Intermediaries Private Banking
Segment results |
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in CHF 1,000 | 2020 | 2019 | Variance | Variance |
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Total net interest income | 101,345 | 115,300 | –13,954 | –12.1 |
Total net income from commission | 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 |
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Additional information |
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Operating expenses excluding depreciation and amortisation, valuation | 50.4 | 49.1 |
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Operating expenses excluding valuation allowances, provisions and losses / | 52.6 | 51.6 |
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Client assets under management (in CHF billion) | 36.0 | 35.4 |
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Change in client assets under management | 1.6 | 13.0 |
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Net new money (in CHF billion) | 0.8 | 1.5 |
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Total operating income / average client assets under management (bp) (gross margin)1 | 70.7 | 78.0 |
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Segment result / average client assets under management (bp)1 | 28.0 | 39.5 |
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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 |
- Annualised, average values.
- 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.