ANNUAL REPORT 2013
BANQUE PRIVÉE
EDMOND DE ROTHSCHILD S.A.
Contents
Privée
5 Banque
Edmond de Rothschild S.A.
6
8
11
Message
from Benjamin and Ariane de Rothschild
Message from Christophe de Backer,
Chairman of the Executive Committee
Corporate Governance
39
Banque Privée Edmond de Rothschild
Group
Financial Report
40
Key figures
41
Report of the Directors
46
Report of the statutory auditor
48
Consolidated subsidiaries
52
Consolidation principles
12
Introduction
54
Valuation policies
13
Group structure and shareholders
56
Consolidated balance sheet
15
Capital structure
58
Consolidated profit and loss account
17
Board of Directors
59
Consolidated cash flow statement
26
Executive Committee
60
Notes to the consolidated
financial statements
31
Remuneration, profit-sharing and loans
34
Shareholders’ rights
35
Take-overs and defensive measures
36
Independent Auditors
37
Information policy
87
Banque Privée
Edmond de Rothschild S.A., Geneva
Financial Report
88
Key figures
89
Report of the Directors
94
Report of the statutory auditor
96
Balance sheet
98
Profit and loss account
99
Notes to the financial statements
111
Addresses
RAPPORT ANNUEL 2013 |
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BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Banque Privée
Edmond de Rothschild S.A.
6
8
Message
from Benjamin and Ariane de Rothschild
Message from Christophe de Backer,
Chairman of the Executive Committee
ANNUAL REPORT 2013 |
5
Message from
Benjamin and Ariane de Rothschild
The effects of the 2008 crisis finally appear to be subsiding.
The return of growth in the United States, the recovery – albeit
still modest – in Europe and the end of deflation and
stagnation in Japan are beginning to convince the most
developed countries that they can once again be part of the
landscape of the future. Unemployment rates, however,
remain too high everywhere.
The difficulties currently faced by emerging countries, which
suffer from inadequate coordination of monetary policies on
the global level, serve as a reminder that nothing can be taken
for granted. While emerging countries are currently
experiencing significant capital outflows due to the gradual
tapering of the US Federal Reserve’s bond purchases (a
policy shift that is enhancing the appeal of US assets), the
drain is also occurring because these countries failed to
undertake major structural reforms.
If the crisis has taught us one thing, it is that we should
capitalise on periods of strong growth to prepare for the
future. We must never be fooled by the lure of easy money or
the promises of politicians. What holds true for the public
sector also holds true for the private sector. A business
leader's actions must not focus entirely on the present; they
must also be taken in consideration of what will be handed
down to future generations.
Some countries understand this perfectly. For the first time,
early this year we went to Norway, home of the world's largest
sovereign wealth fund, with assets totalling nearly
USD 900 billion. This is one example. Other countries are
preparing for the future by investing heavily in innovation. For
our part, we are reflecting on the scope of the changes that
are underway. By 2020, there will be 50 billion connected
devices in the world! This means six devices per person, from
telephones to tablets to computers, or even cars and
household appliances. This is not only a momentous change
in the way people consume, but also a step towards the
advent of a "sharing economy" based on the exchange of
knowledge and information.
We are already able to perceive the many consequences of
this digital revolution, most obviously in the way it has affected
our lifestyle and consumption habits. New sectors of activity
are appearing, occupations are changing and education is
more important than ever. Leadership and power structures
must also evolve. The top-down model no longer works
today — it is sometimes even unmodern, although the ability
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BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
to take a decision clearly remains a critical and deciding factor
in competition.
A great deal more could be said about the transformations
taking place in the world. But one of the changes that brings
the greatest hope is the genuine explosion of the middle class
worldwide. Between 2010 and 2020, more than one billion
people will join the middle class — by far the largest increase
in the history of humanity. In all, over the next thirty years, no
less than three billion human beings, on all continents, will
become members of the middle class.
As a consequence, global growth can still look forward to a
bright future. Provided, that is, that stronger balance is
achieved through improved economic, financial and monetary
cooperation, as well as greater inclusiveness, as deepening
inequalities are a major risk factor.
This new world is no longer monopolar, bipolar or multipolar.
For the first time, it is starting to be "co-run" by all continents,
with none dominating the others, but with heightened
competition that can sometimes be brutal. The challenges of
this new world will be greater than any in the past. Among the
growth drivers, infrastructure has always held a particularly
important place, but needs in this area have now reached
unprecedented levels. We estimate that USD 57 trillion will be
needed to finance infrastructure projects worldwide between
2013 and 2030, which is 36% more than for the last 18
years.
Aware of this challenge, our Group has launched the BRIDGE
initiative, which among other things calls for the creation of an
Infrastructure Fund for Europe, expected to ultimately bring in
EUR 1 billion. We have plans to create additional infrastructure
funds in other regions, most likely this year. With persistently
low interest rates, abundant liquidity worldwide, traditional
banks' highly cautious approach to lending, the economic
recovery and the new needs we have just mentioned, the time
has come to build, rebuild and repair ports, airports, roads,
bridges, railway lines and transport systems, and to
strengthen social and energy infrastructures.
These tremendous challenges of our time also led to our
Group's decision to invest in projects in Africa and in
environmental projects. They prompted our decisions to
establish a partnership in Brazil and strengthen our operational
platform in Hong Kong, with a view to establishing a presence
in continental China, and to explore strategic possibilities in
Southeast Asia and the Middle East, and cooperation with
sovereign wealth funds.
Our Group is undergoing a transformation because the world
is changing. And also, and perhaps especially, because our
Group just wouldn't be the same if it wasn't constantly vigilant,
proactive and forward-thinking.
The asset management industry is expected to manage
USD 100 trillion in assets by 2020, compared with
USD 65 billion today. This is a major opportunity for us and
our clients. But as we mentioned previously, it is also an
enormous responsibility because the asset managers of
tomorrow must be able to make a positive social and
environmental impact in order to meet expectations and
ensure sustained growth.
Benjamin de Rothschild
Chairman of the Board of Directors
In our Private Banking activity, we want more than ever to be
able to offer solutions to our clients. To that end, we will
maintain a presence in new regions of this world in flux, so
that we can offer greater opportunities to those who have
placed their trust in us. We will also be more creative and
innovative, and recruit and train new talent. Our recognised
expertise in corporate finance, private equity and project
management will set us apart. Our family history, the
reputation of our Group and the trust of our clients demand
this of us. This year, in joining forces under the name of our
Group's founder, Edmond de Rothschild, our various entities
will pay tribute to his visionary spirit and further unite to face
the challenges of the future.
For the Edmond de Rothschild Group, 2014 will be marked
by the spirit of conquest.
Ariane de Rothschild
Vice-Chairwoman of the Board of Directors
RAPPORT ANNUEL 2013 |
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Message from
the Executive Committee Chairman
Confidence, sorely lacking in 2012, was the key to recovery in
2013. Thanks to concerted action on the part of Western
policy-makers, and especially by central banks, confidence
has been restored and risk aversion has at the same time
been reversed.
Fuelled by the US economy, improved economic
fundamentals have triggered the comeback of developed
countries. In contrast, emerging countries are now cause for
concern and, as international liquidity begins to contract,
international flows are heading towards Europe and the US.
Although debt levels remain high in the Western world, interest
rates and the economy are supported by the central
banks, particularly the European Central Bank, whose
determination bolstered its credibility at the peak of the crisis.
2013 perhaps marked the beginning of the end of a crisis that
has shaken the system's very foundations. We still have a
long way to go but, while growth remains hesitant in Europe
and France, stock markets have performed very well.
Ideally positioned since the end of 2012 in European assets,
the Edmond de Rothschild Group was rewarded for its strong
convictions in both private banking and asset management.
Our Group's ever-loyal clients, who share our values and
commitment, made the right decision in placing their trust in
us.
Nevertheless, last year confirmed our assessment: despite
signs of recovery and a rally in equities, the crisis is not over in
Europe and emerging countries remain a source of concern.
Now more than ever, tomorrow's winners will be those who
successfully adapt to an all-new state of affairs.
additions of London and Hong Kong, whose teams will
gradually be strengthened.
This ambitious goal is backed by the strengths of the Edmond
de Rothschild Group model, which combines a unique
approach to Private Banking and Asset Management with a
strong brand that stands for excellence, long-term
accompaniment and values passed down from generation to
generation.
Reflecting the strength of our project, many talented new
figures have joined our teams. With their diverse backgrounds,
these individuals all bring a strong innovative culture and an
international perspective to our businesses.
A robust performance for Asset Management
In 2013, less risk aversion gave a leg up to equity and
convertible bond markets. By taking advantage of favourable
market conditions, our Asset Management division performed
remarkably well. Our funds strongly outpaced their
benchmarks thanks to conviction-based management and
high-quality stock-picking.
In both France and abroad, the significant increase in new
assets under management reflects client confidence. Asset
Management's performance bears witness to the fact that our
evolution as a Group does not come at the cost of
performance, which remains our top priority. On the contrary,
the changes we have made are designed to ensure that we
can sustain our performance in the long term and they would
not have been possible without the talent and on-going
commitment of our teams.
A clear ambition for our Group
Convinced of the need to change tack in order to continue
moving forward, we have adapted our model and
organisational structure. Ariane and Benjamin de Rothschild's
roadmap for the Group is absolutely clear: our goal is to set
the standard among independent wealth management firms.
We share a vision of a unified and truly international Group,
with CHF 157 billion in assets under management.
Focusing on our two core businesses, Asset Management
and Private Banking, our Group aims to serve the world's
most demanding private and institutional clients through five
major hubs: Paris, Geneva, Luxembourg and the new
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BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Strong international growth
Our Group's development also depends on our proactive and
controlled international expansion. We have bolstered our
presence in Hong Kong through a series of hirings. As a
leading financial centre and gateway to the Asian markets,
Hong Kong is now a major platform for our Group. We have
also reinforced our presence in London. We created our
Private Merchant Bank business to provide our clientele of
international entrepreneurs with solutions that are tailored to
the specific professional and financial issues they face. A new
team was set up for this purpose and new offices were
inaugurated at 4 Carlton Gardens.
These changes were essential and are already proving fruitful.
Nevertheless, we will continue to ensure that they do not
adversely affect the key factors that set us apart, and we will
make sure that they match and conform to our corporate
DNA, particularly in Private Banking.
A successful Private Banking model for entrepreneurs
While most financial institutions see Private Banking as an
extension of their retail banking business, we are more
attentive than ever to the specific challenges faced by families
and entrepreneurs – for the simple reason that our Bank is
itself a family-owned company that has achieved enduring
success.
Our focus in Private Banking on close-knit relationships with
clients is driven by two mutually reinforcing factors: our
international and regional presence and the development of
our corporate advisory services. With this, we give leaders of
family-owned businesses access to comprehensive, fullservice solutions that transcend borders. We can be proud of
the strength of this approach and the long-term bonds of trust
that we have built with clients, allowing us again this year to
bring in substantial new assets under management.
Innovation at the heart of our offering
Our Group also boasts a recognised capacity for innovation.
One example of this is our Fonds Stratégique de
Participations (Strategic Equity Fund), which made its first
investments in 2013. In a complex regulatory environment, we
have provided a solution for the French economy and the
balance sheet issues faced by several major insurance firms.
We are building on this momentum with the launch of our
infrastructure fund, which caters to the substantial need for
long-term infrastructure financing in Europe. Our project funds
activity, particularly in Africa, and our private equity funds also
reflect our commitment to innovation, as they aim to put
finance to work for the real economy.
Prospects for 2014
This year we intend to use our Group's new organisational
structure to our best advantage and take our strategy to the
next level.
In this regard, we will continue to adapt our asset
management business. It is important for us as a Group to
make our presence known among major international
institutional clients. Their requirements are demanding and
their asset allocation strategy is particularly sophisticated.
Making ourselves known to them is a legitimate goal for our
Group. To that end, we will progressively rethink our range of
flagship funds in order to focus on increasing the number of
funds that have more than a billion euros in assets under
management, beyond the four we currently manage. It is also
imperative for us to align our legal and regulatory engineering
activities with the highest global standards.
In Private Banking, we will continue to position ourselves as
the bank of choice for entrepreneurs. Our approach is now
particularly adapted to business owners. We will continue to
devote all the time necessary to gain an in-depth
understanding of the problems they face, which are
intrinsically complex because they involve a variety of familial,
financial and professional factors. We are capable of handling
the full spectrum of business development, wealth planning,
business transfer and M&A issues. Our goal is to be the
natural choice for tailored-made solutions for entrepreneurs in
Europe and abroad.
We look to 2014 with optimism. Backed by the vision and
determined support of Ariane and Benjamin de Rothschild,
our strategic objective is clear and our teams are at the ready.
Over the course of our Group's evolution, we have been
careful to establish close-knit ties with our clients and maintain
deep, long-lasting relationships.
Of all the performance indicators, this year client confidence
will once again be the most important.
Christophe de Backer
RAPPORT ANNUEL 2013 |
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BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Corporate Governance
12
13
15
17
26
Introduction
Group structure and shareholders
Capital structure
Board of Directors
Executive Committee
31
34
35
36
37
Remuneration, profit-sharing and loans
Shareholders’ rights
Take-overs and defensive measures
Independent Auditors
Information policy
RAPPORT ANNUEL 2013 |
11
Corporate Governance
Introduction
On 25 March 2002, the Federation of Swiss Business
published a Swiss Code of Best Practice containing
standards for corporate governance. These standards are
meant as recommendations, not as legally enforceable rules,
and they primarily concern publicly traded Swiss companies.
The current Guidelines on Corporate Governance (the
“Guidelines”) issued by SIX Swiss Exchange (“SIX”) on 29
October 2008 became effective 1 July 2009. They state
when and how matters involving corporate governance should
be reported, based on art. 8 of Switzerland’s Stock
Exchanges and Securities Trading Act (SESTA) and articles 16 and 49 et seq of SIX’s Listing Regulations. The Guidelines
mainly apply to issuers incorporated in Switzerland whose
equity securities are traded on SIX.
The major concerns underlying these “codes of conduct” are
to limit economic risks, safeguard companies’ reputations and
promote responsibility. Corporate governance is anchored in a
set of principles designed to protect shareholders by ensuring
transparency, the issuance of clear information and a balance
at the highest level between the company’s executives, on the
one hand, and its owners, on the other. At the same time,
these principles uphold decision-making power and efficiency.
The main information required by the SIX Guidelines that came
into force on 1 July 2009 is disclosed in the following pages.
There are also cross-references to items included elsewhere
in this report, our Bank’s Articles of Association and Bylaws,
which can be found on the Bank’s website: www.edmondde-rothschild.ch / About Us / Investor Relations – Legal
Documents.
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BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
1. Group structure
and shareholders
1.1. Group structure
1.1.1. Presentation of the Group’s operating structure
Board of Directors
Executive Committee 4)
Internal Audit
Chairman
Chairman and Chief Executive
Officer
Senior Vice-Presidents
Baron Benjamin de Rothschild
Christophe de Backer
François Maendly
Maurice Moser
Vice-Chairwoman
Baroness Benjamin de Rothschild
Deputy Chief Executive Officers
Secretary
Manuel Leuthold
Vice-Chairman;
Deputy Chief Executive Officer
Jean Laurent-Bellue
Members
Luc J. Argand
Veit de Maddalena 1)
Rajna Gibson Brandon
François Hottinger
Klaus Jenny
Claude Messulam 2)
Maurice Monbaron 3)
Jacques-André Reymond
E. Trevor Salathé
Hervé de Montlivault 5)
Deputy Chief Executive Officer
in charge of Private Banking
Members
Yves Aeschlimann 5)
Chief Compliance Officer
Audit Committee
Chairman
Klaus Jenny
Vice-Chairman
Jacques-André Reymond
Members
Rajna Gibson Brandon 3)
Jean Laurent-Bellue
E. Trevor Salathé
Frédéric Binggeli
Private Banking Desk Manager
Alexandre Col
Head of Asset Management
Pay and Promotions
Committee
Martin Leuthold 6)
Chief Financial Officer
Chairwoman
More information on the Board of
Directors and Executive Committee can
be found on pp. 17-30 of this report.
Baroness Benjamin de Rothschild
Secretary
Jean Laurent-Bellue
Members
Luc J. Argand
Klaus Jenny
E. Trevor Salathé
Independent Auditor
PricewaterhouseCoopers SA
1)
= until 29 April 2014
= until 11 June 2013
3)
= from 26 April 2013
4)
= Executive Committee as it existed from
17 April 2013. Prior to this date, the Executive
2)
Committee was composed of the following
members: Christophe de Backer (Chairman),
Manuel Leuthold (Vice-Chairman), Luc Baatard,
Frédéric Binggeli, Alexandre Col, Martin Leuthold,
Michel Lusa, Bernard Schaub.
5)
= from 17 April 2013
= until 31 December 2013. From 1
January 2014 Cynthia Tobiano will take over
as Chief Financial Officer and member of the
Executive Committee.
6)
RAPPORT ANNUEL 2013 |
13
1.1.2./1.1.3. Group legal structure
The fully consolidated entities of the Banque Privée Edmond de Rothschild Group are listed on pp. 48-51 of this report.
1.2. Major shareholders
importants
Major
shareholders
(at 31.12.2013)
Par value
Percentage
of share
capital
(in CHF ‘000)
(in %)
(in %)
36'650,0
81,4
86,9
3'800,0
8,4
9,4
Edmond de Rothschild Holding S.A. (1)
Rothschild Holding AG, Zurich
(2)
Percentage
of voting
rights
(1) The entire share capital of Edmond de Rothschild Holding SA is directly or
SAS, Paris; 16) Philippe de Nicolay, Paris; 17) Olivier Pécoux, Paris; 18)
indirectly controlled by members of the de Rothschild familiy. 17% of the
François Henrot, Paris; 19) Compagnie Financière Martin-Maurel SA,
company’s share capital (representing 6.77% of voting rights) is owned by
Marseille; 20) Eranda Foundation, UK; 21) PO Gestion SAS, Paris; 22) PO
Baroness Edmond de Rothschild and 66.33% (representing 89.84% of
Commandité SAS, Paris (together persons/entities 1), 2), 3), 6), 8), 9) and
voting rights) by Baron Benjamin de Rothschild. The financial statements of
13) to 22) represent the “PO-Group”); Rothschild Holding AG, Zurich owns
Edmond de Rothschild Holding SA are available on request in writing to the
20,000 registered shares and 3,598 bearer shares of Banque Privée
company (PO Box 5254, 1211 Geneva 11).
Edmond de Rothschild SA, Geneva, representing 8.4% of the total share
capital and 9.4% of voting rights.
(2) Rothschild Holding AG, Zurich is owned by 1) Eric de Rothschild, Paris; 2)
David de Rothschild, Paris; 3) Alexandre de Rothschild, Paris; 4)
RCSAS Group owns a controlling interest in Rothschild Concordia SAS, Paris.
Stéphanie Lifford de Buffévent, Paris; 5) Louise de Rothschild, Paris; 6)
The PO Group controls Paris Orléans SCA, which in turn controls Concordia
Financière de Tournon SAS, Paris; 7) Financière de Reux SAS, Paris; 8)
Holding Sàrl, Paris. Concordia Holding Sàrl controls Rothschild Concordia AG,
Béro SCA, Paris; 9) Ponthieu Rabelais SAS, Paris; 10) Integritas BV,
Zug, which in turn owns a controlling stake in Rothschilds Continuation
Amsterdam; 11) Rothschild Trust (Schweiz) AG, Zurich; 12) AYRE
Holdings AG, Zug. Rothschilds Continuation Holdings AG controls Rothschild
Corporation (1972) Limited, Amsterdam; 13) Edouard de Rothschild, Paris;
Holding AG, Zurich, which owns a direct holding in Banque Privée Edmond
14) Holding Financier Jean Goujon SAS Paris; 15) Rothschild Concordia
de Rothschild SA, Geneva.
Number of
shares owned
1.3. Cross-holdings
(at 31.12.2013)
Percentage
of share
capital
Percentage
of voting
rights
(in %)
(in %)
12,0
11,6
Cross-holdings
Rothschild Holding AG, Zürich
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BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
10'161,0
2. Capital structure
Par value
2.1. Share capital
Number
of shares
(in CHF ‘000)
Capital
ranking for
dividend
(in CHF ‘000)
Share capital
Fully paid registered shares at CHF 100.– par value
20'000
200'000
20'000
Fully paid bearer shares at CHF 500.– par value
25'000
50'000
25'000
Total share capital
45'000
2.2.
Specific indications regarding
authorised and contingent capital
Banque Privée Edmond de Rothschild S.A. has no authorised
or contingent capital.
2013
2.3. Changes in share capital
2012
2011
2010
20'000
20'000
(in CHF ‘000)
Share capital
Fully paid registered shares with a par value of CHF 100.–
20'000
20'000
Fully paid bearer shares with a par value of CHF 500.–
25'000
25'000
25'000
25'000
Total share capital
45'000
45'000
45'000
45'000
2.4.
Shares and non-voting certificates
The 200,000 unlisted registered shares with a par value of
CHF 100 and the 50,000 bearer shares with a par value of
CHF 500 listed on the SIX (stock market capitalisation on
31.12.2013: CHF 1.173 billion; ISIN: CH0001347498; Swiss
security number: 134749TK) confer the same entitlements in
proportion to their par value, in accordance with art. 7 para. 2
and 3 of our articles of incorporation. The registered and
bearer shares are fully paid up.
Under art. 6 para. 5 and 6 of the articles of incorporation, the
restricted registered shares confer preferential membership
rights: each share, regardless of its par value (art. 15 para. 1),
entitles the owner to one vote at the Annual General Meeting.
Again in respect of membership rights, art. 18 para. 3 of the
Articles of Association provides that each group of shareholders (i.e. the owners of bearer or registered shares) may
demand to be represented on the Board of Directors by at
least one member of its choice.
RAPPORT ANNUEL 2013 |
15
2.5.
Dividend-right certificates
Banque Privée Edmond de Rothschild SA has not issued
any dividend-right certificates.
2.6. Transferability restrictions and
registration of nominees
2.6.1. Transferability restrictions and provisions
governing dispensations
In order for an owner or usufructuary of registered shares to
exercise the voting rights and other rights accruing to him,
he must first be accepted as a shareholder by the Board of
Directors and have his name entered in the Bank’s share
register (art.6 para.4 of the Articles of Association).
Under art. 6 para. 5 of the Articles of Association, the
Board of Directors may refuse the transfer of title to or use
of registered shares on valid grounds, having due regard
for either the corporate purpose or the Bank’s desire to
preserve its financial independence and, in particular, its
family character.
2.6.2. Grounds for granting dispensations during
the reporting year
No dispensations were granted in 2013 and none were
requested.
2.6.3. Eligibility of nominees
There is no provision for dispensations from the rules
governing nominees referred to in item 2.6.1. above (art. 6
of the Articles of Association).
2.6.4.
Procedure and conditions for lifting
transferability restrictions
Any amendment to the provisions of the articles of
Association relating to registered share transferability
restrictions (art. 6 of the Articles of Association) must be
approved by a two-thirds majority of the votes represented
at the Annual General Meeting and by an absolute majority
of the par value of the shares represented (art. 15 para. 6
of the Articles of Association and art. 704 para. 1 of the
Swiss Code of Obligations).
16 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
2.7.
Convertible bonds and options
Banque Privée Edmond de Rothschild SA has not issued
any convertible bonds or options.
3. Board of Directors
3.1. Members of the Board of Directors
The Board of Directors is made up of 11 1) members, who in
accordance with industry practice do not exercise an
executive function within the Bank. Notwithstanding this, some
of them do exercise managerial duties within the Group, or did
so in the past.
Baron Benjamin de Rothschild
Baroness Benjamin de Rothschild
Chairman, French, 1963
Vice-Chairwoman, French, 1965
Education / training
Education/training
1984
1984
1988
1990
Master in Business and Management,
Peperdine University, California (US)
Career summary
1985
1985-1987
BP, London
LCF Rothschild Group, Geneva and Paris
(now the Edmond de Rothschild Group)
1989
Fondation de la Compagnie Benjamin de Rothschild
– Chairman
A-levels, Kinshasa (Zaïre) – Nantes Academy
BBA in Finance, Pace University, New York
MBA in Financial Management, Pace University, New York
Career summary
1988-1990 Financial analyst, then currency dealer at Société Générale,
Australia and New York
1990-1995 Currency dealer at AIG, New York. Helped launch Paris
subsidiary and developed business in Europe
Present duties
Directorships
Since 1997
Chairwoman of:
Chairman of the Edmond de Rothschild Group
Directorships
Chairman of:
— Edmond de Rothschild Holding S.A. (Switzerland)
— Holding Benjamin et Edmond de Rothschild, Pregny S.A.
(Switzerland)
— Banque Privée Edmond de Rothschild S.A. (Switzerland)
— Banque Privée Edmond de Rothschild Europe (Luxembourg)
— La Compagnie Benjamin de Rothschild S.A. (Switzerland)
— The Caesarea Edmond Benjamin de Rothschild Development
Corporation Ltd (Israel)
— The Edmond de Rothschild Foundation (USA)
— Edmond de Rothschild S.A.
President of:
—
La Compagnie Fermière Benjamin et Edmond de Rothschild S.A.
—
La Compagnie Vinicole Baron Edmond de Rothschild S.A.
—
Rothschild Continuation Holdings A.G. (Switzerland)
—
La Compagnie Générale Immobilière de France (Cogifrance)
—
EBR Ventures
Chairman of the Supervisory Board of Société Française des Hôtels de
—
EDR Communication
—
Administration et Gestion SA
Vice-Chairwoman of:
—
—
—
Edmond de Rothschild S.A.
Banque Privée Edmond de Rothschild S.A. (Switzerland)
Banque Privée Edmond de Rothschild Europe (Luxembourg)
—
OPEJ
Vice-Chairwoman of the Supervisory Board of Société Française des
Hôtels de Montagne (S.F.H.M.)
Honorary Vice-Chairwoman of RIT Capital Partners (London)
Director of:
— Edmond de Rothschild Holding S.A. (Switzerland)
— Holding Benjamin et Edmond de Rothschild, Pregny S.A.
