2018	20,553	7,699	425		28,677
2019	2,207	10,436	53		12,696
2020	76	17,738	114		17,928
2021	0	3,157	146		3,303
2022	75	531	244		850
2023	0	686	0		686
2024	100	346	0		446
2025	137	289	54		480
Total 31.12.2015	92,938	121,425	1,123	0	215,486
Total 31.12.2014	87,850	89,825	13,768	1,866	193,309
The average interest rate as of 31 December 2015 was 1.25 per cent (prior year: 1.32 per cent).

27 Debentures, VP Bank Ltd, Vaduz
							in CHF 1,000
Year of issue	ISIN	Interest rate in %	Currency	Maturity	Nominal amount		Total 31.12.2015	Total 31.12.2014
2010	CH0112734469	2.500	CHF	27.05.2016	151,000	1	149,119	199,370
2015	CH0262888933	0.500	CHF	07.04.2021	100,000		100,365	0
2015	CH0262888941	0.875	CHF	07.10.2024	100,000		100,477	0
Total					351,000		349,961	199,370
1 In 2015, VP Bank Ltd redeemed, on the free market, debentures of a nominal value of CHF 49 million in compliance with the debentures' terms of issue. The debentures so redeemed were cancelled.
Debt securities issued are recorded at fair value plus transaction costs upon initial recognition. Fair value corresponds to the consideration received. Subsequently, they are re-measured at amortised cost. In this process, the effective interest method (2.73 per cent debenture 2016; 0.43 per cent debenture 2021; 0.82 per cent debenture 2024) is applied in order to amortise the difference between the issuance price and redemption value over the duration of the debentures.

28 Other liabilities
in CHF 1,000	31.12.2015	31.12.2014
Value-added taxes and other tax receivables	8,463	10,585
Accrued retirement pension contributions	74,993	64,344
Miscellaneous other liabilities 1	33,389	29,248
Total other liabilities	116,845	104,177
1 Compensation accounts, settlement accounts and miscellaneous other liabilities.

29 Provisions
in CHF 1,000	Default risks	Legal and litigation risks	Other provisions	Restructuring provisions	Total 2015	Total 2014
Carrying value at the beginning of the financial year	168	6,123	2,839	0	9,130	9,958
Utilisation in accordance with purpose		–48	–744	–9,163	–9,955	–486
New provisions charged to income statement	136	1,084	491	15,299	17,010	3,190
Provisions releases to income statement	–38	–1,023	–95	–865	–2,021	–3,563
Foreign-currency translation differences and other adjustments		157	67	5	229	31
Carrying value at the end of the financial year	266	6,293	2,558	5,276	14,393	9,130

Maturity of provisions
• within one year					14,393	9,130
• over one year					0	0

30 Share capital
	31.12.2015		31.12.2014
	No. of shares	Nominal CHF	No. of shares	Nominal CHF
Registered shares of CHF 1.00 nominal value	6,004,167	6,004,167	6,004,167	6,004,167
Bearer shares of CHF 10.00 nominal value	6,015,000	60,150,000	5,314,347	53,143,470
Total share capital		66,154,167		59,147,637
All shares are fully paid up. The shareholders of VP Bank present at the extraordinary general meeting of VP Bank held on Friday, 10 April 2015, approved all motions submitted by the Board of Directors. On the occasion of the takeover of Centrum Bank by VP Bank, it was agreed that Marxer Stiftung für Bank- und Unternehmenswerte, as the previous sole shareholder of Centrum Bank, will participate in the capital of VP Bank to the extent of the countervalue of the sales price (note 45). As neither the corresponding number of shares was freely available on the market nor were there sufficient bearer shares in the Bank's own shareholdings, the Board of Directors resolved to undertake a corresponding capital increase excluding the right of subscription thereto of the existing shareholders. The extraordinary general meeting approved an increase in share capital of CHF 7,006,530.00 as well as the issuance of 700,653 bearer shares of a par value of CHF 10.00 with entitlement to a dividend as from the date of issuance. Following the capital increase as part of the merger, there resulted a new balance of 6,015,000 bearer shares, and the total share capital of the Bank now amounts to CHF 66,154,167.00.The new shares were listed in the International Reporting Standard of SIX Swiss Exchange on 30 September 2015.

31 Treasury shares
	31.12.2015		31.12.2014
	No. of shares	in CHF 1,000	No. of shares	in CHF 1,000
Registered shares at the beginning of the financial year	209	2	30,659	377
Purchases	125,713	1,055	10,050	76
Sales	–10	–1	–40,500	–451
Balance of registered shares as of balance-sheet date1	125,912	1,056	209	2

Bearer shares at the beginning of the financial year	111,634	21,015	107,795	25,526
Purchases	602,060	50,039	88,043	7,710
Sales	–118,920	–21,611	–84,204	–12,221
Balance of bearer shares as of balance-sheet date1	594,774	49,443	111,634	21,015
1 VP Bank AG carried out a repurchase programme of bearer and registered shares from 22 June to 3 July 2015. In the context of the repurchase programme, VP Bank acquired 300,750 bearer shares at a price of CHF 84.00 and 114,080 registered shares at a price of CHF 8.40, par-value-adjusted compared to the bearer share. From 13 to 28 October 2015, VP Bank carried out a further repurchase programme of bearer shares and registered shares. In the context of this repurchase programme VP Bank acquired 298,442 bearer shares at a price of CHF 82.00 and 10,200 registered shares at a price of CHF 8.20, par-value-adjusted compared to the bearer share. The repurchased shares are to be used for future acquisitions or for treasury management purposes. Own shares are offset against equity in line with IAS 32.

32 Assets pledged or assigned to secure own liabilities and assets subject to reservation of title
	31.12.2015		31.12.2014
in CHF 1,000	Market value	Actual liability	Market value	Actual liability
Securities	627,112	0	487,588	0
Money-market paper	0	0	0	0
Other	0	0	0	0
Total pledged assets	627,112	0	487,588	0
The assets are pledged to limits for the repo business with national and central banks, for stock exchange deposits and to secure the business activities of overseas organisations pursuant to local legal provisions. Pledged or assigned assets within the framework of securities lending transactions or of repurchase and reverse repurchase transactions are not reflected in the above analysis. They are shown in the table “Securities lending and repurchase and reverse repurchase transactions with securities” (note 46).

