Intermediaries Private Banking

Segment results

 

 

 

 

in CHF 1,000

2020

2019

Variance
absolute

Variance
in %

Total net interest income

101,345

115,300

–13,954

–12.1

Total net income from commission 
business and services

119,353

115,207

4,146

3.6

Income from trading activities

31,808

29,895

1,913

6.4

Income from financial instruments

0

0

0

0.0

Other income

32

30

2

5.6

Total operating income

252,538

260,432

–7,894

–3.0

Personnel expenses

64,303

67,316

–3,013

–4.5

General and administrative expenses

7,816

9,167

–1,351

–14.7

Depreciation of property, equipment and intangible assets

5,584

6,631

–1,047

–15.8

Credit loss expenses

19,416

–6,494

25,910

399.0

Provisions and losses

393

533

–141

–26.4

Services to/from other segments

55,074

51,357

3,717

7.2

Operating expenses

152,585

128,510

24,075

18.7

Segment income before income tax

99,953

131,922

–31,969

–24.2

 

 

 

 

 

Additional information

 

 

 

 

Operating expenses excluding depreciation and amortisation, valuation
allowances, provisions and losses / total operating income (in %)

50.4

49.1

 

 

Operating expenses excluding valuation allowances, provisions and losses /
total operating income (in %)

52.6

51.6

 

 

Client assets under management (in CHF billion)

36.0

35.4

 

 

Change in client assets under management
compared to 31.12. prior year (in %)

1.6

13.0

 

 

Net new money (in CHF billion)

0.8

1.5

 

 

Total operating income / average client assets under management (bp) (gross margin)1

70.7

78.0

 

 

Segment result / average client assets under management (bp)1

28.0

39.5

 

 

Cost/income ratio operating income (in %)2

50.4

49.1

1.3

2.6

Headcount (number of employees)

356

349

7.0

2.0

Headcount (expressed as full-time equivalents)

334.2

327.6

6.6

2.0

  1. Annualised, average values.
  2. Operating expenses excluding depreciation and amortisation, valuation allowances, provisions and losses / gross income less other income and income from financial instruments.

 

Structure

The “Intermediaries & Private Banking” business segment comprises the intermediaries and private banking business at the local and international locations as well as the local universal banking and lending business.

 

Segment result

The pre-tax segment result fell from CHF 131.9 million to CHF 100.0 million compared to the previous-year period (CHF –32.0 million). In 2020, operating income declined by CHF 7.9 million (–3.0 per cent) compared to that of the previous-year period. This decline results from the net interest income from customers (–12.1 per cent). USD interest payments in client business contributed significantly to this negative movement in interest income. Income from commission business and services (3.6 per cent) and income from trading activities (6.4 per cent) increased compared to the previous year. Increased client trading activity and the targeted recruitment of client advisors continued to contribute positively to ­commission and trading income.

Operating expenses increased by CHF 24.1 million to CHF 152.6 million. The reason for this increase is primarily the value adjustment on an individual item of around CHF 20 million communicated in March 2020, as well as from the increase in the item “Services to/from other segments”. Personnel expenses were reduced by 4.5 per cent to CHF 64.3 million (previous year: CHF 67.3 million), general and administrative expenses by 14.7 per cent to CHF 7.8 million (previous year: CHF 9.2 million), and depreciation and amortisation by 15.8 per cent. The gross margin amounted to 70.7 basis points (previous-year period: 78.0 basis points). The cost/income ratio increased from 49.1 per cent to 50.4 per cent.

At CHF 0.8 billion, net new money continued to develop positively in 2020 despite the challenges posed by COVID-19. The targeted recruitment of client advisors at our locations continued to generate net new money inflow in 2020. Thanks to intense market development activities, a positive inflow of net new money was again achieved in the European markets. Client assets under management as of 31 December 2020 totalled CHF 36.0 billion (31 December 2019: CHF 35.4 billion). The employee headcount rose from 328 (31 December 2019) to 334 positions.