(Switzerland)
— Baron et Baronne Associés (holding company of SCBA
Société Champenoise des Barons Associés)
— LCFR Banque (Paris)
Member of Supervisory Board of::
Montagne (SFHM)
—
SIACI Saint-Honoré
—
Milestone
Member of the Supervisory Board of Les Domaines Barons de Rothschild
(Lafite)
1)
= at 31 December 2013
RAPPORT ANNUEL 2013 |
17
Jean Laurent-Bellue
Luc J. Argand
Secretary, French, 1951
Member, Swiss, 1948
Education / training
Education / training
1974
1975
1977
1968
1968-1972
1972
1972-1974
1974
1976
Institut d’Etudes Politiques de Paris
Licences in Literature and Law
MBA from the Hautes Etudes Commerciales
Career summary
1978-1980
1980-1987
Executive with the Compagnie du Midi Group
Institut de Développement Industriel (IDI), first as a budget
controller and later in charge of marshalling equity
1987-1999
Executive Board of CFF
- 1994-1998: in charge of corporate finance in Paris
and London (Charterhouse Bank)
- 1998-1999: responsible for private equity in Paris
and London (Charterhouse Development Capital)
Member of the Executive Board of Crédit Lyonnais Group
LCF Edmond de Rothschild Group (now Edmond de
Rothschild Group) as a member of the Executive Board of
La Compagnie Financière Edmond de Rothschild Banque
and Chairman of the Executive Board of Edmond de
Rothschild Corporate Finance
Secretary-General of the Executive Board of Compagnie
Financière Saint Honoré and Chairman of the Board of
Directors of Edmond de Rothschild Corporate Finance
Present duties
Group Secretary-General at Edmond de Rothschild
Holding SA, Geneva
Member of the Boards of Directors of Banque Privée
Edmond de Rothschild SA, Geneva and CFSH, Paris
Autres mandats
Director and member of the Supervisory Board of KPMG
Associés
Since 2005
Director and member of the Supervisory Board of KPMG
SA and KPMG Associés (SA)
Since 2008
Member of the Supervisory Board of
Edmond de Rothschild Private Equity Partners
18 |
Admitted to the Geneva Bar
MBA, INSEAD
1977-1981
- 1993: Central Manager and a member of the
Since 1999
Articled at Antoine Hafner Solicitors
Career summary et Present duties
investments
Since
Jan. 2011
LLM, University of Geneva
Various duties with the Crédit Commercial de France
- 1987-1999: CEO of Nobel, in charge of
2009-2011
University of Geneva
investments and managing the portfolio of holdings
Group relating to corporate finance and private equity:
2000-2004
2004
Diploma in Classical Studies, Collège Calvin (Geneva)
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Trained at La Compagnie Financière Benjamin & Edmond
de Rothschild; Goldman Sachs, New York; NMR, London
Worked for Banque Privée Edmond de Rothschild SA,
Geneva
1982-present Partner of Pfyffer & Associés Solicitors, Geneva
Since 1986 Director of Banque Morval SA, Geneva
1993-present Director of Banque Privée Edmond de Rothschild SA
Geneva
1996-1998 President of the Geneva Bar Association
Director of Compagnie Benjamin de Rothschild SA Genève
Director of Holding Benjamin et Edmond de Rothschild SA,
Pregny SA (Switzerland)
1996-1998 President of the Geneva Bar Association
1990-present Arbitrator for the Court of Arbitration for Sport, Lausanne
1998-2007 Member of the Geneva Magistrates’ Upper Council
2004-present Member of the Geneva Notaries’ Supervisory Commission
2005-2011 President of the Geneva Auto Show
Since 2007 Director of Banque Syz & Co SA, Geneva
Veit de Maddalena
1)
Member, Swiss, 1967
Education / training
1988-1994
University of Bern
1998-1999
licentiatus rerum politicarum – Business Administration
London Business School, London
Master’s in Science and Finance
Academic experience
1991-2000
1993-1997
Credit Switzerland, Chiasso – Assistant to the Regional
Manager
1996
1997-1998
1999-2002
Credit Switzerland (Monaco) SAM, Monaco
– Chairman and CEAO
Member of Credit Suisse Private Banking Market Group 2
2003-2006
Director and Assistant Director of the National Centre
of Competence in Research, Financial Valuation and
Risk Management (FINRISK)
Since 2006
Since 2008
Research Director at the Swiss Finance Institute (SFI)
Professor of Finance at the University of Geneva
and Chairholder at the Swiss Finance Institute
Since 2009
Director of Finance Research Institute, University of
Geneva
Credit Switzerland Private Banking, Londres
– Head of Client Management
Professor of Finance at the Swiss Banking Institute,
University of Zurich
Since 2001
Credit Switzerland Private Banking, Lugano – Assistant to a
member of the Executive Committee, CSPB
Director of the Master’s programme in Banking and
Finance at HEC, University of Lausanne
2000-2008
Career summary
1994-1995
Professor of finance at HEC, University of Lausanne
Regulatory bodies
1995-1996
1997-2004
Member of the Swiss Takeovers Board
Member of the Swiss Federal Banking Commission
Management Committee
Directorship
Credit Suisse Trust Group – Chairman and CEO
Since 2000
Member of Swiss Re
Member of the international Private Banking Management
Committee
2006-2007
Rothschild Bank AG, Zürich – Chairman and CEO
Present duties
François Hottinger
Since 2008
Rothschild Wealth Management & Trust CEO and member of
Member, Swiss, 1943
the Group Management Committee
Education / training
Directorships
Banque Privée Edmond de Rothschild S.A.
Charles Rodolphe Brupbacher Foundation
1965
French Banking Association courses at the Sorbonne
1966-1967
1967-1968
Trained at BNP (ex BNCI), Paris
INSEAD Advisory Council
Trained in the commercial banking department of Banque
Hottinguer & Cie, Paris
Chairman of Rothschild Private Trust Holding AG
1968
Trained at Baring Bros, London
Career summary
Rajna Gibson Brandon
1969-1992
1975-1990
1992-2008
Managing partner of Banque Hottinger & Cie, Zurich
Managing partner of Banque Hottinguer & Cie, Paris
Managing partner of J.F.E. Hottinger & Co, Zurich
Member, Swiss, 1962
Present duties
Education / training
Since 1970
1982
Licence in Commercial and Industrial Sciences (Business
administration), University of Geneva
1987
PhD, summa cum laude, Economic and Social Sciences
(Specialization in Finance), University of Geneva
1)
Since 1992
= until 29 April 2014
Since 1992
Since 1995
Director of Banque Privée Edmond de Rothschild SA,
Geneva
Director of Hottinguer Corporate Finance SA, Paris
(formerly Jean-Philippe Hottinguer & Cie, Corporate
Finance SA, Paris)
Director of Messieurs Hottinguer Gestion Privée SA, Paris
(formerly Jean-Philippe Hottinguer & Cie, Gestion Privée
SA, Paris)
Director of Bolux Sicav, Luxembourg
RAPPORT ANNUEL 2013 |
19
Since 1998
Since 2009
Chairman of the supervisory board of Banque
Hottinguer, Paris (formerly Banque Jean-Philippe
Hottinguer & Cie, Paris)
Partner of JCE Hottinger & Co, Zurich
Maurice Monbaron
Member, Swiss, 1946
Education / training
1965
1965-1966
1968
Klaus Jenny
1972
Member, Swiss, 1942
Education / training
1967
Diploma from the Neuchâtel Business School
Sales representative for Montres Cortébert, Biel
Baccalauréat in Commerce,
Collège de Fribourg
Licence in Management Studies (HEC), University of
Lausanne
Career summary
M. Sc. in Economics (major in banking), University of
Saint Gallen)
1973
1975
1986
2)
1972-1988
and commercial banking employee in Zurich,
Ph. D. in Economics, University of Saint Gallen)
Deputy to Geneva Branch Manager, Basel Branch
LLM, Glaris Canton
Program for Senior Executives, Massachusetts Institute
of Technology
Career summary
Manager, Geneva Branch Manager
1988-1990
Deputy CEO of TDB American Express Bank, Geneva
and a member of the Executive Board
1990-2005
1972 à 1998 Credit Suisse / Credit Suisse Group from 1987
Member of the Executive Board
Member of the Executive Board Committee Member
Executive Board of Credit Suisse Group CEO of Credit
Suisse Private Banking
Since 1999 Self-employed financial consultant for companies,
institutions and private clients
American Express Bank (Switzerland) AG, credit analyst
Crédit Lyonnais (Switzerland) SA, Deputy CEO and from
1992 CEO. From 1996, Head of International Private
Banking for the Crédit Lyonnais Group
Present duties
Since 2005
Vice-Chairman of the Board of Directors of Crédit
Agricole (Switzerland) SA
Since 2009
Vice-Chairman of the Board of Directors of the
International Centre for Monetary and Banking Studies,
Geneva
Directorships
Since 2000
Since 2001
Since 2009
Since 2009
Since 2010
Maus Frères SA
Téléverbier SA
Since 2013
Geneva
Assivalor SA
Trade associations
Edmond de Rothschild Holding SA
1992-2013
2002-2011
Board
Lombard Odier SCA
Claude Messulam
Director of the Association of Foreign Banks in
Switzerland and, since 2006, Vice-Chairman of the
assignments for boards of charitable foundations)
Member of the Supervisory Board
Director of the France-Swiss Chamber of Commerce
and lndustry and, since 2008, Chairman of the Board
Banque Privée Edmond de Rothschild SA
(Various other directorships for smaller companies and
Since 2014
Director of Banque Privée Edmond de Rothschild SA,
2006-2011
Director of the Swiss Bankers Association
1)
Member, Swiss, 1951
1)
= office held until 11 June 2013
His resumé can be found in previous annual reports on the Bank’s website
www.edmond-de-rothschild.ch, under About Us / Library / Annual Reports
2)
20 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
= Since 26 April 2013
Jacques-André Reymond
E. Trevor Salathé
Member, Swiss, 1937
Member, Swiss and British, 1925
Education / training
Education / training
1959
1962
1963
Master’s in Commerce, University of Geneva
1946
1948
Degree from the Institute of Comparative Law, New York
Career summary, present duties and directorships
LLM, University of Geneva
University
1966
1973
Admitted to the Geneva Bar
Ph. D. in Law, University of Geneva
Career summary
1964-1965
1965-1966
1966-1968
1968-1996
Articled at Shearman & Sterling, New York
Articled at Helg, Picot, Grandjean, Geneva
Worked for Lenz Solicitors
Worked for and in 1972 became a partner of Sandoz,
Mayor, Moreillon & Reymond Solicitors
1974-1998
Professor of commercial and tax law at the Faculty of Law,
University of Geneva, Dean from 1989 to 1993
Present duties
1946–1948
LLM, University of Geneva
Admitted to the Geneva Bar
Trainee with Martin Achard et Haissly,
a Geneva law firm
1949–1953
1954–1959
1959–2000
Practising attorney in Geneva
Executive Assistant, Société Bancaire de Genève
Managing Director of Banque Privée SA devenue Banque
Privée Edmond de Rothschild SA, Geneva
Current directorships
Edmond de Rothschild Holding SA, Geneva
Banque Privée Edmond de Rothschild SA, Geneva
La Compagnie Benjamin de Rothschild SA, Geneva
Banca Privata Edmond de Rothschild Lugano SA
Banque Privée Edmond de Rothschild Europe, Luxembourg
Solicitor, honorary professor at the University of Geneva,
Banque de Gestion Edmond de Rothschild, Monaco
member of the Board of Directors of Banque Privée
Edmond de Rothschild Gestion, SAM, Monaco
Edmond de Rothschild SA, member of the Board of
Directors of Edmond de Rothschild Holding SA, and
Vice-Chairman of the Audit Committee of Banque Privée
Edmond de Rothschild SA
None of the Directors had a close business relationship with
Banque Privée Edmond de Rothschild SA or with a Group
company.
RAPPORT ANNUEL 2013 |
21
3.2. Other activities and vested interests
3.4. Organisational structure
Luc J. Argand is Chairman of the Geneva Notaries’
Supervisory Commission.
Board of Directors
3.3. Election and terms of the Directors
1. In addition to its wealth management and securities
dealing core business, the Bank operates as the parent
company of a banking and financial group as defined in
Swiss legislation and rules on banking. As a result, the
duties and powers of the Bank’s governing bodies have
increased (art. 2.1. of the Bylaws);
Under the present Articles of Association, the Directors are
elected for three-year terms until they reach the age of 70
during the calendar year when their term ends. Thereafter they
may be elected for one-year terms. The average age of the
Directors presently stands at 63.
The Ordinance against Excessive Pay in Listed Companies
(OEPLC), adopted on 20 November 2013, comes into force
on 1 January 2014. As a consequence, from 2014 onwards
the General Meeting will elect the Directors individually,
regardless of their age, for one-year terms ending at the close
of the next General Meeting. Directors may however be reelected.
The following table provides details of the length of Board
members’ current terms:
Directors
Member of the Board
Term ends
since
1)
Baron Benjamin de Rothschild
1985
2015
Baroness Benjamin de Rothschild
2009
2015
* M. Jean Laurent-Bellue
2011
2014
* M. Luc J. Argand
1993
2014
* Mme Rajna Gibson Brandon
2012
2015
* M. François Hottinger
1969
2014
* M. Klaus Jenny
2010
2014
* M. Veit de Maddalena
2009
2015
* M. Maurice Monbaron
2013
2016
* M. Jacques-André Reymond
1996
2014
* M. E. Trevor Salathé
1959
2014
* Fulfil the independence requirements provided in FINMA circular 08/24
“Supervision and internal control - banks”.
1) = The dates below are those decided at the last General Meeting in accordance
with the provisions prevailing at the time. Under the OEPLC all the Directors will have
to be formally re-elected by the General Meeting on 29 April 2014 for a one-year
term, regardless of the present length of their term of office.
22 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
The current version of the Bank’s Bylaws provide inter alia as
follows:
2. The Bylaws state the required level of skills, experience,
diligence, availability, loyalty and independence for each
governing body (art. 1.4., 3 and 4 of the Bylaws);
3. The Bank points out that the members of its governing
bodies must organise their personal and work relationships
so as to avoid as much as possible any conflict of
interests with the Bank and the banking and financial
group of which it is the parent company (art. 3.1.1.7.,
3.2.1.6., 3.3.1.6. and 3.4.1.5 of the Bylaws);
4. Both for itself and for the banking and financial group of
which it is the parent company, the Bank broadens the
duties and reinforces the powers of the Audit Committee
(art. 3.3.2. of the Bylaws) and the Internal Auditors (art. 4
of the Bylaws), as well as of the Compliance Office and
Risk Management Department (art. 3.1.2. of the Bylaws);
5. The Bank consolidates the systems used for internal
monitoring, information management, reporting (art. 3.4.2.
of the Bylaws) and risk management (art. 3.1.2 of the
Bylaws);
6. Finally, in a document appended to the Bylaws the Bank’s
Board of Directors sets out its policy in detail regarding
counterparty, market, reputational and operating risks (art.
5 and 8 of the Bylaws).
The Board of Directors, made up of 11 members, is chaired
by Baron Benjamin de Rothschild. Since 26 April 2012,
Baroness Benjamin de Rothschild and Jean Laurent-Bellue
respectively hold the offices of Vice-Chairman and Secretary.
The Board of Directors operates as a collegial body.
Resolutions are passed by an absolute majority of the
directors present and in the event of a tie, the Chairman has
the casting vote. In special circumstances Board resolutions
may be passed by circular as prescribed in the Bylaws.
Committees
In accordance with the Bank’s Articles of Association and
Bylaws, the Board of Directors is empowered to set up
supervisory committees composed of its members. It has
created an Audit Committee and a Pay and Promotions
Committee.
In 2013 the Board of Directors met six times. On average,
meetings of the Board of Directors last half a day. The work of
the Board of Directors is based on agendas drawn up by its
Secretary and by the Chairman of the Executive Committee
(see section 3.6 below). Minutes are taken at the meetings of
the Board of Directors and the Board Committee; they are
duly numbered and signed jointly by the Chairman and
Secretary.
Each meeting follows a standing agenda that includes the
following items:
1. reading and approval of the minutes of the previous
meeting;
2. a report by the Chairman of the Board of Directors;
3. finances;
4. a report by the Chief Executive Officer (CEO);
5. comments by independent Directors;
6. a report by the Chief Operating Officer (COO);
7. reports by the Internal Auditors;
8. any other business.
E. Trevor Salathé) to form the Audit Committee. François
Maendly, Chief Internal Auditor, was appointed non-member
Secretary.
Most of these members meet the requirements regarding
independence and all have the necessary skills and
experience.
Pay and Promotions Committee
Under the Bylaws the Board of Directors has set up a Pay and
Promotions Committee composed of at least three members,
all of whom must be Directors. Its main job will be to establish
guidelines on remuneration in general and approve the
salaries and bonuses of the Bank’s staff and Executive
Committee as proposed by the relevant bodies. The Pay
Committee will also be responsible for preliminarily advising
the Board of Directors on the appointment and removal of
members of the Executive Committee and the Board of
Directors and persons in charge of managing and
representing the Bank.
The Board of Directors has appointed five of its members to
form the Pay Committee: Baroness Benjamin de Rothschild
(Chairwoman), Jean Laurent-Bellue (Secretary), Luc J.
Argand, Klaus Jenny and E. Trevor Salathé. This Committee
holds meetings at least twice a year and in 2013 met three
times.
In view of the OEPLC, which comes into force on 1 January
2014, the Pay and Promotions Committee will be divided into
two separate bodies: a Promotions Committee and a Pay
Committee which meets the requirements of the OEPLC and
whose powers will be set out in the Articles of Association.
The preparatory, advisory and decision-making powers of the
aforementioned Committees appear in the Bylaws and the
Articles of Association.
Audit Committee
Under the Bylaws the Board of Directors has delegated part of
its powers to an Audit Committee made up of at least three
Board members. Their powers primarily include acting as a
liaison unit between the Independent Auditors and the Board
of Directors and supervising the activities of the Internal
Auditors, the Compliance Office and the Risk Management
Department. The Board has appointed five of its members
(Klaus Jenny as Chairman, Jacques-André Reymond as ViceChairman, Rajna Gibson-Brandon 1), Jean Laurent-Bellue and
1)
= Since 26 April 2013
RAPPORT ANNUEL 2013 |
23
3.5. Powers
The Board of Directors is the Bank’s highest governing body
and is responsible for supervising and monitoring its
operations. Under the statutes and the Articles of Association
(art. 22), it has the widest powers of oversight as regards how
the Bank’s business is managed. Aided by its committees, it
sets the general strategy of the Bank and Group. It lays down
the principles pertaining to organisation, management and
control and ensures that they are applied. It supervises on a
consolidated basis all the Swiss and foreign entities that
together comprise the Banque Privée Edmond de Rothschild
Group. The Board of Directors has delegated oversight of the
Bank’s day-to-day business to the Executive Committee (see
section 4 below).
The Board of Directors has no official terms of reference. Its
powers and those of its Committees are clearly delineated in
the Bank’s Articles of Association and Bylaws (www.edmondde-rothschild.ch, About Us/Investor Relations/ Legal
Documents), which will be amended in 2014 to meet the
requirements of the OEPLC.
3.6. Information and control instruments
Description of reporting by the Executive Committee
At each meeting of the Board of Directors, the Chief Executive
Officer and/or the Deputy Chief Executive Officers report on
the major decisions taken by the Executive Committee and on
the operations dealt with, presenting those matters that fall
within the jurisdiction of the Board of Directors. However, the
Chief Executive Officer and his Deputies may only participate
in Board meetings in an advisory capacity.
To help them perform their oversight obligations, at each
meeting the members of the Board of Directors are given
among other documents a progress report, the summarised
monthly accounts of the various Group entities comparing
actual business performance with the budget and, finally, a list
of the Group’s financial investments and holdings.
At meetings the Board members also receive a quarterly
report on risks noting, inter alia: the level of shareholders’
equity; major risks, if any; market, interest rate and counterparty risks in the banking industry; the level of cash reserves;
and risks of a legal and reputational nature.
24 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
The Board of Directors has also put facilities in place that are
designed to monitor and supervise management at the Group
level. These facilities are outlined on pp. 64 et seq. of this
annual report.
Between meetings of the Board of Directors and the Board
Committee, the Chairman and Deputy Chairmen of the
Executive Committee keep the Chairman of the Board of
Directors regularly informed on major executive decisions.
Other members of the Executive Committee, as well as other
Bank executives, employees, internal auditors and external
advisers or experts whose presence is needed, may also be
invited to the meetings of the Board of Directors and the
Board Committee. However, these persons may only
participate in an advisory capacity.
Description of the internal auditing system
Pursuant to the applicable regulations and laws (art. 9 para. 4
of AMLO, art. 20 para. 2 of SESTO, sections 9 and 54 et seq
of FINMA Circ. 08/24), the Board of Directors has an Internal
Audit Department that reports directly to it in the chain of
command. The chief internal auditor and his assistant are
appointed by the Board on the advice of the Board
Committee, to which they report directly. The rights and
obligations of the Internal Auditing Department are set out in
the Bank’s Bylaws and in the internal auditors’ Charter and
Ethical Code. In particular, the Internal Auditing Department
has access to all the documents of the Bank and of the
consolidated affiliates that it audits.
The Internal Auditing Department currently has a staff of 12.
It draws up an auditing programme each year that is
discussed and approved by the Audit Committee. In addition
to a detailed list of assignments planned for the current year,
this programme contains a summary of the departments and
functions that have been audited over the past three years
and of those for which a review is scheduled in the three
coming years.
This programme is also discussed with the Independent
Auditors.
A separate report is drafted for each area audited. The
Executive Committee’s view on each item is included in the
report, along with a deadline for implementing the
recommended steps. At its meetings the Audit Committee
deals with the Internal Auditing Department’s reports in the
presence of the chief internal auditor and resolves to take
additional measures when necessary. The Chief Internal
Auditor is asked to attend the meetings of the Audit
Committee as an external Secretary and even in some cases
to meetings of the Board of Directors. In certain
circumstances the Chairman of the Board of Directors or of
the Audit Committee may assign special tasks to the Chief
Internal Auditor.
The Independent Auditors draw up an auditing plan for each
financial year and submit it to the Audit Committee for
discussion and implementation. The 2013 auditing plan was
presented to the Board Committee at its meeting on
2 September 2013. The Audit Committee meets regularly with
representatives of the Independent Auditors.
Description of the risk control and management
system
Please refer to pp. 60-63 of the “Notes to the consolidated
financial statements”.
RAPPORT ANNUEL 2013 |
25
4. Executive Committee
The Executive Committee 1) is comprised of seven members
appointed by the Board of Directors and operates as a
collegial body, holding weekly meetings that on average last
half a day. In 2013 it met 40 times. Resolutions are passed by
an absolute majority of the members present, provided they
form a quorum. In the event of a tie, the Chairman has the
casting vote. The Executive Committee’s resolutions may also
be passed by circular as prescribed in the Bylaws. Minutes
are taken at the meetings of the Executive Committee; they
are duly numbered and signed by the Secretary. Each
meeting follows a standing agenda that covers the full range
of the Bank’s operations.
Minutes are taken at the meetings of these committees. They
are numbered, dated and signed, and a copy is remitted to
each member of the Executive Committee.
Other Bank executives, as well as employees, internal
auditors and external advisers or experts may also be invited
to the meetings of the Executive Committee. However, these
persons may only participate in an advisory capacity.
Each of the Bank’s departments is placed under the
supervision of a member of the Executive Committee. After
each meeting these members inform their staff on any major
developments that have occurred in their area of
responsibility.
The members of the Executive Committee receive documents
and statistics issued weekly, monthly or quarterly by the
departments and groups concerned. These include
summarised monthly accounts comparing actual business
performance with the budget, monthly lists of financial
investments, the financial statements of the various entities
forming the Banque Privée Edmond de Rothschild Group, a
report on risk control noting market, interest rate and
counterparty risks, the level of shareholders’ equity and risks
of a legal and reputational nature (cf. compliance). The
Executive Committee can also rely on the supervision and
monitoring facilities described in section 3.6 above. These
facilities are honed year after year to enhance their
effectiveness.
To help it perform its duties, the Executive Committee has set
up the following committees whose tasks are set out in the
Bylaws: an Extended Executive Committee; a Management
Desk Directors Committee; a Private Banking Committee; a
Private Banking Supervision Committee; an Investment
Committee; an Administrative and Operational Committee; a
New Products and Services Committee; a Standing
Operations Committee; a Compliance Committee; a Risks
Committee; a Credit Committee and an Asset & Liability
Management Committee.
26 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
1)
= at 31 December 2013
4.1. Members of the Executive Committee
Christophe de Backer
Manuel Leuthold
Chairman, French, 1962
Chief Executive Officer
Vice-Chairman, Switzerland, 1959
Deputy Chief Executive Officer
Education / training
Education / training
1986
1981
1984
Institut Supérieur de Gestion - Paris
Career summary
2001-2011
2001-2007
2007-2010
2010-2011
Master’s in Economies, University of Geneva
HSBC France
Career summary
Deputy Chief Executive Officer HSBC France
1984-1996
Managing Director
Chief Executive Officer HSBC France
Present duties
Since
LLM, University of Geneva
Edmond de Rothschild Group
UBS Geneva, various positions in credit, commodity &
trade finance
1997-2008
2009-2011
UBS Lausanne, head of French Switzerland
UBS Zurich, head of Corporate & Institutional Banking
Vice-Chairman, Wealth Management & Swiss Banking
26 may 2012
– Chairman of the Executive Committee
Present duties
Since
Banque Privée Edmond de Rothschild S.A., Geneva
Since 2012
26 April 2012
- Chairman of the Executive committee
and Chief Executive Officer
Directorships
COO, Deputy CEO and Vice-Chairman of the Executive
Committee
Directorships
Banca Privata Edmond de Rothschild Lugano S.A.,
Since October 2013
EDRRIT - Chairman of the Board
Lugano – Chairman
Since May 2013
Edmond de Rothschild Asset Management
Banque Privée Edmond de Rothschild Europe S.A.,
- Chairman of the Supervisory Board
Luxembourg
Edmond de Rothschild Ltd, London
Banque de Gestion Edmond de Rothschild Monaco,
- Chairman
Monaco
la Compagnie Benjamin de Rothschild S.A., Geneva
Banque Privée Edmond de Rothschild Ltd, Nassau
- Vice-Chairman
– Chairman
Edmond de Rothschild (UK) Limited, London
Edmond de Rothschild Holdings (C.l.), Guernsey
Edmond de Rothschild Asset Management (C.l.) Limited,
Guernsey
Edmond de Rothschild (C.l.) Limited, Guernsey
Edmond de Rothschild Informatique S.A., Geneva
- Chairman
Since July 2012
Since May 2012
Since May 2012
Edmond de Rothschild SA - Chairman
May 2012 - Feb. 2014 Edmond de Rothschild Prifund - Chairman
Since April 2012
Banque Privée Edmond de Rothschild Europe,
Luxembourg
RAPPORT ANNUEL 2013 |
27
Hervé de Montlivault
1)
Member, French, 1955
Deputy Chief Executive Officer in charge of Private Banking
Present duties
Since 2013
Legal and member of the Executive Committee of Banque
Privée Edmond de Rothschild SA
Education / training
1975-1978
1982
Senior Vice-President, Head of Group Compliance and
Degree from the Ecole Supérieure de Commerce de Paris
Directorship
(ESCP)
Member of the Board of Directors of Banque Privée Edmond de
Certificate of Chartered Accounting (DECS)
Rothschild Ltd, Nassau
Career summary
1979
1983
1986
Crédit du Nord, Paris – Executive Assistant
Citibank, Corporate Finance, Paris – Relationship Manager.