33 Future commitments under operating leases At the end of the year, there were several operating lease contracts for real estate and other property and equipment, which are principally used for the conduct of business activities of the Bank. The equipment leasing contracts contain renewal options as well as escape clauses.
in CHF 1,000	31.12.2015	31.12.2014
Remaining duration of up to 1 year	5,587	6,389
Remaining duration of 1 to 5 years	12,448	17,164
Remaining duration of over 5 years	9,805	4,800
Total minimum commitments under operating leases	27,840	28,353
As of 31 December 2015, general and administrative expenses include CHF 5.979 million of operating lease costs (prior year: CHF 6.691 million).

34 Litigation

Within the normal course of business, VP Bank Group is involved in various legal proceedings. It raises provisions for ongoing and threatened litigation whenever, in the opinion of management, payments or losses by Group companies are probable and their amount can be estimated. If no outflow of resources is probable or the amount of the liabilities cannot be reliably estimated, a contingent liability is to be disclosed. All provisions are recorded in the item “Other provisions” in the consolidated balance sheet (note 29).

35 Balance sheet per currency
in CHF 1,000	CHF	USD	EUR	Other	Total 2015
Assets
Cash and cash equivalents	2,935,784	638	18,510	595	2,955,527
Receivables arising from money-market paper				14,652	14,652
Due from banks	52,707	951,213	596,175	460,175	2,060,270
Due from customers	3,434,253	852,097	589,308	131,351	5,007,009
Trading portfolios				154	154
Derivative financial instruments	33,664	2,308		911	36,883
Financial instruments at fair value	208,209	112,112	75,060	1,496	396,877
Financial instruments at amortised cost	287,857	839,891	537,859		1,665,607
Associated companies	56				56
Property and equipment	88,444	1,115		52	89,611
Intangible assets	57,958	10			57,968
Tax receivables	7		1,753		1,760
Deferred tax assets	23,877			1	23,878
Accrued liabilities and deferred items	12,962	6,275	4,927	917	25,081
Assets held for sale	15,000				15,000
Other assets	8,205	600	1,815	463	11,083
Total assets 31.12.2015	7,158,983	2,766,259	1,825,407	610,767	12,361,416


in CHF 1,000	CHF	USD	EUR	Other	Total 2015
Liabilities and shareholders’ equity
Due to banks	7,831	46,504	31,379	14,442	100,156
Due to customers – savings and deposits		757,294			757,294
Due to customers – other liabilities	2,308,470	4,057,345	2,674,851	748,403	9,789,069
Derivative financial instruments	46,810	4,373	1,144	908	53,235
Medium-term notes	190,964	4,280	20,242		215,486
Debenture issues	349,961				349,961
Tax liabilities	2,455		186		2,641
Deferred tax liabilities	14,153				14,153
Accrued liabilities and deferred items	26,117	980	2,393	569	30,059
Other liabilities	104,974	6,432	4,773	666	116,845
Provisions	12,011	400	1,752	230	14,393
Total liabilities	3,063,746	4,877,608	2,736,720	765,218	11,443,292
Total shareholders’ equity	831,001	85,946	0	1,177	918,124
Total liabilities and shareholders’ equity 31.12.2015	3,894,747	4,963,554	2,736,720	766,395	12,361,416


in CHF 1,000	CHF	USD	EUR	Other	Total 2014
Assets
Cash and cash equivalents	1,899,701	444	26,205	618	1,926,968
Receivables arising from money-market paper				22,027	22,027
Due from banks	484,771	1,079,947	1,249,876	467,632	3,282,226
Due from customers	3,100,030	482,686	581,295	99,932	4,263,943
Trading portfolios				189	189
Derivative financial instruments	54,970	1,156			56,126
Financial instruments at fair value	209,500	82,261	77,797	1,683	371,241
Financial instruments at amortised cost	291,893	335,641	446,575		1,074,109
Associated companies	65				65
Property and equipment	111,207	1,375		35	112,617
Intangible assets	37,863	544			38,407
Tax receivables	14		555		569
Deferred tax assets	16,236				16,236
Accrued receivables and prepaid expenses	13,662	4,153	6,060	722	24,597
Other assets	10,148	136	4,359	694	15,337
Total assets 31.12.2014	6,230,060	1,988,343	2,392,722	593,532	11,204,657


in CHF 1,000	CHF	USD	EUR	Other	Total 2014
Liabilities and shareholders’ equity
Due to banks	168,450	11,163	120,432	4,009	304,054
Due to customers – savings and deposits	858,695		406		859,101
Due to customers – other liabilities	2,239,807	2,885,766	2,184,046	1,277,307	8,586,926
Derivative financial instruments	39,308	3,971	2,638		45,917
Medium-term notes	169,384	4,398	19,527		193,309
Debenture issues	199,370				199,370
Tax liabilities	2,287		180		2,467
Deferred tax liabilities	8,755				8,755
Accrued liabilities and deferred items	19,519	639	2,348	488	22,994
Other liabilities	86,079	4,905	9,649	3,544	104,177
Provisions	8,832	298			9,130
Total liabilities	3,800,486	2,911,140	2,339,226	1,285,348	10,336,200
Total shareholders’ equity	788,018	79,658	53	728	868,457
Total liabilities and shareholders’ equity 31.12.2014	4,588,504	2,990,798	2,339,279	1,286,076	11,204,657

36 Maturity structure of assets and liabilities
in CHF 1,000				Due within
	At sight	Callable	1 year	1 to 5 years	Over 5 years	Total 2015
Assets
Cash and cash equivalents	2,955,527					2,955,527
Receivables arising from money-market paper			14,652			14,652
Due from banks	445,662	94	1,614,514			2,060,270
Due from customers	193,141	447,787	2,378,831	1,504,661	482,589	5,007,009
Trading portfolios	154					154
Derivative financial instruments	36,883					36,883
Financial instruments at fair value	382,413				14,464	396,877
Financial instruments at amortised cost	163,204		188,168	1,074,268	239,967	1,665,607
Associated companies	56					56
Property and equipment1					89,611	89,611
Intangible assets					57,968	57,968
Tax receivables	1,760					1,760
Deferred tax assets				23,878		23,878
Accrued receivables and prepaid expenses	24,768		313			25,081
Assets held for sale			15,000			15,000
Other assets	10,844	239				11,083
Total assets 31.12.2015	4,214,412	448,120	4,211,478	2,602,807	884,599	12,361,416

