Rothschild Bank AG Zurich - Rothschild | Private Banking & Trust

Rothschild Bank AG Zurich 

Annual Report 2005/2006

Rothschild Bank AG Zurich 

Annual Report for the year ended 31st March 2006 

Part 1 – Overview 

Key Figures 2 

Chairman’s Statement 3 

Directors, Management Committee, Senior Staff and Auditors 4 

Part 2 – Consolidated Financial Statements 

A Consolidated Balance Sheet 6 

B Consolidated Income Statement 8 

C Consolidated Statement of Changes in Shareholders’ Equity 9 

D Statement of Recognised Income and Expenses 10 

E Consolidated Statement of Cash Flows 11 

F Notes to the Consolidated Financial Statements 13 

F Notes on Risk Management 22 

F Notes to the Consolidated Financial Statements (Tables) 25 

Additional Information to the Consolidated Financial Statements 59 

Business and Services provided by Rothschild Bank AG 60 

Report of the Group Auditors 62 

Part 3 – Financial Statements of Rothschild Bank AG 

Balance Sheet of Rothschild Bank AG 64 

Off-Balance Sheet Transactions 66 

Income Statement of Rothschild Bank AG 67 

Proposal of the Board of Directors to the Annual General Shareholders’ Meeting 68 

Accounting and Valuation Principles of Rothschild Bank AG 69 

Notes on Risk Management 72 

Notes to the Financial Statements 75 

Report of the Auditors 79 

Part 4 – Addresses 

Head Office, Subsidiaries and Representative Offices of Rothschild Bank AG 80 

Group Directory 82 

Part 1 

R 

1 

Rothschild Bank AG Zürich

2 

Rothschild Bank AG Zürich 

Key Figures 

Rothschild Bank AG Zurich, consolidated 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Consolidated Balance Sheet 

Total shareholder’s equity 423,086 419,606 3,480 0.8 

– thereof minority interest 14,864 15,294 –430 –2.8 

Total assets 

Consolidated Income Statement 

1,476,074 1,268,741 207,333 16.3 

Net interest income 15,978 13,817 2,161 15.6 

Net commission income 122,091 103,647 18,444 17.8 

Results from trading operations 12,106 11,508 598 5.2 

Total income 157,912 134,579 23,333 17.3 

Total operating expenses –103,966 –90,991 –12,975 14.3 

Consolidated net profi t 38,554 31,228 7,326 23.5 

– thereof minority interest 4,899 5,232 –333 –6.4 

Net profi t per employee 

Staff 

(at the end of business year) 

114 98 16 16.3 

Staffi ng level domestic 200 193 7 3.6 

Staffi ng level abroad 139 127 12 9.4 

Total staffi ng level 339 320 19 5.9 

Part 1 

R

Chairman’s Statement 

Favorable financial markets and strong transaction volumes have been an encouraging feature of the past 

financial year in an environment that has continued to reflect market and currency volatilities and uncertainties 

across the usual spectrum of geo-political concerns, oil prices and inflation outlooks. 

I am pleased to report that the Bank increased its consolidated net profit to CHF 38.5 million up from 

CHF 31.2 million representing an increase of 23.5 % and consolidated total income by 17.3 % to CHF 157.9 

million. This sound result was further supported by both a positive inflow of new funds and a satisfactory 

investment performance achieved for clients. 

For the Bank in Zurich, net profit rose by 20 % to CHF 32.7 million and total income by 17.8 % to 

CHF 97.3 million. The subsidiary banking and asset management operations in Guernsey, Geneva and 

Frankfurt continued their growth with increased contributions to the group results. 

During the month of July 2005 we obtained our licence from the Spanish regulator that enabled us to 

commence the activities of our new subsidiary Rothschild Gestión SA with offices in Madrid and Barcelona. 

This initiative is in line with our commitment to serve the needs of wealthy families across Europe and expand 

our presence as key private wealth management and financial service specialists worldwide. 

Our Trust operations continued to do well breaking the CHF 50 million barrier for gross income for the first 

time. This was up by 7.7 % to CHF 51.8 million from CHF 48.1 million. Strategically, this area is a core part 

of our operations and important to our success as a private wealth management group. 

On the 30th June 2006 Mr. Guy Wais, the General Manager and CEO of the Bank retired and he is succeeded 

by Mr. Veit de Maddalena. I take this opportunity to thank him on behalf of the board, staff and clients for the 

outstanding contribution that he has made to the group over the last 14 years and wish him a very long and 

enjoyable retirement. I am pleased to announce that Mr. Guy Wais will continue to be involved in the group’s 

affairs with seats on various boards including of course the Bank itself. 

The Board of Directors of Rothschild Bank AG has proposed to increase the dividend to CHF 28 million, 

up from CHF 26 million. After this distribution, the Bank’s reported shareholder’s equity will be CHF 327.7 

million. This represents a ratio of shareholders’ funds to total assets of 33.8 % reflecting the Bank’s strong 

balance sheet. 

On behalf of my fellow Directors, I would like to express my gratitude to our clients for their continued 

confidence and loyalty and to the staff a sincere thank you for their dedication and professionalism without 

whom we would not have achieved so much to be proud of. 

On behalf of the Board of Directors 

Baron Eric De Rothschild 

Part 1 

R 

3 


4 


Directors and Management Committee 

Board of Directors 

Chairman 

Baron Eric de Rothschild 1) 

Deputy Chairman 

Baron David de Rothschild 1) 

Members 

Prof. Dr. Edoardo Anderheggen Claude Messulam Otto H. Suhner 

Mike Bussey1) 2) Bernard I. Myers1) 2) Dr. Rudolf Tschäni2) Dr. Jürg F. Geigy Peter Ohnemus Dr. Leonardo Vannotti2) Gottlieb Knoch1) Guy Wais3) 1) Members of the Committee of the Board 

2) Members of the Audit Committee 

3) From July 2006 

Management Committee 

General Manager 

and CEO 

Guy Wais (until 30th June 2006) 

Veit de Maddalena (from 1st July 2006) 

Members of the Management Committee 

Michel Arni Thomas F. Husemann Hansruedi Wolfensberger 

M. Gordon Hunt Timothy Urquhart 

Part 1 

R

Senior Staff and Auditors 

Senior Vice Presidents 

Carlo Braunwalder Jacqueline Rothschild-Dietisheim Felix Züttel 

Ernst A. Furrer Baron Wilfrid von Plotho 

First Vice Presidents 

Agnes Arnold Giovanna Lagutaine Schwarzenbach Dr. Craig Richmond 

Gregg P. Blonigan Manuel E. Mariñez-Valera Harold Rudel 

Gaudenz Caprez Sandra Müller Gisler Claudio Sacchet 

Michael Curschellas Lene Nielsen Colin A. Service 

Thérèse Gindraux-Agopian Dr. Alfred Nordmann Ernst Wegmann 

Marie-Hélène Guex Dr. Dimitar Pashev Peter Wüthrich 

Dr. Urs Peter Kälin 

Vice Presidents 

Robert Baumann 

Richard Baldock 

Lenka Beinhoff 

Ursizin Blumenthal 

Jan Brunschwig 

Marc Dietrich 

Daniel Emery 

Mathias Ernst 

Mario Fischer 

Internal Audit 

Wilfried Bürge, Rudolf A. Würmli, 

First Vice President Vice President 

and Head Internal Audit 

Statutory Auditors 

KPMG Fides Peat 

Part 1 

Urs-Beat Fus 

Markus Henz 

Kurt Immer 

Bruno Knecht 

Jan Kolar 

Leo Kudzielka 

Dominique Maire 

Bernhard Oberholzer 

Davide Rima 

Luigi Roccù 

Marco Ronchi 

Michael Sargeant 

Daniel Schwarz 

Roger Schwarzenbach 

Christian Seitl 

Marianne Steiger 

Lorenz Trautmann 

Karl Wieland 

R 

5 


6 Assets 


A Consolidated Balance Sheet 

for the years 31st March 2006 and 2005 

31.3.2006 31.3.2005 Change 

Notes 1000 CHF 1000 CHF 1000 CHF % 

Cash and balances with central banks 16,500 13,992 2,508 17.9 

Placements with banks 1 982,691 770,065 212,626 27.6 

Loans and advances to customers 

Financial assets at fair value 

2 174,114 171,815 2,299 1.3 

through profi t or loss 3 15,733 21,650 –5,917 –27.3 

Derivative fi nancial instruments 4 12,635 15,293 –2,658 –17.4 

Available-for-sale fi nancial assets 5 163,002 164,569 –1,567 –1.0 

Investments in associates 6 60 67 –7 –10.4 

Property, plant and equipment 7 81,962 80,710 1,252 1.6 

Intangible assets 8 1,232 1,365 –133 –9.7 

Deferred tax assets 9, 10 2,038 856 1,182 138.1 

Pension assets 

Accrued income, 

14 598 598 0 0.0 

prepaid expenses and other assets 11 25,509 27,761 –2,252 –8.1 

Total assets 13 1,476,074 1,268,741 207,333 16.3 

Part 2 

R

A Consolidated Balance Sheet 

Liabilities and Equity 

31.3.2006 31.3.2005 Change 


Money market instruments 50 55 –5 –9.1 

Loans and advances due to banks 85,155 14,665 70,490 480.7 

Derivative fi nancial instruments 4 11,807 13,618 –1,811 –13.3 

Client deposits 

Accrued expenses, deferred income and 

1 905,496 767,913 137,583 17.9 

other liabilities 15 23,151 24,945 –1,794 –7.2 

Current tax liabilities 7,431 6,571 860 13.1 

Deferred tax liabilities 9 13,429 14,140 –711 –5.0 

Pension obligations 14 6,013 6,609 –596 –9.0 

Provisions 16 456 619 –163 –26.3 

Total liabilities 17 1,052,988 849,135 203,853 24.0 

Share capital 10,330 10,330 0 0.0 

Share premium 4,620 4,620 0 0.0 

Reserves for general banking risks 22,769 22,769 0 0.0 

Reserves and retained earnings 336,848 340,597 –3,749 –1.1 

Consolidated net profi t 

Equity attributable to the 

33,655 25,996 7,659 29.5 

shareholders of Rothschild Bank AG 408,222 404,312 3,910 1.0 

Minority interest 14,864 15,294 –430 –2.8 

Total equity 19, 20 423,086 419,606 3,480 0.8 

Total liabilities and equity 1,476,074 1,268,741 207,333 16.3 

Part 2 


R 

7 


8 2005/06 2004/05 Change 


Total interest income 36,169 26,480 9,689 36.6 

Total interest expense –20,191 –12,663 –7,528 59.4 

Net interest income 29 15,978 13,817 2,161 15.6 

Commission income 123,735 105,329 18,406 17.5 

Commission expense –1,644 –1,682 38 –2.3 

Net commission income 

Income from fi nancial assets 

30 122,091 103,647 18,444 17.8 

at fair value through profi t or loss 31 12,106 11,508 598 5.2 

Income from associates –7 –4 –3 75.0 

Other operating income 32 7,744 5,611 2,133 38.0 

Other income 7,737 5,607 2,130 38.0 

Total income 157,912 134,579 23,333 17.3 

Personnel expenses 33 –75,775 –63,270 –12,505 19.8 

Operating expenses 

Depreciation, write-offs 

35, 36 –28,191 –27,721 –470 1.7 

and impairment of non-current assets 7, 8 –5,288 –5,021 –267 5.3 

Other expenses 37 –1,617 –1,296 –321 24.8 

Profi t before tax 47,041 37,271 9,770 26.2 

Income tax expense 39 –8,487 –6,043 –2,444 40.4 

Consolidated net profi t 38,554 31,228 7,326 23.5 

of which attributable to minority interest 

of which attributable to shareholders 

C 4,899 5,232 –333 –6.4 

of Rothschild Bank AG A, C 33,655 25,996 7,659 29.5 


B Consolidated Income Statement 

for the period 1st April to 31st March 

Part 2 

R

C Consolidated Statement of Changes in 

Shareholders’ Equity 

Part 2 


Share Share Reserves Reserves Available- Trans- Equity at- Minority Total 

capital premium for and for- lation tributable interest equity 

general retained sale reserve to sharebanking 

earnings reserve holders of 

risks Rothschild 

Bank AG 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Total equity at 1st April 2004 

based on BAG-SFBC GAAP1) 10,330 4,620 22,769 328,420 0 0 366,139 14,578 380,717 

IFRS adjustments as of 1st April 2004 

Total equity at 1st April 2004 

31,486 4,225 35,711 35,711 

based on IFRS 10,330 4,620 22,769 359,906 4,225 0 401,850 14,578 416,428 

Net income recognised directly in equity 

Acquisition of minority interest 

–2,403 1,129 –260 –1,534 –140 –1,674 

Consolidated net profi t for the period 

Total recognised income 

25,996 25,996 5,232 31,228 

and expenses for the period 0 0 0 23,593 1,129 –260 24,462 5,092 29,554 

Dividend payment to parent entity –22,000 –22,000 –22,000 

Dividend payment to minorities –4,376 –4,376 

Total equity at 31st March 2005 10,330 4,620 22,769 361,499 5,354 –260 404,312 15,294 419,606 