JPMorgan, Securities and information services, Paris –
Head of Sales - Paris
JP Morgan, Euroclear, Managing Director – European and
Investment Banks - Brussels
JPMorgan Private Bank. Managing Director - Paris
Credit Suisse (France) Banque Privée, Chairman of the
Executive Board - Paris
Crédit Suisse Group, Private Banking Western Europe –
Geneva / Zurich, Market Area Head for France and
Belgium, Head of Advisory and Sales for the France /
Belgium Market Area
1991
1996
2005
2010
Present duties
Since 2013
Deputy Chief Executive Officer in charge of Private Banking
Luc Baatard*
Member, Swiss, 1957
Senior Vice-President
Frédéric Binggeli
Member, Swiss, 1961
Senior Vice-President
Education / training
1979
1985
1993
College certificate type 3
M. Sc. in Economics, University of Geneva
Series 7 and 3 National Association of Securities Dealers
Career summary
Yves Aeschlimann
1)
Member, Switzerland, 1967
Senior Vice-President
Education / training
1993
LLM, University of Geneva
1996
Admitted to the Geneva Bar Association
Career summary
1985-1986
1987-1991
1991-1993
1993-1994
1994-1996
Peat Marwick, Geneva, assistant auditor
Lombard, Odier & Cie, Geneva, securities analyst
Sogenal, Geneva, securities analyst
Merrill Lynch, Geneva, broker
Tetral Investment Management (family office
of the Tetra Pak Group), Pully, in charge of equity
investments
Since 1996
Banque Privée Edmond de Rothschild S.A., Geneva
Present duties
1996-1999
Practising attorney in Geneva
Senior Vice-President and member of the Executive
1999-2000
Clerk, Canton of Geneva High Court
Committee of Banque Privée Edmond de Rothschild SA in
2001-2009
Investigating Magistrate, Canton of Geneva Criminal
charge of a wealth management group
Justice Department
2010-2012
Senior Financial Sector Specialist in Financial Market
Integrity for the World Bank, Washington DC
Vice-Chairman of the Strategy Committee
Directorship
Holding Benjamin et Edmond de Rothschild,
Pregny S.A., Switzerland
1) = since 17 April 2013
28 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Alexandre Col
Other offices
Member, French and Swiss, 1963
Senior Vice-President
Member of Alternative Investment Management
Education / training
Representative for Switzerland of the Regional Advisory
1987
Association Limited (AIMA), London
Committee of Alternative Investment Management
Licence in Economics (business administration), École des
Association Limited (AIMA), London
Hautes Études Commerciales, University of Lausanne
1991
1991
Member of the Executive Circle, a committee of the
Licence in Political Science, University of Lausanne
Alternative Investments Council (AIC) of the Swiss Fund &
Licence in Economics (economics), École des Hautes
Asset Management Association (SFAMA), Basel
Études Commerciales, University of Lausanne
1993
1993
Member of the European Fund and Asset Management
M. Sc. in Political Science, University of Lausanne
Association (EFAMA), Brussels
Graduate studies in Economics (economic relations),
Member of Transparency Council Funds of Hedge Funds
Institut d’études politiques, Paris
(TCF), Winterthur
Career summary
Since 1994
Banque Privée Edmond de Rothschild S.A.
– Asset Management Department Switzerland
Present duties
Since 2000
Philippe Currat
Member, Swiss, 1948
Senior Vice-President
Head of the Investment Fund Department of Banque
Privée Edmond de Rothschild SA, Geneva
Since 2010
2)
Member of the Executive Committee of Banque Privée
Martin Leuthold
Edmond de Rothschild SA
Member, Swiss, 1952
Senior Vice-President
Head of the Investment Fund Department
Since 2013
1)
Head of the Asset Management Department of Banque
Privée Edmond de Rothschild SA, Geneva
Education / training
Head of Funds of Funds for the Edmond de Rothschild
1975
Directorships
Chairman of ACH Management SA
University f Zurich Business School, Business Economist
degree
Group
1982
Certification as Chartered Account and Financial Controller,
Geneva
Chairman of Edmond de Rothschild Real Estate
Career summary
Chairman of NOVA SICAV
1975-1978
Procter & Gamble Geneva
Finance & Accounting
Chairman of Matterhorn Fund
Chairman of Prifund Conseil (Bahamas) SA
1978-1980
1980-1988
Director of Orox Asset Management
Present duties
Chairman of Prifund Conseil SA
Director of Multi Alternative Alpha SICAV
Since 1988
Arthur Andersen S.C.– Assistant to the worldwide Controller
Ferrier Lullin & Cie S.A. – assistant to the CFO
Chief Financial Officer of Banque Privée Edmond de
Rothschild SA, Geneva
1) = member until 9 January 2013
2) = until 31 December 2013. From 1 January 2014, Cynthia Tobiano will take over
as Chief Financial Officer and member of the Executive Committee.
Since 1990
Member of the Board of the Personnel Welfare Foundation
of Banque Privée Edmond de Rothschild SA
Since 2010
Senior Vice-President and member of the Executive
Committee of Banque Privée Edmond de Rothschild SA
RAPPORT ANNUEL 2013 |
29
Present duties
Representación B.P. Edmond de Rothschild S.A.
Montevideo
Rotomobil S.A. Pregny
Rouiller, Zurkinden & Cie Finance SA Fribourg
Copri III S.A. Luxembourg
Priasia Ltd Tortola B.V.I.
Privaco Family Office, Geneva
Privaco Family Office, Hong Kong
Michel Lusa*
Member, Swiss, 1949
Senior Vice-President
Bernard Schaub*
Member, Swiss, 1955
Senior Vice-President
* = Luc Baatard, Michel Lusa and Bernard Schaub stepped down on 16 April 2013.
Their résumés are available in previous annual reports that can be found on our
website at
www.edmond-de-rothschild.ch/presentation/documents/ annual-reports.aspx
30 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
4.2. Other activities and vested interests
The members of the Executive Committee have no other
activities or vested interests within the meaning of art. 4.2. of
the SIX Guidelines on Corporate Governance.
4.3. Management contracts
No such contracts exist at Banque Privée Edmond de
Rothschild SA
5. Remunerations,
profit-sharing and loans
Introduction
Our remuneration policy forms part of the strategy, culture and
nature of our Group’s business and of each entity’s local
specificities. As such it falls within the scope of the general
policy of the Edmond de Rothschild Group, whose aim is to
foster staff loyalty and encourage each employee to promote
our long-term success through entrepreneurship and risk
control.
The policy is moreover based on the guidelines contained in
Circular 2010/1 – “Remuneration schemes” issued by the
Swiss Financial Market Supervisory Authority (FINMA), subject
to the applicable regional rules.
This policy, the powers described below and the procedure
for approving the pay packages of members of the Bank’s
governing bodies will be reviewed in light of the OEPLC in the
course of 2014. The Articles of Association and Bylaws will be
adapted accordingly.
Powers
The rules on powers regarding compensation appear in the
Bank’s Bylaws.
From 2014, when the OEPLC comes into force, some of
these powers will be provided for directly in the Articles of
Association.
Once the new Pay and Promotions Committee is set up in
April 2014, its main tasks will include laying down the rules on
remuneration and approving the overall pay package and
bonuses for the staff and the Executive Committee based on
the proposals of the bodies concerned. The Committee will
also be in charge of preliminarily advising the Board of
Directors on the appointment and removal of members of the
Executive Committee, members of the Board of Directors and
persons responsible for managing and representing the Bank.
The Board of Directors has appointed five of its members —
Baroness Benjamin de Rothschild (Chairwoman), Jean
Laurent-Bellue (Secretary), Luc J. Argand, Klaus Jenny and
E. Trevor Salathé — to serve on the existing Pay Committee,
which meets at least twice a year. In 2013 it held three
meetings.
In view of the OEPLC, which comes into force on 1 January
2014, the Pay and Promotions Committee will be divided into
two separate bodies: a Promotions Committee and a Pay
Committee which meets the requirements of the OEPLC and
whose powers will be set out in the Articles of Association.
Remunerations
Guidelines
Remuneration includes a fixed annual salary and a bonus,
both of which are paid in cash.
In order to spread profits over time and guarantee risk control,
certain employees with strategic duties receive their bonus on
a deferred basis.
Remuneration is set according to employees’ duties, skills,
responsibilities and experience. It also takes account of
market conditions, thanks to our participation in industry
surveys.
To avoid conflicts of interest, the fixed salaries of persons
occupying control functions, such as the Chief Internal Auditor
and the staff of the Compliance, Legal and Risk Control and
Management departments, form the bulk of their
compensation.
The Bank pays no signing bonuses. Compensation is granted
in certain cases where a new employee has lost earnings due
to his job change.
Pursuant to the Bylaws, the remuneration scheme and the
objectives assigned to employees must not induce them not
to abide by the internal control mechanisms and rules of
compliance.
RAPPORT ANNUEL 2013 |
31
Board of Directors
Non-managerial staff
Each member of the Board of Directors is paid fixed fees that
vary depending on whether or not he serves on certain
committees.
The remuneration of non-managerial employees consists of a
fixed annual salary and a discretionary bonus.
Their remuneration is set by the Board of Directors on the
basis of proposals made by the Pay and Promotions
Committee.
Executive Committee and other managers
The members of the Executive committee and other
managers receive a fixed annual salary and a discretionary
bonus in line with the Bank’s earnings.
These bonuses are based on the Bank’s earnings and on the
quantitative and qualitative achievements of the concerned
managers. Only in three cases are they subject to a detailed,
binding calculation. The bonuses are paid within 30 days
following the meeting of the Board of Directors at which the
financial statements are approved.
A bonus is not granted if a manager’s contract of employment
is terminated owing to misfeasance or to non-compliance with
our Group’s values, or if he has decided unilaterally to resign.
A limited number of the Group’s senior executives have
agreements providing for severance pay should the Bank
terminate their contract of employment without just cause.
Such pay may not exceed three years’ remuneration.
Members of the Executive Committee have the same
personnel welfare plan as the staff.
The remuneration of the Chairman of the Executive Committee
is set by the Pay and Promotions Committee. The pay of the
other members is approved by this committee based on a
proposal made by the Chairman of the Executive Committee.
From 2015, as required by the OEPLC, the remuneration of
the members of the Board of Directors and the Executive
Committee will be decided by the Board of Directors based
on proposals made by the Pay Committee and approved by
the General Meeting.
32 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Bonuses are based on employees’ performance. They are
paid at the end of the calendar year and usually amount to
one to two months’ pay.
Stock option plans
Geneva
The Bank is studying the appropriateness and implications of
implementing a remuneration scheme that would include
stock options and deferred payments.
Luxembourg
Our Luxembourg subsidiary (BPERE) has added two plans to
the variable portion of pay. They are designed to motivate the
beneficiaries in the medium/long term and take future
business development into account.
The aim of the first plan is to foster loyalty among key
managers by allotting them stock options with a four-year
lifespan. The charge amounts to 10% of consolidated net
profit. Each year the Board of Directors sets the terms of the
plan for a new four-year period. This remuneration is payable
only to beneficiaries who remain at BPERE at the end of the
relevant period.
A similar plan has been implemented in the subsidiary’s
Belgian branch. It consists in allotting free shares that can be
later converted into warrants. The conversion takes place at
the end of a three-year period and the new warrants are
inalienable for a one-year period. Each year the Board of
Directors sets the terms of the plan for a new three-year
period. This remuneration is payable only to beneficiaries who
remain at the branch at the end of the relevant period.
The cost of these profit-sharing schemes is provisioned
annually in the subsidiary’s financial statements.
Monaco
The profit-sharing scheme at our Monaco subsidiary was
terminated at end-2013. No more options will be distributed in
the future.
Other Group entities
No profit-sharing schemes are currently in force at the other
Group entities.
Remuneration, stock options and loans in 2013
In accordance with articles 663 b bis and 663 c section 3 of
the Swiss Code of Obligations, the remuneration and loans
granted to current members of the Bank’s governing bodies
are indicated in Note 15 to the Bank’s financial statements
(pp. 106 et seq).
The variable portion of remuneration in the reporting year
accounted for 31.0% of the entire Group payroll (as against
30.7% in 2012) and represented 56.7% of the total
remuneration of the Executive Committee (as against 59.7% in
2012).
To allow easier comparisons between reporting years, these
percentages do not take extraordinary events into account.
RAPPORT ANNUEL 2013 |
33
6. Shareholders’ rights
6.1.
Limitation and representation
of voting rights
Under art. 6 para. 4 of the Articles of Association, the name
and permanent address of the owners and usufructuaries of
registered shares are entered in the Bank’s share register.
Only the owners and usufructuaries of registered shares
whose inclusion in the share register is endorsed by a director
may legitimately exercise the Company-related rights
attaching to a registered share. Para. 5 et seq of art. 6 of the
Articles of Association state the grounds on which the Board
of Directors may refuse to grant such an endorsement.
Moreover, an owner of registered shares may only be
represented at an Annual General Meeting by another owner
of registered shares in possession of a written proxy (cf. art.
14, para. 2). Holders of bearer shares must merely produce
such shares or comply with any other formality required by the
Board of Directors (under art. 14, para. 3 of the Articles of
Association) in order to exercise their rights.
6.2. Quorums
Annual General Meetings are deemed validly held when over
half the shares are represented (under art. 15 para. 1 of the
Articles of Association). In cases where this quorum is not
achieved, a second meeting may be convened with the same
agenda (cf. art. 15, para. 2 of the Articles of Association). The
second meeting may not take place until at least 30 days
have elapsed and it will be deemed validly held regardless of
the number of shares represented. This must be mentioned in
the notice (art. 15, para. 3 of the Articles of Association).
6.3. Notice of Annual General Meetings
The rules pertaining to notices of AGMs are set forth in articles
11, 12 and 31 of the Articles of Association, which draw on
the provisions of the Swiss Code of Obligations.
6.4. Items on the agenda
The rules pertaining to agendas and deadlines are set forth in
articles 11 and 12 of the Articles of Association, which draw
on articles 699 et seq of the Swiss Code of Obligations.
Article 11 of the Articles of Association
General Meetings shall be convened by the Board of Directors and, if
necessary, by the Auditors, the liquidators or the representatives of
bondholders.
One or more shareholders together representing at least 10 per cent
of the capital stock may also request that a General Meeting be
convened.
Shareholders representing shares with a total par value of CHF
1 million may request that an item be included in the agenda.
Convocations and inclusion of items in the agenda must be
requested in writing, mentioning the topics of discussion and
proposals.
Article 12 para. 1 and 2 of the Articles of Association
General Meetings shall be convened at least 20 days prior to the
date on which they are to be held, in accordance with the
procedures provided in article 31 on the Company’s notices.
Items included in the agenda must be referred to in the notice of the
General Meeting, together with the proposals of the Board of
Directors and the shareholders who requested the convocation of the
meeting or the item’s inclusion.
6.5. Entries in the share register
In accordance with Company practice, the deadline for
entering unlisted registered shares falls on the day the AGM
agenda is notified.
34 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
7. Take-over
and defensive measures
7.1.
The Bank has included in art. 6 para. 3 of its Articles of
Association a clause providing that bidders are not required to
make a formal take-over bid pursuant to articles 32, 52 and
53 of the Swiss Stock Exchanges and Securities Trading Act
(SESTA).
7.2.
No member of the Bank’s senior management (Board of
Directors, Executive Committee and other senior officers) has
signed a contract protecting him/her from a transfer of control
by the Bank.
RAPPORT ANNUEL 2013 |
35
8. Independent Auditors
8.1.
Duration of the Auditors’ mandate and
of the Chief Auditor’s term of service
Since 1982 PricewaterhouseCoopers SA, Geneva, has
audited the parent company financial statements of Banque
Privée Edmond de Rothschild SA, Geneva. The financial
statements of the Banque Privée Edmond de Rothschild
Group are also audited by PricewaterhouseCoopers SA
Beresford Caloia has served as Chief Auditor for our account
since 2012.
8.2. Auditing fees
In 2013 Banque Privée Edmond de Rothschild SA paid a total
of CHF 549,000 in auditing fees, VAT included, to
PricewaterhouseCoopers SA Geneva and Hong Kong, within
the meaning of provision 8.2 of the Guidelines on Corporate
Governance.
8.3. Additional fees
The Bank paid additional fees totalling CHF 52,000 to
PricewaterhouseCoopers SA Geneva and Hong Kong for tax
consulting services, VAT included, within the meaning of
provision 8.3 of the Guidelines on Corporate Governance.
36 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
8.4.
Consultation with the Independent
Auditors
PricewaterhouseCoopers SA draws up an auditing plan each
year. It drafts one report on its review of the annual financial
statements and another on its prudential audit. The auditor in
charge of our account discusses these reports with the Audit
Committee. The auditing plan was presented to the Board
Committee at its meeting on 2 September 2013. The
Independent Auditors’ findings in respect of the annual
financial statements were presented and discussed with the
Audit Committee at its March meeting and then presented the
same month to the Board of Directors.
The Independent Auditors have access to the Audit
Committee at all times, as well as to the Executive Committee
and to the Internal Auditing Department, all of whom they meet
with regularly.
PricewaterhouseCoopers SA is hired on an annual basis. The
company’s qualifications, performance and fees are assessed
each year by the Audit Committee or the Board of Directors.
As required by FINMA, the auditor in charge of our account is
replaced every seven years.
9. Information policy
Banque Privée Edmond de Rothschild SA provides the fullest
disclosure possible to its existing and potential shareholders,
as well as to its employees and the general public. This
information is mainly conveyed at the General Meeting of
Shareholders, in our annual reports, in press releases, at
press conferences on our annual results, through interviews
given to the financial media and securities analysts and on the
Bank’s website at www.edmond-de-rothschild.ch, About
Us/Investor Relations.
Details on risk management and on the calculation of
consolidated shareholders’ equity are also available on the
Bank’s website, at www.edmond-de-rothschild.ch, About
Us/Investor Relations.
Events and calendar
7 March 2014
- Publication of the Bank’s 2013 results
1 April 2014
- Publication of the notice of the Annual General Meeting of
shareholders and agenda in the FOSC (full text), le Temps,
L’Agefi, the Neue Zürcher Zeitung and Finanz und
Wirtschaft (summarised editions)
- Publication of our 2013 Annual Report
3 April 2014
29 August 2014
- Publication of our semi-annual 2014 results in the FOSC and
related press conference.
Contacts
Investor relations:
Manuel Leuthold
Deputy Chief Executive Officer
Banque Privée Edmond de Rothschild S.A.
18, rue de Hesse, 1204 Geneva
Phone: +41 58 818 84 00
Fax :
+41 58 818 91 91
E-mail : [email protected]
Medias relations:
Valérie Boscat
Head of Communications-Marketing
Banque Privée Edmond de Rothschild S.A.
18, rue de Hesse, 1204 Geneva
Phone : +41 58 818 94 62
Fax :
+41 58 818 91 91
E-mail : [email protected]
Internet
www.edmond-de-rothschild.ch
in “About us/Investor Relations/Financial Informations”.
- Press conference on the 2013 results of the Edmond de
Rothschild Group at the Bank’s headquarters in Geneva
29 April 2014
- Annual General Meeting of shareholders in Geneva, at the
Château de Pregny.
RAPPORT ANNUEL 2013 |
37
38 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Banque Privée Edmond de Rothschild Group
Financial Report
40
41
46
48
52
54
Key Figures
Report of the Directors
Report of the statutory auditor
Consolidated subsidiaries
56
58
59
60
Consolidated balance sheet
Consolidated profit and loss account
Consolidated cash flow statement
Notes to the consolidated
financial statements
Consolidation principles
Valuation policies
RAPPORT ANNUEL 2013 |
39
Key figures
Banque Privée Edmond de Rothschild Group
2013
2012
Change
(in CHF)
(in %)
(11,9)
Consolidated profit and loss account (in thousands of CHF)
37'040
42'065
(5'025)
Fee and commission income
507'278
465'372
41'906
9,0
Results of trading operations
83'548
91'435
(7'887)
(8,6)
546'661
521'865
24'796
4,8
75'423
66'351
9'072
13,7
Profitability
% return on equity (net income/average shareholders’ equity) 2)
5,9
5,1
-
-
% return on assets (net income/average assets)
0,5
0,5
-
-
Earnings per bearer share after deducting portion due to minority interests
730
682
48
7,1
Earnings per registered share after deducting portion due to minority interests
146
136
10
7,1
Due from banks
9’905’850
7’794’129
2’111’721
27,1
Advances to customers
1’733’963
1’663’056
70’907
4,3
316’812
306’574
10’238
3,3
14’431’740
13’067’443
1’364’297
10,4
Net interest income
Operating expenses (personnel costs and other overheads)
Group net Income
Shares (in CHF)
Consolidated balance sheet (in thousands of CHF)
Due to banks
Customer deposits
Shareholders’ equity 1)
1'328'790
1'337'439
(8'649)
(0,6)
16'586'998
15'199'069
1'387'929
9,1
108'611
102'697
5'914
5,8
10'213
9’953
260
2,6
- net inflow of fresh funds
1'585
1’904
(319)
(16,8)
Group personnel (number of employees)
Average number of employees
1'805
1'785
20
1,1
732
708
24
3,4
1'073
1'077
(4)
(0,4)
Total number of employees at year-end
1'777
1'811
(34)
(1,9)
Number of employees at year-end, converted into full-time jobs
1'716
1'755
(39)
(2,2)
Balance sheet total
Assets under management (in millions of CHF)
Total assets under management (includes double reporting)
of which: - double reporting
- in Switzerland
- abroad
1) Including Group net income before payment of dividend by parent company and minority interests
2) After appropriation of the parent company’s earnings
40 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Report of the Directors
to the shareholders on the consolidated accounts
of Banque Privée Edmond de Rothschild SA at the general meeting on 29 April 2014
Dear Shareholders,
2013 featured mixed conditions, including an economic upturn of
varying strength from one region to another, a steep run-up in
equity markets in North America and Europe, an equally steep fall
in emerging assets and interest rates that remained very low by
historical standards. This uncertain environment weighed on our
clients’ willingness to invest.
Despite these relatively difficult circumstances, the drive of our
sales force and our reputation for caution enabled us to continue
growing and attracting new clients. The net inflow of fresh money
into the Banque Privée Edmond de Rothschild Group totalled
CHF 1.6 billion in 2013 and our assets under management came
to CHF 108.6 billion, compared with CHF 102.7 billion at end2012. This marked an increase of 5.8%, 4.3% of which was due
to asset and currency values and 1.5% to the net inflow of client
funds.
Thanks to our position as a wealth management company under
stable family control, we have the strength needed to meet the
challenges ahead and to continue striving for excellence while
constantly adapting our organisational structure to the changes
that are reshaping our industry. Today we must know not only
how to keep our business model in line with new regulatory
developments but also how to go on expanding both our
domestic and international operations
In Switzerland we pursued our tilt towards onshore clients
last year. This segment enjoyed further growth despite
unrelenting pressure from increasingly heavy regulation, in
general, and from the tax programme implemented by the US
Department of Justice. Banque Privée Edmond de Rothschild
SA and Banca Privata Edmond de Rothschild Lugano SA filed
on 18 December 2013 as Category 2 banks, in accordance
with the recommendations of the Swiss financial regulator
FINMA. This decision in no way compromises our Group’s
financial stability. Our substantial shareholders’ equity allows
us to face this procedure confidently.
2013 was a satisfactory year for our Asset Management
division and in particular for our funds of funds business (both
traditional and alternative), mainly thanks to friendly market
conditions.
Our funds of hedge funds were honoured yet again for their
top-quality management and returns at the HFM European
Performance Awards in London. Alexandre Col, who heads
this department, won the 2013 “Outstanding Contribution to
the European Fund of Hedge Funds Industry” award at the
Hedge Funds Review Awards Ceremony in November..
Meanwhile the governance of Banque Privée Edmond de
Rothschild evolved last year. Many new faces appeared on
the Executive Committee, which now has seven members:
Christophe de Backer, Chief Executive Officer and
Chairman of the Executive Committee
Manuel Leuthold, Deputy Chief Executive Officer and
Vice-Chairman of the Executive Committee
Hervé de Montlivault, Deputy Chief Executive Officer
in charge of Private Banking
Yves Aeschlimann, Head of Group Compliance
Frédéric Binggeli, Management Desk Director
Alexandre Col, Head of Asset Management
Martin Leuthold, Chief Financial Officer
The job of this new Executive Committee is to steer the
operations of Banque Privée Edmond de Rothschild. After
over 25 of service to the Bank, Martin Leuthold took a wellearned retirement and was replaced by Cynthia Tobiano on
1 January 2014.
Meanwhile our Group continued to grow its Private Banking
business in Switzerland and abroad.
RAPPORT ANNUEL 2013 |
41
Swiss network
Geneva, Fribourg, Lausanne and Lugano
Banque Privée Edmond de Rothschild SA (BPER) has a strong
presence in Geneva and also operates through its branches in
Fribourg (headed by Patrick Zurkinden) and Lausanne (headed by
Roland Humbert).
Banca Privata Edmond de Rothschild Lugano SA, our
subsidiary in Ticino directed by Luca Venturini, saw steppedup growth in 2013 as the takeover of Sella Bank was
completed. The subsidiary had CHF 5.031 billion of assets
under management at end-2013, up 24.6% on the yearearlier level. Net profit was down 15% compared with the
2012 figure owing to the non-recurring expenses relating to
the Sella acquisition.
International network
Branch and representation office
Hong Kong
The sales force of our Hong Kong branch was strengthened
in 2013 with the recruitment of Monique Chan, who is now in
charge of the Edmond de Rothschild Group’s Private Banking
platform in Asia.
At the same time our Group’s various Hong Kong-based
ventures were streamlined to enhance our operating
efficiency.
Dubai
Our inroads into the Gulf region are important for strategic
reasons. The representative office that our Group opened in
Dubai in 2011 marks a first step in the right direction.
42 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Subsidiaries
Luxembourg
Led by Marc Ambroisien, Banque Privée Edmond de
Rothschild Europe, Luxembourg (BPERE) last year pursued its
strategy of long-term growth in its core businesses of private
banking, asset management and investment funds
administration. BPERE announced in December 2013 that it
had begun talks with CACEIS with a view to streamlining its
booking capability, assets under management and fund
administration services.
Business throughout BPERE’s international network expanded
further in 2012. The joint venture with the Nikko Sumitomo
group in Tokyo enjoyed continuing success.
Net profit at our Luxembourg subsidiary totalled CHF 29.1
million, as against 34.7 million in 2012, illustrating strong
resilience to a tough operating environment.
United Kingdom
Our London subsidiary, Edmond de Rothschild Limited, is
headed by Richard Briance. Its operations form into five main
lines of business:
-
Private Merchant Banking
Managing the fund of hedge funds Leveraged
Capital Holdings
Bond dealing
Trading in emerging market funds
Corporate finance, M&A activity and financing.
Our London hub’s Private Merchant Banking business officially
kicked off at end-2013.
The London subsidiaries together generated a net profit of
CHF 0.569 million (GBP 0.393 million) in 2013, compared
with CHF 1.140 million (GBP 0.768 million) in 2012.
Guernsey
In Guernsey, Edmond de Rothschild (C.I.) Limited provides
asset risk management services on a consulting basis as well
as under discretionary mandates. The company is a
shareholder of the Channel Islands Stock Exchange, for which
it handles the listing of investment funds and notes. It also
operates in the fixed-income segment.
Monaco
Our Monaco subsidiary, Banque de Gestion Edmond de
Rothschild - Monaco, is 54.85% owned by the Banque Privée
Edmond de Rothschild Group and is headed by Hervé
Ordioni.
Thanks to a dynamic sales effort, subsidiary’s assets under
management rose 13.7% in 2013 to EUR 5.427 billion. The
net inflow of fresh money totalled EUR 237 million. Net profit
came to CHF 12.5 million (EUR 10.1 million) in 2013, marking
a jump of 55% on the previous year’s level of CHF 7.9 million
(EUR 6.6 million).
Bahamas
2013 marked a year of consolidation in the growth of Banque
Privée Edmond de Rothschild Ltd. John C. Mauron will take
over from Gian Fadri Pinoesch as CEO on 1 January 2014.
Our Nassau subsidiary generated a net profit of CHF 11.1
million, up 15.8% on the 2012 figure (CHF 9.6 million).
Roundup of 2013 results
Consolidated profit and loss account
Group net profit came to CHF 75.4 million, marking a rise of
13.7% on the year-earlier level of CHF 66.4 million.
Revenue
Interest income totalled CHF 37.0 million, down 11.9%
compared with the 2012 figure (CHF 42.1 million). This drop
reflects historically low interest rates.
Income from fees and commissions rose 9.0% to CHF 507.3
million from CHF 465.4 million the previous year. The increase
was mainly attributable to higher average assets under
management and heavy trading business and, to a lesser
extent, to the acquisition of Sella Bank AG.