Liabilities and shareholders’ equity
Due to banks	100,156					100,156
Due to customers – savings and deposits		757,294				757,294
Due to customers – other liabilities	8,633,137	637,706	411,129	107,097		9,789,069
Derivative financial instruments	53,235					53,235
Medium-term notes			72,566	137,155	5,765	215,486
Debenture issues			149,119		200,842	349,961
Tax liabilities	2,557			84		2,641
Deferred tax liabilities				14,153		14,153
Accrued liabilities and deferred items	30,059					30,059
Other liabilities	116,845					116,845
Provisions	14,393					14,393
Total liabilities 31.12.2015	8,950,382	1,395,000	632,814	258,489	206,607	11,443,292
1 Without maturity



in CHF 1,000				Due within
	At sight	Callable	1 year	1 to 5 years	Over 5 years	Total
Assets
Cash and cash equivalents	1,926,968					1,926,968
Receivables arising from money-market paper			22,027			22,027
Due from banks	665,472		2,605,358	10,990	406	3,282,226
Due from customers	15,465	445,821	2,037,056	1,362,593	403,008	4,263,943
Trading portfolios	189					189
Derivative financial instruments	56,126					56,126
Financial instruments at fair value	328,847		11,374	7,108	23,912	371,241
Financial instruments at amortised cost	59,499		164,945	767,631	82,034	1,074,109
Associated companies	65					65
Property and equipment1					112,617	112,617
Intangible assets					38,407	38,407
Tax receivables	569					569
Deferred tax assets				16,236		16,236
Accrued receivables and prepaid expenses	22,928		1,464	169	36	24,597
Other assets	15,098	239				15,337
Total assets 31.12.2014	3,091,226	446,060	4,842,224	2,164,727	660,420	11,204,657

Liabilities and shareholders’ equity
Due to banks	256,853		47,201			304,054
Due to customers – savings and deposits		859,101				859,101
Due to customers – other liabilities	7,401,785	481,402	702,433	1,306		8,586,926
Derivative financial instruments	45,917					45,917
Medium-term notes			52,922	121,723	18,664	193,309
Debenture issues				199,370		199,370
Tax liabilities	2,467					2,467
Deferred tax liabilities	4,213			4,542		8,755
Accrued liabilities and deferred items	22,689		305			22,994
Other liabilities	104,177					104,177
Provisions	9,130					9,130
Total liabilities 31.12.2014	7,847,231	1,340,503	802,861	326,941	18,664	10,336,200
1 Without maturity

37 Classification of assets by country or groups of countries
	31.12.2015		31.12.2014
	in CHF 1,000	Proportion in %	in CHF 1,000	Proportion in %
Liechtenstein and Switzerland	8,013,460	64.9	6,942,922	62.0
Rest of Europe	2,363,810	19.1	3,134,204	28.0
North America	754,957	6.1	313,456	2.7
Other countries	1,229,189	9.9	814,075	7.3
Total assets	12,361,416	100.0	11,204,657	100.0
The classification is made according to the principle of domicile of the counterparties. Diversified collateral existing in the area of lombard loans is not taken into consideration in this respect.

38 Financial instruments

Fair value of financial instruments

The following table shows the fair values of financial instruments based on the valuation methods and assumptions set out below. This table is presented because not all financial instruments are disclosed at their fair values in the consolidated financial statements. The fair value equates to the price at the date of measurement which could be realised from the sale of the asset, or which must be settled for the transfer of the liability, in an orderly transaction between market participants.


in CHF million	Carrying value 31.12.2015	Fair value 31.12.2015	Variance	Carrying value 31.12.2014	Fair value 31.12.2014	Variance
Assets
Cash and cash equivalents	2,956	2,956	0	1,927	1,927	0
Receivables arising from money-market paper	15	15	0	22	22	0
Due from banks	2,060	2,061	1	3,282	3,283	1
Due from customers	5,007	5,167	160	4,264	4,390	126
Trading portfolios	0	0	0	0	0	0
Derivative financial instruments	37	37	0	56	56	0
Financial instruments at fair value	397	397	0	371	371	0
of which designated on initial recognition	0	0	0	0	0	0
of which mandatory under IFRS 9	383	383	0	355	355	0
of which recognised in other comprehensive income with no effect on net income	14	14	0	16	16	0
Financial instruments at amortised cost	1,666	1,679	13	1,074	1,099	25
Subtotal			174			152

Liabilities
Due to banks	100	100	0	304	304	0
Due to customers	10,546	10,541	5	9,446	9,436	10
Derivative financial instruments	53	53	0	46	46	0
Medium-term notes	215	220	–5	193	198	–5
Debentures issued	350	351	–1	199	207	–8
Subtotal			–1			–3

Total variance			173			149
The following valuation methods are used to determine the fair value of on-balance-sheet financial instruments: Cash and cash equivalents, money-market paper For the balance-sheet-items “Cash and cash equivalents” and “Receivables arising from money-market paper”, which do not have a published market value on a recognised stock exchange or on a representative market, the fair value corresponds to the amount payable at the balance-sheet date. Due from/to banks and customers, medium-term notes, debenture issues In determining the fair value of amounts due from/to banks, due from/to customers (including mortgage receivables and due to customers in the form of savings and deposits), as well as of medium-term notes and debenture issues with a fixed maturity or a refinancing profile, the net present value method is applied (discounting of monetary flows with swap rates corresponding to the respective term). For products whose interest or payment flows cannot be determined in advance, replicating portfolios are used. Trading portfolios, trading portfolios pledged as security, financial instruments at fair value Fair value corresponds to market value for the majority of these financial instruments. The fair value of non-exchange-listed financial instruments (in particular for structured credit loans) is determined only on the basis of external traders’ prices or pricing models which are based on prices and interest rates in an observable, active and liquid market. Derivative financial instruments For the majority of the positive and negative replacement values (see note 18), the fair value equates to the market value. The fair value for derivative instruments without market value is determined using uniform models. These valuation models take account of the relevant parameters such as contract specifications, the market price of the underlying security, the yield curve and volatility.