Net income recognised directly in equity –2,877 –2,637 1,769 –3,745 –933 –4,678 

Consolidated net profi t for the period 

Total recognised income 

33,655 33,655 4,899 38,554 

and expenses for the period 0 0 0 30,778 –2,637 1,769 29,910 3,966 33,876 

Dividend payment to parent entity –26,000 –26,000 –26,000 

Dividend payment to minorities –4,396 –4,396 

Total equity at 31st March 2006 10,330 4,620 22,769 366,277 2,717 1,509 408,222 14,864 423,086 

1) Guidelines to the provisions of Art. 23–27 Ordinance to the Swiss Federal Banking Act (BankO) governing fi nancial statement reporting 

R 

9 


10 


D Statement of Recognised Income 

and Expenses 


Net income recognised directly in equity 

31.3.2006 31.3.2005 

1000 CHF 1000 CHF 

Available-for-sale fi nancial assets 

Gains/losses from changes in fair value –3,347 1,430 

Gains/losses transferred to income on disposal or impairment –2 3 

Actuarial gains/losses on defi ned benefi t pension plans –4,033 –2,897 

Exchange differences on translation of foreign operations 836 –400 

Aggregate tax effect of items taken directly to or transferred from equity 1,868 190 

Total of net income recognised directly in equity –4,678 –1,674 

Consolidated net profi t 38,554 31,228 

Total recognised income and expenses for the fi nancial year 33,876 29,554 

of which attributable to minority interest 4,899 5,232 

of which attributable to shareholders of Rothschild Bank AG 28,977 24,322 

Part 2 

R

E Consolidated Statement of Cashflows 

Part 2 


Notes 2005/06 2004/05 

1000 CHF 1000 CHF 

Consolidated net profi t 

Adjustments for: 

B 38,554 31,228 

– Income tax expenses 7,217 5,601 

– Deferred tax expenses/benefi ts 1,270 442 

– Depreciation, write-offs and impairment of non-current assets 

– Legal expenses and 

5,288 5,021 

impairment losses on loans and receivables 848 838 

– Income from associates 7 4 

Net increase/decrease in operating assets 

– Placements with banks (excluding with equivalents) –10,400 42,855 

– Loans and advances to customers –2,310 16,779 

– Financial assets at fair value through profi t or loss 5,917 3,948 

– Derivative fi nancial instruments 2,658 894 

– Accrued income, prepaid expenses and other assets 1,454 1,032 

Net increase/decrease in operating liabilities 

– Money market instruments –5 –20 

– Loans and advances due to banks 70,483 –39,828 

– Derivative fi nancial instruments –1,812 2,804 

– Client deposits 137,583 –188,765 

– Accrued expenses, deferred income and other liabilities –1,789 –5,198 

– Provisions for legal proceedings –327 0 

– Income taxes paid –6,542 –7,637 

Cash fl ow from operating activities 248,094 –130,002 

Purchase of available-for-sale fi nancial assets 

Proceeds from sale/redemption 

–25,451 –62,484 

of available-for-sale fi nancial assets 23,631 16,141 

Purchase of property, plant and equipment –5,798 –5,254 

Sale and disposal of property, plant and equipment 0 11 

Purchase of intangible assets –630 –76 

Sale and disposal of intangible assets 0 0 

Cash fl ow from investing activities –8,248 –51,662 

Dividend payments –26,000 –22,000 

Dividend payments to minority –4,396 –4,376 

Cash fl ow from fi nancing activities –30,396 –26,376 

Effects of exchange rate changes –4,716 –3,054 

Net increase/decrease in cash and cash equivalents 204,734 –211,094 

R 

11 


12 


E Consolidated Statement of Cash Flows 


Notes 2005/06 2004/05 

1000 CHF 1000 CHF 

Cash and cash equivalents at 1st April 751,490 962,584 

Cash and cash equivalents at 31st March 956,224 751,490 

Net increase/decrease in cash and cash equivalents 204,734 –211,094 

Cash and cash equivalents include cash, credit balances at central banks as well as bills and notes which are eligible for refi - 

nancing at central banks. 

They are structured as follows: 2005/06 2004/05 

1000 CHF 1000 CHF 

Cash 1,815 2,054 

Balances with central banks 14,685 11,938 

Cash and balances with central banks A 16,500 13,992 

Placements with banks at sight 197,117 102,360 

Placements with banks within 90 days 742,607 635,138 

Placements with banks at sight and within 90 days 

Cash and cash equivalents 

21 939,724 737,498 

at the end of the year 956,224 751,490 

The fi gures in the consolidated statement of cash fl ows cannot be directly compared to the balance sheet, in the absence of 

additional information due to the impact of net foreign exchange differences arising on consolidation. 

Part 2 

R

F Notes to the 

Consolidated Financial Statements 

Significant accounting policies 

Rothschild Bank AG (the “Company”) is a company domiciled in Switzerland. The consolidated financial 

statements of the Company for the year ended 31st March 2006 comprise the Company and its subsidiaries 

(together referred to as the “Group”) and the Group’s interest in associates. The ultimate parent company of 

Rothschild Bank AG is Concordia B.V, domiciled in the Netherlands. 

The financial statements were authorised for issue by the Board of Directors on 10th July 2006. 

The consolidated financial statements have been prepared in accordance with International Financial Reporting 

Standards (“IFRS”) and their interpretations adopted by the International Accounting Standard Board (IASB). 

These are the Group’s first consolidated financial statements in which IFRS has been applied. 

An explanation of how the transition to IFRS 1 has affected the reported financial position, financial 

performance and cash flows of the Group is provided in note 43. 

Basis of preparation 

The consolidated financial statements are prepared on the historical cost basis, except for available-for-sale 

investments and financial assets at fair value through profit and loss which are stated at their fair value. The 

reporting currency of the Group is Swiss Francs (CHF). 

The preparation of financial statements requires the use of estimates and assumptions that affect the reported 

amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial 

statements and the reported amounts of revenues and expenses during the reporting period. Although these 

estimates are based on management’s knowledge of current events and actions, actual results may differ from 

those estimates. 

Standards that have been approved but not yet applied 

The following new and revised Standards and Interpretations have been issued, but are not yet effective and 

are not applied early in these consolidated financial statements. Their impact on the consolidated financial 

statements of the Group has not yet been systematically analysed. The expected effects as disclosed in the table 

below reflect a first assessment by Group management. 

Part 2 

R 

13 


14 Standard/Interpretation Effective date Planned application 

by the Company 




Amendments to IAS 39 – Financial Instruments: 

Recognition and Measurement: 

Cash Flow Hedge Accounting of Forecast 

Intragroup Transactions 

The Fair Value Option 

Financial Guarantee Contracts (also applies to 

IFRS 4) 

Amendment to IAS 21 – The Effects of Changes in 

Foreign Exchange Rates 

IFRS 6 – Exploration for and Evaluation of Mineral 

Resources 

IFRIC 4 – Determining whether an Arrangement 

Contains a Lease 

IFRIC 5 – Rights to Interests arising from 

Decommissioning, Restoration and Environmental 

Rehabilitation Funds 

IFRIC 6 – Liabilities Arising from Participating in 

a Specific Market 

Waste Electrical and Electronic Equipment 

IFRIC 7 – Applying the Restatement Approach under 

IAS 29 Financial Reporting in Hyperinflationary 

Economies 

1 

1 

3 

1st January 2006 



Reporting year 2006/7 



1 1st January 2006 Reporting year 2006/7 




1 1st December 2005 Reporting year 2006/7 

1 1st March 2006 Reporting year 2007/8 

IFRIC 8 – Scope of IFRS 2 1 1st May 2006 Reporting year 2007/8 

IFRIC 9 – Reassessment of Embedded Derivatives 1 1st June 2006 Reporting year 2007/8 

IFRS 7 – Financial Instruments: Disclosures 2 1st January 2007 Reporting year 2007/8 

Amendment to IAS 1 – Presentation of Financial 

Statements: Capital Disclosures 


1 No signifi cant impacts are expected on the consolidated fi nancial statements of Rothschild Bank AG Zurich. 

2 Mainly additional disclosures are expected in the consolidated fi nancial statements of Rothschild Bank AG Zurich. 

3 The impact on the consolidated fi nancial statements of Rothschild Bank AG cannot yet be determined with suffi cient reliability. 

The Group is currently further assessing what impact the implementation of all these revised standards will 

have on the consolidated financial statements. 

Basis of consolidation 

Subsidiaries 

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or 

indirectly, usually based on a participation of over 50 % of voting capital, to govern the financial and operating 

policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are 

included in the consolidated financial statements from the date that control commences until the date that 

control ceases. 

Part 2 

R



Associates 

An associate is an entity in which the Group has significant influence, but not control, over the operating and 

financial management policy decisions. This is generally demonstrated by the Group holding in excess of 

20 %, but no more than 50 %, of the voting rights. 

The Group’s investments in associates are initially recorded at cost. Subsequently their value is increased or 

decreased by the Group’s share of the post-acquisition profit or loss, or by other movements reflected directly 

in the equity of the associate. When the Group’s share of losses in an associate equals or exceeds its interest in 

the associate, the Group does not recognise further losses, unless it has incurred obligations or made payments 

on behalf of the associate. Goodwill arising on the acquisition of an associate is included in the cost of the 

investment (net of any accumulated impairment loss). 

Foreign exchange 

The consolidated financial statements are presented in Swiss Francs, which is the Company’s functional 

currency and the Group’s presentation currency. Items included in the financial statements of each of the 

Group’s entities are measured using their functional currency. The functional currency is the currency of the 

primary economic environment in which the entity operates. 

Income statements and cash flows of foreign entities are translated into the Group’s reporting currency at 

average exchange rates for the period and their balance sheets, including goodwill and fair value adjustments, 

are translated at the exchange rate at the end of the period. Foreign exchange differences arising from the 

translation are recognised directly as a separate component of equity. On disposal of a foreign entity, these 

translation differences are recognised in the income statement as part of the gain or loss on sale. 

Transactions in foreign currencies are translated at the foreign exchange rate prevailing at the date of the 

transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are 

translated into Swiss Francs at the foreign exchange rate ruling at the balance sheet date. Foreign exchange 

differences are recognized in the income statement. Non-monetary assets and liabilities denominated in foreign 

currencies that are stated at fair value are translated at the foreign exchange rates ruling at the dates the fair 

value was determined. 