Results of trading operations amounted to CHF 83.5 million,
down 8.6% on their 2012 level of CHF 91.4 million. The rise
was largely due to a higher profit on forex dealing.
Other ordinary results totalled CHF 45.1 million, marking a
gain of 39.5% on the year-earlier figure. This item comprises
dividends deriving from non-consolidated holdings.
Expenses
The average number of staff employed by our Group last year
was 1805, up from 1785 in 2012. Personnel expenses
amounted to CHF 393.1 million, compared with CHF 386.1
million the previous year, marking an increase of 1.8%.
Other operating expenses rose 13% to CHF 153.5 million
from CHF 135.8 million in 2012.
Total operating expenses came to CHF 546.7 million, 4.8%
higher than the year-earlier level.
Gross profit
Group gross profit was up 15.5% and totalled CHF 126.3
million, versus CHF 109.3 million in 2012.
Depreciation of fixed assets worked out to CHF 38.5 million,
or 4.4% less than in the previous year.
RAPPORT ANNUEL 2013 |
43
Extraordinary income amounted to CHF 59.6 million, up
sharply on the 2012 figure. This item chiefly includes the
release of provisions no longer required for operating
purposes, a release from the reserve for general banking risks
and a capital gain on property sold in Luxembourg.
Extraordinary expenses totalled CHF 6.6 million, or 25.1% less
than the CHF 8.8 million reported the previous year. They
chiefly comprised an allocation to the reserve for general risks.
Taxes came to CHF 12.8 million, down 28% on the yearearlier figure of CHF 16.8 million.
Balance sheet review
The consolidated balance sheet total stood at CHF 16.6
billion at end-2013, up 9.1% on the year-earlier level.
Current assets including cash, bank deposits, loans to
customers, mortgage bills, claims arising from money market
paper and securities and precious metals held for trading
purposes totalled CHF 15.2 billion, marking an increase of
13.1% versus the previous year’s figure.
Financial investments amounted to CHF 754.8 million, as
against CHF 1.126 billion in 2012. This decrease stemmed
mainly from the stock of precious metals used to cover our
clients’ metal accounts and, to a lesser extent, from equity
investments.
Fixed assets stood at CHF 232.7 million, down from CHF
256.6 million at end-2012.
Adjustment accounts totalled CHF 107.0 million, compared
with CHF 92.8 million the previous year.
“Other assets” came to CHF 170.1 million, compared with
CHF 169.1 million at end-2012.
On the liabilities side, borrowed funds comprised of debits on
money market paper and sums due to banks and customers
44 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
together amounted to CHF 14.8 billion, or 89% of the balance
sheet total, up 10.3% from CHF 13.3 billion the previous year,
mostly owing to the higher level of clients’ deposits.
“Other liabilities” totalled CHF 200.4 million, compared with
CHF 235.2 million at end-2012. The 14.8% decrease was
partly due to the decline in the negative replacement values of
open derivative instruments.
Valuation adjustments and provisions totalled CHF 106.2
million, up by CHF 36.6 million on the previous year.
The reserve for general banking risks fell 8.8% to CHF 262.1
million from its year-earlier level of CHF 287.4 million.
Prior to the dividend payout, Group capital and reserves stood
at CHF 1.3 billion, representing 8.0% of the balance sheet
total.
Capital ratio
Return on equity worked out to 5.9%. Shareholders’ equity as
required by the BIS (under the Basel II rules) came to CHF
266.1 million. Eligible capital totalled CHF 1.2 billion. The BIS
ratio (eligible capital in relation to shareholders’ equity required
under Swiss law) was 36%, well above the 12% legal
minimum.
Outlook for 2014
In 2014 Private Banking will continue to chafe under the
increasing burden of regulation and under mounting pressure
on banking secrecy. This will have an impact on our
profitability.
More than ever we will have to stay on the leading edge of our
businesses and beef up our human and technological
resources. The quality of our customer service depends on
this, as does our competitiveness.
In 2014 the continuing implementation of our Strategic Plan
should enable the Edmond de Rothschild Group will improve
sales performance in our two core segments, Private Banking
and Asset Management. It should also enable us to enhance
operating efficiency, thanks to greater pooling at the Group
level.
Our attitude will remain guarded, however, in view of the rapid
changes reshaping the financial industry and persistent
volatility in the markets.
We cannot conclude this report without expressing our
gratitude to you, our shareholders, and to our clients for their
abiding trust.
The Board of Directors
RAPPORT ANNUEL 2013 |
45
Report of the statutory auditor
to the general meeting of Banque Privée Edmond de Rothschild SA, Geneva
Report of the statutory auditor on the
consolidated financial statements
As statutory auditor, we have audited the consolidated
financial statements of Banque Privée Edmond de Rothschild
SA, which comprise the balance sheet, income statement,
statement of cash flows and notes (pp. 48-86), for the year
ended 31 December 2013.
Board of Directors’ Responsibility
The Board of Directors is responsible for the preparation and
fair presentation of the consolidated financial statements in
accordance with accounting rules for banks and the
requirements of Swiss law. This responsibility includes
designing, implementing and maintaining an internal control
system relevant to the preparation of consolidated financial
statements that are free from material misstatement, whether
due to fraud or error. The Board of Directors is further
responsible for selecting and applying appropriate accounting
policies and making accounting estimates that are reasonable
in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. We
conducted our audit in accordance with Swiss law and Swiss
Auditing Standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance whether the
consolidated financial statements are free from material
misstatement.
46 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control
system relevant to the entity’s preparation and fair
presentation of the consolidated financial statements in order
to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control
system. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of
accounting estimates made, as well as evaluating the overall
presentation of the consolidated financial statements. We
believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements for the
year ended 31 December 2013 give a true and fair view of the
financial position, the results of operations and the cash flows
in accordance with accounting rules for banks and comply
with Swiss law.
Report on other legal requirements
We confirm that we meet the legal requirements on licensing
according to the Auditor Oversight Act (AOA) and
independence (article 728 CO and article 11 AOA) and that
there are no circumstances incompatible with our
independence.
In accordance with article 728a paragraph 1 item 3 CO and
Swiss Auditing Standard 890, we confirm that an internal
control system exists which has been designed for the
preparation of consolidated financial statements according to
the instructions of the Board of Directors.
We recommend that the consolidated financial statements
submitted to you be approved.
PricewaterhouseCoopers SA
Beresford Caloia
Audit Expert
Auditor in charge
Alain Lattafi
Audit Expert
Geneva, 20 March 2014
RAPPORT ANNUEL 2013 |
47
Consolidated subsidiaries
at 31 December 2013
Fully consolidated entities of the Banque Privée Edmond de Rothschild Group
In Switzerland
Parent company
Banque Privée Edmond de Rothschild S.A.
Geneva
CHF
45.000m
Financial and asset management companies
Rouiller, Zurkinden & Cie Finance S.A.
Fribourg
2)
Bank
Banca Privata Edmond de Rothschild Lugano S.A.
Lugano
1)
100%
5.000m
2)
1)
100%
CHF
2.100m
Les Conseillers du Léman Associés S.A. Geneva
4)
Geneva
2)
100%
CHF
Services
Privaco Family Office S.A.
Geneva
100%
1)
CHF
0.100m
2)
1) Direct and/or indirect holding by parent company
2) Share capital
3) Wholly owned by Banque Privée Edmond de Rothschild Europe, Luxembourg
4) Wholly owned by Privaco Family Office SA, Geneva
48 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
1)
100%
Priadvisory Holding S.A.
Geneva 3)
1)
CHF 0.600m
2)
CHF 3.120m
2)
Abroad
Banks
Trust and asset management companies
Banque Privée Edmond de Rothschild Europe
Luxembourg
Edmond de Rothschild Asset Management (UK) Limited
4)
U.K.
1)
100%
EUR 31.500 m
Banque Privée Edmond de Rothschild Ltd, Nassau
Bahamas
2)
1)
80%
GBP
LCF Edmond de Rothschild Conseil S.A.
5)
Luxembourg
1)
100%
CHF 15.000 m
Banque de Gestion Edmond de Rothschild - Monaco
3)
Monaco
2)
1)
100%
EUR
0,050 mio.2)
Edmond de Rothschild Asset Management (C.I.) Limited
6)
Guernsey
2)
1)
100%
GBP
0,005
Edmond de Rothschild Client Nominees (UK) Limited
8)
U.K.
54,85%
1)
EUR
12.000 m
Service and real estate companies
80 %
COPRI III S.A.
Luxembourg
1)
100%
Privaco Family Office (HK) Ltd
Hong Kong 7)
EUR
0.747 m
2)
1)
HKD
12.675 m
2)
100%
1)
GBP
0,800
0,001
mio.2)
mio.2)
mio.2)
1) Direct and/or indirect holding by parent company
2) Share capital
3) Owned 34% by Banque Privée Edmond de Rothschild SA, Geneva, 18% by Banca Privata Edmond de Rothschild Lugano SA, Lugano and 5.21% by Incentive
Management SAM, Monaco
4) Wholly owned by Edmond de Rothschild Limited, London
5) Owned 99.99% by Banque Privée Edmond de Rothschild Europe, Luxembourg and 0.01% by Edmond de Rothschild Investment Advisors, Luxembourg
6) Wholly owned by La Compagnie Privée de Finance (Jersey), Jersey
7) Wholly owned by Privaco Family Office SA, Geneva
8) Wholly owned by LCF Edmond de Rothschild Securities, London
RAPPORT ANNUEL 2013 |
49
Abroad
Financial and brokerage firms
Edmond de Rothschild (UK) Limited
London
Edmond de Rothschild (C.I.) Limited
Guernsey
1)
80 %
GBP 1,000 M
Edmond de Rothschild Securities (UK) Limited
3)
U.K.
2)
1)
80 %
GBP 1,000 m
Edmond de Rothschild International Funds Ltd
Bahamas 4)
2)
1)
62,28 %
USD
Edmond de Rothschild Investment Advisors
Luxembourg 8)
0,400 m
2)
1)
100%
EUR 0,125 m
Edmond de Rothschild Holdings (C.I.) Limited
Guernsey 5)
2)
1)
100%
GBP
La Compagnie Privée de Finance (Jersey)
Jersey
0,040 m
2)
0,005 m
2)
100%
1)
GBP
5)
1)
100%
Incentive Management SAM
Monaco
GBP
0,000002 m
2)
EUR
0,150 m
2)
EUR
0,000001 m
2)
6)
1)
54.74%
Priglobal Advisory Limited
7)
Cayman
ISlands
1)
100%
1) Direct and/or indirect holding by parent company
2) Share capital
3) Wholly owned by Edmond de Rothschild Limited, London
4) Owned 32.25% by Banque Privée Edmond de Rothschild SA, Geneva, 2.25% by Banca Privata Edmond de Rothschild Lugano SA, Lugano, 14.75% by
Banque Privée Edmond de Rothschild Europe, Luxembourg, 14.75% by Edmond de Rothschild Limited, London, 2.25% by Banque de Gestion Edmond de
Rothschild-Monaco, Monaco
5) Wholly owned by La Compagnie Privée de Finance (Jersey), Jersey
6) Wholly owned 99.80% by Banque de Gestion Edmond de Rothschild-Monaco, Monaco
7) Wholly owned by Priadvisory Holding SA, Geneva
8) Owned 99.92% by Banque Privée Edmond de Rothschild Europe, Luxembourg and 0.08% by LCF Rothschild Conseil SA, Luxembourg
50 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Prifund Conseil S.A.
Luxembourg 3)
E.C.H. Investments Ltd
Iles Caïman 4)
1)
100%
EUR
0,078 mio.2)
Representación B.P. Edmond de Rothschild S.A.
Montevideo
43,15 %
1)
100%
Priasia Limited
B.V.I.
USD
0,014 mio.
2)
1)
100%
USD 0,0003 mio.2)
Edmond de Rothschild Conseil & Courtage d’assurances
6)
Monaco
1)
54,69%
EUR
Iberian Renewable Energies GP, S.à r.l.
Luxembourg 7)
1)
100%
Prifund Conseil Bahamas S.A.
Bahamas
100%
1)
EUR
0,150 mio.
2)
0,013 mio.
2)
1)
EUR
0,251 mio.2)
Adjutoris Conseil
Luxembourg
5)
1)
100%
EUR
Edmond de Rothschild Gestion Monaco - SAM
Monaco
8)
54,47 %
EDRRIT Ltd
1)
U.K.
10)
0,031 mio.2)
EUR
0,150 mio.2)
1)
41 %
GBP
Edmond de Rothschild Capital Holdings Ltd
0,278 mio.2)
U.K.
11)
41 %
1)
GBP
0,250 mio.2)
Edmond de Rothschild Private Merchant Banking LLP
EUR
0,070 mio.
2)
U.K.
9)
79,56 %
1)
GBP
5,586 mio.2)
1) Direct and/or indirect holding by parent company
2) Share capital
3) Wholly owned by Banque Privée Edmond de Rothschild SA, Geneva
4) Owned 19.92% by Banque Privée Edmond de Rothschild SA, Geneva, 4.98% by Edmond de Rothschild Capital Holdings Ltd UK, 7.47% by Banque Privée
Edmond de Rothschild Europe, Luxembourg, 22.68% by Edmond de Rothschild International Funds Ltd, Bermuda
5) Owned 99.68% by Banque Privée Edmond de Rothschild Europe, Luxembourg, 0.32% by Edmond de Rothschild Investment Advisors, Luxembourg
6) Owned 99.30% by Banque de Gestion Edmond de Rothschild-Monaco, Monaco
7) Wholly owned by Banque Privée Edmond de Rothschild Europe, Luxembourg
8) Owned 99.30% by Banque de Gestion Edmond de Rothschild-Monaco, Monaco
9) Owned 96% by Edmond de Rothschild Limited, London
10) Owned 41% by Edmond de Rothschild Ltd, London
11) Wholly owned by EDRRIT Ltd, London
RAPPORT ANNUEL 2013 |
51
Consolidation principles
The consolidated financial statements of the Banque Privée
Edmond de Rothschild Group have been prepared in
accordance with the provisions of the Federal Law on Banks
and Savings Banks, its implementing ordinance (OB), the
guidelines issued by FINMA (the Swiss Financial Market
Supervisory Authority) and the provisions on the drawing up of
financial statements in the Listing Rules of the Swiss
Exchange. The financial statements provide a true picture of
the Group’s assets, financial situation and earnings.
Scope of consolidation
Group companies
The consolidated financial statements of the Banque Privée
Edmond de Rothschild Group include the financial statements
of the major companies operating in the banking and financial
sector, as well as the real estate companies in which the
parent company holds, directly or indirectly, a majority interest
(for details of the companies concerned, refer to pp. 48-51).
Changes to the scope of consolidation
The following company was consolidated during the reporting
period:
- Orox Asset Management S.A., Geneva
The following companies were deconsolidated during the
reporting period:
- Castinvest S.A., Geneva
- Cefeo Investimenti S.A., Lugano
- Clancey Advisory Corp., B.V.I.
- Edmond de Rothschild Corporate Finance S.A., Spain
- Immobilière du 3 Joseph II, Luxembourg
- LCF Fund Advisory Ltd, Bahamas
- Mizen Finance Corp., B.V.I
- Privaco Services Limited, New Zealand
- Privaco Trust Limited, New Zealand
- Privaco (Uruguay) S.A., Montevideo
- Rhoninvest Establishment, Vaduz
- Testafid Anstalt, Vaduz
On 29 November 2012, Banca Privata Edmond de Rothschild
Lugano SA entered into an agreement to purchase the entire
share capital of Sella Bank AG, Lugano. The acquisition was
completed on 28 February 2013, with Sella Bank AG being
absorbed by Banca Privata Edmond de Rothschild Lugano
SA The merger took effect retroactively to 1 January 2013.
EDRRIT, a joint venture by RIT Capital Partners plc and the
Edmond de Rothschild Group, was created in July 2012 as
part of a cooperation agreement between the two venture
52 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
partners. Edmond de Rothschild Limited, the London
subsidiary of Banque Privée Edmond de Rothschild SA, owns
41% of EDRRIT, while its sister bank La Compagnie
Financière Edmond de Rothschild owns 10%. This agreement
may be revoked by either party. The earnings generated by
the joint venture are considered deferred income and are
included under “Other liabilities”.
Holdings accounted for using the equity method
Associated companies in which the Group owns a 20% to
50% interest are consolidated using the equity method; the
value shown under “Holdings” represents the Group’s share in
the equity and net income of these entities, rather than the
value of the shares under our control.
The companies concerned are La Compagnie Benjamin de
Rothschild SA (34.68%), ACH Management SA (38%), LCF
EdR Nikko Cordial Japon (50%), LCH Investment NV (44%)
and Orox Asset Management SA (40%).
The impact of applying the Group’s accounting principles to
these affiliated companies has been considered as minor on
the consolidated financial statements. As a consequence, the
equity application is based on the unadjusted accounts of the
companies held.
Equity stakes accounted for under the equity method are
shown under “Non-consolidated holdings”.
The Group’s share in the profits of companies consolidated
using the equity method is presented as a separate item in
the consolidated profit and loss account.
Other holdings
Majority interests of lesser impact or whose sale is envisaged,
as well as other stakes of less than 50%, are disclosed under
“Non-consolidated holdings”.
Consolidation methods
Newly acquired companies
Full consolidation method
The financial statements of all companies within the Group are
fully consolidated.
As a rule, newly acquired companies are included in the
consolidated financial statements in the year of their
acquisition.
All assets and liabilities, as well as expenses and income of
Group companies, are fully integrated (line-by-line).
Closing date for consolidated accounts
Intercompany balance sheet items and profit and loss
transactions between consolidated Group companies are set
off against each other.
The consolidated companies all end their financial year on 31
December except for Priadvisory Holding SA, Prifund Conseil
SA and Prifund Conseil (Bahamas) SA whose financial years
conclude on 30 November.
Off-balance sheet items are also fully consolidated and set off
when they relate to intercompany transactions within the
Group.
Dividends are eliminated through reserves. The entitlement of
third-party shareholders (minority interests) to equity and net
income is disclosed separately.
Capital consolidation
The capital invested in the Group’s banks and investment,
asset management and real estate companies is consolidated
in accordance with the purchase method.
The positive or negative differences arising from the first
consolidation are disclosed under “Intangible assets” and
“Retained earnings” respectively.
The value of the Bank’s treasury stock, or own shares in
BPER SA, is deducted from capital and reserves and reported
under “Additional paid-in capital and other reserves” at the
shares’ cost price. Dividends and the proceeds of
subsequent sales are directly allocated to “Additional paid- in
capital and other reserves”.
RAPPORT ANNUEL 2013 |
53
Valuation policies
Translation of financial statements
in foreign currency
Transaction bookings
and balance sheet reporting
Transactions in foreign currency are reported at the exchange
rate applicable on the date of the relevant transaction. Profits
and losses arising from the settlement of these transactions
are reported in the profit and loss account. along with profits
and losses arising from the conversion at the exchange rate
on the balance sheet date of claims and liabilities on money
market placements denominated in foreign currency.
Since 31 Dec. 2006 the balance sheet and profit and loss
statement have been drawn up on the basis of settlement
dates.
The balance sheets of fully consolidated companies
expressed in foreign currency are translated into Swiss francs
at the year-end exchange rate. except for shareholders’ equity
which is translated at historical rates.
Trading positions in forex and precious metals are evaluated
at year-end rates and prices.
The profit and loss accounts of Group companies are
translated at yearly average exchange rates.
In the case of foreign companies consolidated using the
equity method. the year-end market rate is applied to the
Group’s share of equity expressed in foreign currency. The
Group’s share of the net income of these affiliated companies
is translated at the annual average exchange rate.
Translation differences resulting from full consolidation and
from the equity method are reported as shareholders’ equity in
“Retained earnings”.
Results of forex and precious metals
transactions
Forward positions are estimated at year-end at the forward
rate for the remainder of the period. Forex differences are
recorded in the profit and loss account.
Income and expenses expressed in foreign currency are
translated at the market rate prevailing on the transaction date.
Fixed assets and financial investments
Fixed assets are stated at cost less depreciation (see Note 8
in the Notes to the Consolidated Financial Statements),
except for the equity stakes in associated companies
consolidated as per the equity method. These are shown
under “Non-consolidated holdings”.
The exchange rates used to convert sums in foreign currency
are as follows:
Income and expenses
2013
2012
Closing
Average
Closing
Average
rate
2013 rate
rate
2012 rate
USD
0,89
0,92
0,91
0,93
GBP
1,47
1,45
1,48
1,48
EUR
1,23
1,23
1,21
1,20
Major currencies
54 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
The income and expenses generated by the Group
companies are accounted for in the period to which they
relate.
Personnel welfare liabilities
Contributions are reported as personnel expenses in the profit
and loss account for the year to which they relate.
Each year the Group determines whether it has derived any
economic benefits or commitments from personnel welfare
plans for Group staff. If any are found, they are stated in the
balance sheet pursuant to rule 16 of the Swiss accounting
principles (GAAP RPC 16). The difference in relation to he
corresponding amount reported the previous year is included
in “Personnel expenses” in the profit and loss account.
This annual study is based on contracts, on financial
statements bearing a closing date no older than 12 months
and drawn up in accordance with GAAP RPC 16 (in the case
of Swiss pension funds) and on any other relevant
calculations.
Other balance sheet
and profit and loss items
The accounting principles and valuation policies concerning
other items are set out in the Notes to the Consolidated
Financial Statements.
RAPPORT ANNUEL 2013 |
55
Consolidated balance sheet
at 31 December 2013 (in thousands of CHF)
Notes
2013
2012
Change
(in CHF ‘000)
(in %)
Assets
Cash and other liquid assets
18
3'397'760
3'716'986
(319'226)
(8,6)
Claims arising from money market paper
1, 18
158'463
259'543
(101'080)
(38,9)
Due from banks
2, 18
9'905'850
7'794'129
2'111'721
27,1
Due from customers
3, 18
1'689'327
1'639'676
49'651
3,0
Mortgage loans
3, 18
44'636
23'380
21'256
90,9
Total advances to customers
4, 20
1'733'963
1'663'056
70'907
4,3
Securities and precious metals trading portfolios
5, 18
19'778
18'216
1'562
8,6
Financial investments
6, 18
754'820
1'125'788
(370'968)
(33,0)
(4,0)
Holdings
7, 8
97'451
101'561
(4'110)
Fixed assets
8
232'684
256'629
(23'945)
(9,3)
Intangible assets
8
9'272
1'278
7'994
625,5
Accrued income and prepaid expenses
8
106'831
92'811
14'020
15,1
Other assets
9
170'126
169'072
1'054
0,6
8, 19, 21, 22, 23
16'586'998
15'199'069
1'387'929
9,1
2'563
2'540
23
0,9
42'211
45'390
(3'179)
(7,0)
Total assets
Subordinated amounts receivable
Due from non-consolidated Group companies and qualifying
shareholders
56 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
7, 14
Consolidated balance sheet
at 31 December 2013 (in thousands of CHF)
Notes
2013
2012
Change
(in CHF ‘000)
(in %)
273,8
Liabilities
Liabilities arising from money market paper
18
3'607
965
2'642
Due to banks
18
316'812
306'574
10'238
3,3
Due to customers on savings or deposit accounts
18
6'905
7'087
(182)
(2,6)
11, 18
14'424'835
13'060'356
1'364'479
10,4
14'431'740
13'067'443
1'364'297
10,4
199'557
181'797
17'760
9,8
235'236
(34'862)
(14,8)
Other amounts due to customers
Total due to customers
Accrued expenses and deferred income
Other liabilities
12
200'374
Valuation adjustments and provisions
13
106'118
69'615
36'503
52,4
Reserves for general banking risks
13
262'152
287'423
(25'271)
(8,8)
Share capital
14
45'000
45'000
-­‐
-
91'455
92'096
(641)
(0,7)
889'421
880'220
9'200
1,0
(68'234)
(66'045)
(2'189)
3,3
33'573
32'394
1'179
3,6
75'423
66'351
9'072
13,7
Additional paid-in capital and other reserves
Retained earnings
15
Treasury stock
Minority interests in shareholders’ equity
16
Consolidated net income
11'899
6'945
4'954
71,3
17
1'328'790
1'337'439
(8'649)
(0,6)
19, 21, 23
16'586'998
15'199'069
1'387'929
9,1
-
-
-
-
7, 14
16’626
22'164
(5’538)
(25,0)
Contingent liabilities
4, 20, 24, 25
193'795
298'395
(104'600)
(35,1)
Irrevocable liabilities
4
66'337
78'302
(11'965)
(15,3)
Liabilities for unpaid share capital and additional capital contributions
4
1'958
2'107
(149)
(7,1)
139'048
142'383
(3'335)
(2,3)
of which: - minority interests
Total Group capital and reserves
Total liabilities
Subordinated liabilities
Due to non-consolidated holdings and qualifying shareholders
Off-balance sheet transactions
Derivative instruments
Positive
Negativereplacement
replacementvalues
values
26
Underlying values
Fiduciary transactions
Contingent liabilities
27
136'557
141'230
(4'673)
(3,3)
22'137'362
19'997'453
2'139'909
10,7
3'190'274
3'435'510
(245'236)
(7,1)
RAPPORT ANNUEL 2013 |
57
Consolidated profit and loss account
for the year ended 31 December 2013 (in thousands of CHF)
Notes
2013
2012
Change
(in CHF ‘000)
(in %)
(7'042)
20
(15,9)
26,7
Interest and discount income
Interest and dividend income on trading portfolios
29
29
37'333
95
44'375
75
Interest and dividend income on financial investments
29
5'003
4'526
477
10,5
Interest payable
30
5'391
6'911
(1'520)
(22,0)
37'040
42'065
(5'025)
(11,9)
1'444
1'370
74
5,4
Interest income, net
Commission income on lending activities
Commission income on securities and investment transactions
31
537'357
519'018
18'339
3,5
Commission income on other services
32
75'243
55'496
19'747
35,6
Commissions payable
106'766
110'512
(3'746)
(3,4)
Fee and commission income, net
507'278
465'372
41'906
9,0
83'548
91'435
(7'887)
(8,6)
Results of trading operations
33
Proceeds from the sale of financial investments
Income from holdings
of which: - holdings reported using the equity method
- other non-consolidated holdings
Real estate income
Other ordinary income
34
Other ordinary expenses
Other ordinary results
Total operating income
2'343
1'384
959
69,3
22'662
18'062
4'600
25,5
14'995
13'992
1'003
7,2
7'667
4'070
3'597
88,4
(31,6)
1'292
1'889
(597)
20'922
14'379
6'543
45,5
2'144
3'391
(1'247)
(36,8)
45'075
32'323
12'752
39,5
672'941
631'195
41'746
6,6
Personnel expenses
35
393'130
386'050
7'080
1,8
Other operating expenses
36
153'531
135'815
17'716
13,0
Total operating expenses
546'661
521'865
24'796
4,8
Gross profit
126'280
109'330
16'950
15,5
8,37
38'497
40'269
(1'772)
(4,4)
38
53'251
16'008
37'243
232,7
(34,9)
Depreciation of fixed assets
Valuation adjustments, provisions and losses
Result before extraordinary items and taxes
34'532
53'053
(18'521)
Extraordinary income
39
59'562
38'943
20'619
52,9
Extraordinary expenses
39
6'597
8'804
(2'207)
(25,1)
Taxes
Consolidated net income
of which: - minority interests’ share in consolidated net income
58 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
40
12'074
16'841
(4'767)
(28,3)
41, 42, 43
75'423
66'351
9'072
13,7
11'899
6'945
4'954
71,3
Consolidated cash flow statement
At 31 December 2013 (in thousands of CHF)
2013
2012
Source of
funds
Application of
funds
Source of
funds
Application of
funds
Group net income
75'423
Depreciation of fixed assets
38'497
-
66'351
-
-
40'269
-
-
14'020
673
-
Accrued expenses and deferred income
17'760
-
-
7'418
Valuation adjustments and provisions
36'503
-
4'150
-
-
25'271
-
24'311
Accrued income and prepaid expenses
Reserves for general banking risks
Previous year’s dividend
Other changes in reserves and minority interests
Net cash used in/provided by operating activities (results of
operations)
Share capital
Balance
56'250
5'777
111'443
116'256
641
-
1'548
641
-
1'548
4'169
-
-
9'606
16'618
-
-
-
Other fixed assets
-
26'768
-
46'644
Other intangible assets
-
11'463
10'772
-
Exchange rate changes
Net cash used in/provided by transactions involving financial
investments and fixed assets
Claims arising from money market paper
-
992
620
-
20'787
39'223
11'392
56'250
101'080
-
-
241'840
- land and buildings
Liabilities arising from money market paper
Money market transactions
Due from banks
Due to banks
Financial investments
Securities and precious metals portfolios held for trading
purposes
Banking and trading activities
1'910
168'183
97'451
-
78'750
-
Additional paid-in capital
Net cash used in/provided by transactions involving
shareholders’ equity
- other non-consolidated holdings
-
2'642
-
103'722
-
-
70'732
(18'436)
917
-
917
241'840
2'111'721
-
402'318
103'722
10'238
-
47'449
-
370'968
-
-
51'331
-
1'562
13'865
-
381'206
2'113'283
61'314
453'649
Due from customers
-
49'651
-
262'271
Mortgage loans
-
21'256
-
12'166
Savings and deposit accounts
-
182
-
271
1'364'479
-
1'330'576
-
-
-
-
-
1'364'479
71'089
1'330'576
274'708
-
1'054
192'425
-
Other amounts due to customers
Medium-term bank bonds
Transactions with customers
Other assets
Other liabilities
-
34'862
Other balance sheet items
-
35'916
319'226
-
Cash and other liquid assets
Balance
(1'732'077)
1'293'390
(35'916)
-
147'448
192'425
147'448
-
416'368
(4'813)
(44'858)
(240'923)
(392'335)
1'055'868
44'977
319'226
-
-
-
416'368
(416'368)
Net cash used in/provided by banking activities
2'168'633
2'220'288
(51'655)
1'585'232
1'534'013
51'219
Total cash flows
2'357'603
2'357'603
1'708'067
1'708'067
RAPPORT ANNUEL 2013 |
59
Notes to the consolidated
financial statements
Description of operations
and disclosure of staff size
Description of our risk control
and management system
Banque Privée Edmond de Rothschild SA, the Edmond de
Rothschild Group’s flagship entity, is an all-service bank
specialising in wealth management for private and institutional
clients. It is a member of SIX Swiss Exchange.