Fair-value hedges (interest-rate hedges)
	Nominal value of hedging instruments		Book value of hedging instruments		Balance sheet position under which hedging instruments are disclosed
			Assets	Liabilities
Interest-rate swaps		118,496	0	12,826	Derivative financial instruments

	Book value of underlying transactions		Accumulated valuation adjustments, included in the book value of the underlying transactions		Balance sheet position under which hedging instruments are disclosed
	Assets	Liabilities	Assets	Liabilities
Client receivables	121,148	0	2,655	0	Due from customers
of which closed hedging relationships (client receivables)	2,025	0	79	0	Due from customers

Valuation methods for financial instruments

The fair value of listed securities held for trading purposes or as financial instruments, as well as that of listed derivatives and other financial instruments with a price established in an active market, is determined on the basis of current market value (Level 1). Valuation methods or pricing models are
used to determine the fair value of financial instruments if no direct market prices are available. If possible, the underlying assumptions are based on
observed market prices or other market indicators as at the balance-sheet date (Level 2). For most of the derivatives traded over the counter, as well
as for other financial instruments that are not traded in an active market, fair value is determined by means of valuation methods or pricing models. Among the most frequently applied of those methods and models are cash-value-based forward pricing and swap models, as well as options pricing models such as the Black-Scholes model or derivations thereof. The fair values arrived at on the basis of these methods and models are influenced to
a significant degree by the choice of the specific valuation model and the underlying assumptions applied, for example the amounts and time sequence of future cash flows, discount rates, volatilities and/or credit risks.

If neither current market prices nor valuation methods/models based on observable market data can be drawn on for the purpose of determining fair value, then valuation methods or pricing models supported by realistic assumptions derived from actual market data are used (Level 3). Level 3 principally includes investment funds, for which an obligatory net asset value is not published at least on a quarterly basis. The fair value of these positions is, as a rule, computed on the basis of external estimates by experts in relation to the level of future distributions of fund units, or equates to the acquisition cost of the securities less any applicable valuation allowances.

Valuation methods for financial instruments
in CHF million at fair value	Quoted market prices Level 1	Valuation methods, based on market data Level 2	Valuation methods, with assumptions based on market data Level 3	Total
Assets 31.12.2015
Cash and cash equivalents		2,956		2,956
Receivables arising from money-market paper	15			15
Due from banks		2,061		2,061
Due from customers		5,167		5,167
Trading portfolios				0
Derivative financial instruments		37		37
Financial instruments at fair value	347	45	5	397
Financial instruments at amortised cost	1,664	15		1,679

Liabilities 31.12.2015
Due to banks		100		100
Due to customers		10,541		10,541
Derivative financial instruments		53		53
Medium-term notes		220		220
Debentures issued	351			351
In the financial year 2015, positions with a fair value of CHF 4.5 million (2014: CHF 0.0 million) were reclassified from Level 1 (quoted market prices) to Level 2 (valuation methods based on market data), CHF 0.0 million (2014: CHF 4.3 million) from Level 2 to Level 3 (valuation methods, based on realistic market-data-related assumptions) as well as CHF 4.3 million from Level 3 to Level 2 (2014: CHF 0.0 million). The reclassifications are made as of the end of the reporting period in the case of changes in the availability of market prices (market liquidity).
in CHF million at fair value	Quoted market prices Level 1	Valuation methods, based on market data Level 2	Valuation methods, with assumptions based on market data Level 3	Total
Assets 31.12.2014
Cash and cash equivalents		1,927		1,927
Receivables arising from money-market paper	22			22
Due from banks		3,283		3,283
Due from customers		4,390		4,390
Trading portfolios				0
Derivative financial instruments		56		56
Financial instruments at fair value	309	57	5	371
Financial instruments at amortised cost	1,099			1,099

Liabilities 31.12.2014
Due to banks		304		304
Due to customers		9,436		9,436
Derivative financial instruments		46		46
Medium-term notes		198		198
Debentures issued	207			207

Level 3 financial instruments in CHF million	2015	2014
Balance sheet
Holdings at the beginning of the year	4.5	4.1
Investments	0.0	0.0
Disposals	0.0	0.0
Issues	0.0	0.0
Redemptions	0.0	–2.8
Losses recognised in the income statement	1.5	0.0
Losses recognised as other comprehensive income	–0.5	–1.5
Gains recognised in the income statement	3.2	0.0
Gains recognised as other comprehensive income	0.0	0.5
Reclassification to Level 3	0.0	4.3
Reclassification from Level 3	–4.3	0.0
Translation differences	0.0	0.0
Total book value at balance-sheet date	4.4	4.5

Income on holdings at balance-sheet date
Unrealised losses recognised in the income statement	1.5	0.0
Unrealised losses recognised as other comprehensive income	–0.5	–1.5
Unrealised gains recognised in the income statement	3.2	0.0
Unrealised gains recognised as other comprehensive income	0.0	0.5
No deferred day 1 profit or loss (difference between the transaction price and the fair value calculated on the transaction day) was reported for Level 3 positions as of 31 December 2015 or 31 December 2014. Sensitivity of fair values of Level 3 financial instruments: Changes in the net asset values of investment funds lead to corresponding changes in the fair values of these financial instruments. A realistic change in the basic assumptions or estimated values has no material impact on the statement of income, other comprehensive income or the equity of VP Bank Group’s shareholders.

Netting agreements In order to reduce the credit risks in connection with financial derivatives, repurchase and reverse repurchase as well as securities-lending and -borrowing transactions, VP Bank Group enters into global offset agreements or similar arrangements (netting agreements) with its counter- parties. These include ISDA Master Netting Agreements, Global Master Securities Lending Agreements and Global Master Repo Agreements. Using netting agreements, VP Bank Group can protect itself against losses arising from possible insolvency proceedings or other circumstances in which the counterparty is unable to meet its obligations. In such cases, netting agreements foresee the immediate offset and/or settlement of all financial instruments falling under the related agreement. A right of offset, in principle, exists only whenever a default in payment or other circumstances occur which are not expected in the ordinary course of business. Financial instruments falling under a netting agreement do not meet the set-off requirements for balance-sheet purposes, which is why the related financial instruments are not netted in the balance sheet.
Netting agreements
31.12.2015	Balance-sheet netting			Netting potential
in CHF 1,000	Amount prior to balance-sheet netting	Balance- sheet netting	Carrying value	Financial liabilities	Collateral received	Assets after taking account of netting potential
Financial assets
Reverse repurchase transactions	210,210		210,210		210,210	0
Positive replacement values	36,883		36,883	20,494		16,389
Collateral deposited for transactions with derivatives	42,608		42,608	17,633		24,975
Total assets	289,701	0	289,701	38,127	210,210	41,364
	Amount prior to balance-sheet netting	Balance- sheet netting	Carrying value	Financial assets	Collateral provided	Liabilities after taking account of netting potential
Financial liabilities
Repurchase transactions			0			0
Negative replacement values	53,235		53,235	38,127	14,938	170
Collateral received from transactions with derivatives			0			0
Total liabilities	53,235	0	53,235	38,127	14,938	170