Foreign exchange rates used 

2005/06 2004/05 

Spot rate Average rate Spot rate Average rate 

EUR 1.5810 1.5532 1.5495 1.5400 

GBP 2.2670 2.2740 2.2515 2.2569 

USD 1.3050 1.2756 1.1960 1.2217 

Part 2 

R 

15 


16 Balance Sheet 

Cash and balances with central banks 

Cash and balances with central banks are carried at nominal value. 




Financial assets 

On initial recognition, IAS 39 requires that financial assets be classified into the following categories; at fair 

value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale. 

a) Financial assets at fair value through profit or loss 

This category comprises financial assets held for trading and designated at fair value through profit or loss. 

Financial assets held for trading include securities primarily acquired for the purpose of selling in the short 

term and derivatives that are not designated for hedge accounting. 

These financial assets are initially recognised at fair value, with transaction costs recorded immediately in the 

income statements, and are subsequently measured at fair value. Gains and losses arising from changes in fair 

value are recognised in the income statement. All derivatives are carried as assets when fair value is positive and 

as liabilities when fair value is negative. 

b) Loans and receivables 

Placements with banks and loans and advances to customers are classified as loans and receivables. The 

financial assets are initially recorded at fair value and subsequently at amortised cost using the effective interest 

method. Foreign exchange gains and losses are recorded in the income statement. 

The Group assesses at each balance sheet date whether there is objective evidence that a loan is impaired. 

If there is an objective evidence of impairment and the risk that the counterparty will fail to fulfil its future 

obligations, the loan will be individually assessed for impairment and specific allowance will be made. 

When a loan is determined as finally uncollectible, it is written off against the related allowance for loan 

impairment. Loans are written off after all necessary procedures have been performed and completed. 

Subsequent recoveries of amounts previously written off will be recognised in the income statement. Further 

information is provided in the notes to “Risk Management”. 

c) Held-to-maturity investments 

The Group does not have any financial instruments classified as held-to-maturity investments. 

d) Available-for-sale investments 

The Bank intends to keep its financial assets as held for sale. The financial assets are, therefore, classified at 

“Available-for-sale-assets”. 

Available-for-sale investments comprise non-derivative financial assets that are either designated as availablefor-sale 

on initial recognition or are not classified into the categories described above. They are initially 

recognised at fair value, including direct and incremental transaction costs, and are subsequently measured at 

fair value. 

Part 2 

R



Gains and losses arising from changes in the fair value of available-for-sale financial assets are recognised in 

equity until the financial asset is sold or impaired, at which time the cumulative gain or loss is transferred to 

the income statement. 

Available-for-sale assets carried at fair value are assessed at each balance sheet date to determine whether there 

is objective evidence that a financial asset or group of financial assets is impaired. 

A financial asset or a group of financial assets is impaired and impairment losses are incurred if, and only 

if, there is objective evidence of impairment as a result of one or more events that occurred after the initial 

recognition of the asset (a "loss event") and that loss event (or events) has an impact on the estimated future 

cash flows of the financial asset or group of financial assets that can be reliably estimated. 

The Group first assesses whether objective evidence of impairment exists individually for financial assets 

that are individually significant, and individually or collectively for financial assets that are not individually 

significant. If the Group determines that no objective evidence of impairment exists for an individually assessed 

financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit 

risk characteristics and collectively assesses them for impairment. 

Assets that are individually assessed for impairment and for which an impairment loss is or continues to be 

recognised are not included in a collective assessment of impairment. 

For equity shares classified as available-for-sale, a significant or prolonged decline in the fair value below 

their cost is considered evidence of impairment. If any such evidence exists a cumulative loss that has been 

recognised directly in equity is removed from equity and recognised in the income statement. Recognised 

impairment losses on equity instruments classified as available-for-sale are not reversed through the income 

statement, but are recorded in equity. 

Impairment of available-for-sale debt securities is based on the same criteria as for all other financial assets. 

If in a subsequent period the fair value of a debt instrument classified as available-for-sale increases and the 

increase can be objectively related to an event occurring after the impairment loss was recognised in the income 

statement, the impairment loss is reversed through the income statement. 

e) Determination of fair value 

The fair value of quoted investments that are traded in an active market is based on current market prices. 

Fair values are based on quoted market prices when available. 

Where no quoted prices are available for a particular derivative, its fair value is determined by reference to 

quoted market prices for its component parts. Fair values reflect adjustments for credit risk and market risk. 

For other financial assets, the Group establishes fair value by using appropriate valuation techniques. These 

include the use of recent arm’s length transactions, discounted cash flow analysis, option pricing models and 

other valuation methods commonly used by market participants. The carrying value of non-current financial 

assets and liabilities approximates fair value. 

Credit risk adjustments are made by reference to default probabilities based on the counterparty’s credit rating 

or by an impairment test. Market risk adjustments reflect the cost which would be incurred in closing out 

market risk positions. 

Part 2 

R 

17 


18 




Property plant and equipment 

Properties and equipment are stated at cost or at deemed cost, less accumulated depreciation and impairment 

losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. 

At first-time adoption the Group used transitional provisions under IFRS 1. Buildings that had been revalued 

to fair value as at April 1st, 2004, the date of transition to IFRS, were measured on the basis of deemed cost, 

being the revalued amount at the date of that revaluation. 

Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of the 

property plant and equipment. Land is not depreciated. 

The estimated useful lives are as follows: 

Computers 3–5 years 

Cars 3–5 years 

Fixtures and fittings 3–10 years 

Leasehold improvements 5–15 years 

Buildings 50 years 

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet 

date. 

Gains and losses on disposals are determined by comparing proceeds with carrying amounts. These gains and 

losses are recognised in the income statement. 

Intangible assets 

Intangible assets consist primarily of software applications that are stated at cost less accumulated amortisation 

and impairment losses. Software is amortised over an estimated useful life of 3–5 years using a straight-line 

method. 

Other intangible assets 

The Group entered into a transaction to secure the trusteeship of a number of trusts from a former competitor 

on their exiting the market. The Group assessed the useful economic life of the associated ultimate client 

relationships as being 10 years. The purchase price is amortised on a straight line basis over 10 years and is 

subject to impairment review. 

Impairment of property, plant and equipment and intangible assets 

At each balance sheet date, or more frequently where events or changes in circumstances dictate, property, 

plant and equipment and intangible assets are assessed for indications of impairment. If such indications are 

present, these assets are subject to an impairment review. 

If impaired, the carrying values of assets are written down by the amount of any impairment and the loss is 

recognised in the income statement in the period in which it occurs. A previously recognised impairment 

loss relating to a property, plant and equipment or intangible assets (excluding any goodwill) may be reversed 

when a change in circumstances leads to a change in the estimates used to determine the assets’ recoverable 

amount. 

Part 2 

R



The carrying amount of the asset is only increased up to the amount that it would have been had the original 

impairment not been recognised. 

Financial liabilities 

Financial liabilities comprise money market instruments, loans and advances due to banks and client deposits. 

Financial liabilities are recognised initially at fair value less attributable transaction costs. Subsequent to initial 

recognition, the financial liabilities are carried at amortised cost using the effective interest rate method. 

Employee benefits 

In addition to the legally prescribed social security plans, the Group maintains several defined contribution 

and defined benefit pension plans in Switzerland and abroad. 

The pension plans are organised in legally separate pension funds. These are managed by a board of trustees 

consisting of representatives of the employees and the employer. 

Current employees and pensioners or their survivors receive statutorily determined benefits upon leaving the 

company or retiring as well as in the event of death or invalidity. These benefits are financed through employer 

and employee contributions. 

In the case of defined benefit pension plans, the pension expenses and obligations are measured according to 

the projected unit credit method. The corresponding calculations are carried out by independent qualified 

actuaries annually. 

In adopting IFRS, as of April 1st, 2004, the excess of the fair value of plan assets over the present value of the 

benefit obligations of the Swiss pension plan has been recognised as an asset in the Group financial statements 

only to the extent that economic benefits are available in the form of refunds from the plan or reductions in 

future contributions to the plan would be possible. 

The excess of the present value of the benefit obligations over the fair value of the plan assets of the overseas' 

employees pension fund has been fully recognised as a liability. 

Actuarial gains or losses from changes in actuarial assumptions and experience adjustments used for valuing the 

assets and liabilities of defined benefit plans at fair value at the balance sheet date are immediately recognised 

in the balance sheet with a corresponding movement in the statement of recognised income and expense. 

In the case of defined contribution pension plans, the contributions are expensed when paid. 

Provisions 

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past 

events. In addition, it must be probable that a transfer of economic benefits will be required to settle the 

obligation, and it must also be possible to make a reliable estimate of the amount of the obligation. If the effect 

is material, provisions are determined by discounting the expected future cash flows. 

Part 2 

R 

19 


20 




Statement of income 

Interest income and expense 

Interest income and expenses are recognised in the income statement for all interest bearing instruments on 

an accrual basis using the effective interest method. Interest receivable and payable represent all interest arising 

out of banking activities. 

Revenue is recognised only when it is probable that the economic benefits associated with the transaction will 

flow to the entity. 

Interest including accrued interest that are due and unpaid for more than 90 days are considered as being at 

risk and an appropriate provision is established. 

Fee and commission income and expense 

The Group earns fee and commission income from services provided to clients. Fee income from advisory 

and other services can be divided into two broad categories; fees earned from services that are provided over 

a period of time, which are recognised over the period in which the service is provided; and fees that are earned 

on completion of a significant act or on the occurrence of an event, such as the completion of a transaction, 

which are recognised when the act is completed or the event occurs. 

Fees and commissions that are an integral part of a loan are deferred and recognised over the life of the loan as 

an adjustment to the effective interest rate. Revenue is recognised only when it is probable that the economic 

benefits associated with the transaction will flow to the entity. Commission including accrued commission 

that are due and unpaid for more than 90 days are considered as being at risk and an appropriate allowance 

is established. 

Portfolio and other management advisory and service fees are recognised based on the applicable service 

contracts. Asset management fees related to investment funds are recognised over the period the service is 

provided. The same principle is applied to the recognition of income from wealth management, financial 

planning and custody services that are continuously provided over an extended period of time. 

Operating lease and rental agreements 

The Group has entered into operating leases in respect of equipment. The total payments made under 

operating leases are charged to the income statement on a straight-line basis over the period of the leases. There 

are no claims or commitments from finance leases. 

Part 2 

R



Income tax 

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in 

the income statement except to the extent that it relates to items recognised directly in equity, in which case 

it is recognised in equity. 

Deferred tax is provided in full, using the balance sheet liability method, on temporary differences arising 

between the tax bases of assets and liabilities and their carrying amounts. Deferred tax is determined using tax 

rates enacted or substantially enacted at the balance sheet date. 

Deferred tax assets, including the tax effects of income tax losses available for carry forward, are only recognised 

where it is probable that future taxable profits will be available against which the temporary differences can 

be utilised. 

Reverse repurchase transactions 

Reverse repurchase transactions and repurchase transactions are only transacted on an intra-day basis and 

therefore no amounts are recorded in the balance sheet. 

Interest income from reverse repurchase transactions and interest expenses from repurchase transactions are 

recorded in the consolidated income statement. 

Fiduciary placement activities 

The Group acts as custodian and in other fiduciary capacities that result in the holding or placing of assets on 

behalf of customers. These assets and the interest income arising therefrom are excluded from these financial 

statements, as they are not assets of the Group. 