Risk management
Converted to full-time jobs, the number of staff employed by
the Banque Privée Edmond de Rothschild Group stood at
1716 at end-2013 versus 1755 a year earlier.
Through its network of branches and subsidiaries in
Switzerland and abroad, the Group conducts on its clients’
behalf all the operations customarily performed by private
banking institutions. Fee and commission business on behalf
of clients mainly includes portfolio management, fiduciary
deposits and payment transactions, along with trading in
securities, precious metals and derivative instruments. The
Group also manages and administers investment funds.
In addition, the Group actively deals in debt instruments,
equities, currencies, precious metals and derivatives on a
proprietary basis, but does not engage in commodity trading.
Disclosure of accounting principles
and valuation policies
Risk policy
Banque Privée Edmond de Rothschild SA (“the Bank”) and its
subsidiaries in Switzerland and abroad (“the Group”) are
mainly active in Private Banking and Asset Management. The
Group’s operations also include administering investment
funds and providing investment advisory services. As the
Group’s parent company, the Bank is responsible for supervising risk control and management throughout the Group.
A joint risk policy drawn up by the Bank and approved by the
Board of Directors sets the general guidelines that apply to all
the Group entities. Taking account of these guidelines and
local regulations, each affiliate sets up its own section in
charge of identifying, monitoring and mitigating the risks to
which it is exposed.
Large human and technical resources have been made
available for the supervision and organisational structure of the
Group’s risk control units. These resources are constantly
adapted to take account of regulatory changes and the
requirements of the Group’s business.
Risk management is set up as follows:
-
The Board of Directors determines the Group’s risk
appetite and the components of risk management, in
line with the recommendations made by Edmond de
Rothschild Holding SA for the Edmond de Rothschild
Group as a whole.
-
The Audit Committee supervises and assesses the
operational aspects of risk management. It monitors
risks periodically by examining reports compiled at
regular intervals or on request by the Risk Control
and Management Department.
The general accounting and consolidation principles are set
out under a separate heading.
All assets, liabilities and off-balance sheet transactions
reported under the same heading in the Notes to the
consolidated financial statements.
60 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
-
The Executive Committee is responsible for
implementing procedures designed to identify,
analyse, evaluate and monitor all risks incurred by
the Bank and the Group. Together with the Risk
Committee it oversees implementation of the risk
policy laid down by the Board of Directors and
ensures that all important information on the status of
the aforementioned risks is collected, processed
and notified to the designated management and
supervisory bodies.
-
Department heads are in charge of anticipating,
preventing and managing the main occurrences that
could affect the attainment of their business
objectives
and
the
underlying
operational
processes ;
-
The Risk Manager sees to it that the Group’s risk
management guidelines and methods are incorporated
into decision- making and operational processes. He
monitors risk expo- sure and compliance with the
relevant limits, and reports on risk status to the
Bank/Group. Each Group entity has a Risk Control
and Management unit that reports regularly to the
Bank’s Risk Manager.
-
The Bank and its subsidiaries are a subgroup of
Edmond de Rothschild Holding SA (“the Holding
Company”), which controls the Edmond de
Rothschild Group (“the EdR Group”). As such the
Holding Company is regulated by FINMA on a
consolidated basis. To satisfy FINMA’s requirements
regarding management and control of the risks
faced by the EdR Group, the Holding Company
has set up a Risk Council combining the heads of
the risk units of all the EdR Group’s entities, who
together report to the Group’s Chief Risk Officer. An
operating charter was drafted for this Council setting
out certain guidelines that reflect the EdR Group’s
Strategic Plan. The charter is backed up by
frequent exchanges and collaboration between the
Council’s participants.
Interest rate and liquidity risks
The liquidity risk is the risk that the Group might not be
able to meet its present and future cash flow and collateral
requirements, whether expected or unexpected, without
harming its daily operations or financial situation. The
interest rate risk resides in the vulnerability of the Group’s
net worth or net interest margin to an adverse movement in
market interest rates.
The Bank and its subsidiaries take a prudent approach to
cash management, not only by choosing first-class
counterparties but also by giving preference to overnight
and/or short-term deposits. Our emphasis is on safeguarding
our commitments to clients, in normal and stress
situations alike. We moreover seek to match resources to their
use, in terms of both duration and maturities. Finally, the Bank
and the Group scrupulously comply with the liquidity ratios
required by the current legal provisions and m a d e m a j o r
e f f o r t s i n t h e r e p o r t i n g p e r i o d t o keep in step with
the new rules under the Basel III accords.
The risks attaching to liquidity and interest rate positions/
maturities are gauged by using the most up-to-date balance
sheet management techniques and by tracking these items
with dedicated software. An Asset and Liability Management
(ALM) Committee drafts and oversees the implementation of
rules on managing liquidity, interest rate and forex risks. It is
also responsible for optimising cash management and
ensuring structural control of the balance sheet.
Credit risk
This is the risk that a client, bank or other counterparty might
not be able to honour an obligation towards the Group.
RAPPORT ANNUEL 2013 |
61
Counterparty banks
Market risk
The counterparty banks that the Group deals with are
selected rigorously and kept under close scrutiny. Our
exposure to them is monitored continuously by a team of
controllers, and the limits that we have granted to each are
updated periodically or in real time if so required by a
deteriorating situation. To minimise the counterparty risk
attaching to correspondent banks, we give preference to
reverse repo agreements and to depositing cash directly with
central banks. All the Group entities use the limits system and
monitor the risk of counterparty concentration.
This lies in the vulnerability of the Group’s financial situation to
adverse swings in market prices and especially in the underlying value and implied volatility of currencies, equities,
precious metals and commodities.
Securities dealing on a propriety basis forms a very small part
of the Group’s business. In currencies and precious metals
we chiefly operate on behalf of clients and build only small
nostro positions. The limits granted to traders are low, and
their use of these is monitored constantly with software by
separate risk management and internal control services.
Clients
The credit facilities that we grant to clients are mainly shortterm advances secured by their investments and, to a lesser
extent, loans in connection with their business activities.
Clients who have assets deposited with a Group entity may
also be granted a mortgage for the purchase of a primary
residence. Applications for credit facilities are subject to
stringent analysis, and the pledged securities are assigned a
collateral ratio according to their liquidity, valuation, credit
rating and diversification in terms of asset class and
geographical spread.
Daily monitoring of the client credit risk is handled by a special
team that also administers outstanding loans.
Financial investments
The Group’s financial services companies may invest part of
their capital and liquidity in first-class financial assets, Including
but not limited to bonds and other debt securities that meet
strict credit-rating standards. These Investments must be such
that they diversify the Group’s liquidity across medium- term
instruments while also garnering regular returns. They are
subject to specific limits and are chosen by employees of our
own a s s e t m a n a g e m e n t departments. Monitoring the
limits and portfolios is the responsibility of the ALM
Committee, to which reports are submitted regularly.
62 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Operational risk
This is the risk of loss that the Group would suffer owing to the
inadequacy or failure of internal procedures, staff, IT systems
or external occurrences.
The Group’s entities have adopted a commune policy aimed
at monitoring and mitigating the following operational risks that
are Inherent in their private banking, asset management
and/or investment fund administration segments:
strategic and business risks,
internal and external fraud,
negligence regarding confidentiality and/or banking
secrecy protection requirements,
flawed practices in managing client assets and
collective investment schemes,
business disruptions resulting from system failures
and other extraordinary causes.
The Risk Control and Management Department has a unit
focused on operational risks that suggests ways to improve
our risk management and internal control capabilities. Its
responsibilities include:
-
devising the methodology for managing operational
risks (based primarily on the Basel II and III rules),
submitting this methodology to the Risk Committee
for approval and overseeing its implementation,
-
recording operational incidents, analysing them and
evaluating measures designed to prevent their
recurrence.
Outsourcing
Except in the area of fund administration support services
provided by Banque Privée Edmond de Rothschild Europe,
Luxembourg, our Bank and its subsidiaries do not outsource
services within the meaning of FINMA circular 2008/7.
This unit is tied in with the Bank’s supervision and internal
control system. It collaborates closely with the Internal Control
Department in gauging the relevance and effectiveness of the
Group’s controls and action plans, with a view to mitigating
those risks that have been identified as high and/or critical. It
uses specially designed software deployed throughout the
Group. It reports to the Risk Committee periodically and, if
required by the circumstances, to the Executive Committee.
A business continuity and organisational plan has been drawn
up to deal with possible crisis situations that the Bank has
identified and that could totally or partially disrupt our
operational processes. Human and technical resources
including an entire infrastructure have been deployed that
would enable us to provide essential services at reduced
capacity and return to normal. Given our Bank’s objectives in
terms of business continuity following a disaster or major
incident, this plan and the related tests and drills will be further
developed in 2014.
RAPPORT ANNUEL 2013 |
63
1
Claims arising from money market paper
Rescriptions and treasury bills
Other bills and money market paper
Total
2
2012
Change
(in CHF ‘000)
(in %)
(59,2)
6'423
15'742
152'040
243'801
-
158'463
259'543
(38,9)
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
Due from banks
Due from banks
2'633'911
2'524'924
4,3
Reverse repos
7'271'939
5'269'205
38,0
9'905'850
7'794'129
27,1
Total
3
2013
(in CHF ‘000)
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
Advances to customers
Current account overdrafts
717'552
682'028
5,2
Advances and fixed term loans
971'775
957'648
1,5
1'689'327
1'639'676
3,0
44'636
23'380
90,9
1'733'963
1'663'056
4,3
Total due from customers
Mortgage loans
Total
Current account overdrafts, advances and fixed term loans and mortgage loans are shown at face value, less any required adjustments.
64 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
4
Mortgage
collateral
Other collateral
Unsecured
Total
8'224
1'604'061
77'042
1'689'327
Schedule of collateral (in thousands of CHF)
Loans
Due from customers
Mortgage loans
44'636
-
-
44'636
Total 2013
- residential property
52'860
1'604'061
77'042
1'733'963
Total 2012
40'944
1'457'543
164'569
1'663'056
Contingent liabilities
-
187'525
6'270
193'795
Irrevocable liabilities
-
63'555
2'782
66'337
Liabilities for unpaid share capital and additional capital contributions
-
-
1'958
1'958
Total 2013
-­‐
251'080
11'010
262'090
Total 2012
-­‐
341'472
37'332
378'804
Off-balance sheet transactions
Gross value
Estimated
proceeds from
sale of collateral
Total 2013
9'372
-
9'372
9'349
Total 2012
13'620
-
13'620
13'607
Net value
Individual
valuation
adjustments
Nonperforming loans (in thousands of CHF)
Delinquent claims, i.e. claims for which the borrower is unlikely to honour his future commitments, are evaluated on an individual basis and the resulting
depreciation is covered by itemised valuation adjustments. Off-balance sheet transactions, primarily involving contingent liabilities, guarantees and derivative
instruments, are also included in this review. A claim is deemed delinquent when there is substantive evidence that future principal and interest payments due
under contract are unlikely to be made or are over 90 days in arrears. Interest is deemed in arrears when overdue for more than 90 days. Nonperforming
loans and overdue interest do not appear in the profit and loss account, but are reported instead in “Valuation adjustments and provisions”.
RAPPORT ANNUEL 2013 |
65
5
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
3'465
3'416
1,4
3'465
3'416
1,4
16'313
14'769
10,5
-
31
(100,0)
19'778
18'216
8,6
Securities and precious metals trading portfolios
Debt instruments
of which: - listed
Equity paper
Precious metals
Total
Securities are reported at their fair value on the balance sheet date (securities traded on a recognised Stock Exchange or representative market; if these
conditions are not fulfilled, the securities are evaluated at their lowest quoted price); capital gains and losses are recorded under “Results of trading
operations”.
Regarding balance sheet reporting of treasury stock, see Note 17.
6
Financial investments
Total
754'820
2013
Debt instruments
of which: - intended to be held until maturity
- reported as per lowest valuation
Equity paper
of which: - qualifying equity stakes (min. 10% of capital or votes)
Precious metals
Buildings
of which: - securities eligible for repo agreements under liquidity regulations
1'125'788
(33,0)
2012
Book value
Fair value
Book value
Fair value
278'872
215'060
295'083
230'510
256'011
178'698
262'223
181'667
63'812
64'573
77'313
80'556
53'598
60'588
56'600
62'946
-
-
-
-
422'350
422'350
813'177
813'177
-
-
-
-
754'820
778'021
1'125'788
1'138'346
163'367
-
142'709
-
Interest-bearing securities that are intended to be held until maturity are evaluated using the accrual method. Capital gains and losses are calculated for the
duration of issues, i.e. until their redemption date. Interest-bearing securities that are not intended to be held until maturity appear at their lowest valuation.
When the market value of listed securities is below their acquisition price or when the price of unlisted securities is below the net asset value of the issuing
company, the difference is charged to “Other ordinary expenses”. Precious metals held to set off commitments towards clients are stated at their fair value.
Regarding balance sheet reporting of treasury stock, see Note 17.
66 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
7
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
Non-consolidated holdings
With market value
14’266
14’266
-
With no market value
83’185
87’295
(4,7)
97'451
101'561
(4,0)
Holdings valued as per the equity method
43'453
55'049
(21,1)
Other non-consolidated holdings
53'998
46'512
16,1
97'451
101'561
Total
“Holdings valued as per the equity method” includes significant interests owned by the Group (20-50% of the relevant company’s share capital).
Differences arising from the first equity consolidation:
- positive, included under “Retained earnings”
2'365
2'365
- negative, shown under “Intangible assets”
1'128
-­‐
Companies consolidated on the balance sheet using the equity method:
- La Compagnie Benjamin de Rothschild SA, Meyrin, owned by:
Banca Privata Edmond de Rothschild Lugano SA, Lugano (17.34%)
and Banque Privée Edmond de Rothschild SA, Geneva (17.34%)
Total share capital CHF 11,534,000.–
- ACH Management SA, Luxembourg, owned by:
Banque Privée Edmond de Rothschild SA, Geneva (27%),
Edmond de Rothschild Capital Holdings Ltd, London (10%)
and Edmond de Rothschild International Funds Ltd, Bermuda (1%)
Total share capital USD 154,128
- LCF EdR Nikko Cordial, Japan, owned by:
Banque Privée Edmond de Rothschild Europe, Luxembourg (50%)
Total share capital JPY 100,000,000
LCH Investment NV, Netherlands Antilles, owned by:
Banque Privée Edmond de Rothschild SA, Geneva (43%)
Edmond de Rothschild Limited, London (0.5%) and
Edmond de Rothschild International Funds Ltd, Bermuda (0.5%)
Total share capital USD 2,000
- Orox Asset Management SA, Geneva, owned by:
Banque Privée Edmond de Rothschild SA, Geneva(40%),
Total share capital CHF 2,000,000
Due from or to holdings consolidated using the equity method:
Due from customers
Adjustments accounts
Other assets
-­‐
1
723
451
-
86
Total assets
723
538
Due to banks
-
-
4'635
11'677
Other amounts due to customers
Other liabilities
Total liabilities
389
297
5'024
11'981
34,4
(58,1)
The other equity stakes are evaluated at their acquisition price less any write-offs to allow for long-term capital losses. Other capital losses are shown in the
balance sheet as “Valuation adjustments and provisions” and in the relevant item of the profit and loss account.
RAPPORT ANNUEL 2013 |
67
Acquisition value
at 1 January 2013
8
Accumulated
depreciation
at 1 January 2013
Group value
at 1 January 2013
55'049
Schedule of non-current assets (in thousands of CHF)
Holdings consolidated using the equity method
55'049
-
Other holdings
46'962
(450)
46'512
Non-consolidated holdings
102'011
(450)
101'561
Bank premises
236'473
(52'733)
183'740
Other buildings
13'200
(4'343)
8'857
Other fixed assets
324'242
(260'210)
64'032
Total fixed assets
573'915
(317'286)
256'629
Goodwill
74'980
(73'702)
1'278
Other intangible assets
87'163
(87'163)
-
162'143
(160'865)
1'278
Intangible assets
2013
2012
(in CHF ‘000)
(in CHF ‘000)
Fire insurance value of bank premises
Fire insurance value of other buildings
187'550
13'631
197205
13'410
Fire insurance value of other fixed assets
125'843
123'132
-
-
Commitments: future leasing instalments under operating leases
Fixed assets
Goodwill
Increases and decreases in the value of holdings consolidated
using the equity method are shown under “Investments” and
“Divestitures” respectively.
If the cost of an acquisition exceeds the net value of its assets as
Investments in new fixed assets which are to be used for more than
one financial year and exceed the balance-sheet reporting
threshold are stated at their purchase value. Investments in existing
fixed assets are reported as assets if their market or usage value
increases for an extended period or if their useful life increases
significantly.
company’s first-time full consolidation or consolidation at equity are
assessed according to the Group principles, the difference is considered
goodwill and stated in the balance sheet. The differences arising from a
amortised in the profit and loss account over a five-year period.
Other intangible assets
Other intangible assets when acquired are reported in the balance sheet
Fixed assets are reported in subsequent years at their purchase value
less accumulated depreciation. They are written down according to a
predetermined schedule throughout their useful life, and the correctness
of their value is reviewed each year. If this assessment reveals a
change in an asset’s projected useful life or a decrease in its actual
worth, the residual book value is either amortised as per the new
schedule or written down accordingly at the end of the reporting
period. Planned and additional unplanned write-downs are stated as
expenses under “Depreciation of fixed assets” in the profit and loss
account. If the reason for a write-down ceases to exist, the relevant
asset is re-evaluated.
Land and buildings are amortised on a straight-line basis over their
useful life, set at 66 years.
Other fixed assets comprising furniture, equipment and fixtures
(including renovations) are amortised on a straight-line basis over a
useful life, set at two to five years depending on their nature.
Profits on sales of fixed assets are included in “Extraordinary income”
and losses in “Extraordinary expenses”.
68 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
if it is believed that they will provide the Group with financial benefits over
a number of years. Other intangible assets created by the Group itself do
not appear at their fair value; following their valuation, they are reported in
the balance sheet at their purchase price and amortised in the profit and
loss account at their residual value over a five-year useful life. The
currency of the residual value is reviewed each year. If this review reveals
a change in the duration of their useful life or a decrease in their actual
worth, the Group amortises the residual book value in accordance with
the new useful life or by means of an unplanned write-down.
Forex adjustments
Redesignations
Investments
and newly consolidated
assets
Divestitures
and assets
no longer consolidated
Depreciation
including changes in
scope of consolidation
Group value at
31 December 2013
(66)
-
1'315
(12'845)
-
125
-
7'361
-
-
43'453
53'998
59
-
8'676
(12'845)
-
97'451
387
-
-
(16'618)
(4'251)
163'258
-
-
-
-
(266)
8'591
546
-
28'962
(2'194)
(30'511)
60'835
933
-
28'962
(18'812)
(35'028)
232'684
-
-
11'463
-
(3'469)
9'272
-
-
-
-
-
-
-
-
11'463
-
(3'469)
9'272
RAPPORT ANNUEL 2013 |
69
9
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
139'048
142'383
(2,3)
8
7
14,3
31'070
26'682
16,4
170'126
169'072
0,6
Other assets
Positive replacement value of derivative instruments
Set-off account
Other
Total
2013
2012
Book value
of assets
Actual
encumbrance
Book value
of assets
Actual
encumbrance
20'103
-
29'447
-
10 Assets pledged or assigned to cover own liabilities
and assets subject to reservation of ownership (in thousands of CHF)
Securities pledged to a Stock Exchange to cover settlements
Other
2'000
-
-
-
Assets pledged or assigned to cover own liabilities
22'103
-
29'447
-
Total encumbrances covering own liabilities
22'103
-
29'447
-
2013
2012
Claims arising from cash pledged as collateral under securities borrowing and reverse repo agreements
7'271'939
5'269'205
Securities received as collateral under securities lending agreements and securities received under borrowing
or reverse repo agreements which the Bank has been authorised without restriction to sell or pledge subsequently
7'524'538
5'334'138
-
-
Securities lending and repurchase agreements
of which: - those of the above securities which were sold or pledged
The fees earned or paid as a result of securities lending are reported as per the duration of the loan and appear respectively as interest income or interest
charges. Repos and reverse repos are used to finance and refinance the purchase of special kinds of equities. They are stated as loans secured by financial
instruments or as deposits secured by shares from the Bank’s treasury stock. They are stated as advances secured by securities or as deposits for which
the Bank has pledged securities. The interest income arising from reverse repos and the interest charges arising from repos are reported as per the duration
of the relevant transactions.
11 Disclosure of commitments to own pension plans
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
50'128
46'303
8,3
Commitments to own pension plans (joint and employer foundations alike) are stated under “Other amounts due to customers”.
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
136'557
141'230
(3,3)
99
90
10,0
12 Other liabilities
Negative replacement value of derivative instruments
Set-off account
Other
Total
63'718
93'916
(32,2)
200'374
235'236
(25,5)
For 2013 the “Other” line mainly includes the profit generated by the creation of the joint venture described on p. 52 in the “Consolidation principles” section.
70 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Situation at
end 2012
Uses
Changes in
and
scope of
releases as consolidation
designated
Recoveries,
New
interests at
provisions
risk and
charged to
forex profit and loss
differences
account
Releases Situation at
reported in end 2013
profit and
loss account
13 Valuation adjustments and provisions
Reserves for general banking (in thousands of CHF)
Provisions for taxes and deferred taxes
35'201
-
-
124
1'101
(9'546)
26'880
17'105
(1'076)
513
99
613
(4'405)
12'849
- other provisions
30'913
(1'616)
1'100
301
48'551
(3'514)
75'735
Subtotal
48'018
(2'692)
1'613
400
49'164
(7'919)
88'584
Total valuation adjustments and provisions
83'219
(2'692)
1'613
524
50'265
(17'465)
115'464
Less valuation adjustments deducted directly from assets:
13'604
9'346
13'604
9'346
69'615
106'118
Valuation adjustments and provisions for default
and other risks:
- valuation adjustments and provisions for default risks
(credit and country risks)
Of which:- customers
Total valuation adjustments and provisions
as per balance sheet
Reserves for general banking risks
287'423
(381)
2'061
2
5'167
(32'120)
262'152
Reflecting the Group’s cautious stance, valuation adjustments and pro- visions
are allocated on an individual basis to all discernible risks of loss. Valuation
adjustments and provisions that become economically unnecessary during the
course of a financial year are released and reported under the relevant heading
in the profit and loss account. Individual valuation adjustments are deducted
from the relevant balance sheet items. Deferred taxes mainly relate to
temporary changes in reserves for general banking risks. They are calculated
based on the average tax rate foreseen at the time the balance sheet is drawn
up.
Reserves for general banking risks form part of consolidated shareholders’
equity. The portion accruing to the Group minority shareholders is deducted
from these reserves.
Litigation
The Group is involved in a number of judicial proceedings in relation to its
normal business. The general business environment entails certain legal risks
whose impact on our financial situation and profitability is difficult to gauge at
the current stages of these proceedings. In line with our policy, the Group
creates provisions for pending or contingent procedures when senior
management believes that these could give rise to a loss or a financial liability,
or when the dispute is likely to be settled in the form of a transaction and the
amount of the obligation or loss can be reasonably estimated. For certain
procedures, however, the Group is not able to reasonably estimate the size of
the loss, for example because of the complexity of the proceedings, the fact
that they are only at a preliminary stage, the uncertainty they entail or for other
objective reasons. The foregoing valuation adjustments moreover include the
instalment provided for under the tax agreement between Switzerland and the
UK and provisions relating to the Bank’s participation in the tax settlement
programme of the US Department of Justice, in line with the recommendations
of the Swiss Financial Market Supervisory Authority (FINMA).