31.12.2014	Balance-sheet netting			Netting potential
in CHF 1,000	Amount prior to balance-sheet netting	Balance- sheet netting	Carrying value	Financial liabilities	Collateral received	Assets after taking account of netting potential
Financial assets
Reverse repurchase transactions			0			0
Positive replacement values	56,126		56,126	17,732		38,394
Collateral deposited for transactions with derivatives	54,184		54,184	16,627		37,557
Total assets	110,310	0	110,310	34,359	0	75,951
	Amount prior to balance-sheet netting	Balance- sheet netting	Carrying value	Financial assets	Collateral provided	Liabilities after taking account of netting potential
Financial liabilities
Repurchase transactions			0			0
Negative replacement values	45,917		45,917	34,359	6,373	5,185
Collateral received from transactions with derivatives	325		325			325
Total liabilities	46,242	0	46,242	34,359	6,373	5,510

39 Scope of consolidation
Company	Registered office	Base currency	Capital	Group share of equity
VP Bank Ltd	Vaduz	CHF	66,154,167	100%
VP Fund Solutions (Liechtenstein) AG	Vaduz	CHF	1,000,000	100%
VP Verwaltung GmbH	Munich	EUR	500,000	100%
VP Bank (Singapore) Ltd	Singapore	SGD	74,000,000	100%
VP Wealth Management (Hong Kong) Ltd	Hong Kong	HKD	5,000,000	100%
VP Bank (Luxembourg) SA	Luxembourg	CHF	20,000,000	100%
which holds the following sub-participation:
VP Fund Solutions (Luxembourg) SA	Luxembourg	CHF	5,000,000	100%
VPB Finanz Holding AG	Zurich	CHF	20,000,000	100%
which holds the following sub-participation:
VP Bank (Switzerland) Ltd	Zurich	CHF	20,000,000	100%
VP Bank (BVI) Ltd	Tortola	USD	10,000,000	100%
Shareholdings excluded from the scope of consolidation	none
Associated companies	VAM Corporate Holdings Ltd., Mauritius Data Info Services AG, Vaduz
Companies integrated during the financial year	The acquisition of Centrum Bank AG, Vaduz, (note 45) was completed on 7 January 2015 and it was integrated into VP Bank from this date onwards.
Shareholdings accounted for the first time in accordance with the equity method	none
Name changes during the financial year	IFOS Internationale Fonds Service Aktiengesellschaft, Vaduz to VP Fund Solutions (Liechtenstein) AG VPB Finance S.A., Luxembourg to VP Fund Solutions (Luxembourg) SA

40 Transactions with related companies and individuals

Members of the Board of Directors and Group Management as well as their next of kin, and companies which are controlled by these individuals either by virtue of a majority shareholding or as a result of their role as Chairman of the Board and/or Chief Executive Officer in these companies, are considered to be related companies and individuals.
in CHF 1,000	2015	2014
Remuneration of the members of the Board of Directors
Remuneration due in the short term 1 ,2	1,097	1,001
Post-employment benefits
Other long-term remuneration due
Remuneration due upon termination of contract of employment
Share-based payment 1 ,2 ,3	320	306


in CHF 1,000	2015	2014
Remuneration of the members of Group Management
Remuneration due in the short term 2	2,556	2,615
Post-employment benefits
Other long-term remuneration due
Remuneration due upon termination of contract of employment
Share-based payments 2 ,4	1,133	1,561
1The social-security costs and any applicable value-added taxes on the emoluments paid to Board members are not included. 2Compensation for out-of-pocket expenses is not included. 3The shares are not subject to any minimum holding period (see note 43 and note 44). 4 Performance-related and restricted shares with conditional entitlement to receive bearer shares of VP Bank.
VP Bank Group also makes payments to related persons within the framework of brokerage services and bought-in advisory services. These correspond to customary market conditions. The aggregate amount of such payments and fees in 2015 was CHF 0.906 million (previous year: CHF 0.481 million). The Board of Directors and the Group Management as well as parties related thereto (excluding qualifying shareholders) and retirement pension plans as of 31 December 2015, held 87,604 bearer shares and 139,750 registered shares of VP Bank Ltd, Vaduz (previous year: 99,781 bearer shares and 179,600 registered shares).


Loans to related companies and individuals (as of balance-sheet dates):
in CHF 1,000	2015	2014
Mortgages and loans at the beginning of the financial year	8,950	9,170
Additions	145	3,820
Repayments	–715	–4,040
Mortgages and loans at the end of the financial year	8,380	8,950
With regard to members of the Board of Directors and Group Executive Management, basically the same conditions apply as for all other employees. They correspond to customary market conditions excluding a credit margin. Loans to related individuals and companies were granted under normal market conditions.

41 Retirement pension plans

Benefits after termination of employment

The Group maintains a number of pension plans in the Principality of Liechtenstein and abroad for employees meeting the criteria for admission to the pension plans. Amongst these are both defined-benefit and defined-contribution plans which insure most employees against the effects of death, invalidity and retirement. In addition, there are schemes for service anniversaries which qualify as other long-term employee benefits.

Defined-contribution pension plans

The Group offers defined-contribution pension plans to those employees who meet the appropriate admission criteria. The company is obligated to transfer a predetermined percentage of the annual salary to the pension plans. For certain plans, the employees are also obligated to make contributions. These contributions are deducted by the employer from the salary typically each month and also passed on to the pension plans. Apart from the payment of contributions and the transfer of employee contributions, there are presently no further obligations incumbent on the employer.

The employee contributions to contribution-defined pension plans for 2015 amounted to CHF 1.208 million (prior year: CHF 1.223 million).

Defined-benefit pension plans

The Group finances defined-benefit pension plans for employees who meet the admission criteria. The most significant of such plans are located in the Principality of Liechtenstein and Switzerland. Following the takeover of Centrum Bank a further pension plan was added. Since then, the employees involved have been transferred into existing plans.

For employees in the Principality of Liechtenstein and Switzerland, the Group operates several pension plans with fixed, predefined admission criteria. The largest of the plans are operated using an autonomous foundation, the remaining plans are handled using collective foundations of insurance companies. In these foundations, the assets available to meet the pension obligations are segregated out.

For the pension plans which are operated using collective foundations, there are pension commissions which comprise an equal number of representatives.