Key assumptions and sources of estimation uncertainties 

The Group prepares the consolidated financial statements in accordance with the Standards of IFRS. The 

application of certain of these accounting principles requires a significant amount of judgment based on 

estimations and assumptions that could involve significant uncertainties at the time they were prepared. We 

believe that the assumptions and estimations we made are appropriate and that the consolidated financial 

statements of the Group therefore present the financial position and results fairly in all material respects. 

a) Pension and other post-employment benefits: The Group's employees participate in post-employment 

defined benefit or defined contribution plans as set out in Note 14. The calculation of the recognised assets and 

liabilities from such plans are based upon statistical and actuarial calculations. In particular the present value 

of the defined benefit obligation is impacted by assumptions on discount rates used to arrive at the present 

value of future pension liabilities, and assumptions on future increases in salaries and benefits. Furthermore, 

the Group's independent actuaries use statistically based assumptions covering areas such as future withdrawals 

of participants from the plans and estimates on life expectancy. 

b) Income tax expense: Significant estimates are required in determining the current and deferred assets and 

liabilities for income tax. Some of these estimates are based on interpretations of existing tax laws or regulations. 

Management believes that the estimates are reasonable and that the recognised liabilities for income tax-related 

uncertainties are adequate. 

Part 2 

R 

21 



F Notes on Risk Management 

22 General Principles 

Taking risks lies at the heart of banking. Dealing with these risks is therefore an important part of the corporate 

culture of Rothschild Bank. The risk policy and risk management are of particular importance in this regard. 

The Board of Directors of the Bank is responsible for the formulation and implementation of the risk policy. 

To this end, the Board of Directors has established a written risk policy which both takes into account the 

circumstances of the business activities of the Bank and its subsidiaries and also reflects the capital funds 

situation of the group, the interest of the shareholders and the regulatory environment. The risk policy is 

constantly monitored and amended if necessary. 

The formal methodology of the risk policy relates primarily to the observance of strict quantitative risk limits, 

especially for credit and market risks, and to the qualitative aspects of risk diversification and of working 

procedures for reducing operational risks. At the same time, great importance is attached to the risk awareness 

of the management bodies and all group staff. Hence the Board of Directors and the Management Committee 

pursue an open risk culture which is also implemented by responsible, careful and professional behaviour 

from all employees. The group consciously depends on the personal integrity, specialist competence and riskawareness 

of each individual. 

The implementation of the risk policy and risk culture is the responsibility of the Management Committee. 

Management are supported in this by a risk control unit which is independent from trading and client-related 

services and monitors compliance with limits and the risk policy. The competencies of the Management 

Committee are laid down by the Board of Directors in the Articles and the risk policy. According to the 

Articles, large credit transactions or new business activities must be submitted to the Committee of the Board 

of Directors for approval. The Management Committee has further delegated some of its competencies to 

individuals or sub-committees of the Management Committee by means of internal operating instructions, 

for example to the Credit Committee or the Treasury Committee. 

Credit Risks 

Credit risk describes the potential for loss as a result of insolvency of a client or counterparty. A potential loss 

arises in particular when maturing loans or other obligations to payment are not repaid or cannot be repaid 

when due. For this reason loans and other credits are only granted after taking into account fundamental 

principles of caution. Since the banking business is strongly focused on private banking, loans are mainly 

granted against collateral in the form of pledged investment portfolios. 

The competencies for loans approvals and the monitoring of credit positions are subject to clear rules and 

supervised by people who are independent of the client advisors. The Board of Directors and the Management 

Committee have laid down clear guidelines for loanable values and the pledging of collateral. In general, 

collateralised assets are held in the Bank’s custody and pledged to the Bank under contractual agreements. The 

loanable values of the pledged portfolios, which are derived from market values, are compared daily to the loan 

commitments secured and are subject to constant monitoring. If coverage threatens to become insufficient, 

steps are taken to re-establish the necessary loanable value. If in exceptional cases no published market value 

is available for a collateralised asset, internal valuations calculated using standard banking methods will be 

applied. General principles have also been set out that aim for appropriate diversification of loan commitments 

and collateral. The concentration of risks on one client or counterparty or on one group of linked clients or 

counterparties is constantly monitored. Appropriate measures are taken to avoid the emergence of “cluster 

risks”, taking into account the risk policy of the group and the legal regulations. 

No “cluster risks” have arisen in the financial year 2005/06. The maximum default risk for Rothschild Bank 

corresponds to the balance sheet position. 

Part 2 

R


Counterparties are defined as banks or brokers with which the Bank trades or from which it purchases services. 

Counterparties are carefully selected on the basis of their creditworthiness, drawing on external ratings. 

Transactions with banks and brokers that lead to a potential credit exposure are subject to the availability of an 

internal limit for the counterparty in question. The approval of such limits is linked to rules similar to those 

for approving loans to clients. Large counterparty limits must be submitted to the Committee of the Board of 

Directors for approval. 

Liquidity risk 

Liquidity risk describes the risk that in some circumstances, for example changed market conditions, the Bank 

might not be able to meet all its payment obligations as they fall due. To avoid this happening the Bank has 

to carefully arrange incoming and outgoing payment streams and actively manage the maturity structure of 

its payment obligations. The total of payment obligations results from the maturity structure of balance sheet 

transactions and from the settlement of trading and off-balance sheet transactions. Balance sheet transactions 

are subject to liquidity rules under banking law, which prescribe a certain level of short-term assets in relation 

to liabilities. Constant supervision ensures compliance with the requirements of banking law. In addition, 

the treasury unit carefully places the money flows arising from balance-sheet, trading and off-balance sheet 

transactions several times a day. At the same time the money-market trading unit manages the short-term 

maturity structure so that sufficient liquidity is available at any time. The Bank maintains additional liquidity 

facilities in the form of overdraft lines at correspondent banks and secured finance facilities with clearing 

institutions for the exceptional event that counterparties or clients do not meet their payment obligations 

punctually. 

Market Risk 

Market risk describes the risk that the Bank could suffer losses as a result of changes on the financial markets 

(interest rates, FX rates, share prices). The business policy of the Bank is to only permit open market risk 

positions to a small degree in relation to client business volumes and available capital funds. 

The Board of Directors of the Bank has laid down specific and general risk limits for each risk category (interest 

rates, FX, precious metals, equities and options). The Management Committee has partially delegated the use 

of these risk limits to the trading department. The Treasury Committee manages general interest rate risk in 

the banking book and monitors the balance sheet structure. Market risk positions are calculated using the 

standard method as specified by the Swiss Federal Banking Commission. Calculation of risk positions and 

monitoring of compliance with the limits is performed by a team independent from the trading department. 

Market risk positions may only be taken within the approved limits. They are calculated daily using published 

market data and reported daily to the members of the Management Committee together with the resulting 

profits and losses. 

Positions in bonds, equities, investment funds and structured products held in the trading book are valued 

daily and booked in the balance sheet under “Financial assets at fair value through profit or loss”. Derivative 

instruments are shown as a separate balance sheet item; on the assets side in the case of a positive replacement 

value and on the liabilities side in the case of a negative replacement value. Positions in precious metals, which 

are also taken through the profit and loss account every day, are booked under “Other assets”. 

Financial investments in bonds are mainly used to manage the interest rate risk in the banking book. These 

positions are also valued regularly and the valuation differences applied against the reserves in equity. These 

financial investments are shown under assets in the item “Available-for-sale financial assets”. 

Interest risks for different currencies are shown in table 21. Balance sheet positions in foreign currencies are 

shown in table 24. Equity market risk position was CHF 8.7 million as per 31st March 2006. 

Part 2 

R 

23 




24 Operational Risk 

Operational risk entails the possibility that losses may be incurred directly or indirectly due to the 

inappropriateness or failure of internal procedures, persons or systems or due to external events that cannot be 

influenced. Operational security is a high priority for the Bank. In accordance with best practice standards in 

banking and the Bank’s dedication to ensure high quality services for its clients, the Management Committee 

has implemented a set of processes and work flows by means of internal policies and procedures on organisation 

setup and controls, which are designed to maintain operational security at a high level. Particular attention is 

given to the quality and skills of staff, the segregation of duties, the careful selection of counterparties and the 

security of the central computer systems and networks. 

The Internal Audit department reviews the procedures and internal controls at regular intervals. 

The central computer system is operated in association with Banque Privée Edmond de Rothschild in Geneva. 

Both banks subscribe to high security standards, which are monitored on a regular basis thus ensuring that 

bank-client confidentiality is maintained. The Service Level Agreement providing the contractual basis for 

these standards corresponds to the requirements of the Swiss Federal Banking Commission. 

The Board of Directors has considered the main Operational Risks of the Group in connection with the 

forthcoming Banking Ordinance and Regulation (Basel II) and has issued guidelines (principles) for the 

measurement and limitation of Operational Risk. These guidelines will additionally be implemented by the 

end of 2006. In this respect, the Basic Indicator Approach will be implemented. 

Legal Risks and Compliance 

In order to monitor legal and regulatory risks, the Bank maintains a Legal Department and a Compliance 

Office. These ensure that the Bank’s business activities are conducted in accordance with the applicable 

regulations and the obligation of financial intermediaries to observe due diligence. A Directives Committee 

comprising members of the Management Committee, the Internal Audit Department, the Legal Department 

and the specialist units affected is responsible for reviewing the requirements and developments on the part of 

the supervisory authority, legislators or other organisations and implementing their findings in the directives. 

When required, external legal advice is sought. 

The Group may be involved in litigation and legal proceedings in the course of the financial year. If in the 

opinion of the Bank or subsidiary and its legal advisors it is likely that payments will have to be made and 

the amount can be estimated, the Bank or subsidiary makes provisions for legal risks. For all other litigation 

known to the Bank and its subsidiaries the Management Committee and its legal advisors proceed from the 

assumption that the claims in question are either without merit and can be successfully refuted or will have no 

significant impact on the financial situation of the Bank and its subsidiaries. 

Part 2 

R



1 Placements with banks/Client deposits 

The Group has a large number of fi duciary placements with third and affi liated parties on the account and at the risk of the 

customers. At 31st March 2006 CHF 451.3 Mio. (31st March 2005: CHF 343.9 Mio.) were entered into fi duciary placements with 

Rothschild Bank Switzerland (C.I.) Limited, Guernsey. Based on the general consolidation principles, these fi duciary placements 

were eliminated leaving placements with banks and loans and advances to customers within the consolidated balance sheet. 

The exposures on loans and advances due to banks comply with the Group’s credit risk policy. As counterparties, only international 

banking groups or entities with an adequately high credit rating assigned by international rating agencies are considered. 

Lower or non-rated banking groups or entities are only considered if the risk can be offset by additional collateral securities such 

as government or state guarantees (Cantonal banks or Raiffeisen banks). All placements with banks are granted for the account 

of the Group or customers but at the risk of the Group. The Group has no signifi cant concentration of credit risks, with exposure 

spread over a large number of counterparties. 

2 Loans and advances to customers 

Mortgage Other Without 

collateral collateral collateral Total 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Loans and advances to customers 3,500 144,595 26,019 174,114 

Total loans 31.3.2006 3,500 144,595 26,019 174,114 

31.3.2005 3,500 148,630 19,685 171,815 

Other collaterals primarily include diversifi ed securities portfolios that are pledged. The Group is permitted to sell, in case of 

default by the owner, these collaterals based on signed customers general pledge and assignment agreements. All collaterals are 

calculated at fair value and monitored on a daily basis. The fair value of the pledged securities portfolio is determined on the basis 

of publicly available market prices. 