RAPPORT ANNUEL 2013 |
71
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
200,000 fully paid registered shares with a par value of CHF 100.–
20'000
20'000
-
50,000 fully paid bearer shares with a par value of CHF 500.–
25'000
25'000
-
45'000
45'000
-
41'139
44'687
14 Share capital
Total
Due to and from qualifying shareholders:
Due from customers
224
165
Other assets
41'363
44'852
Total claims
11'596
9'867
Other amounts due to customers
Other liabilities
15 Retained earnings and other reserves
Retained earnings
Passive difference from consolidation and equity consolidation
Accrued currency translation differences
Total
16 Minority interests in shareholders’ equity
Retained earnings
Passive difference from consolidation and equity consolidation
Total
72 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
(7,8)
6
316
11’602
10'183
14
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
966'671
962'295
0,5
6'793
7'224
(6,0)
(84'043)
(89'299)
(5,9)
889'421
880'220
1,0
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
44'122
43'302
1,9
(10'549)
(10'908)
(3,3)
33'573
32'394
3,6
2013
2012
(in CHF ‘000)
(in CHF ‘000)
Share capital
45'000
45'000
Additional paid-in capital
92'096
93'644
912'614
862'048
17 Statement of changes in shareholders’ equity
Share capital at beginning of year
Retained earnings at beginning of year (including minority interests’ share in shareholders’ equity)
of which: -currency translation differences
Reserves for general banking risks
Group net income
Treasury stock
Total shareholders’ equity at beginning of the reporting period
Capital increase/decrease
(100'207)
(99'607)
287'423
311'734
66'351
125'064
(66'045)
(56'016)
1'337'439
1'381'474
-
-
Allocations to/releases from reserves for general banking risks
(25'271)
(24'311)
Dividend
(56'250)
(78'750)
Other allocations to/releases from retained earnings
(5'337)
4'852
Net income
75'423
66'351
(16'805)
(28'199)
14'617
18'170
Profit or loss on sales of treasury stock
(641)
(1'548)
Currency translation differences
5'615
(600)
1'328'790
1'337'439
45'000
45'000
Treasury stock buybacks (at purchase price)
Sales of treasury stock (at purchase price)
Total shareholders’ equity at end of the reporting period
of which: - share capital
- additional paid-in capital
- retained earnings (including minority interests’ share in shareholders’ equity)
of which: - currency translation differences
- reserves for general banking risks
- Group net income
of which: - minority interests’ share in net income
Treasury stock
91'455
92'096
922'994
912'614
(94'592)
(100'207)
262'152
287'423
75'423
66'351
11'899
6'945
(68'234)
(66'045)
The minority shareholders are considered as providers of funds to the Group. As a consequence, their interest is treated as Group equity. Similarly, net
income attribuable to minority interests is included in consolidated net income.
2013
2012
(number
of shares)
(number
of shares)
Treasury stock included in securities and precious metals trading portfolio
- number of own shares at 1 January 2013
140
113
- number of shares purchased during the reporting year
195
387
(186)
(360)
149
140
Own shares deducted from shareholders’ equity:
- number of shares sold during the reporting year
- number of own shares at 31 December 2013
Treasury stock reported as financial investments
- number of own shares at 1 January 2013
- number of shares purchased during the reporting year
- number of shares sold during the reporting year
- number of own shares at 31 December 2013
2'696
2'221
650
875
(541)
(400)
2'805
2'696
RAPPORT ANNUEL 2013 |
73
On
demand
Callable
Within In 3 to 12
In 12
3 months
months months to
5 years
After 5
years
Total
3'397'760
18 Maturity profile of current assets, financial investments and
borrowed funds (in thousands of CHF)
Current assets
Cash and other liquid assets
Claims arising from money market paper
Due from banks
Due from customers
Mortgage loans
Securities and precious metals held for trading purposes
Financial investments
3'397'760
-
-
-
-
-
-
461
154'320
3'682
-
-
158'463
443'221
-
9'416'658
45'971
-
-
9'905'850
7'052
717'551
345'061
526'002
51'602
42'059
1'689'327
-
371
1'454
19'200
23'611
-
44'636
19'778
-
-
-
-
-
19'778
476'532
-
18'304
36'282
223'702
-
754'820
Total 2013
4'344'343
718'383 9'935'797
631'137
298'915
42'059
15'970'634
Total 2012
5'159'420
705'407 7'897'386
530'854
208'871
75'780
14'577'718
Borrowed funds
Liabilities arising from money market paper
Due to banks
Due to customers on savings or deposit accounts
512
3'095
-
-
-
-
3'607
310'403
-
5'822
-
587
-
316'812
-
6'905
-
-
-
-
6'905
Other amounts due to customers
14'048'116
708
199'221
163'952
12'838
-
14'424'835
Total 2013
14'359'031
10'708
205'043
163'952
13'425
-­‐
14'752'159
Total 2012
12'888'199
9'845
289'927
172'689
14'322
-­‐
13'374'982
74 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
19 Due from and to affiliated companies
Due from banks
124'682
7'882
Adjustment accounts
3'576
1'767
Other assets
2'460
7'352
130'718
17'001
Total claims
Due to banks
Other amounts due to customers
Adjustment accounts
Other liabilities
Total commitments
1'471
3'441
17'962
15'885
411
927
1'526
3'726
21'370
23'979
668,9
(10,9)
Affiliated companies include the majority holdings of Edmond de Rothschild Holding SA, which are not part of the Banque Privée Edmond de Rothschild
Group.
All transactions with affiliated parties are carried out on the usual terms, both at the Bank in Switzerland and at our foreign subsidiaries.
2013
2012
Loans
Number of
members
Loans
Number of
members
43’134
4
51’285
7
20 Loans granted to the governing bodies of the Bank
Guarantee commitments on behalf of the governing bodies of the Bank
Loans granted to the governing bodies (in thousands of CHF)
- to members of boards of directors
- to members of the executive committee
40
2
2'092
6
43'174
6
53'377
13
Commitments
Number of
members
Commitments
Number of
members
- members of boards of directors
451
7
581
7
- members of the executive committee
128
5
823
9
54
6
37
5
633
18
1'441
21
Total
Guarantee commitments on behalf of the following persons
(in thousands of CHF)
- internal auditors
Total
RAPPORT ANNUEL 2013 |
75
2013
21
2012
Swiss
Foreign
Total
Swiss
Foreign
Total
2'908'469
489'291
3'397'760
2'720'931
996'055
3'716'986
228
158'235
158'463
255'805
3'738
259'543
Due from banks
814'417
9'091'433
9'905'850
583'286
7'210'843
7'794'129
Due from customers
211'495
1'477'832
1'689'327
144'158
1'495'518
1'639'676
38'136
6'500
44'636
16'880
6'500
23'380
3'019
16'759
19'778
31
18'185
18'216
546'859
207'961
754'820
948'486
177'302
1'125'788
Breakdown of Swiss and foreign assets and
liabilities (in thousands of CHF)
Assets
Cash and other liquid assets
Claims arising from money market paper
Mortgage loans
Securities and precious metals held for trading
purposes
Financial investments
Non-consolidated holdings
Fixed assets
Intangible assets
Accrued income and prepaid expenses
Other assets
Total assets
67'691
29'760
97'451
74'259
27'302
101'561
179'137
53'547
232'684
185'970
70'659
256'629
9'272
-
9'272
1'278
-
1'278
13'497
93'334
106'831
21'567
71'244
92'811
104'155
65'971
170'126
97'823
71'249
169'072
4'896'375
11'690'623
16'586'998
5'050'474
10'148'595
15'199'069
3'607
-
3'607
965
-
965
17'200
299'612
316'812
10'800
295'774
306'574
6'255
650
6'905
6'450
637
7'087
Liabilities
Liabilities arising from money market paper
Due to banks
Customer savings and deposit accounts
Other amounts due to customers
1'765'227
12'659'608
14'424'835
1'553'908
11'506'448
13'060'356
Accrued expenses and deferred income
76'664
122'893
199'557
74'324
107'473
181'797
Other liabilities
56'682
143'692
200'374
64'256
170'980
235'236
Valuation adjustments and provisions
80'024
26'094
106'118
44'129
25'486
69'615
Reserves for general banking risks
208'037
54'115
262'152
232'865
54'558
287'423
Share capital
45'000
-
45'000
45'000
-
45'000
Additional paid-in capital and other reserves
90'524
931
91'455
91'165
931
92'096
Retained earnings
652'293
237'128
889'421
668'644
211'576
880'220
Treasury stock
(68'234)
-
(68'234)
(66'045)
-
(66'045)
-
33'573
33'573
-
32'394
32'394
(5'393)
80'816
75'423
(16'945)
83'296
66'351
2'927'886
13'659'112
16'586'998
2'709'516
12'489'553
15'199'069
Minority interests’ share in shareholders’ equity
Consolidated net income
Total liabilities
The breakdown of Swiss and foreign origin is based on the location of the registered office of the debtor, creditor or the body issuing the shares or debt
instruments. In the case of mortgage-backed securities and property, the place of the security interest applies.
76 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
2013
2012
Value
% share
Value
% share
22 Breakdown of consolidated assets by country/country group
(in thousands of CHF)
Assets
Switzerland
4'896'375
29,5
5'050'474
33,2
11'075'086
66,9
9'554'396
62,8
North America
178'271
1,1
134'895
0,9
South America
57'658
0,3
69'005
0,5
Europe excluding Switzerland
Asia / Pacific
54'447
0,3
55'569
0,4
Caribbean
222'829
1,3
273'591
1,8
Africa Middle East
102'332
0,6
61'139
0,4
16'586'998
100,0
15'199'069
100,0
Total assets
RAPPORT ANNUEL 2013 |
77
CHF
USD
EURO
Other
Total
2'905'545
343
485'522
6'350
3'397'760
-
54'067
102'100
2'296
158'463
8'631
4'466'332
4'792'495
638'392
9'905'850
214'927
255'900
1'034'759
183'741
1'689'327
44'636
-
-
-
44'636
220
8'264
7'193
4'101
19'778
276'524
7'275
27'586
443'435
754'820
23 Breakdown of consolidated assets and liabilities by currency
(in thousands of CHF)
Assets
Cash and other liquid assets
Claims arising from money market paper
Due from banks
Due from customers
Mortgage loans
Securities and precious metals held for trading purposes
Financial investments
Non-consolidated holdings
Fixed assets
Intangible assets
Accrued income and prepaid expenses
Other assets
Total positions reported as assets
81'931
193
15'087
240
97'451
185'510
59
42'790
4'325
232'684
9'272
-
-
-
9'272
14'651
8'444
81'766
1'970
106'831
39'081
44'779
79'853
6'413
170'126
3'780'928
4'845'656
6'669'151
1'291'263
16'586'998
Delivery claims arising from spot, forward and options transactions
2'291'631
7'908'863
8'796'230
3'063'714
22'060'438
Total assets 2013
6'072'559
12'754'519
15'465'381
4'354'977
38'647'436
Total assets 2012
5’749’321
11’580’819
13’569’627
4’811’629
35’711’396
Liabilities arising from money market paper
3'607
-
-
-
3'607
Due to banks
9'464
155'747
112'218
39'383
316'812
Customer savings and deposit accounts
6'905
-
-
-
6'905
1'657'485
4'909'140
6'441'511
1'416'699
14'424'835
Accrued expenses and deferred income
83'674
1'961
98'399
15'523
199'557
Other liabilities
49'904
4'382
120'088
26'000
200'374
Valuation adjustments and provisions
91'763
267
14'088
-
106'118
208'037
-
54'115
-
262'152
45'000
-
-
-
45'000
Liabilities
Other amounts due to customers
Reserves for general banking risks
Share capital
Additional paid-in capital and other reserves
90'524
-
931
-
91'455
Retained earnings
687'322
177
164'407
37'515
889'421
Treasury stock
(68'234)
-
-
-
(68'234)
-
(267)
25'551
8'289
33'573
Minority interests’ share in shareholders’ equity
Consolidated net income
(14'077)
1'493
89'926
(1'919)
75'423
Total positions reported as liabilities in reporting year
2'851'374
5'072'900
7'121'234
1'541'490
16'586'998
Delivery commitments arising from spot, forward and options transactions
3'223'623
7'722'804
8'297'907
2'816'104
22'060'438
Total liabilities 2013
6'143'231
12'795'704
15'419'141
4'357'594
38'647'436
Net position per currency
Total liabilities 2012
78 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
(2’438)
(41'185)
46'240
(2'617)
-
5’798’694
11’564’556
13’536’161
4’811’985
35’711’396
24
Contingent liabilities
Irrevocable guarantees in the form of avals, sureties and guarantees (including guarantee
commitments under irrevocable letters of credit), advance payment guarantees and
endorsement obligations from rediscounting
Performance bonds, bid bonds, letters of indemnity and other service guarantees (including
service guarantees in the form of irrevocable letters of credit)
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
121'845
225'039
(45,9)
71'950
73'356
(1,9)
193'795
298'395
(35,1)
For guarantee commitments made on behalf of the Bank’s governing bodies, see Note 20. These commitments are reported in “Off-balance sheet
transactions” at their face value.
25 Guarantee commitments for third parties
Surety bonds
Guarantees
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
4'010
4'121
(2,7)
189'785
294'274
(35,5)
193'795
298'395
(35,1)
RAPPORT ANNUEL 2013 |
79
Trading instruments
Positive
replacement
values
Negative
replacement
values
Hedging instruments
Underlying
values
Positive
replacement
values
Negative
replacement
values
Underlying
values
26 Open interest in derivative instruments
(in thousands of CHF)
Interest rate products
Forward contracts including FRAs
-
-
-
-
-
-
Swaps
-
284
7'000
-
-
-
Futures
-
-
-
-
-
-
OTC options
-
-
-
-
-
-
Traded options
-
-
-
-
-
-
121'093
69'315
14'350'473
-
-
-
15'235
64'360
7'587'001
-
-
-
-
-
-
-
-
-
752
752
105'554
99
8
17'802
-
-
-
-
-
-
477
446
24'673
-
-
-
-
-
-
-
-
-
1'392
1'392
44'859
-
-
-
-
-
-
-
-
-
Traded options
-
-
-
-
-
-
Total before impact of netting agreements
-
-
-
-
-
-
Options (OTC)
-
-
-
-
-
-
Options (négociables)
-
-
-
-
-
-
2013
138'949
136'549
22'119'560
99
8
17'802
2012
142'293
141'223
19'947'107
90
7
50'346
Forward contracts
Combined interest and currency swaps
Futures
OTC options
Traded options
Equity index products
Futures
OTC options
Traded options
Other
Forward contracts
OTC options
Total before impact of netting agreements
Positive replacement values (accumulated)
Negative replacement values (accumulated)
2013
139'048
136'557
2012
142'383
141'230
Total after impact of netting agreements
The derivative instruments used by the Group include exchange-traded futures, OTC forwards, exchange-traded options, OTC options and swaps.
Derivative instruments are traded by the Group on behalf of clients and on a proprietary basis. Transactions involving options, futures and swaps for our own
account are used to hedge financial investments and to control interest rate and currency risks.
Derivative instruments are reported at their fair value. The positive and negative replacement values represent the Bank’s claims and obligations respectively,
should the Bank enter into contracts identical to the initial ones with other counterparties. The positive and negative replacement values are shown in the
balance sheet under “Other assets” and “Other liabilities” respectively, and in the profit and loss account under “Results of trading operations”. The fair value
is either the market price (if the instrument is traded on an efficient, liquid market), the price quoted by market makers or the price determined using valuation
models. The underlying value represents the net claim arising from trading in derivative instruments for own account or on behalf of customers (contract
value).
(Note 26 cont’d next page)
80 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
(note 26 cont’d)
2013
26
2012
Positive
replacement
values
Negative
replacement
values
Underlying
values
Positive
replacement
values
Negative
replacement
values
Underlying
values
98'902
42'737
11'934'709
103'800
44'788
10'846'866
87
284
7'500
29
385
2'367
40'059
93'535
10'195'153
38'554
96'057
9'148'220
139'048
136'557
22'137'362
142'383
141'230
19'997'453
Open interest in derivative
instruments (in thousands of CHF)
Banks and derivative exchanges
- expiring in less than 1 year
- expiring in more than 1 year
Secured customers
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
3'101'218
3'357'571
(7,6)
27 Fiduciary transactions
Fiduciary deposits with other banks
Fiduciary loans
Total
89'056
77'939
14,3
3'190'274
3'435'510
(7,1)
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
Assets invested in funds managed by the Bank
16'029'135
15'605'509
2,7
Assets under discretionary management
19'834'184
20'950'528
(5,3)
Other assets
72'748'179
66'140'470
10,0
108'611'498 102'696'507
5,8
28 Assets under management *
Total assets under management (incl. double reporting)
of which: - double reporting
- net deposits/withdrawals of fresh money
10'213'007
9'952'761
2,6
1'585'013
1'904'035
(16,8)
Assets under management include investments in funds managed by the Bank, assets held under discretionary management mandates (including under
custody with depositaries) and other assets held for investment purposes (“Other assets”).
Assets under custody are owned by institutional clients whose only objective is to hold deposits.
“Net deposits/withdrawals of fresh money” includes account openings and closures as well as deposits and withdrawals by existing clients. Changes in
assets due to performance (e.g. price variations, interest and dividend payments and bank charges) are not considered to be deposits/withdrawals.
* For 2013 assets under management are presented on the basis of a new, single definition of this item adopted by the Edmond de Rothschild Group. 2012
figures have been restated to provide a valid comparison
29 Interest and discount income
Due from banks
of which: - reverse repo interest
Claims arising from money market paper
Advances to customers
Total
Interest and dividend income on trading portfolios
Interest and dividend income on financial investments
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
18'078
23'655
(23,6)
10'645
11'001
(3,2)
583
574
1,6
18'672
20'146
(7,3)
37'333
44'375
(15,9)
95
75
26,7
5'003
4'526
10,5
RAPPORT ANNUEL 2013 |
81
30
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
To banks
1'283
1'686
(23,9)
On customer deposits
4'108
5'225
(21,4)
5'391
6'911
(22,0)
Interest payable
Total
31 Commission income on securities and investment transactions
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
537'357
519'018
3,5
This heading covers brokerage fees, custody fees, management fees, advisory fees and commissions on investment activities (fiduciary loans and deposits,
gold, currency options, futures, investment trusts, securities transfers and new issues).
2012 contains a reclassification of CHF 4.1 millions that decreases commission income on securities and investment transactions while increasing
commission income on other service transactions
32 Commission income on other service operations
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
75'243
55'496
35,6
Commissions on other services consist of administration fees charged to customers and commissions for safe rentals, money transfers, cheques and other
services.
2012 contains a reclassification of CHF 4.1 millions that decreases commission income on other service transactions while increasing commission income
on securities and investment transactions.
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
Securities trading (including equity product and index derivatives)
22'933
26'567
(13,7)
Forex trading (including forex derivatives)
59'664
64'103
(6,9)
951
765
24,3
83'548
91'435
(8,6)
33 Results of trading operations
Precious metals (including precious metals derivatives)
Total
Income and expenses arising from trading portfolios – profits and losses on trades, along with interest and dividends – are included in “Results of trading
operations”. The Group does not debit portfolio refinancing costs to these results. Results of securities lending and borrowing appear in
“Interest
income, net”.
34 Other ordinary income
This heading mainly covers fees received, coupon collection income and VAT refunds.
82 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
20'922
14'379
45,5
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
321'047
315'023
1,9
- statutory social security
25'734
26'647
(3,4)
- contributions to pension funds
31'010
29'427
5,4
15'339
14'953
2,6
393'130
386'050
1,8
35 Personnel expenses
Salaries
Employee benefits:
Other personnel expenses
Total
“Salaries” covers the payroll of permanent and temporary staff, plus bonuses, fees paid to directors and supplementary allowances.
Personnel welfare plans
The staff of the parent company and some of its subsidiaries is insured
Thanks to last year’s positive return on the Foundation’s assets, we can
by the Edmond de Rothschild Personnel Welfare Foundation. Its purpose
estimate a funding ratio above 105% at end-2013. The Foundation
is to protect the staff of its member companies from the economic
Council decided to pay 3% interest on active members’ vested assets for
consequences of old age, disability and death. The Foundation is semi-
2013 and also decided not to index existing pensions.
autonomous
and
operates
as
a
defined-contributions
scheme.
Contribution rates increase with age. Employers pay in two-thirds of
contributions and employees one-third.
In order to strengthen the constituent entities’ sense of belonging to the
Edmond de Rothschild Group and to benefit from the synergies in
occupational pensions that a “Group” approach can generate, the boards
The Board of Directors believes that any funding ratio surplus as defined
in RPC 16 of the Swiss GAAP will be used for the benefit of employees
and that, as a consequence, no profit will arise for the member
companies.
of the Group’s three affiliated personnel welfare foundations—the
The employees of other Group entities belong to personnel welfare funds
Personnel Welfare Foundation for the Staff of Banque Privée Edmond de
that also operate on the defined-contributions principle.
Rothschild SA, (the “Joint Foundation”), the Employer’s Foundation in
favour of the staff of Banque Privée Edmond de Rothschild SA and Allied
At 31 Dec. 2013 there was no employer contributions reserve.
Companies (the “Employer’s Foundation”) and the Edmond de Rothschild
Personnel Welfare Foundation—decided to amalgamate as one from
(Note 35 cont’d next page)
January 2013. The audited funding ratio of the new Foundation at 1
January 2013 was 101.66%.
RAPPORT ANNUEL 2013 |
83
(Note 35 cont’d)
2012
2012
Funding
surplus /
deficit
2011
2013
Entity’s share
Change
v.previous year
Period
adjusted
contributions
2012
Personnel welfare costs
included in personnel expenses
Economic benefits / commitments and personnel welfare expenses
(in thousands of CHF)
Employer’s funds / Employer’s
personnel welfare institutions
Personnel welfare institutions
with a surplus funding ratio
Personnel welfare institutions
with no proprietary assets
-
-
-
-
6’421
6’421
5'579
6'430
-
-
-
24'589
24'589
23'848
-
-
-
-
-
-
-
31’010
31’010
29'427
Total
2013
2012
CH
EU
Other
countries
Total
CH
EU
Other
countries
Total
Average number of employees
730
1'005
70
1'805
708
1'006
71
1'785
Total number of employees
at year-end
726
982
69
1'777
718
1'019
74
1'811
Number of employees at yearend, converted into full-time jobs
698
949
69
1'716
691
990
74
1'755
Group personnel
(number of employees)
36 Other operating expenses
Cost of premises
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
27'692
23'066
20,1
10,9
Equipment costs:
- IT systems
33'643
30'344
- machines
749
734
2,0
- furniture
916
1'024
(10,5)
- vehicles
541
467
15,8
Other operating expenses:
- office supplies
9'033
8'816
2,5
- communication costs
24'433
21'970
11,2
- professional fees and other expenses
55'819
48'843
14,3
705
551
27,9
153'531
135'815
13,0
- VAT
Total
84 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
-­‐
-­‐
(8,2)
37 Depreciation of non-current assets
Consolidated holdings
Fixed assets:
- land ans buildings
- office furniture, machines and equipment
Intangible assets
Total
4'517
4'921
30'511
33'309
(8,4)
3'469
2'039
70,1
38'497
40'269
(4,4)
In the case of non-consolidated holdings shown at cost, only provisions for permanent capital depreciation are shown under this heading; see Note 7.
Depreciation of fixed assets is set out in Note 8.
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
46'175
10'287
348,9
7'076
5'721
23,7
53'251
16'008
232,7
38 Valuation adjustments, provisions and losses
Valuation adjustments and provisions
Losses
Total
The breakdown of funds allocated to valuation adjustments and provisions is shown in Note 13.
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
59'562
38'943
52,9
6'597
8'804
(25,1)
39 Extraordinary income and expenses
Extraordinary income
Extraordinary expenses
“Extraordinary income” mainly derives from the release of other provisions that are no longer required for operating purposes and a release from the general
reserve for banking risks.
“Extraordinary expenses” mainly includes allocations in 2013 and 2012 of CHF 7.9 million and CHF 22.7 million respectively to the reserve for general
banking risks.
40 Taxes
Current taxes
Deferred taxes
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
20'519
20'715
(0,9)
(8'445)
(3'874)
118,0
12'074
16'841
(28,3)
Corporate taxes are calculated on the basis of the financial statements of each individual Group company and charged to the accounting period in which
they were incurred. Tax provisions are set out in Note 13.
41 Consolidated net income
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
75'423
66'351
13,7
The share of minority interests in net income is incorporated in consolidated net income based on the Group unity principle explained in Note 17.
RAPPORT ANNUEL 2013 |
85
2013
2012
63'524
59'406
42 Earnings per share
Group earnings after deduction of portion due to minority interests (in thousands of CHF)
Weighted average of number of shares outstanding
Bearer shares (par value CHF 500.–)
50'000
50'000
200'000
200'000
Weighted average of number of shares used to calculate earnings per share (with a par value of CHF 500.–) after deducting
own shares held by the Bank (Treasury stock)
87'046
87'164
Earnings per bearer share (in CHF)
729,78
681,54
Earnings per registered share (in CHF)
145,96
136,31
Registered shares (par value CHF 100.–)
2013
2012
Swiss
Foreign
Total
Swiss
Foreign
Total
18'271
19'062
37'333
21'107
23'268
44'375
92
3
95
57
18
75
4'387
616
5'003
4'346
180
4'526
962
4'429
5'391
839
6'072
6'911
21'788
15'252
37'040
24'671
17'394
42'065
815
629
1'444
756
614
1'370
243'849
293'508
537'357
229'710
289'308
519'018
Commission income on other services
23'812
51'431
75'243
23'252
32'244
55'496
Commissions payable
43'473
63'293
106'766
47'481
63'031
110'512
225'003
282'275
507'278
206'237
259'135
465'372
37'842
45'706
83'548
39'910
51'525
91'435
925
1'418
2'343
784
600
1'384
17'945
4'717
22'662
16'050
2'012
18'062
43 Breakdown of Group results by Swiss and foreign
origin (in thousands of CHF)
Interest and discount income
Interest and dividend income on trading portfolios
Interest and dividend income on financial investments
Interest payable
Interest income, net
Commission income on lending activities
Commission income on trading operations and investments
Fee and commission income, net
Results of trading operations
Proceeds from the sale of financial investments
Total income from holdings
Real estate income
963
329
1'292
1'371
518
1'889
Other ordinary income
6'868
14'054
20'922
8'290
6'089
14'379
Other ordinary expenses
1'612
532
2'144
980
2'411
3'391
25'089
19'986
45'075
25'515
6'808
32'323
201'800
191'330
393'130
209'755
176'295
386'050
67'695
85'836
153'531
66'849
68'966
135'815
269'495
277'166
546'661
276'604
245'261
521'865
Gross profit
40'227
86'053
126'280
19'729
89'601
109'330
Depreciation of fixed assets
28'516
9'981
38'497
29'260
11'009
40'269
Valuation adjustments, provisions and losses
45'613
7'638
53'251
12'454
3'554
16'008
Result before extraordinary items and taxes
(33'902)
68'434
34'532
(21'985)
75'038
53'053
30'201
29'361
59'562
23'393
15'550
38'943
Other ordinary results
Personnel expenses
Other operating expenses
Operating expenses
Extraordinary income
Extraordinary expenses
Taxes
Consolidated net income
1'198
5'399
6'597
8'142
662
8'804
494
11'580
12'074
10'211
6'630
16'841
(5'393)
80'816
75'423
(16'945)
83'296
66'351
This breakdown of results by Swiss and foreign origin is based on the location of business operations.
86 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Banque Privée Edmond de Rothschild S.A., Geneva
Financial Report
88
89
94
96
98
99
Key figures
Report of the Directors
Report of the statutory auditor
on the financial statements
Balance sheet
Profit and loss account
Notes to the financial statements
RAPPORT ANNUEL 2013 |
87
Key figures
of Banque Privée Edmond de Rothschild S.A., Geneva
2013
Balance sheet (in thousands of CHF)
Due from banks
2012
Change
(in CHF ‘000)
(in %)
3'704'248
3'224'857
479'391
14,9
737'526
626'232
111'294
17,8
Due to banks
1'172'265
871'905
300'360
34,4
Customer deposits
5'623'180
5'818'279
(195'099)
(3,4)
636'563
664'922
(28'359)
(4,3)
7'895'928
7'783'184
112'744
1,4
(14,7)
Advances to customers
Shareholders’ equity (after appropriation)
Balance sheet total
Profit and loss account (in thousands of CHF)
Interest income, net
17'754
20'808
(3'054)
191'874
177'809
14'065
7,9
34'759
35'710
(951)
(2,7)
262'103
272'021
(9'918)
(3,6)
50'650
30'322
20'328
67,0
648
644
4
0,6
% return on equity (net profit / average shareholders’ equity after profit appropriation)
7,8
4,5
-
-
% return on assets (net profit / average assets)
0,6
0,4
-
-
56'250
56'250
-
-
125
125
-
-
1'172'600
1'500'600
(328'000)
(21,9)
- net income per share (CHF)
563
337
226
67,1
- dividend (CHF)
625
625
-
-
14'300
18'300
(4'000)
(21,9)
4,4
3,4
-
-
Fee and commission income, net
Results of trading operations
Operating expenses (personnel costs and overheads)
Net income
Staff
Number of employees at year-end (converted into full-time jobs)
Profitability
Shares
Dividend (in thousands of CHF)
Dividend (% of share capital)
Stock market capitalisation (in thousands of CHF)
Data per bearer share:
- quoted price at 31.12 (CHF)
- gross yield (%)
The Bank’s registered shares are reported at their 31 Dec. 2013 value less 20%.