The Council of the Foundation of the autonomous pension plan is also made up of an equal number of employer and employee representatives. On the basis of the Law and the Rules of the Pension Fund, the Foundation Council is obligated to act solely in the interests of the Foundation and of the beneficiaries (current actively insured employees and pensioners). Thus, in this plan, the employer cannot himself determine pension benefits and their financing, but resolutions are taken on an equal representation basis. The Council of the Foundation is responsible for setting the investment strategy, for changes to the Rules of the Pension Fund and in particular also for determining how pension benefits are to be financed.

Retirement benefits in this plan are based upon the balance of accumulated capital savings. Annual savings credits and interest (no negative interest is possible) are added to the employee‘s capital savings account. Upon retirement, the insured person has the option between a lifetime pension which includes a reversionary spouse‘s pension, or the payment of a capital sum. In addition to retirement benefits, employee benefits also include an invali- dity pension and a partner pension. These are computed as a percentage of the insured annual salary. An insured person can also purchase additional benefits to improve his/her pension situation up to a maximum allowed under the pension rules.

Upon termination of employment, the accumulated savings capital is transferred to the pension plan of the new employer or to a vested benefits scheme. This form of employment benefit can lead to a situation where pension payments may vary significantly between the various years.

The minimum provisions of the Law on Occupational Pension Plans and its Implementing Provisions (BPVG) are to be observed in determining employee benefits. The minimum insurable salary and the minimum savings credits are laid down in the BPVG.

As a result of the form of the pension plan and the legal provisions of the BPVG, the employer is exposed to actuarial risks, the most significant of which are investment risk, interest-rate risk, invalidity risk and longevity risk. The employee and employer contributions are laid down by the Councils of the Foundations. In this connection, the employer must bear, at a minimum, half of all contributions. In the event of a funding deficit, restructuring contributions to eliminate the funding deficit may be demanded both from the employer and employees.

The latest actuarial valuation of the present value of the defined-benefit obligations and service costs was carried out as of 31 December 2015 by independent actuaries using the Projected Unit Credit Method. The fair value of plan assets as of 31 December 2015 was determined based upon information available at the time of preparation of the annual financial statements.

The most significant assumptions underlying the actuarial computations may be summarised as follows:
	31.12.2015	31.12.2014
Discount rate	0.90%	1.15%
Rate of future salary increases	1.00%	1.00%
Rate of future pension increases	0.00%	0.00%
Life expectancy at the age of 65, in years
Year of birth	1950	1949
• men	21.49	21.29
• women	23.96	23.76
Year of birth	1970	1969
• men	23.24	23.09
• women	25.67	25.52

The amounts recognised in the income statement may be summarised as follows:
Pension costs
in CHF 1,000	2015	2014
Pension expense recognised in income statement
Service cost
• current service cost	12,791	9,338
• past service cost	–11,776	–70
• plan settlements	0	0
Net interest expense	722	661
Administrative costs	282	256
Total pension cost expense of the period	2,019	10,185

Revaluation components recognised in comprehensive income
Actuarial gains/losses
Result of changes to demographic assumptions	0	0
Result of changes to economic assumptions	10,371	36,059
Experience adjustments	–6,586	1,238
Return on plan assets (excluding amounts in net interest expense)	8,626	–7,240
Total expense recognised in comprehensive income	12,411	30,057
Total pension cost	14,430	40,242

The movement in pension obligations and plan assets may be summarised as follows:
Movement in present value of defined-benefit obligations
in CHF 1,000	2015	2014
Present value of defined-benefit obligations at beginning of financial year	283,922	234,141
Current service cost	12,791	9,338
Employee contributions	5,488	4,994
Interest expense on present value of pension obligations	3,606	5,539
Actuarial gains/losses	3,785	37,297
Past service cost	–11,776	–70
Plan settlements	38,353	0
Pension payments financed by plan assets	–18,091	–7,317
Balance at end of financial year	318,078	283,922

Movement in plan assets
in CHF 1,000	2015	2014
Plan assets at beginning of financial year	219,578	199,097
Employee contributions	5,488	4,994
Employer contributions	9,049	10,942
Interest income on plan assets	2,884	4,878
Return on plan assets (excluding amounts under interest income)	–8,626	7,240
Transfers of assets through plan settlements	33,085	0
Pension payments financed by plan assets	–18,091	–7,317
Administrative costs	–282	–256
Balance at end of financial year	243,085	219,578

The net position of pension obligations recognised in the balance sheet may be summarised as follows:
Net position of pension obligations recognised in balance sheet
in CHF 1,000	31.12.2015	31.12.2014
Present value of pension obligations financed through a fund	318,078	283,922
Market value of plan assets	–243,085	–219,578
Under- / excess of funding	74,993	64,344
Present value of pension obligations not financed through a fund	0	0
Unrecognised assets	0	0
Recognised pension obligations	74,993	64,344
In the case of the autonomous pension plan, the Foundation Council issues investment guidelines for the investment of the plan’s assets which contain the tactical asset allocation and the benchmarks for comparing the results with those of the general investment universe. The plan assets are well diver- sified and, in addition, the legal provisions of the BPVG are to be observed. The plan assets of collective pension foundations are invested in insurance policies with insurance companies. The Council of the Foundation reviews on an ongoing basis whether the investment strategy chosen is appropriate to cover the pension benefits and whether the risk budget corresponds to the demographic structure. Compliance with investment guidelines and the investment performance of investment advisors are also subject to ongoing review.

Plan assets primarily consist of the following categories of securities:
in CHF 1,000	31.12.2015	31.12.2014
Equity shares	50,511	20,676
thereof quoted market prices (Level 1)	48,026	18,007
Bonds	106,316	108,544
thereof quoted market prices (Level 1)	101,383	101,326
Alternative financial investments	13,853	6,229
thereof quoted market prices (Level 1)	4,512	857
Real estate	11,837	8,917
thereof quoted market prices (Level 1)	0	0
Qualifying insurance paper	41,502	45,487
Cash equivalents	22,932	29,725
Other financial investments	–3,866	0
Total	243,085	219,578
thereof quoted market prices (Level 1)	153,921	120,190
The pension plans hold shares in VP Bank Ltd, Vaduz, with a market value totalling CHF 1.2 million (previous year: CHF 1.3 million). In 2015, the return on plan assets was CHF 5.742 million (previous year: CHF 12.118 million).

The defined-benefit pension obligations may be allocated as follows to the currently active insured employees, those who have left the Group with vested rights and pensioners as well as the duration of the pension obligations:
in CHF 1,000	31.12.2015	31.12.2014
Current actively insured employees	241,047	215,458
Pensioners	77,031	68,464
Total	318,078	283,922
The duration of pension obligations is approximately 18 years (previous year: 18 years).