Non-performing loans Gross Estimated Net Individual 

debt amount realisable 

value of 

collateral 

debt amount provisions 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Total non-performing loans 31.3.2006 22,355 0 22,355 22,355 

31.3.2005 21,633 0 21,633 21,633 

– Thereof debt amount for capital 31.3.2006 9,881 9,881 9,881 

31.3.2005 9,881 9,881 9,881 

– Thereof amount for 

overdue interest 31.3.2006 12,474 12,474 12,474 

31.3.2005 11,752 11,752 11,752 

Part 2 

R 

25 


26 




Allowance for non-performing loans Usage Translation Overdue Newly Reversals 

Balance in con- differences interest charged to credited to Balance 

1.4. formity income income 31.3. 

with their 

purpose 

statement statement 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Allowance for non-performing 

loans and other credit risks 21,633 722 22,355 

Subtotal 

Less valuation adjustments 

21,633 0 0 722 0 0 22,355 

directly netted with assets 21,633 22,355 

Allowances for non-performing loans were made in accordance with the Group’s risk management policy as set out on 

page 22. 

3 Financial assets at fair value through profi t or loss 

31.3.2006 31.3.2005 

Held for Designated Total Held for Designated Total 

trading as at fair trading as at fair 

value value 

through through 

profi t or loss profi t or loss 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Interest bearing securities – 

exchange listed 

Interest bearing securities – 

0 2,196 2,196 353 12,803 13,156 

non-exchange listed 0 10 10 0 0 0 

Shares – exchange listed 225 0 225 134 0 134 

Shares – non-exchange listed 

Investment funds – 

0 0 0 25 0 25 

exchange listed 

Investment funds – 

917 0 917 0 0 0 

non-exchange listed 

Inhouse investment funds – 

6,482 0 6,482 3,299 0 3,299 


Structured products – 

1,062 0 1,062 1,937 3,099 5,036 


Total fi nancial assets at fair value 

4,841 0 4,841 0 0 0 

through profi t or loss 13,527 2,206 15,733 5,748 15,902 21,650 

of which eligible for discount 

with central banks 0 0 0 0 0 0 

Part 2 

R



4 Derivative fi nancial instruments 

31.3.2006 31.3.2005 

Trading instruments Trading instruments 

Fair values Contract Fair values Contract 

Assets Liabilities value Assets Liabilities value 


Foreign exchange 

Forwards 10,294 9,466 899,739 12,645 10,970 936,148 

Options (Over the counter) 

Shares/indices 

2,341 2,341 406,864 2,637 2,637 445,637 

Forwards 

Total before consideration 

– – – 11 11 319 

of netting contracts 12,635 11,807 1,306,603 15,293 13,618 1,382,104 

The Group does not apply hedge accounting. 

Analysis of counterparties 31.3.2006 31.3.2005 

of derivative instruments Fair values Contract Fair values Contract 

Assets Liabilities value Assets Liabilities value 


Banks and derivative exchanges 

– with duration up to 1 year 5,197 6,326 650,613 5,510 9,146 755,766 

– with duration over 1 year – – – – – – 

Customers with collateral 7,438 5,481 655,990 9,783 4,472 626,338 

Total 12,635 11,807 1,306,603 15,293 13,618 1,382,104 

5 Available-for-sale fi nancial assets 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Interest bearing securities – exchange listed 160,721 161,407 –686 –0.4 

Shares – non-exchange listed 0 823 –823 –100.0 

Other 2,281 2,339 –58 –2.5 

Total available-for-sale fi nancial assets 163,002 164,569 –1,567 –1.0 

of which eligible for discount at central banks 53,426 55,850 –2,424 –4.3 

Part 2 

R 

27 


28 




6 Investments in associates 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Investments in associates 

at equity method – with market value 

Investments in associates 

0 0 0 0.0 

at equity method – without market value 60 67 –7 –10.4 

Total investments in associates 60 67 –7 –10.4 

Movements in investments in associates 31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

At 1st April 67 71 –4 –5.6 

Share of current year’s loss –7 –4 –3 75.0 

Exchange adjustments 0 0 0 0.0 

Impairment charge 0 0 0 0.0 

Dividends collected 0 0 0 0.0 

Additions 0 0 0 0.0 

Disposals 0 0 0 0.0 

At 31st March 60 67 –7 –10.4 

Financial information 31.3.2006 31.3.2005 Change 

on investments in associates 1000 CHF 1000 CHF 1000 CHF % 

Assets 172 5,686 –5,514 –97.0 

Liabilities 0 5,496 –5,496 –100.0 

Shareholder’s equity 172 190 –18 –9.5 

Revenues 4 8 –4 –50.0 

Loss –22 –11 –11 100.0 

The fi nancial year of the associate Beleggings- en Exploitatiemaatschappij Brine B.V., Amsterdam, ends on 31st December. Material 

or signifi cant transactions during the interim period from 1.1. to 31.3.2005 and 1.1. to 31.3.2006 are considered and included 

where necessary. The Group holds 35% of the shares with voting rights in Brine B.V. 

Part 2 

R



7 Property, plant and equipment 

Bank buildings Other buildings Fixtures and Other Total 

and land and land fi ttings fi xed assets 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Cost 

at 1st April 2004 37,290 33,800 7,322 7,896 86,308 

Foreign exchange differences – – – – – 

Additions 0 0 3,191 2,095 5,286 

Disposals 0 0 0 –11 –11 

at 31st March 2005 37,290 33,800 10,513 9,980 91,583 

Accumulated depreciation 

at 1st April 2004 0 0 –2,497 –4,912 –7,409 


Disposals 0 0 0 0 0 

Charge for the period –204 –156 –1,046 –2,058 –3,464 

at 31st March 2005 –204 –156 –3,543 –6,970 –10,873 

Net book value at 31st March 2005 37,086 33,644 6,970 3,010 80,710 

Cost 

at 1st April 2005 37,290 33,800 10,513 9,980 91,583 


Additions 0 0 2,103 3,675 5,778 

Disposals 0 0 0 –1,405 –1,405 

at 31st March 2006 37,290 33,800 12,616 12,250 95,956 


at 1st April 2005 –204 –156 –3,543 –6,970 –10,873 


Disposals 0 0 0 1,405 1,405 

Charge for the period –204 –156 –1,279 –2,887 –4,526 

at 31st March 2006 –408 –312 –4,822 –8,452 –13,994 

Net book value at 31st March 2006 36,882 33,488 7,794 3,798 81,962 

Bank buildings and land are owner-occupied and held for ordinary business and administration purposes in order to provide 

various services to customers, third parties and subsidiaries. Other buildings and land are held as offi ce space reserves in case of 

future increases in business and administration requirements and therefore are currently rented out on the basis of short term 

rental agreements that gives the Group the fl exibility to use the buildings after a short period of notice. 

Fire insurance value 31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Fire insurance value of real estate 90,068 90,066 2 0.0 

Fire insurance value of other fi xed assets 27,250 20,739 6,511 31.4 

Part 2 

R 

29 


30 




8 Intangible assets 

Software Other Total 

intangibles intangible 

assets 

1000 CHF 1000 CHF 1000 CHF 

Cost 

at 1st April 2004 4,749 0 4,749 

Foreign exchange differences – – – 

Additions 172 0 172 

Disposals 0 0 0 

at 31st March 2005 4,921 0 4,921 


at 1st April 2004 –1,999 0 –1,999 


Disposals 0 0 0 

Charge for the period –1,557 0 –1,557 

at 31st March 2005 –3,556 0 –3,556 

Net book value at 31st March 2005 1,365 0 1,365 

Cost 

at 1st April 2005 4,921 0 4,921 


Additions 229 400 629 

Disposals –2,970 0 –2,970 

at 31st March 2006 2,180 400 2,580 


at 1st April 2005 –3,556 0 –3,556 


Disposals 2,970 0 2,970 

Charge for the period –723 –39 –762 

at 31st March 2006 –1,309 –39 –1,348 

Net book value at 31st March 2006 871 361 1,232 

Part 2 

R



9 Deferred tax assets and liabilities 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Deferred tax assets on 

Pension obligation 1,163 856 307 35.9 

Others 875 0 875 – 

Total deferred tax assets 2,038 856 1,182 138.1 

Deferred tax liabilities on 

Available-for-sale fi nancial assets 733 1,445 –712 –49.3 

Investments in associates 13 14 –1 –7.1 

Property, plant and equipment 9,008 9,084 –76 –0.8 

Accrued income 123 45 78 173.3 

Pension assets 127 127 0 0.0 

Reserves for general banking risks 3,425 3,425 0 0.0 

Total deferred tax liabilities 13,429 14,140 –711 –5.0 

Net tax liabilities 11,391 13,284 –1,893 –14.3 

The tax effect of changes directly recognised in equity was TCHF 1,813. 

10 Tax losses carried forward 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Tax losses to carry forward in Group companies 12,348 7,685 4,663 60.7 

– of which capitalised as a deferred tax asset 2,727 0 2,727 0.0 

– of which not capitalised 9,621 7,685 1,936 25.2 

Expiry dates of tax losses carried forward of CHF 3.8 Mio. are between 2007 and 2016 and CHF 1.9 Mio. after 2016. On the 

remainder there is no expiry date. 

11 Accrued income, prepaid expenses and other assets 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Accrued income and prepaid expenses 14,398 9,062 5,336 58.9 

Fees receivable 7,607 11,789 –4,182 –35.5 

Interest receivable 2,527 4,675 –2,148 –45.9 

Total accrued income and prepaid expenses 24,532 25,526 –994 –3.9 

Withholding tax 170 236 –66 –28.0 

Compensation accounts, stamp duty, VAT 234 266 –32 –12.0 

Other 573 1,733 –1,160 –66.9 

Total other assets 977 2,235 –1,258 –56.3 

Total 25,509 27,761 –2,252 –8.1 

Part 2 

R 

31 


32 




12 Pledged or assigned assets 

31.3.2006 31.03.2005 

Pledged or ceded assets of which of which 

and assets subject to reservation of title Book value used Book value used 

without securities lending and borrowing and without 

repurchase and reverse repurchase agreements 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Money market instruments 0 0 0 0 

Loans and advances to banks 1,014 209 1,282 294 

Available-for-sale fi nancial assets 34,094 0 33,079 0 

Total 35,108 209 34,361 294 

These assets are pledged for commitments at the central bank (Swiss National Bank), for stock exchange security deposits and 

for margin accounts. 

13 Country risks – Geographical analysis of assets 

31.3.2006 31.3.2005 

1000 CHF Share in % 1000 CHF Share in % 

Switzerland 307,206 20.81 265,048 20.89 

United Kingdom 390,684 26.47 315,044 24.83 

European Union (excluding United Kingdom) 568,123 38.49 541,380 42.67 

Other European 1,889 0.13 2,594 0.20 

North America 79,916 5.41 23,710 1.87 

Central and South America 54,501 3.69 53,853 4.24 

Asia 49,974 3.39 63,039 4.97 

Australia, New Zealand 19,901 1.35 2,728 0.22 

Africa 3,880 0.26 1,345 0.11 

Total 1,476,074 100.00 1,268,741 100.00 

Part 2 

R



14 Rothschild Bank Group Pension Plans 

All employees of Rothschild Bank AG are members of a pension scheme. The pension schemes in Switzerland are either defi ned 

contribution plans or defi ned benefi t plans, while those abroad are defi ned benefi t plans. 

Swiss pension plan 

Defi ned contribution plan 

In addition to the legally prescribed social security plans, the Rothschild Bank Group maintains a defi ned contribution pension 

plan whose assets are held in a legally independent and autonomously managed pension plan foundation. 

Defi ned benefi t plan 

The Group has, apart from the legally required social security schemes, an independent pension plan. 

The Swiss pension plan is included in the IAS 19 calculation for defi ned benefi t plans. According to Swiss law it qualifi es as a 

defi ned contribution plan. This plan is a legally independent foundation "Pensionskasse der Rothschild Bank AG" for which the 

Group is not liable. The organisation, management and fi nancing of the pension plan comply with the legal requirements and the 

foundation charter. 