88 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Report of the Directors
to the shareholders of Banque Privée Edmond de Rothschild SA
at the ordinary general meeting on 29 April 2014
Balance sheet review
At 31 Dec. 2013 the Bank’s balance sheet total stood at CHF
7.9 billion, marking a rise of CHF 113 million on the yearearlier figure.
At 31 Dec. 2013 client deposits totalled CHF 5.6 billion as
against 5.8 billion a year earlier. They accounted for 71.2% of
the balance sheet total.
On the assets side, cash and claims arising from money
market paper totalled CHF 2.3 billion, down CHF 114 million
compared with the previous year.
Other liabilities came to CHF 121.2 million.
Funds due from banks rose by CHF 479.4 million to CHF
3.7 billion, including CHF 3.4 billion held with correspondents
under reverse repo agreements.
Cash, bank deposits and money market claims together
came to CHF 6 billion. This item accounts for 76.4% of the
balance sheet total.
Loans to clients rose to CHF 737.5 million, marking a 17.8%
increase on the end-2012 level, and represented 9.3% of the
balance sheet total.
Securities and precious metals held for trading purposes
totalled CHF 2.7 million, down sharply (by 28.4%) on the
previous year’s level.
Valuation adjustments, provisions and losses rose by CHF
35.1 million to CHF 209.6 million.
Following appropriation of net income, shareholders’ equity will
amount to CHF 636.6 million, or 8.1% of the balance sheet
total.
On that basis return on equity at end-2013 worked out to
7.8%. Applying the BIS rules under Basel III, required shareholders’ equity totalled CHF 106 million while eligible capital
came to CHF 500 million. The BIS ratio stood at 37.6%.
Roundup of results
Financial investments stood at CHF 614.1 million, down by
CHF 357.4 million on the year-earlier figure. Most of this drop
was attributable to the stock of precious metals used to cover
our clients’ metal accounts.
The Bank’s net profit at 31 Dec. 2013 came to CHF
50.7 million, marking an increase of 67% compared with the
year- earlier figure.
Long-term holdings amounted to CHF 226.4 million, as
against CHF 223.7 million in 2012.
Interest income fell 14.7% compared with the previous year,
totalling CHF 17.8 million.
Fixed assets came to CHF 157.1 million, marking a drop of
CHF 8.3 million.
Income from fees and commissions amounted to CHF
191.9 million, up 7.9% on the 2012 level of CHF 177.8
million.
Other assets amounted to CHF 109.9 million, practically
unchanged compared with CHF 109.3 million the previous
year.
On the liabilities side, funds due to banks rose by CHF
300 million to CHF 1.172 billion, chiefly reflecting cash
management at the Group level.
Revenue
Results of trading operations came to CHF 34.8 million,
compared with CHF 35.7 million the previous year.
Other ordinary results rose 5% to CHF 107.3 million. The
decrease was due, in particular, to the lower dividends
collected on our long-term holdings, sales of financial
investments and the change in value of our treasury stock.
RAPPORT ANNUEL 2013 |
89
Expenses
Operating expenses totalled CHF 262.1 million, down 3.6%
on the 2012 level. Personnel expenses declined by 4.2% and
other operating costs by 2%.
At CHF 92.0 million gross profit was up 42.5% compared with
the year-earlier figure (CHF 64.6 million).
Depreciation of fixed assets totalled CHF 26.6 million, marking
a decrease of CHF 2.5 million on the previous year.
Valuation adjustments, provisions and losses increased by
CHF 22.7 million from the end-2012 level to CHF 41.7 million.
Taxes due on our 2013 earnings are estimated at
CHF 5.8 million, down 23.0% on the year-earlier figure.
90 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Approval of the financial statements
We hereby submit the financial statements for fiscal year 2013
for your approval, together with our proposal for the allocation
of available income.
Proposal of the Board of Directors
concerning the appropriation of earnings
Net income for 2013
CHF
Net income brought forward from previous year
CHF
50'650'610
4'536'903
Total
CHF
55'187'513
Allocation to statutory general reserves
CHF
Nil
Release from other reserves
CHF
(5'068'759)
Net income carried forward
CHF
4'006'272
Total
CHF
55'187'513
which we propose to appropriate as follows:
Payment of a 125% ordinary dividend on
200,000 registered shares with a par value of CHF 100
CHF 20,000,000 at 125%
CHF
25'000'000
50,000 bearer shares with a par value of CHF 500
CHF 25,000,000 at 125%
CHF
31'250'000
Total ordinary dividend
CHF
56'250'000
Subject to your acceptance of our proposal, the dividend will
be made payable on Coupon No. 27 from 8 May 2014 at all
the domestic counters of UBS, Credit Suisse, Rothschild
Bank AG and Banque Privée Edmond de Rothschild SA, at
the rate of CHF 125 per registered share with a par value of
CHF 100 and CHF 625 per bearer share with a par value of
CHF 500, less 35% withholding tax.
Following the release of CHF 5,068,759 from other reserves,
shareholders’ equity will amount to CHF 636,563,346.- or
8.1% of the balance sheet total.
RAPPORT ANNUEL 2013 |
91
Elections as per our Articles of Association
In 2013 the terms of Klaus Jenny, E. Trevor Salathé and
Jacques-André Reymond were renewed for a new one-year
period. A new Director, Maurice Monbaron, was also elected.
Under the OEPLC the General Meeting will henceforth elect
members to the Board of Directors individually for one-year
terms, regardless of their age. Each Director’s term will end at
the close of the General Meeting following his or her election.
The list of the members whom the Board of Directors will
propose for election/re-election will be included in the agenda
of the General Meeting to appear in the 1 April 2014 edition of
the FOSC.
Finally, we propose that for 2014 PricewaterhouseCoopers
SA be re-appointed as the Independent Auditors of the Bank
and the Group.
Outlook for 2014
In 2014 Private Banking will continue to chafe under the
increasing burden of regulation and under mounting pressure
on banking secrecy. This will have an impact on our
profitability.
More than ever we will have to stay on the leading edge of our
businesses and beef up our human and technological
resources. The quality of our customer service depends on
this, as does our competitiveness.
In 2014 the continuing implementation of our Strategic Plan
should enable the Edmond de Rothschild Group will improve
sales performance in our two core segments, Private Banking
and Asset Management. It should also enable us to enhance
operating efficiency, thanks to greater pooling at the Group
level.
Our attitude will remain guarded, however, in view of the rapid
changes reshaping the financial industry and persistent
volatility in the markets
92 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
We cannot conclude this report without expressing our
gratitude to you, our shareholders, and to our clients for their
abiding trust.
The Board of Directors
Breakdown of revenues
(% of total)
52.8%
54.2%
31.0%
30.4%
2012
2013
10.6%
6.2%
9.8%
5.0%
Net interest income
Net fee and commission income
Trading income
Other ordinary income
Allocation of profit
(in millions of CHF)
159.3
118.5
108.0
101.6
98.5
81.0
78.8
69.8
56.3
56.3
50.7
47.9
33.9
29.4
28.6
30.3
-5.1
-25.8
2008
2009
2010
2011
2012
2013
Net profit
Dividend
Transfer to reserves
RAPPORT ANNUEL 2013 |
93
Report of the statutory auditor
to the general meeting of Banque Privée Edmond de Rothschild SA, Geneva
Report of the statutory auditor
on the financial statements
As statutory auditor, we have audited the financial statements
of Banque Privée Edmond de Rothschild SA, which comprise
the balance sheet, income statement, statement of cash flows
and notes (pp. 96-110), for the year ended 31 December
2013.
Board of Directors’ Responsibility
The Board of Directors is responsible for the preparation of the
financial statements in accordance with the requirements of
Swiss law and the company’s articles of incorporation. This
responsibility includes designing, implementing and
maintaining an internal control system relevant to the
preparation of financial statements that are free from material
misstatement, whether due to fraud or error. The Board of
Directors is further responsible for selecting and applying
appropriate accounting policies and making accounting
estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with Swiss law and Swiss Auditing Standards.
Those standards require that we plan and perform the audit to
obtain reasonable assurance whether the financial statements
are free from material misstatement.
94 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor
considers the internal control system relevant to the entity’s
preparation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control system. An audit also includes
evaluating the appropriateness of the accounting policies
used and the reasonableness of accounting estimates made,
as well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements for the year ended 31
December 2013 comply with Swiss law and the company’s
articles of incorporation.
Report on other legal requirements
We confirm that we meet the legal requirements on licensing
according to the Auditor Oversight Act (AOA) and
independence (article 728 CO and article 11 AOA) and that
there are no circumstances incompatible with our
independence.
In accordance with article 728a paragraph 1 item 3 CO and
Swiss Auditing Standard 890, we confirm that an internal
control system exists which has been designed for the
preparation of financial statements according to the
instructions of the Board of Directors.
We further confirm that the proposed appropriation of available
earnings (page 91) complies with Swiss law and the
company’s articles of incorporation. We recommend that the
financial statements submitted to you be approved.
PricewaterhouseCoopers SA
Beresford Caloia
Audit Expert
Auditor in charge
Alain Lattafi
Audit Expert
Geneva, 20 March 2014
RAPPORT ANNUEL 2013 |
95
Balance sheet
before profit appropriation at 31 December 2013 (in thousands of CHF)
Notes
2013
2012
Change
(in CHF ‘000)
(in %)
Assets
Cash and other liquid assets
Claims arising from money market paper
Due from banks
1
Due from customers
Mortgage loans
Total advances to customers
2'166'810
2'179'244
(12'434)
(0,6)
157'557
258'690
(101'133)
(39,1)
3'704'248
3'224'857
479'391
14,9
693'261
603'225
90'036
14,9
44'265
23'007
21'258
92,4
737'526
626'232
111'294
17,8
Securities and precious metals held for trading purposes
2
2'733
3'816
(1'083)
(28,4)
Financial investments
3
614'088
971'527
(357'439)
(36,8)
Holdings
4
226'404
223'687
2'717
1,2
Fixed assets
5
157'131
165'429
(8'298)
(5,0)
19'524
20'416
(892)
(4,4)
6
109'907
109'286
621
0,6
7, 14
7'895'928
7'783'184
112'744
1,4
-
-
-
-
4, 11
120'936
115'448
5'488
4,8
Notes
2013
2012
Accrued income and prepaid expenses
Other assets
Total assets
Subordinated amounts receivable
Amounts due from Group companies and qualifying shareholders
Change
(in CHF ‘000)
(in %)
Liabilities
Liabilities arising from money market paper
512
679
(167)
(24,6)
1'172'265
871'905
300'360
34,4
-
-
-
-
5'623'180
5'818'279
(195'099)
(3,4)
5'623'180
5'818'279
(195'099)
(3,4)
76'286
73'894
2'392
3,2
9
121'232
122'713
(1'481)
(1,2)
Valuation adjustments and provisions
10
209'640
174'542
35'098
20,1
Reserves for general banking risks
10
24'172
50'000
(25'828)
(51,7)
Share capital
11
-
Due to banks
Due to customers in the form of savings
Other amounts due to customers
8
Total due to customers
Accrued expenses and deferred income
Other liabilities
45'000
45'000
-
General statutory reserve
119'385
119'385
-
-
Other reserves
449'069
471'822
(22'753)
(4,8)
40'112
49'337
(9'225)
(18,7)
4'537
4'643
(106)
(2,3)
50'650
30'322
20'328
67,0
of which: - treasury stock
Net profit brought forward
Net profit for the year
Total shareholders’ equity before profit appropriation
Total liabilities
11,12,13
692'813
721'172
(28'359)
(3,9)
14
7'895'928
7'783'184
112'744
1,4
-
-
-
-
1'183'919
873'922
309'997
35,5
Subordinated liabilities
Due to Group companies and qualifying shareholders
96 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
4, 11
Balance sheet
at 31 December 2013 (in thousands of CHF)
Notes
2013
2012
Change
(in CHF ‘000)
(in %)
Off-balance sheet transactions
Contingent liabilities
16
130'230
193'599
(63'369)
(32,7)
12'214
26'052
(13'838)
(53,1)
1'958
2'107
(149)
(7,1)
- positive replacement values
107'313
107'555
(242)
(0,2)
- negative replacement values
108'837
107'286
1'551
1,4
16'676'889
15'085'233
1'591'656
10,6
1'904'497
1'493'066
411'431
27,6
Irrevocable liabilities
Liabilities for unpaid share capital and additional capital contributions
Derivative instruments:
- underlying values
Fiduciary transactions
17
RAPPORT ANNUEL 2013 |
97
Profit and loss account
for the year ended 31 December 2013 (in thousands of CHF)
Notes
2013
2012
Change
(in CHF ‘000)
Interest and discount income
Interest and dividend income on trading portfolios
(in %)
16'751
69
19'961
45
(3'210)
24
(16,1)
53,3
Interest and dividend income on financial investments
3'098
2'620
478
18,2
Interest payable
2'164
1'818
346
19,0
17'754
20'808
(3'054)
(14,7)
(3,0)
Interest income, net
Commission income on lending activities
Commission income on securities and investment transactions
Commission income on other services
Commissions payable
Fee and commission income, net
Results of trading operations
18
Proceeds from the sale of financial investments
Income from holdings
Proceeds from real estate
833
859
(26)
214'596
207'082
7'514
3,6
19'413
20'067
(654)
(3,3)
(14,4)
42'968
50'199
(7'231)
191'874
177'809
14'065
7,9
34'759
35'710
(951)
(2,7)
169
162
7
4,3
109'056
110'405
(1'349)
(1,2)
(46,4)
541
1'009
(468)
Other ordinary income
11'417
7'328
4'089
55,8
Other ordinary expenses
11'434
16'637
(5'203)
(31,3)
Other ordinary results
109'749
102'267
7'482
7,3
Personnel expenses
193'782
202'338
(8'556)
(4,2)
(2,0)
Other operating expenses
68'321
69'683
(1'362)
262'103
272'021
(9'918)
(3,6)
Gross profit
92'033
64'573
27'460
42,5
Depreciation of fixed assets
26'656
29'196
(2'540)
(8,7)
Valuation adjustments, provisions and losses
41'742
18'991
22'751
119,8
Operating expenses
Result before extraordinary items and taxes
23'635
16'386
7'249
44,2
Extraordinary income
19
32'786
21'451
11'335
52,8
Extraordinary expenses
19
-
19
(19)
-
5'771
7'496
(1'725)
(23,0)
50'650
30'322
20'328
67,0
Taxes
Net income for the reporting year
98 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Notes to the financial statements
Overview of accounting policies
Accounting and valuation principles
The financial statements of Banque Privée Edmond de
Rothschild SA, Geneva have been prepared in accordance
with the provisions of the Swiss Code of Obligations, the
Federal Law on Banks and Savings Banks and its
implementing ordinance (OB) as revised on 1 February 1995,
and the guidelines issued by FINMA (the Swiss Financial
Market Supervisory Authority). The Bank’s separate financial
statements provide as true a picture as possible of its assets,
financial situation and earnings. Hidden (“latent”) reserves are
included in the profit and loss account under the headings
“Depreciation of fixed assets”, “Valuation adjustments,
provisions and losses” and “Extraordinary expenses”.
Released hidden reserves are included in “Extraordinary
income”.
The financial statements of the parent company have been
drawn up in accordance with the accounting principles of the
Group, with the exception of the following items:
Holdings
This item comprises of interests in associated establishments
of either a long-term or infrastructural nature (regardless of the
percentage stake). These holdings are stated, at most, at their
acquisition value.
Fixed assets
This item includes Bank premises, other buildings, furniture,
machines and equipment, as well as intangible assets. Fixed
assets are evaluated at their acquisition cost, less the relevant
depreciation for each fixed asset category.
Description of the Bank’s operations
and staff size
Banque Privée Edmond de Rothschild SA is a full-service
bank specialising in wealth management for private and
institutional clients. It is a member of the Swiss Exchange and
became an accredited dealer in transferable securities on 3
April 1998.
Risk management
The principles adopted by the Group regarding control of
market, credit, interest rate and country risks also apply to the
parent company.
Converted to full-time jobs, the number of staff employed by
Banque Privée Edmond de Rothschild SA stood at 648 at
end-2013 versus 644 a year earlier.
Through its network of branches and subsidiaries in
Switzerland and abroad, the Bank conducts on its clients’
behalf all the operations customarily provided by private
banking institutions. Fee and commission business for the
account of clients mainly includes portfolio management,
fiduciary deposits and payment transactions, along with
trading in securities, precious metals and derivative
instruments.
The Bank also actively deals in debt instruments, equities,
currencies, precious metals and derivatives on a proprietary
basis, but does not engage in commodity trading.
The Bank does not outsource its services within the meaning
of FINMA circular 2008/7.
ANNUAL REPORT 2013 |
99
1
Due from banks
Due from banks
reverse repos
Total
2
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
324'838
237'051
37,0
3'379'410
2'987'806
13,1
3'704'248
3'224'857
14,9
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
2'131
2'562
(16,8)
2'131
2'562
Securities and precious metals portfolios held for trading purposes
Swiss shares and other securities:
- banks
of which: - treasury stock
- other
Foreign shares and other securities
Total
Treasury stock owned by Banque Privée Edmond de Rothschild SA,
Geneva at 31 December
Total
-
-
-
602
1'254
(52,0)
2'733
3'816
(28,4)
2013
2012
Change
(nbre d'actions)
(nbre d'actions)
(in %)
149
140
6,4
Treasury stock transactions are reported at the market price on the trade date and are carried out as part of the Bank’s customary trading operations.
3
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
Federal Government
5'665
9'587
Cantons and municipalities
2'283
2'422
26'753
22'193
849
1'351
Financial investments
Swiss bonds:
Banks
Financial services companies
Insurance
3'284
3'964
Industrial enterprises
8'480
12'369
47'314
51'886
(8,8)
Swiss shares and other securities:
Banks
of which: - treasury stock
40'112
49'337
40'112
49'337
40'112
49'337
(18,7)
Foreign bonds:
Public corporations
Other
Foreign shares and other securities
Precious metals
Units of investment trusts
Total
Treasury stock owned by Banque Privée Edmond de Rothschild SA,
Geneva at 31 December
100 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
12'132
6'774
91'265
103'397
60'100
66'874
54,6
2'369
742
219,3
403'101
785'749
(48,7)
17'795
16'939
5,1
614'088
971'527
2013
2012
Change
(number of
shares)
(number of
shares)
(in %)
2'805
2'696
4,0
4
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
- banks
95'199
95'198
- financial companies
35'728
33'008
130'927
128'206
- banks
76'049
76'049
- financial companies
17'092
17'095
Holdings
Swiss shares and other securities:
2,1
Foreign shares and other securities:
- real estate companies
Total
2'336
2'337
95'477
95'481
(0,0)
226'404
223'687
1,2
2013
Capital-actions
2012
Taux de
participation
Taux de
participation
(en millions)
Details of significant holdings Banks:
Banks :
Banca Privata Edmond de Rothschild Lugano SA, Lugano
CHF 5,0
100%
100%
Banque Privée Edmond de Rothschild Ltd, Nassau, Bahamas
CHF 15,0
100%
100%
Banque Privée Edmond de Rothschild Europe, Luxembourg
EUR 31,5
100%
100%
Banque de Gestion Edmond de Rothschild - Monaco, Monaco
EUR 12,0
34%
34%
Financial and asset management companies:
Edmond de Rothschild Limited, London
GBP 1,0
80%
80%
Privaco Family Office S.A., Geneva
CHF 2,1
100%
100%
Rouiller, Zurkinden & Cie Finance S.A., Fribourg
CHF 0,6
100%
100%
EUR 0,7
100%
100%
Real estate companies:
Copri III S.A., Luxembourg
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
70'617
58'102
283
9
Amounts due to and from companies in which the Bank
has a majority interest (fully consolidated and non-consolidated
holdings for Group accounting purposes):
Due from banks
Due from customers
Accrued income and prepaid expenses
Other assets
81
247
8'592
12'238
Total assets
79'573
70'596
Due to banks
1'100'905
754'976
2'846
46'608
Other amounts due to customers
Accrued expenses and defferred income
Other liabilities
Total liabilities
410
479
68'162
61'676
1'172'323
863'739
12,7
35,7
ANNUAL REPORT 2013 |
101
5
Fire insurance value of fixed assets
Bank premises
Furniture, machines and equipment
6
Other assets
Positive replacement value of derivative instruments
Set-off account
Other
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
131'731
130'185
1,2
92'632
89'125
3,9
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
107'313
107'555
(0,2)
8
7
14,3
2'586
1'724
50,0
109'907
109'286
0,6
2013
Book value
of assets
7
2012
Actual
encumbrance
Book value
of assets
Actual
encumbrance
Own liabilities subject to reservation of ownership
(in thousands of CHF)
Securities pledged to a Stock Exchange to cover settlements
and as collateral for payment transactions
17'530
-­‐
26'575
-­‐
Mortgage notes pledged for own premises
-
-
-
-
Other
-
-
-
-
17'530
-
-
26'575
-
-
-
-
-
26'575
-
Assets pledged or assigned to cover own liabilities
Assets subject to reservation of ownership
Total assets pledged or assigned and subject to reservation
of ownership for own commitments
17'530
2013
2012
3'379'410
2'987'806
Liabilities arising from cash received as collateral under securities lending and repo agreements
-­‐
-­‐
Securities held for own account and tendered as collateral under securities borrowing and repo agreements
-­‐
-­‐
of which: - those which the recipient has been authorised without restriction to sell or pledge subsequently
-­‐
-­‐
3'519'891
2'989'758
-­‐
-­‐
Securities lending and repurchase agreements
Claims arising from cash pledged as collateral under securities borrowing and reverse repo agreements
Securities received as collateral under securities lending agreements and securities received under borrowing or
reverse repo agreements which the Bank has been authorised without restriction to sell or pledge subsequently
of which: - those of the above securities which were sold or pledged
The fees earned or paid as a result of securities lending are reported as per the duration of the loan and appear respectively as interest income or interest
charges. Repos and reverse repos are used to finance and refinance the purchase of special kinds of equities. They are stated as loans secured by financial
instruments or as deposits secured by shares from the Bank’s treasury stock. They are stated as advances secured by securities or as deposits for which
the Bank has pledged securities. The interest income arising from reverse repos and the interest charges arising from repos are reported as per the duration
of the relevant transactions.
102 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
8
Commitments to own pension plans
Total
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
50'128
46'303
8,3
Indications regarding personnel welfare plans can be found in Note 35 to the Consolidated Accounts.
9
Other liabilities
Set-off account
Negative replacement value of derivative instruments
Other
Total
Uses and
releases as
designated
Redesignations
12'098
(116)
Situation at end2012
10
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
108'837
107'286
1,4
99
90
10,0
12'296
15'337
(19,8)
121'232
122'713
(1,2)
Recoveries,
interests at risk
and currency
differences
New
provisions
charged to
profit and loss
account
Releases
reported in
profit and loss
account
Situation at
end-2014
-­‐
40
15
(405)
11'632
-
-
-
-
(transfers)
Valuation adjustments and provisions
Reserves for general banking risks
(in thousands of CHF)
Valuation adjustments and provisions
for default and other risks:
- valuation adjustments and provisions
for default risks (credit and country risks)
- valuation adjustments and provisions
for other operating risks
- other provisions
-
-
-
171'042
(465)
-­‐
(2)
42'048
(6'483)
206'140
Subtotal
183'140
(581)
-­‐
38
42'063
(6'888)
217'772
183'140
(581)
-
38
42'063
(6'888)
217'772
8'598
-
-
-
-
-
8'132
Total valuation adjustments
and provisions
Less valuation adjustments set off
directly against assets:
of which: - customers
Total valuation adjustments
provisions as per balance sheet
Reserves for general banking risks
8'598
8'132
174'542
209'640
50'000
-
-
-
-
(25'828)
24'172
The foregoing valuation adjustments moreover include the instalment provided for under the tax agreement between Switzerland and the UK and provisions
relating to the Bank’s participation in the tax settlement programme of the US Department of Justice, in line with the recommendations of the Swiss Financial
Market Supervisory Authority (FINMA).
Reserves for general banking risks are not taxed.
2013
Par value
2012
Number of Capital ranking
shares
for dividend
(in CHF ‘000)
Par value
(in CHF ‘000)
(in CHF ‘000)
Number of
shares
Capital ranking
for dividend
(in CHF ‘000)
11 Share capital
Fully paid registered shares at CHF 100.– par value
20'000
200'000
20'000
20'000
200'000
20'000
Fully paid bearer shares at CHF 500.– par value
25'000
50'000
25'000
25'000
50'000
25'000
Total share capital
45'000
45'000
See Notes 1 and 2 for treasury stock
(Note 11 cont’d next page)
.
ANNUAL REPORT 2013 |
103
(Note 11 cont’d)
Major shareholders
Edmond de Rothschild Holding S.A. 1)
Rothschild Holding AG, Zurich 2)
Par value
2013
Percentage
of capital
Percentage
of voting rights
Par value
2012
Percentage
of capital
Percentage
of voting rights
(in CHF ‘000)
(in %)
(in %)
(in CHF ‘000)
(in %)
(in %)
36'650,0
81,4
86,9
36'379,50
80,8
86,7
3'800,0
8,4
9,4
3'800,00
8,4
9,4
(1) The entire share capital of Edmond de Rothschild Holding SA is directly or
21) PO Gestion SAS, Paris; 22) PO Commandité SAS, Paris (together per-
indirectly controlled by members of the de Rothschild family. 17% of the
sons/entities 1), 2), 3), 6), 8), 9) and 13) to 22) represent the “PO-Group”);
company’s share capital (representing 6.77% of voting rights) is owned by
Rothschild Holding AG, Zurich owns 20,000 registered shares and 3,598
Baroness Edmond de Rothschild and 66.33% (representing 89.84% of
bearer shares of Banque Privée Edmond de Rothschild SA, Geneva,
voting rights) by Baron Benjamin de Rothschild.
representing 8.4% of the total share capital and 9.4% of voting rights.
RCSAS Group owns a controlling interest in Rothschild Concordia SAS,
(2) Rothschild Holding AG, Zurich is owned by 1) Eric de Rothschild, Paris;
Paris. The PO Group controls Paris Orléans SCA, which in turn controls
2) David de Rothschild, Paris; 3) Alexandre de Rothschild, Paris;
Concordia Holding Sàrl, Paris. Concordia Holding Sàrl controls Rothschild
4) Stéphanie Lifford de Buffévent, Paris; 5) Louise de Rothschild, Paris;
Concordia AG, Zug, which in turn owns a controlling stake in Rothschilds
6) Financière de Tournon SAS, Paris; 7) Financière de Reux SAS, Paris;
Continuation Holdings AG, Zug. Rothschilds Continuation Holdings AG
8) Béro SCA, Paris; 9) Ponthieu Rabelais SAS, Paris; 10) Integritas BV,
controls Rothschild Holding AG, Zurich, which owns a direct holding in
Amsterdam; 11) Rothschild Trust (Schweiz) AG, Zurich; 12) AYRE
Banque Privée Edmond de Rothschild SA, Geneva.