Presented in the following table are the sensitivities for the most important factors in the computation of the present value of pension obligations.
Changes in present value of defined-benefit obligations
in CHF 1,000	31.12.2015		31.12.2014
Variance	0.25%	–0.25%	0.25%	–0.25%
Discount rate	–12,418	13,206	–11,154	11,861
Interest on pension capital accounts	2,645	–2,677	2,559	–2,569
Development of salaries	1,088	–1,101	1,053	–1,063

42 Significant foreign exchange rates The following exchange rates were used for the most important currencies:
	Year-end rates		Annual average rates
	31.12.2015	31.12.2014	2015	2014
USD/CHF	1.0010	0.9937	0.96329	0.91493
EUR/CHF	1.0874	1.2024	1.06830	1.21464
SGD/CHF	0.7056	0.7499	0.70026	0.72218
HKD/CHF	0.1292	0.1281	0.12425	0.11798
GBP/CHF	1.4754	1.5493	1.47225	1.50678

43 Employee stock-ownership plan

The stock-ownership plan enables employees to subscribe annually to a defined number of bearer shares of VP Bank Ltd, Vaduz, at a preferential price subject to a four-year restriction on selling. Upon expiration of the sales restriction period, or at the time of resignation from VP Bank Group, the related shares become freely available. As the employees are therefore ultimately able to take up the shares at any time and in full, the expense arising from the employee participation plans is recorded in full at the time of their respective allocation. The number of bearer shares that can be subscribed to depends upon the years of service, rank and management level.

The purchase price is determined annually in relation to the market value of the bearer shares on the Swiss Exchange (ex-dividend). The shares issued in this manner derive either from shareholdings of VP Bank Group or must be purchased for this purpose over the exchange. The expense thereby incurred is charged directly to personnel costs.

During 2015, 12,085 shares were issued at a preferential price (2014: 11,872 shares). Share issue expenses in 2015 were CHF 0.5 million (2014: CHF 0.5 million).

There is no profit-sharing plan for the Board of Directors. Its members, however, receive a part of their remuneration/bonuses in the form of equity shares which are not subject to any lock-up period (note 40). A profit-sharing plan exists for Group Executive Management and other management members (note 44). VP Bank has defined waiting periods for the Board of Directors, Group Executive Management and selected executives and employees, during which it is forbidden to trade in the shares of VP Bank.

44 Management profit-sharing plan

A long-term and value-oriented compensation model exists for the Executive Board and second-level management. Details thereof are to be found in the “Corporate governance and compensation report” section of the annual report under point 5.1.2.

Management equity-sharing plan (LTI)
Number	2015	2014	Variance in %
Balance of entitlements at the beginning of the year	72,698	78,328	–7.2
New entitlements	36,102	40,896	–11.7
Changes in entitlements as a result of allocation	–46,176	–29,427	56.9
Changes in entitlements as a result of expiry	–14,386	–5,314	170.7
Changes in entitlements as a result of changes in factors	14,360	–11,785	–221.8
Balance of calculated entitlements at the end of the year	62,598	72,698	–13.9

in CHF 1,000	2015	2014	Variance in %
Personnel expense recorded over vesting period for allocated management sharing plan	3,921	3,120	25.7
Fair value of management sharing plan at date of allocation	3,727	3,173	17.5

Personnel expense for management sharing plan (LTI) expense for reporting period	2,590	2,085	24.2
Accrual for management sharing plan (LTI) in equity at the end of the year	4,610	5,941	–22.4

45 Acquisitions

VP Bank Group continues to pursue the strategy of growth through acquisition. Following receipt of the regulatory approval of the Financial Market
Authority (FMA) Liechtenstein, VP Bank Ltd, Vaduz, acquired the entire share capital of Centrum Bank AG, Vaduz, as of 7 January 2015. Centrum
Bank AG, Vaduz, thus became a 100-per cent owned subsidiary company of VP Bank Ltd, Vaduz. The legal merger between VP Bank Ltd and Centrum Bank AG was consummated on 30 April 2015.

Marxer Stiftung für Bank- und Unternehmenswerte participated in the capital of VP Bank to the equivalent amount. VP Bank Group thereby welcomes
a further anchor shareholder in this reliable and long-term-oriented Liechtenstein family.

The following assets and liabilities were acquired as part of the merger:

in CHF 1,000	Fair Value
Amounts due from banks and customers	1,487,633
Financial instruments	294,924
Software	5,720
Other intangible assets	34,045
Deferred tax assets	5,179
All other assets	129,570
Total assets	1,957,071

Amounts due from banks and customers	–1,790,650
Deferred tax liabilities	–9,360
Provisions	–185
All other liabilities	–37,650
Total debt capital	–1,837,845
Total net assets	119,226

Net assets acquired	119,226

Purchase price settled in cash and cash equivalents	3,854
Purchase price settled in shares of VP Bank (755,955 bearer shares at the price (as per 07.01.2015) of CHF 86.50)	65,390
Purchase consideration	69,244

Bargain purchase arising from acquisition	–49,982

Cash and cash equivalents on hand in the company acquired	352,241
Purchase consideration settled in cash and cash equivalents	–3,854
Cash inflow arising from the transaction	348,387

Assets under management of CHF 6.7 billion and custody assets of CHF 0.4 billion were taken over as part of the acquisition. The transaction gave rise to a “bargain purchase” of TCHF 49,982 as well as intangible assets (client relationships) of TCHF 34,045. The client relationships will be amortised over
10 years.

The costs of the transaction incurred in the reporting period (advisory, legal, auditing, valuation costs, etc.) amount to CHF 2.8 million and are recognised in general and administrative expenses (note 7) (financial year 2014: CHF 1.2 million). The costs for the capital increase accompanying the transaction, in compliance with IFRS, were not taken to income but charged to capital reserves and amount to CHF 1.1 million for the current period.

The resulting “bargain purchase” can be ascribed in particular to two specific reasons. On the one hand, it must be taken into consideration that the whole restructuring and integration costs in connection with this transaction are borne by VP Bank. On the other hand, the fact that the seller has become an anchor shareholder in VP Bank in an equivalent amount is also to be taken into account. The market values underlying the sales price of the
bearer shares are significantly lower than the intrinsic value of the bearer share. The bearer shares of VP Bank have been traded on the stock exchange at a price under their carrying value. Both effects combined led to the disclosed “bargain purchase”. The latter was taken to income under “Other
income” (note 5).