The plan is funded by contributions from the Group and the employees. Current employees and pensioners receive statutorily 

determined benefi ts upon leaving the company or retiring, as well as in the event of death or invalidity. 

For IFRS purposes the present value of defi ned benefi t obligation is calculated by applying the projected unit credit method. The 

relevant costs as determined under IAS 19 have been covered by the employer’s contribution and are recognised as an expense 

in personnel expenses. Actuarial gains or losses from changes in actuarial assumptions and experience adjustments used for valuing 

the assets and liabilities are immediately recognised in the balance sheet with a corresponding adjustment in the statement 

of recognised income and expense. 

31.3.2006 31.3.2005 

1000 CHF 1000 CHF 

Pension Assets 598 598 

Pension Assets are made up of reserves for employer contributions. 

UK pension plans 

Defi ned benefi t plans 

The Group’s subsidiaries Rothschild Bank Switzerland (C.I.) Ltd., St Peter Port, Rothschild Trust Guernsey Ltd., St Peter Port and 

Rothschild Trust (Bermuda) Ltd., Bermuda, participate in the NMR Overseas Pension Fund, a defi ned benefi t scheme operated 

for the benefi t of employees of certain Rothschild Group entities outside the United Kingdom and outside of Switzerland. These 

entities have accounted for their share of the assets, the liabilities and the costs of the NMR Overseas Pension Fund, this share 

being determined by reference to the active, deferred and pensioner membership of the fund. The fi gures set out below for the 

Group include the proportion of the NMR Overseas Pension Fund attributable to the entities participating. 

Part 2 

R 

33 


34 




Other pension plans 

Defi ned contribution plans 

The Group’s subsidiaries Rothschild Vermögensverwaltungs-GmbH, Frankfurt, and Rothschild Gestion S.A., Madrid, participate in 

collective pension funds, which are managed externally. The employer contributions are accordingly considered as expenses. 

Additional information on the actuarial calculation of pension obligations 

The Group maintains a number of defi ned contribution pension plans, primarily abroad. In the case of defi ned contribution pension 

plans, the pension expenses are charged to the income statement in the corresponding fi nancial year. 

The Group expects contributions to the Swiss pension plans for the annual period beginning after 31st March 2006 of CHF 5.9 

Mio. and CHF 1.6 Mio. for the UK Overseas pension plan. 

14 Actuarial calculation of pension obligations under defi ned benefi t plans 

Swiss pension plan UK overseas pension plan 

31.3.2006 31.3.2005 31.3.2006 31.3.2005 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Development of obligations and assets 

Present value of funded obligation at start of year –120,538 –114,564 –36,134 –30,959 

Service cost –5,199 –5,082 –1,802 –2,001 

Past service cost 0 0 0 0 

Interest cost –4,219 –4,010 –1,980 –1,800 

Curtailments/settlements 0 0 0 0 

Benefi ts paid 2,442 3,118 1,918 798 

Actuarial gain/loss on benefi t obligation –5,285 0 –4,978 –2,172 

Present value of funded obligation at end of year –132,799 –120,538 –42,976 –36,134 

Fair value of plan assets at start of year 122,533 115,319 29,525 26,469 

Expected return on plan assets 4,901 4,613 2,003 1,848 

Employer’s contributions 3,921 4,290 4,994 1,446 

Employees’ contributions 1,561 1,515 0 0 

Curtailments/settlements 0 0 0 0 

Benefi ts paid –2,442 –3,118 –1,918 –798 

Actuarial gain/loss on plan assets 5,023 –86 2,362 560 

Fair value of plan assets at end of year 135,497 122,533 36,966 29,525 

Part 2 

R



14 Actuarial calculation of pension obligations under defi ned benefi t plans (continued) 

Part 2 


31.3.2006 31.3.2005 31.3.2006 31.3.2005 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Balance sheet (EOY) 

Fair value of plan assets 135,497 122,533 36,966 29,525 

Defi ned benefi t obligation –132,799 –120,538 –42,979 –36,134 

Funded status 2,699 1,996 –6,013 –6,609 

Unrecognised asset due to IAS 19.58 –2,101 –1,398 0 0 

Net assets based on actuarial assumptions 598 598 –6,013 –6,609 

Deferred taxes –127 –127 1,136 856 

Retained earnings 471 471 –4,877 –5,753 

Profi t and loss statement 

Service cost –5,199 –5,082 –1,802 –2,001 

Interest cost –4,219 –4,010 –1,980 –1,800 

Expected return on plan assets 4,901 4,613 2,003 1,848 

Net actuarial gain/loss recognised in the year 0 0 0 0 

Past service cost recognised in the year 0 0 0 0 

Net periodic pension cost –4,517 –4,479 –1,779 –1,953 

Employees’ contributions 1,561 1,515 0 0 

Expense recognised in the income statement –2,955 –2,964 –1,779 –1,953 

Movements in net assets recognised in the balance sheet 

Net actuarial asset calculation at start of year 598 598 –6,609 –4,490 

Expense recognised in the profi t and loss statement –2,955 –2,964 –1,779 –1,953 

Employer’s contributions 3,921 4,290 4,994 1,446 

Prepaid/accrued pension cost 966 1,326 3,215 –506 

Actuarial gain/loss in the year recognised in equity –966 –1,326 –2,616 –1,612 

Net actuarial asset/obligation calculation at end of year 598 598 –6,013 –6,609 

Actual return on plan assets 9,924 4,486 4,365 2,408 

R 

35 


36 




14 Actuarial calculation of pension obligations under defi ned benefi t plans (continued) 


31.3.2006 31.3.2005 31.3.2006 31.3.2005 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Information about the recognised actuarial gain (loss) 

Actuarial gain/loss recognised in equity at start of year –1,326 0 –1,612 0 

Actuarial gain/loss in the year –262 –86 –2,616 –1,612 

Adjustment due to IAS 19.58 –703 –1,240 0 0 

Actuarial gain/loss in the year recognised in equity –966 –1,326 –4,228 –1,612 

Actuarial gain/loss recognised in equity at end of year –2,291 –1,326 0 0 

Principal actuarial assumptions 

Discount rate 3.25% 3.50% 5.00% 5.50% 

Expected net return on plan assets 3.75% 4.00% 6.50% 7.10% 

Average future salary increases 2.30% 2.30% 3.90% 3.90% 

Future pension increases 0.60% 0.75% 2.90% 2.90% 

Allocation of the assets 

Cash 2.60% 5.61% 21.00% 24.00% 

Bonds 65.10% 64.71% 12.00% 11.00% 

Shares 32.10% 25.95% 66.00% 64.00% 

Investment properties 0.00% 0.00% 1.00% 1.00% 

Other 0.20% 3.73% 0.00% 0.00% 

Total 100.00% 100.00% 100.00% 100.00% 

Part 2 

R



15 Accrued expenses, deferred income and other liabilities 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Accrued expenses and deferred income 22,009 23,255 –1,246 –5.4 

Interest payable 318 297 21 7.1 

Total accrued expenses and deferred income 22,327 23,552 –1,225 –5.2 

Withholding tax 219 34 185 544.1 

Compensation accounts, stamp duty, VAT 605 1,359 –754 –55.5 

Total other liabilities 824 1,393 –569 –40.8 

Total 23,151 24,945 –1,794 –7.2 

16 Provisions 

Balance Provisions Translation Charge to Charge to Recoveries Balance 

31.3.2005 applied differences interest income 31.3.2006 


Provisions for legal proceedings 619 –327 0 44 120 0 456 

Total provisions 619 –327 0 44 120 0 456 

The Rothschild Bank Group is involved in legal proceedings in the course of normal banking business operations. Provisions are 

established if the relevant attorneys are of the opinion that the entity is likely to face payments and if the amount of such payments 

can be reliably estimated. 

Analysis of total provisions 31.3.2006 31.3.2005 

1000 CHF 1000 CHF 

Amounts fully due within one year 456 619 

Amounts fully due after more than one year 0 0 

17 Securities lending and borrowing and repurchase 

and reverse repurchase agreements 

The Rothschild Bank Group does not undertake activity in securities lending. Repurchase and reverse repurchase transactions 

are only transacted on an intra-day basis. 

Part 2 

R 

37 


38 




18 Related party transactions 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Assets 

Affi liated companies 

Members of the Board 

0 0 0 0.0 

and Key Management Personnel 13,634 11,450 2,184 19.1 

Qualifying Shareholders 11,352 1,624 9,728 599.0 

Group Pension Plans 0 0 0 0.0 

Total assets 24,986 13,074 11,912 91.1 

Liabilities 



33,141 25,455 7,686 30.2 

and Key Management Personnel 6,224 8,688 –2,464 –28.4 

Qualifying Shareholders 348 4,241 –3,893 –91.8 

Group Pension Plans 9,133 10,770 –1,637 –15.2 

Total liabilities 48,846 49,154 –308 –0.6 

Contingent liabilities 



2,703 0 2,703 – 

and Key Management Personnel 72 57 15 26.3 

Qualifying Shareholders 219 0 219 – 

Group Pension Plans 0 0 0 0.0 

Total contingent liabilites 2,994 57 2,937 5,152.6 

During the current year fi xed loans and advances to related parties were redeemed of CHF 0.2 Mio. and increased by 

CHF 9.9 Mio. 

Affi liated Companies are primarily sister companies that are directly or indirectly owned by Concordia B.V. and other operating 

companies that are controlled by Qualifying Shareholders. 

Transactions with all related parties except with members of the board and key management personnel, such as securities 

transactions, granting loans and account interest are carried out at the conditions offered to third parties. Members of the key 

management personnel are offered the bank’s normal conditions for employees. Members of the board are charged at least the 

bank’s normal conditions for employees. No payments or compensations have been made to related parties other than ordinary 

interest payments and the payments or compensations listed above. 

Maturity structure of related party granted loans 

Maturity Maturity Maturity Maturity 

Redeemable within within 3- within after Total 

as at 31st March 2006 At sight by notice 3 months 12 months 1–5 years 5 years 31.3.2006 


Loans and advances 0 6,238 5,397 13,351 0 0 24,986 

Part 2 

R



19 Capital adequacy analysis 

Based on the Group’s consolidated risk capital adequacy 31.3.2006 31.3.2005 

calculation Nominal Risk- Nominal Riskamount 

weighted amount weighted 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Balance sheet assets 

Placements with banks 982,691 245,991 770,065 192,708 

Loans and advances to customers 174,114 141,293 171,815 140,922 

Property, plant, equipment and intangible assets 

Accrued income, prepaid expenses and other assets 

83,194 297,933 82,075 289,786 

(incl. deferred tax assets and pension assets) 28,145 28,145 29,215 29,215 

Replacement values 12,635 6,768 15,293 7,429 

Default risk position 163,002 129,224 164,569 109,530 

Market risks in trading 43,418 34,727 

Off-balance sheet transactions 

Contingent liabilities and irrevocable commitments 31,590 23,720 33,259 25,007 

Forward contracts and options 644,164 3,267 655,355 3,630 

Total risk-weighted positions 919,759 832,954 

Imputed tier 1 regulatory capital 1) 395,642 378,409 

Imputed tier 2 regulatory capital 1) 395,642 378,409 

Ratio tier 1 43.02 45.43 

Ratio tier 1 and 2 43.02 45.43 

1) Based on the Ordinance of the Swiss Federal Banking Act 

Part 2 

R 

39 


40 




20 Equity 

Signifi cant shareholders 

The immediate parent of Rothschild Bank AG is Rothschild Holding AG, incorporated in Zurich. Signifi cant shareholders 

of Rothschild Holding AG are Rothschilds Continuation Holdings AG (66.5%), Banque Privée Edmond de Rothschild SA 

(9.5%) and Rothschild Familiy interests (21.8 %). The ultimate parent is Concordia B.V., incorporated in the Netherlands. 