Corporation (1972) Limited, Amsterdam; 13) Edouard de Rothschild, Paris;
14) Holding Financier Jean Goujon SAS Paris; 15) Rothschild Concordia
SAS, Paris; 16) Philippe de Nicolay, Paris; 17) Olivier Pécoux, Paris;
18) François Henrot, Paris; 19) Compagnie Financière Martin-Maurel SA,
Marseille; 20) Eranda Foundation, UK
Number of
shares held
Cross holdings
Rothschild Holding AG, Zürich
10'161
Due to and from qualifying shareholders
Due to and from Edmond de Rothschild Holding SA, the only shareholder
with a qualifying interest in the parent company:
Due from customers
2013
Per cent
stake in
share capital
Per cent
of total
voting rights
(in %)
(in %)
12,0
11,6
Number of
shares held
2012
Per cent
stake in
share capital
Per cent
of total
voting rights
(in %)
(in %)
12,0
11,6
10'161
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
41'139
44'687
224
165
Total claims
41'363
44'852
Other amounts due to customers
11'596
9'867
Other assets
Other liabilities
Total liabilities
104 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
-
316
11'596
10'183
(7,8)
13,9
2013
2012
2011
Change
(in CHF ‘000)
(in CHF ‘000)
(in CHF ‘000)
(in %)
12 Schedule of shareholders’ equity before appropriation of available earnings
Shareholders’ equity at beginning of the reporting period:
- share capital
- general statutory reserve
- reserves for general banking risks
- other reserves
of which: - treasury stock
Reported profit
Total shareholders’ equity at beginning of the reporting period
(before appropriation of available earnings)
Allocated to / released from reserves
Less dividend deducted from net income of previous year
Net income
Total shareholders’ equity at end of the reporting period
(before appropriation of available earnings)
of which: - share capital
- general statutory reserve
45'000
45'000
45'000
-
119'385
119'385
119'385
-
50'000
50'000
50'000
-
471'822
435'561
403'076
8,3
49'337
53'304
53'249
(7,4)
34'965
112'832
109'655
(69,0)
721'172
762'778
727'116
(5,5)
(22'759)
6'822
3'861
(433,6)
(56'250)
(78'750)
(69'750)
(28,6)
50'650
30'322
101'551
67,0
692'813
721'172
762'778
(3,9)
45'000
45'000
45'000
119'385
119'385
119'385
24'172
50'000
50'000
449'069
471'822
435'561
of which: - treasury stock
40'112
49'337
53'304
- reported profit
55'187
34'965
112'832
- reserves for general banking risks
- other reserves
13 Shareholders’ equity after appropriation of available earnings
Shareholders’ equity before appropriation of net income
2013
2012
2011
Change
(in CHF ‘000)
(in CHF ‘000)
(in CHF ‘000)
(in %)
(3,9)
692'813
721'172
762'778
Less dividend
(56'250)
(56'250)
(78'750)
-
Total shareholders’ equity after appropriation of available earnings
636'563
664'922
684'028
(4,3)
of which: - share capital
- general statutory reserve
- reserves for general banking risks
- other reserves
of which: - treasury stock
- reported profit
14 Due to and from affiliated companies
Due from banks
Accrued income and prepaid expenses
Other assets
Total claims
Due to banks
Other amounts due to customers
Accrued expenses and deferred income
Other liabilities
Total liabilities
45'000
45'000
45'000
119'385
119'385
119'385
24'172
50'000
50'000
444'000
446'000
465'000
40'112
49'337
53'304
4'006
4'537
4'643
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
122'888
416
1'908
390
-
2'116
124'796
2'922
543
-
1'533
2'093
18
-
-
24
2’094
2'117
4'170,9
(1,0)
Affiliated companies are companies in which Edmond de Rothschild Holding SA has a majority stake and that are not part of the Banque Privée Edmond de
Rothschild Group.
All transactions with affiliated parties are carried out on the usual terms at the Bank in Switzerland and at our foreign subsidiaries.
ANNUAL REPORT 2013 |
105
2013
2012
Loans granted
to the Bank’s
governing
bodies
Guarantee
commitments
on behalf of
the Bank’s
governing
bodies
Loans granted
to the Bank’s
governing
bodies
Guarantee
commitments
on behalf of
the Bank’s
governing
bodies
41'218
161
45'307
21
41'217
141
44'791
-
15 Loans granted to the Bank’s governing bodies
Guarantee commitments on behalf of the Bank’s governing bodies
Remuneration paid to the Bank’s governing bodies
Remuneration paid to the Bank’s governing
bodies (in thousands of CHF)
Board of Directors
Baron Benjamin de Rothschild
Chairman
Baroness Benjamin de Rothschild
Vice-Chairwoman
-
-
-
Jean Laurent-Bellue
Secretary
-
-
-
-
Luc J. Argand
1
18
1
18
Veit de Maddalena
-
-
-
-
Rajna Gibson Brandon
-
-
0
-
François Hottinger
-
2
-
-
Klaus Jenny
-
-
-
-
Maurice Monbaron
(since 26.04.2013)
-
-
-
-
Claude Messulam
(until 11.06.2013)
-
-
515
4
Jacques-André Reymond
-
-
-
-
E. Trevor Salathé
-
-
-
-
21
71
777
139
-
-
630
8
-
54
-
37
Executive committee
Philippe Currat
(until 09.01.2013)
Internal advisors
Independent auditors
Total
-
-
-
-
41'239
286
46'084
198
The loans in question are current account overdrafts (either temporary or
At 31 Dec. 2013 the relevant mortgage rates ranged from 1.8% to 2.3% and
in the form of confirmed credit lines) and/or fixed-term advances either
the interest rates charged on lombard loans from 1.5% to 3.5% in the major
unsecured or secured (by securities pledged with the Bank) and floating-
currencies. The value of loans granted to members of the Executive
or fixed-rate mortgage loans.
Committee totalled 21 (in thousands of CHF). The value of loans granted to
Mortgage interest is charged at the usual market rates. Moreover, as in
executive members of the Board of Directors amounted to 41,218 (in
the case of loans taken out by Bank employees at other financial
thousands of CHF).
institutions, members of the governing bodies who are bound to the Bank
by a contract of employment receive a 25% rebate on the applicable
interest rate up to a maximum amount of CHF 750,000.
(Note 15: cont’d next page)
106 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
(Note 15 cont’d)
2013
Fixed fees
Remuneration paid to members
(in thousands of CHF)
Board of Directors
Bonus
Number
of shares
Cash
2012
Cash
Fixed fees
Number
of shares
Cash
Bonus
Number
of shares
Number
of shares
Cash
1’020
-
123
-
1'621
-
120
-
Baron Benjamin de Rothschild
Chairman
-
-
-
-
-
-
-
-
Baroness Benjamin de Rothschild
Vice-Chairwoman
-
-
-
-
-
-
-
-
Jean Laurent-Bellue
Secretary
133
-
-
-
169
-
-
-
Luc J. Argand
68
-
-
-
64
-
-
-
Veit de Maddalena
60
-
-
-
60
-
-
-
112
-
-
-
64
-
-
-
62
-
-
-
62
-
-
-
131
-
-
-
168
-
-
-
Rajna Gibson Brandon
François Hottinger
Klaus Jenny
Maurice Monbaron
(since 26.04.2013)
47
-
-
-
-
-
-
-
Claude Messulam
(until 11.06.2013)
32
-
-
-
124
-
-
-
Jacques-André Reymond
151
-
-
-
151
-
-
-
E. Trevor Salathé
224
-
123
-
314
-
120
-
Manuel Dami
(until 26.04.2012)
-
-
-
-
139
-
-
-
John Alexander
(until 26.04.2012)
-
-
-
-
123
-
-
-
Walter Blum Gentilomo
(until 26.04.2012)
-
-
-
-
56
-
-
-
Michel Cicurel
(until 09.11.2012)
-
-
-
-
64
-
-
-
Guy Wais
(until 26.04.2012)
-
-
-
-
63
-
-
-
5’466
-
9’651
-
7'244
-
30'948
-
Executive Committee
Christophe de Backer
General Manager
2’200
-
3’183
-
-
-
-
-
Claude Messulam
(until 11.06.2013)
-
-
-
-
233
-
19'071
-
6’486
-
9’774
-
8'865
-
31'068
-
Total
(Note 15 cont’d next page)
ANNUAL REPORT 2013 |
107
(Note 15 cont’d)
2013
Employee
welfare
expenses
Remuneration paid to members
(in thousands of CHF)
Board of Directors
2012
Employee
welfare
expenses
Total
Total
-
1’143
-
1'741
-
Baron Benjamin de Rothschild
Chairman
-
-
-
Baroness Benjamin de Rothschild
Vice-Chairwoman
-
-
-
-
Jean Laurent-Bellue
Secretary
-
133
-
169
Luc J. Argand
-
68
-
64
Veit de Maddalena
-
60
-
60
Rajna Gibson Brandon
-
112
-
64
François Hottinger
-
62
-
62
Klaus Jenny
-
131
-
168
Maurice Monbaron
(since 26.04.2013)
-
47
-
-
Claude Messulam
(until 11.06.2013)
-
32
-
124
Jacques-André Reymond
-
151
-
151
E. Trevor Salathé
-
347
-
434
Manuel Dami
(until 26.04.2012)
-
-
-
139
John Alexander
(until 26.04.2012)
-
-
-
123
Walter Blum Gentilomo
(until 26.04.2012)
-
-
-
56
Michel Cicurel
(until 09.11.2012)
-
-
-
64
Guy Wais
(until 26.04.2012)
-
-
-
63
692
15’809
1'162
39'354
Executive Committee
Christophe de Backer
General Manager
101
5’484
-
-
Claude Messulam
(until 26.04.2012)
-
-
42
19'346
692
16’952
1'162
41'095
Total
Since the fees paid to each individual are decided after the closing date of the annual financial statements, the above-mentioned fees are stated as per the accrual
method.
(Note 15 : cont’d next page)
108 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
(Note 15 cont’d)
2013
Ownership of shares in BPER SA, Geneva:
Board of Directors and related persons
Baron Benjamin de Rothschild
Chairman
Baroness Benjamin de Rothschild
Vice-Chairwoman
Jean Laurent-Bellue
Secretary
2012
Number of
bearer shares
Number of
registered shares
Number of
bearer shares
Number of
registered shares
445
7
1'178
7
101
-
101
-
1
1
1
1
-
1
-
1
67
1
67
1
Veit de Maddalena
1
-
1
-
Rajna Gibson Brandon
-
1
-
1
10
1
10
1
-
1
-
1
Luc J.Argand
François Hottinger
Klaus Jenny
Maurice Monbaron
(since 26.04.2013)
-
-
-
-
Claude Messulam
(until 11.06.2013)
-
-
500
-
5
-
5
-
260
1
260
1
-
-
36
-
Jacques-André Reymond
E.Trevor Salathé
Manuel Dami
(until 26.04.2012)
Walter Blum Gentilomo
(until 26.04.2012)
Executive Committee and related persons
-
-
197
-
-
-
43
-
Christophe de Backer
General Manager
-
-
-
Manuel Leuthold
Deputy General Manager
-
-
-
-
Yves Aeschlimann
-
-
-
-
Frédéric Binggeli
-
-
-
-
Alexandre Col
-
-
-
-
-
-
-
-
-
-
-
-
Martin Leuthold
(until 31.12.2013)
Hervé de Montlivault
Luc Baatard
(until 03.04.2013)
-
-
2
-
Philippe Currat
(until 08.01.2013)
-
-
-
-
Sylvain Roditi
(until 03.04.2013)
-
-
36
-
Michel Lusa
(until 03.04.2013)
-
-
-
-
Bernard Schaub
(until 03.04.2013)
-
-
5
-
445
7
1'221
7
Total
On 23 March 2012 the Bank and the former Chief Executive Officer signed an agreement relating to the redemption over a two-year period of 1075 own shares
held by the former CEO. The agreement provides for a floor and a ceiling price. In the performance of the agreement, 575 shares were bought back by the Bank
in May 2012. The residual redemption obligation generated a nonrealised loss of CHF 1.85 million at 31 December 2012. The 500 remaining shares were bought
back in 2013, generating an additional loss of CHF 0.13 million.
ANNUAL REPORT 2013 |
109
16
Guarantees to third parties
Surety bonds
Guarantees
Total
17 Fiduciary transactions
Fiduciary deposits with banks outside the Group
Fiduciary deposits with Group banks
Fiduciary loans
Total
18 Results of trading operations
Securities trading (including equity product and index derivatives)
Forex trading (including forex derivatives)
Precious metals (including precious metals derivatives)
Total
19 Extraordinary income and expenses
Extraordinary income
Extraordinary expenses
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
3'987
4'098
(2,7)
126'243
189'501
(33,4)
130'230
193'599
(32,7)
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
1'813'646
1'405'436
29,0
90'851
87'630
3,7
-
-
-
1'904'497
1'493'066
27,6
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
43,6
2'305
1'605
31'592
33'379
(5,4)
862
726
18,7
34'759
35'710
(2,7)
2013
2012
Change
(in CHF ‘000)
(in CHF ‘000)
(in %)
32'786
21'451
52,8
-
19
(100,0)
“Extraordinary income” mainly includes a CHF 25.6 million release from reserves for general banking risks and releases, amounting to CHF 7 million in 2013
and CHF 21.2 million in 2012, from other provisions that were no longer needed for operating purposes.
110 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Addresses
Banque Privée Edmond de Rothschild
Head office
Branches
Subsidiaries
Geneva
Fribourg
Fribourg
Banque Privée Edmond de Rothschild S.A.
Banque Privée Edmond de Rothschild S.A.
Rouiller, Zurkinden & Cie Finance S.A.
18, rue de Hesse
11, rue de Morat - CP 144
11, rue de Morat - CP 1296
1204 Geneva
1701 Fribourg
1701 Fribourg
T. +41 58 818 91 11
T. +41 26 347 24 24
T. +41 26 347 26 00
F. +41 58 818 91 21
F. +41 26 347 24 20
F. +41 26 347 26 15
www.edmond-de-rothschild.ch
www.edmond-de-rothschild.ch
Lugano
Lausanne
Banca Privata Edmond de Rothschild
Banque Privée Edmond de Rothschild S.A.
Lugano S.A.
2, avenue Agassiz
Via Ginevra 2 - CP 5882
1003 Lausanne
6901 Lugano
T. +41 21 318 88 88
T. +41 91 913 45 00
F. +41 21 323 29 22
F. +41 91 913 45 01
www.edmond-de-rothschild.ch
www.edr-privata.ch
RAPPORT ANNUEL 2013 |
111
Banque Privée Edmond de Rothschild
Abroad
Branch
China
United Kingdom
Privaco Family Office (HK) Limited
Edmond de Rothschild (UK) Limited
Suite 5004, 50th floor, One Exchange Square
- Edmond de Rothschild Securities (UK)
8 Connaught Place
Limited
China
Central - Hong Kong
Banque Privée Edmond de Rothschild S.A.
T. +852 3125 16 00
Hong Kong Branch
F. +852 2869 16 18
- Edmond de Rothschild Asset
8 Connaught Place
Luxembourg
- Edmond de Rothschild Private Merchant
Central – Hong Kong
Banque Privée Edmond de Rothschild Europe
T. +852 37 65 06 00
(Details on next page)
Banking LLP
4, Carlton Gardens
SW1Y 5AA London
F. +852 28 77 21 85
Subsidiaries
Limited
Management (UK) Limited
Suite 5001, 50th floor, One Exchange Square
www.edmond-de-rothschild.hk
- Edmond de Rothschild Capital Holdings
Monaco
T. +44 20 7845 5900
Banque de Gestion Edmond de Rothschild -
F. +44 20 7845 5901
Monaco
www.edmond-de-rothschild.co.uk
Les Terrasses
2, avenue de Monte-Carlo - BP 317
Bahamas
98006 Monaco Cedex
Banque Privée Edmond de Rothschild Ltd.
T. +377 93 10 47 47
Lyford Financial Centre – Lyford Cay no. 2
F. +377 93 25 75 57
West Bay Street
www.edmond-de-rothschild.mc
P.O. Box SP-63948
Nassau
Edmond de Rothschild Conseil
T. +1 242 702 80 00
et Courtage d’Assurance - Monaco
F. +1 242 702 80 08
(Subsidiary of Banque de Gestion
www.edmond-de-rothschild.bs
Edmond de Rothschild - Monaco)
Les Terrasses
Channel Islands
2, avenue de Monte-Carlo
Edmond de Rothschild
98000 Monaco
Holdings (C.I.) Limited
T. +377 97 98 28 00
- Edmond de Rothschild (C.I.) Limited
F. +377 97 98 28 01
- Edmond de Rothschild Asset
Management (C.I.) Limited
Edmond de Rothschild Gestion - Monaco
Hirzel Court Suite D
(Subsidiary of Banque de Gestion
St. Peter Port – Guernsey GY1 2NH
Edmond de Rothschild - Monaco)
T. +44 1481 716 336
Les Terrasses
F. +44 1481 714 416
2, avenue de Monte-Carlo
www.edmond-de-rothschild.gg
98000 Monaco
T. +377 97 98 22 14
F. +377 97 98 22 18
New-Zealand
Privaco Trust Limited
Level 3, Parnell road 280
Parnell
Auckland 1052 – New Zealand
T. +64 93 07 39 50
F. +64 93 66 14 82
112 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Representative offices
United Arab Emirates
Banque Privée Edmond de Rothschild S.A.
Banking Representative Office
Sunset, office 46, 2nd floor
Jumeirah-3, Jumeirah Road
P.O. Box 214924
Dubaï
T. +9714 346 53 88
F. +9714 346 53 89
Uruguay
Representación B.P.
Edmond de Rothschild S.A.
World Trade Center Montevideo
Torre II - Piso 21
Avenida Luis Alberto de Herrera 1248
11300 Montevideo
T. +598 2 623 24 00
F. +598 2 623 24 01
Banque Privée Edmond de Rothschild Europe
Head office
Representative office
Israël
www.edmond-de-rothschild.eu
Liège branch
Banque Privée Edmond de Rothschild Europe
Quai de Rome 56
4000 Liège
T. +32 4 234 95 95
F. +32 4 234 95 75
www.edmond-de-rothschild.be
Subsidiary
Portugal
Joint venture
Luxembourg
Banque Privée Edmond de Rothschild Europe
20, boulevard Emmanuel Servais
2535 Luxembourg
T. +352 24 88 1
F. +352 24 88 82 22
Banque Privée Edmond de Rothschild Europe
46, boulevard Rothschild
66883 Tel-Aviv
T. +972 356 69 818
F. +972 356 69 821
www.bpere.edmond-de-rothschild.co.il
Banque Privée Edmond de Rothschild Europe
Luxembourg
Rua D. Pedro V, 130
Japan
Adjutoris Conseil
1250-095 Lisbonne
Edmond de Rothschild
18, boulevard Emmanuel Servais
T. +351 21 045 46 60
Nikko Cordial Co., Ltd
2535 Luxembourg
F. +351 21 045 46 87/88
1-12-1, Yurakucho, Chiyoda-ku
T. +352 26 26 23 92
www.edmond-de-rothschild.pt
Tokyo # 100-0006
F. +352 26 26 23 94
T. +81 3 3283-3535
Edmond de Rothschild Investment Advisors
Spain
16, boulevard Emmanuel Servais
Madrid main branch
Banque Privée Edmond de Rothschild Europe
Paseo de la Castellana 55
28046 Madrid
T. +34 91 364 66 00
F. +34 91 364 66 63
www.edmond-de-rothschild.es
2535 Luxembourg
T. +352 24 88 27 32
F. +352 24 88 84 02
Abroad
Branches
Belgium
Brussels main branch
Banque Privée Edmond de Rothschild Europe
Avenue Louise 480 Bte 16A
1050 Bruxelles
T. +32 2 645 57 57
F. +32 2 645 57 20
www.edmond-de-rothschild.be
F. +81 3 3283-1611
Barcelona branch
Banque Privée Edmond de Rothschild Europe
Josep Bertrand 11
08021 Barcelone
T. +34 93 362 30 00
F. +34 93 362 30 50
www.edmond-de-rothschild.es
Antwerp branch
Banque Privée Edmond de Rothschild Europe
Frankrijklei 103
2000 Antwerpen
T. +32 3 212 21 11
F. +32 3 212 21 22
www.edmond-de-rothschild.be
RAPPORT ANNUEL 2013 |
113
Other Edmond de Rothschild Group companies
La Compagnie Financière Edmond de Rothschild
Head office
Nantes
Edmond de Rothschild Private Equity Partners
La Compagnie Financière
47, rue du Faubourg Saint-Honoré
France
Edmond de Rothschild Banque
75401 Paris cedex 08
La Compagnie Financière
11, rue Lafayette
T. +33 1 40 17 25 25
Edmond de Rothschild Banque
44000 Nantes
F. +33 1 40 17 23 91
47, rue du Faubourg Saint-Honoré
T. +33 2 53 59 10 00
www.edmond-de-rothschild.fr
75401 Paris cedex 08
F. +33 2 53 59 10 09
T. +33 1 40 17 25 25
www.edmond-de-rothschild.fr
F. +33 1 40 17 24 02
www.edmond-de-rothschild.fr
Representative offices
Bordeaux
La Compagnie Financière
Edmond de Rothschild Banque
Hôtel de Saige
23, cours du Chapeau Rouge
33000 Bordeaux
T. +33 5 56 44 20 66
F. +33 5 56 51 66 03
www.edmond-de-rothschild.fr
Lille
La Compagnie Financière
Edmond de Rothschild Banque
116, rue de Jemmapes
59800 Lille
T. +33 3 62 53 75 00
F. +33 3 28 04 96 20
www.edmond-de-rothschild.fr
Lyon
La Compagnie Financière
Edmond de Rothschild Banque
55, avenue Foch
69006 Lyon
T. +33 4 72 82 35 25
F. +33 4 78 93 59 56
www.edmond-de-rothschild.fr
Marseille
La Compagnie Financière
Edmond de Rothschild Banque
165, avenue du Prado
47, rue du Faubourg Saint-Honoré
Strasbourg
75401 Paris cedex 08
La Compagnie Financière
T. +33 1 40 17 25 25
Edmond de Rothschild Banque
F. +33 1 40 17 23 91
6, avenue de la Marseillaise
www.edrcp.com
67000 Strasbourg
T. +33 3 68 33 90 00
Edmond de Rothschild Investment Partners
F. +33 3 88 35 64 86
47, rue du Faubourg Saint-Honoré
www.edmond-de-rothschild.fr
75401 Paris cedex 08
T. +33 1 40 17 25 25
Toulouse
F. +33 1 40 17 31 43
La Compagnie Financière
www.edrip.fr
Edmond de Rothschild Banque
22, rue Croix Baragnon
Assurances Saint-Honoré Patrimoine
31000 Toulouse
47, rue du Faubourg Saint-Honoré
T. +33 5 67 20 49 00
75401 Paris cedex 08
F. +33 5 61 73 49 04
T. +33 1 40 17 22 32
www.edmond-de-rothschild.fr
F. +33 1 40 17 89 40
www.ashp.fr
Subsidiaries and
sub-subsidiaries
Edmond de Rothschild
Paris
47, rue du Faubourg Saint-Honoré
Edmond de Rothschild Asset Management
75401 Paris cedex 08
47, rue du Faubourg Saint-Honoré
T. +33 1 40 17 31 63
75401 Paris cedex 08
F. +33 1 40 17 23 93
T. +33 1 40 17 25 25
www.edrep.fr
Entreprises Patrimoniales
F. +33 1 40 17 24 42
www.edram.fr
Lyon
Edmond de Rothschild
Edmond de Rothschild Corporate Finance
Entreprises Patrimoniales
47, rue du Faubourg Saint-Honoré
55, avenue Foch
75401 Paris cedex 08
69006 Lyon
T. +33 1 40 17 21 11
T. +33 4 26 72 95 00
F. +33 1 40 17 25 01
F. +33 4 37 42 51 91
www.edrcf.com
www.edrep.fr
13272 Marseille
T. +33 4 91 29 90 80
F. +33 4 91 29 90 85
www.edmond-de-rothschild.fr
114 |
Edmond de Rothschild Capital Partners
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.
Abroad
China
Italia
Edmond de Rothschild Asset Management
La Compagnie Financière
Representative office
Hong Kong Ltd
Edmond de Rothschild Banque
Suite 4101-04, 41 F, Exchange Square Two
Edmond de Rothschild S.G.R. SpA
China
8 Connaught Place
Palazzo Chiesa
La Compagnie Financière
Central - Hong Kong
Corso Venezia 36
Edmond de Rothschild Banque
T. +852 3926 5199
20121 Milan
Room 3, 28F China Insurance Building
F. +852 3926 5008
T. +39 02 76 061 200
166 East Lujiazui Road, Pudong New Area
www.edram.fr
F. +39 02 76 061 222
T. +86-21 58 76 51 90
Edmond de Rothschild Asia Ltd
Spain
F. +86-21 58 76 71 80
Suite 4101-04, 41 F, Exchange Square Two
Edmond de Rothschild Asset
www.edmond-de-rothschild.fr
8 Connaught Place
Management Espagne
Central - Hong Kong
Paseo de la Castellana 55
T. +852 3926 5199
28046 Madrid
F. +852 3926 5008
T. +34 91 781 49 75
www.edram.fr
F. +34 91 789 32 29
200120 Shanghai
Subsidiaries,
sub-subsidiaries
and branches
Belgium
Edmond de Rothschild Asset
Management Benelux
Avenue Louise, 480
1050 Bruxelles
T. +32 2274 05 50
F. +32 2503 56 88
www.edram.fr
Chile
Edmond de Rothschild Asset
Management Chile
Apoquindo 4001 oficina 305
Las Condes
Santiago
T. +56 2598 99 00
F. +56 2598 99 01
www.edram.fr
www.edram.fr
Edmond de Rothschild China Ltd
Room 02, 28F China Insurance Building
166 East Lujiazui Road,
Pudong New Area
Shanghai 200120
T. +86 21 6086 2503
F. +86 21 6086 2503
Germany
Edmond de Rothschild Asset
Management Deutschland
Opernturm
60306 Frankfurt am Main
T. +49 69 244 330 200
F. +49 69 244 330 215
www.edram.fr
Israël
Edmond de Rothschild Investment
Services Limited
Alrov Tower
46, Rothschild Boulevard
66883 Tel Aviv
T. +972 3 713 03 00
F. +972 3 566 66 89
www.edris.co.il
RAPPORT ANNUEL 2013 |
115
Other Edmond de Rothschild Group companies
La Compagnie
Benjamin de Rothschild S.A.
Switzerland
La Compagnie Benjamin de Rothschild S.A.
29, route de Pré-Bois
CP 490
1215 Geneva 15
T. +41 58 201 75 00
F. +41 58 201 75 09
www.cbr.edmond-de-rothschild.ch
COGIFRANCE
France
COGIFRANCE
47, rue du Faubourg Saint-Honoré
75401 Paris Cedex 08
T. +33 1 40 17 25 25
F. +33 1 40 17 24 02
116 |
BANQUE PRIVÉE EDMOND DE ROTHSCHILD S.A.

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