Centrum Bank was merged with VP Bank Ltd on 30 April 2015 and fully integrated into VP Bank, Vaduz. Because of the merger of the various organisational units, it is not always possible to show the impact of the acquired company on the profit and loss account.

46 Consolidated off-balance-sheet transactions
in CHF 1,000	31.12.2015	31.12.2014
Contingent liabilities
Credit guarantees and similar	34,761	41,768
Performance guarantees and similar	25,760	36,435
Irrevocable commitments	0	0
Other contingent liabilities	0	0
Total contingent liabilities	60,521	78,203

Credit risks
Irrevocable facilities granted	47,922	32,985
Capital subscription and margin obligations	0	0
Commitment credits	0	0
• Liabilities arising from deferred payments	0	0
• Liabilities arising from acceptances	0	0
• Other commitment credits	0	0
Commitments arising from artificial repurchase transactions	0	0
Total credit risks	47,922	32,985

Fiduciary transactions
Fiduciary deposits 1	648,924	698,323
Fiduciary loans	0	4,992
Other fiduciary financial transactions	10,874	0
Total fiduciary transactions	659,798	703,315
1 Placements that Group companies made with banks outside the scope of consolidation in their own name but at the risk and expense of the client.

Maturity structure
in CHF 1,000			Maturing within
	At sight	1 year	1 to 5 years	Over 5 years	Total
31.12.2015
Contingent liabilities	31,537	8,559	18,385	2,040	60,521
Credit risks	3,529	37,796	4,902	1,694	47,922

31.12.2014
Contingent liabilities	25,703	24,885	16,906	10,709	78,203
Credit risks	2,672	27,037	1,480	1,796	32,985

Securities lending and repurchase and reverse repurchase transactions
in CHF 1,000	31.12.2015	31.12.2014
Accounts receivable arising from cash deposits in connection with securities borrowing and reverse repurchase transactions	210,262	0
Accounts payable arising from cash deposits in connection with securities borrowing and reverse repurchase transactions	0	0
Securities lent out within the scope of securities lending or delivered as collateral within the scope of securities borrowing activities, as well as securities in own portfolio transferred within the framework of repurchase transactions	399,728	362,431
of which securities where the unlimited right to sell on or pledge has been granted	333,459	299,546
Securities received as collateral within the scope of securities lending or borrowed within the scope of securities borrowing activities, as well as received under reverse repurchase transactions, where the unlimited right to resell or repledge has been granted	643,207	354,749
of which securities which have been resold or repledged	66,269	57,988
These transactions were conducted in accordance with conditions which are customary for securities lending and borrowing activities as well as trades for which VP Bank acts as intermediary.

Client assets
in CHF million	2015		2014	Variance absolute	Variance in %
Analysis of client assets under management
Assets in self-administered investment funds	5,905.1		5,506.2	398.9	7.2
Assets in discretionary asset-management accounts	3,365.4		2,984.8	380.5	12.7
Other client assets under management 1	25,498.2		22,448.1	3,050.1	13.6
Total client assets under management (including amounts counted twice)	34,768.7		30,939.1	3,829.6	12.4
of which: amounts counted twice	1,797.3		1,750.1	47.3	2.7

Custody assets	8,193.3	1	7,614.5	578.8	7.6

Total client assets
Total client assets under management (including amounts counted twice)	34,768.7		30,939.1	3,829.6	12.4
Custody assets	8,193.3		7,614.5	578.8	7.6
Total client assets	42,962.0		38,553.6	4,408.4	11.4

Net new money	6,045.5	2	–850.2	6,895.7	n.a.
1 This position includes the acquired client assets (note 45) of CHF 0.4 billion. 2 This position includes the acquired client assets (note 45) of CHF 6.7 billion.

Classification of client assets under management
in %	31.12.2015	31.12.2014
Analysis by asset class
Liquidity	30	32
Bonds	20	20
Equities	20	20
Investment funds	27	25
Other	3	3
Total	100	100

Analysis by currency
CHF	26	26
EUR	30	34
USD	31	27
Other	13	13
Total	100	100

Calculation method

All client assets that are managed or held for investment purposes for which investment-advisory and asset-management services are provided are considered as client assets under management. In principle, all amounts owed to clients, fiduciary deposits and all assets in security deposits with a value are included therein. The calculation is made on the basis of the provisions of the Liechtenstein Banking Ordinance (Note 3, Point 88a, FL-BankV) and the internal guidelines of VP Bank Group.

Assets in self-administered investment funds

This item contains the assets of all administered investment funds of VP Bank Group.

Assets in discretionary asset-management accounts

The assets in discretionary asset-management accounts encompass securities, uncertificated securities, precious metals, fiduciary deposits placed with third parties valued at market value and client deposits. The data include both assets deposited with Group companies and with third parties which are the object of a discretionary asset-management agreement with a Group company.

Other client assets under management

Other client assets under management encompass securities, uncertificated securities, precious metals, fiduciary deposits placed with third parties valued at market value and client deposits. The data encompass assets which are the object of an administration or advisory mandate.

Amounts counted twice

This item encompasses unit shares in self-administered investment funds which are in client portfolios subject to a discretionary asset-management agreement and other security deposits of clients.

Net new money inflows/outflows

This item comprises the acquisition of new clients, lost clients and inflows or outflows from existing clients. Performance-related changes in assets such as share price movements, interest and dividend payments, as well as interest charged to clients, are not considered as inflows and outflows. Acquisition-related changes in assets are presented separately. If the service provided changes and if assets under management are reclassified as assets held for custody purposes, or vice versa, this will generally be recognised, respectively, as an outflow or inflow of new client assets.

Custody assets

Assets held exclusively for the purposes of trading and custody for which the involvement of VP Bank Group is limited to custodian and collection activities.

10b Deferred tax assets and liabilities (continued)

16 Valuation allowances for credit risks (continued)

18 Derivative financial instruments (continued)

21 Associated companies (continued)

35 Balance sheet per currency (continued)

36 Maturity structure of assets and liabilities (continued)

38 Financial instruments (continued)

41 Retirement pension plans (continued)

40 Transactions with related companies and individuals (continued)

41 Retirement pension plans (continued)

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Notes to the consolidated financial statement

24 Assets held for sale

34 Litigation

38 Financial instruments

40 Transactions with related companies and individuals

41 Retirement pension plans

43 Employee stock-ownership plan

44 Management profit-sharing plan

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