The benefi cial owners of the Group are members of the Rothschild Family or entities controlled by Rothschild Family 

members. 

Share capital 

The total authorised number of registered shares at the year end was 103,300 (2005: 103,300) with a nominal value of 

CHF 100 (2005: CHF 100) each. All authorised shares are issued and fully paid up. 

Share premium 

Associated with a capital restructuring in 1994 the share capital has been increased with a premium on these shares. Since 

then, no changes have been made in this class of reserve. This reserve is not available for distribution. 

Reserves for general bankings risks 

This class of reserve was established as a precautionary measure to absorb any major latent risks in the ordinary business 

of the Bank. 

Reserves and retained earnings 

This reserve includes general legal reserves required by the local banking authority and non-distributed net profi ts of 

previous periods. Except for CHF 35.9 Mio. as at 31st March 2006, this reserve is available for distribution to the shareholders. 

Available-for-sale reserve 

As a subclassifi cation of reserves and retained earnings, the available-for-sale reserve includes net unrealised gains or 

losses on available-for-sale fi nancial assets as required by IAS 39. This reserve is not available for distribution. 

Translation reserve 

Gains or losses on foreign currency translation from foreign subsidiaries are a subclassifi cation of reserves and retained 

earnings. This reserve is not available for distribution. 

Approval of dividend payment 

The Board of Directors proposed to the ordinary shareholders at a Board Meeting held on 26th May 2006 a dividend 

payment of CHF 28,000,000 (2005: CHF 26,000,000). This dividend was approved on 10th July 2006 and amounted to 

CHF 271.05 (2005: CHF 251.70) per registered share. 

Part 2 

R



21 Interest risks –Interest rate risk sensitivity for +/- 100 basis points (bps) 

CHF EUR GBP USD Other Total 

1000 CHF 

31.03.2006 

+100 bps –4,480 –970 –203 –224 –16 –5,893 

–100 bps 4,692 1,005 208 227 6 6,138 

31.03.2005 

+100 bps –4,406 –977 –222 –228 20 –5,813 

–100 bps 4,196 1,021 227 232 2 5,678 

For a description of the interest rate risks, see the corresponding notes to the risk management on page 23. 

22 Liquidity risks – Maturity structure 





Cash and balances 

with central banks 16,500 16,500 




39,590 65,805 68,719 174,114 

through profi t or loss 15,733 15,733 

Derivative fi nancial instruments 12,635 12,635 

Available-for-sale fi nancial assets 2,281 4,482 26,654 92,155 37,430 163,002 

Investments in associates – – – – – – 60 

Property plant and equipment – – – – – – 81,962 

Intangible assets – – – – – – 1,232 

Deferred tax assets – – – – – – 2,038 



– – – – – – 598 

prepaid expenses and other assets – – – – – – 25,509 

Total assets 244,266 39,590 812,894 138,340 92,155 37,430 1,476,074 

Money market instruments 50 50 

Loans and advances due to banks 84,600 555 85,155 



Accrued expenses, 

322,326 453,793 121,398 7,979 905,496 

deferred income and other liabilities – – – – – – 23,151 

Current tax liabilities – – – – – – 7,431 

Deferred tax liabilities – – – – – – 13,429 

Pension obligations – – – – – – 6,013 

Provisions – – – – – – 456 

Total liabilities 418,783 453,793 121,953 7,979 0 0 1,052,988 

Part 2 

R 

41 


42 




22 Liquidity risks – Maturity structure 






with central banks 13,992 13,992 




42,695 82,039 47,081 171,815 

through profi t or loss 21,650 21,650 



Investments in associates – – – – – – 67 

Property, plant and equipment – – – – – – 80,710 

Intangible assets – – – – – – 1,365 

Deferred tax assets – – – – – – 856 



– – – – – – 598 

prepaid expenses and other assets – – – – – – 27,761 

Total assets 156,457 42,695 722,677 97,598 95,545 42,412 1,268,741 


Loans and advances due to banks 10,316 4,349 14,665 



Accrued expenses, deferred 

271,355 315,553 178,180 2,825 767,913 

income and other liabilities – – – – – – 24,945 

Current tax liabilities – – – – – – 6,571 

Deferred tax liabilities – – – – – – 14,140 

Pension obligations – – – – – – 6,609 

Provisions – – – – – – 619 

Total liabilities 295,344 315,553 182,529 2,825 0 0 849,135 

Part 2 

R



23 Country risks – Balance sheet by domestic and foreign origin 

31.3.2006 31.3.2005 

Domestic Foreign Total Domestic Foreign Total 


Assets 

Cash and balances with central banks 16,494 6 16,500 13,987 5 13,992 

Placements with banks 99,594 883,097 982,691 60,683 709,382 770,065 



20,320 153,794 174,114 18,328 153,487 171,815 

through profi t or loss 3,960 11,773 15,733 5,036 16,614 21,650 

Derivative fi nancial instruments 12,635 12,635 15,293 15,293 


Investments in associates 60 60 67 67 

Property, plant and equipment 79,527 2,435 81,962 79,219 1,491 80,710 

Intangible assets 847 385 1,232 449 916 1,365 

Deferred tax assets 2,038 2,038 856 856 



598 598 598 598 

prepaid expenses and other assets 16,765 8,744 25,509 15,688 12,073 27,761 

Total assets 

Liabilities and shareholders’ equity 

302,935 1,173,139 1,476,074 265,450 1,003,291 1,268,741 

Money market instruments 50 50 55 55 

Loans and advances due to banks 22,367 62,788 85,155 507 14,158 14,665 

Derivative fi nancial instruments 11,807 11,807 13,618 13,618 


Accrued expenses, 

556,068 349,428 905,496 453,532 314,381 767,913 

deferred income and other liabilities 20,587 2,564 23,151 12,837 12,108 24,945 

Current tax liabilities 6,772 659 7,431 4,979 1,592 6,571 

Deferred tax liabilities 13,429 13,429 14,140 14,140 

Pension obligations 6,013 6,013 6,609 6,609 

Provisions 456 456 619 619 

Share capital 10,330 10,330 10,330 10,330 

Share premium 4,620 4,620 4,620 4,620 

Reserves for general banking risks 22,769 22,769 22,769 22,769 

Reserves and retained earnings 336,848 336,848 340,597 340,597 

Minority interests 14,864 14,864 15,294 15,294 

Consolidated net profi t 33,655 33,655 25,996 25,996 

Total liabilities and shareholders’ equity 1,054,622 421,452 1,476,074 919,893 348,848 1,268,741 

Part 2 

R 

43 


44 




24 Foreign currency risks/Balance sheet by currencies in 1000 CHF 1) (continued) 

CHF EUR GBP USD AUD Other Total 

31.3.2006 

Assets 


with central banks 15,434 814 114 93 45 16,500 

Placements with banks 233,773 247,360 130,904 266,860 20,063 83,731 982,691 



56,211 48,894 11,228 26,707 5 31,069 174,114 

through profi t or loss 233 4,003 1,408 10,089 15,733 


Available-for-sale fi nancial assets 123,840 31,709 6,813 640 163,002 

Investments in associates 60 60 

Property, plant and equipment 79,827 1,186 766 183 81,962 

Intangible assets 847 25 360 1,232 

Deferred tax assets 2,038 2,038 



598 598 

prepaid expenses and other assets 14,010 1,298 1,322 6,047 1 2,831 25,509 

Total on-balance assets 537,408 335,349 154,593 310,979 20,069 117,676 1,476,074 

Assets from forex spot 

and forex forward 128,574 366,326 92,524 434,598 0 118,296 1,140,318 

Total assets 665,982 701,675 247,117 745,577 20,069 235,972 2,616,392 

1) All signifi cant foreign currency exposures are hedged through off-balance sheet transactions. 

Part 2 

R




CHF 


EUR GBP USD AUD Other Total 

31.03.2006 


Loans and advances due to banks 21,429 1,041 1,908 58,869 697 1,211 85,155 




78,946 315,553 142,826 256,590 19,211 92,370 905,496 

income and other liabilities 19,922 829 2,288 112 23,151 

Current tax liabilities 6,819 605 7 7,431 

Deferred tax liabilities 13,429 13,429 

Pension obligations 6,013 6,013 

Provisions 64 392 456 

Share capital 10,330 10,330 

Share premium 4,620 4,620 

Reserves for general banking risks 22,769 22,769 

Reserves and retained earnings 336,848 336,848 

Minority interests 14,864 14,864 


Total on-balance liabilities 575,552 317,423 151,352 318,139 19,908 93,700 1,476,074 

Liabilities from forex spot 

and forex forward 

Total liabilities and 

103,544 382,226 93,741 418,488 0 141,404 1,139,403 

shareholders’ equity 679,096 699,649 245,093 736,627 19,908 235,104 2,615,477 

Net position per currency –13,114 2,026 2,024 8,950 161 868 915 


Part 2 

R 

45 


46 




24 Foreign currency risks/Balance sheet by currencies in 1’000 CHF 1) 


31.03.2005 

Assets 


with central banks 12,634 1,117 129 79 33 13,992 

Placements with banks 208,821 142,889 187,245 164,257 35,502 31,351 770,065 



64,772 36,898 9,111 41,087 17,144 2,803 171,815 

through profi t or loss 2,585 4,848 6,027 8,190 21,650 


Available-for-sale fi nancial assets 124,950 31,155 6,747 1,165 552 164,569 

Investments in associates 67 67 

Property, plant and equipment 79,604 351 569 186 80,710 

Intangible assets 465 17 883 1,365 

Deferred tax assets 856 856 



598 598 

prepaid expenses and other assets 14,034 997 7,105 3,575 16 2,034 27,761 

Total on-balance assets 523,756 218,339 218,672 218,539 52,662 36,773 1,268,741 

Assets from forex spot 

and forex forward 122,873 502,846 114,405 578,470 14,251 34,427 1,367,272 

Total assets 646,629 721,185 333,077 797,009 66,913 71,200 2,636,013 


Part 2 

R




Part 2 


31.3.2005 



Loans and advances due to banks 380 4,394 3,820 1,655 2,809 1,607 14,665 




101,259 197,680 195,142 230,136 9,040 34,656 767,913 

income and other liabilities 12,632 644 10,721 919 29 24,945 

Current tax liabilities 5,272 1,294 5 6,571 

Deferred tax liabilities 14,140 14,140 

Pension obligations 6,609 6,609 

Provisions 200 419 619 

Share capital 10,330 10,330 

Share premium 4,620 4,620 


Reserves and retained earnings 340,597 340,597 

Minority interests 15,294 15,294 


Total on-balance sheet liabilities 567,162 202,718 217,586 233,129 11,849 36,297 1,268,741 

Liabilities from forex spot 

and forex forward 

Total liabilities and 

89,977 513,411 114,396 558,218 14,231 75,235 1,365,468 

shareholders’ equity 657,139 716,129 331,982 791,347 26,080 111,532 2,634,209 

Net position per currency –10,510 5,056 1,095 5,662 40,833 –40,332 1,804 


R 

47 


48 




25 Analysis of contingent assets and liabilities 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Contingent assets 

Banks guarantees 3,793 3,743 50 1.3 

Total contingent assets 3,793 3,743 50 1.3 


Guarantees, stand-by letter of credits issued 

at the request of clients 26,707 29,406 –2,699 –9.2 

– Thereof with mortgage collateral – – – – 

– Thereof with other collateral 26,596 29,323 –2,727 –9.3 

– Thereof without collateral 111 83 28 33.7 

Guarantees, stand-by letter of credits issued at own risk 4,883 3,770 1,113 29.5 

Total contingent liabilities 31,590 33,176 –1,586 –4.8 

Contingent assets 

Contingent Assets are guarantees, counter guarantees or stand-by letter of credits for clients that the Group has received from 

other banks as a form of collateral security for loans or guarantees or stand-by letter of credits for clients issued by the Group. 


Contingent Liabilities are guarantees or stand-by letter of credits (together with guarantees) that the Group has issued to third 

parties at the request of clients as well as guarantees that the Bank has issued in its own right and at its own risk. 

All guarantees issued at the request of clients are unconditional guarantees for payment and are issued on the basis of written 

terms and conditions that give the Group the right of recourse. Such guarantees are therefore part of the Group’s credit risk 

exposure to clients and are granted and managed in accordance with prudent credit and banking principles. The maximum duration 

of guarantees issued at a client’s request is ten and a half years. A demand for payment up to the maximum amount of the 

guarantee can usually be made at any time before its expiry date. As of 31st March 2006 there was no risk of loss in connection 

with any of the outstanding guarantees that had been issued at the request of clients. 

Guarantees that the Group has issued in its own right and at its own risk are related to special types of transaction with the 

purpose of providing additional credit comfort to counterparties. The terms of such guarantees are conditional to special events 

and other contractual obligations or warranties. As of 31st March 2006 no amounts had been claimed under the terms of these 

guarantees and no events could be foreseen that could lead to such claim or claims in the future. However, it is not certain that 

no claim or claims may arise in the future. 

Part 2 

R



26 Commitments under non-cancellable operating lease and rental contracts 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Furniture and equipment 

– with duration up to 1 year 76 66 10 15.2 

– with duration over 1 and up to 5 years 158 169 –11 –6.5 

– with duration over 5 years 0 0 0 0.0 

Total furniture and equipment 234 235 –1 –0.4 

Buildings and properties 

– with duration up to 1 year 643 531 112 21.1 

– with duration over 1 and up to 5 years 2,522 3,309 –787 –23.8 

– with duration over 5 years 8,467 6,368 2,099 33.0 

Total buildings and properties 11,632 10,208 1,424 13.9 

Total 11,866 10,443 1,423 13.6 

The Group’s most signifi cant lease and rental contracts on buildings and properties are contracts for rent of offi ce and parking 

space. Only a small number of operating lease contracts have been signed for IT offi ce equipment and machines. The Group has 

not signed any fi nancial lease contracts. 

27 Analysis of fi duciary transactions 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Fiduciary placements with third party banks 1,931,537 1,962,405 –30,868 –1.6 

Fiduciary placements with affi liated banks 1,294 1,285 9 0.7 

Fiduciary credits and other 3,067 3,067 – 

Fiduciary fi nancial transactions 204,478 –204,478 –100.0 

Total 1,935,898 2,168,168 –232,270 –10.7 

Fiduciary transactions are investments which Group entities enter into at banks outside of the scope of consolidation for the 

account of and at the risk of the customers. Further information is set out in note 1. 

Part 2 

R 

49 


50 




28 Assets under custody 

31.3.2006 31.3.2005 Change 

CHF Mio. CHF Mio. CHF Mio. % 

Type of client assets 

Other client assets 7,585 7,059 526 7.5 

Fund assets managed by the Group 142 144 –2 –1.4 

Assets with management mandate 4,171 2,995 1,176 39.3 

Total client assets (including double count) 11,898 10,198 1,700 16.7 

thereof double count 169 171 –2 –1.2 

Net new money infl ow 388 434 –46 –10.6 

"Custody-only" assets 86 76 10 13.2 

Method of calculation 

Assets under management are stated according to the guidelines of the accounting regulations of the Swiss Federal Banking 

Commission (SFBC Newsletter No. 29 on the disclosure of assets under management). 

Other client assets 

The calculation of other client assets takes into account client deposits as well as the market value of securities, precious metals 

and fi duciary investments. 

Fund assets managed by the Group 

This item covers the assets of all actively marketed investment funds of the Rothschild Bank AG Group. 

Assets with management mandate 

The calculation of assets with management mandate takes into account client deposits as well as the market value of securities, 

precious metals and fi duciary investments. The information covers both assets deposited with Group companies and assets 

deposited at third-party institutions for which the Group holds a management mandate. 

Double count 

This item covers investment fund units from own-managed funds that are included in the assets with management mandate and 

other client assets. 

Changes in net new money 

This item consists of all external cash deposits and withdrawals on client accounts as well as all external in- and outfl ows from/ 

into client deposits. Interest and dividend income are not taken into account. 

Part 2 

R



29 Net interest income 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Interest income from banks and customers 30,168 20,998 9,170 43.7 

Interest income on available-for-sale fi nancial assets 4,721 4,404 317 7.2 

Refi nancing result of trading positions 703 562 141 25.1 

Other interest income 577 516 61 11.8 

Total interest income 36,169 26,480 9,689 36.6 

Interest expenses paid to banks and customers –20,191 –12,663 –7,528 59.4 

Total interest expense –20,191 –12,663 –7,528 59.4 

Total 15,978 13,817 2,161 15.6 

30 Net commission income 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Commission income on lending activities 537 611 –74 –12.1 

Commission income on asset management 

Commission income on trust 

71,287 55,354 15,933 28.8 

and company management services 49,441 46,903 2,538 5.4 

Commission income on other services 2,470 2,461 9 0.4 

Commission expense on asset management –1,644 –1,682 38 –2.3 

Total 122,091 103,647 18,444 17.8 

31 Income from fi nancial assets at fair value through profi t or loss 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Held for trading 

Net gain on foreign currency and bank notes 10,175 10,586 –411 –3.9 

Profi t on bullion transactions 279 99 180 181.8 

Gains or losses from fair value changes 2,112 895 1,217 136.0 

Interest and dividend income –473 –73 –400 547.9 

Total held for trading 

Designated as at fair value through profi t or loss 

12,093 11,507 586 5.1 

Gains or losses from fair value changes –78 –321 243 –75.7 

Interest and dividend income 91 322 –231 –71.7 

Total designated as at fair value through profi t or loss 13 1 12 1,200.0 

Total 12,106 11,508 598 5.2 

Part 2 

R 

51 


52 




32 Other operating income 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Net gains from the sale of available-for-sale fi nancial assets –55 7 –62 –885.7 

Dividends of available-for-sale fi nancial assets 4,776 3,213 1,563 48.6 

Real estate income 2,318 1,747 571 32.7 

Foreign exchange gains or losses 705 –391 1,096 –280.3 

Other 0 1,035 –1,035 –100.0 

Total 7,744 5,611 2,133 38.0 

33 Personnel expenses 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Salaries and allowances –59,020 –49,535 –9,485 19.1 

Social security contributions –3,759 –3,451 –308 8.9 

Pension contributions –8,315 –6,954 –1,361 19.6 

– Thereof defi ned contribution plans –3,581 –2,037 –1,544 75.8 

– Thereof defi ned benefi t plans –4,734 –4,917 183 –3.7 

Other personnel expenses –4,681 –3,330 –1,351 40.6 

Total –75,775 –63,270 –12,505 19.8 

Staff of Rothschild Bank AG 147 149 –2 –1.3 

Staff of the Rothschild Bank Group 339 320 19 5.9 

34 Compensation to Members of the Board and Key Management Personnel 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Short-term employee benefi ts 13,181 11,055 2,126 19.2 

Post-employment benefi ts 1,165 1,084 81 7.5 

Long-term benefi ts 552 827 –275 –33.3 

Termination benefi ts 2,752 0 2,752 – 

Share-based payments – – – – 

Total compensation 17,650 12,966 4,684 36.1 

The group of the Members of the Board and Key Management Personnel comprises 33 persons (previous year: 30 persons). 

Short-term employee benefi ts include salaries and social security contributions, board membership remunerations, paid annual 

leave and paid sick leave, profi t-sharing payable within twelve months after 31st March 2006 and non-monetary benefi ts such as 

medical care and cars for current employees. 

Post-employment benefi ts include pensions and other retirement benefi ts. 

Part 2 

R



Long-term benefi ts 

Employees of the Group who have a signifi cant infl uence on the Group’s long-term development and fi nancial results have a 

participation in a Long-term Incentive Plan of the Group. The purpose of the Incentive Plan is to strengthen the long-term commitment 

to the Group and to foster interdisciplinary teamwork in that the entitled employees are granted a participation on a 

bonus pool that is funded through a profi t participation of the Group. Employees participating in the Plan can only benefi t from 

the plan’s distributions after a fi ve years membership in the Plan. The Long-term Incentive Plan is managed by the Group. 

Termination benefi ts include severance payments to members of key management who gave up their functions. 

The Group has no equity-bonus plans and has not contributed to any share-based payments. 

35 Operating expenses 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Occupancy expenses 

Cost of information technology, machinery, furniture, 

–4,556 –3,897 –659 16.9 

vehicles and other equipment –3,641 –3,264 –377 11.6 

Communication, market information and research –3,869 –3,635 –234 6.4 

Insurance –2,919 –2,597 –322 12.4 

Travel and related costs –5,251 –4,608 –643 14.0 

Audit, legal and consultancy fees –2,983 –2,718 –265 9.7 

Taxes not allocated to income (capital taxes) –594 –567 –27 4.8 

Printing and public relations –2,554 –2,504 –50 2.0 

Other operating expenses –1,824 –3,931 2,107 –53.6 

Total –28,191 –27,721 –470 1.7 

– Thereof operating lease expenses –114 –116 2 –1.7 

– Thereof rental expenses –2,970 –2,429 –541 22.3 

The Group’s most signifi cant lease and rental contracts on buildings and properties are contracts for rent of offi ce and parking 

space. Only a small number of operating lease contracts have been signed for IT offi ce equipment and machines. The Group has 

not signed any fi nancial lease contracts. 

Part 2 

R 

53 


54 




36 Payments in connection with Group liability insurance scheme 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Premium payments to N M Rothschild & Sons Limited –1,714 –1,736 22 –1.3 

37 Other expenses 

38 Profi t before depreciation, losses and taxes by domestic and foreign origin 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Legal expenses –120 –735 615 –83.7 

Impairment losses on loans and receivables –728 –103 –625 606.8 

Operational incident expenses –769 –458 –311 67.9 

Total other expenses –1,617 –1,296 –321 24.8 

Gains or losses relating to transactions that occured due to misunderstandings between the Group and counterparties are 

recognised within operational incident expenses. 

31.3.2006 31.3.2005 

Domestic Foreign Total Domestic Foreign Total 


Net interest income 13,263 2,715 15,978 10,502 3,315 13,817 

Net commission income 74,288 47,803 122,091 63,191 40,456 103,647 

Results from trading operations 11,328 778 12,106 10,811 697 11,508 

Income from associates 0 –7 –7 0 –4 –4 

Other ordinary results 11,205 –3,461 7,744 9,173 –3,562 5,611 

Total gross income 110,084 47,828 157,912 93,677 40,902 134,579 

Personnel expenses –53,873 –21,902 –75,775 –43,516 –19,754 –63,270 

Operating expenses –16,201 –11,990 –28,191 –16,860 –10,861 –27,721 

Total operating expenses –70,074 –33,892 –103,966 –60,376 –30,615 –90,991 

Profi t before depreciation, losses and taxes 40,010 13,936 53,946 33,301 10,287 43,588 

Part 2 

R



39 Income tax expense 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Current taxes –7,217 –5,601 –1,616 28.9 

Deferred taxes –1,270 –442 –828 187.3 

Other – – – – 

Total –8,487 –6,043 –2,444 40.4 

40 Reconciliation of taxes 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Consolidated profi t before tax 

Income tax at applicable 

47,041 38,155 8,886 23.3 

domestic tax rate of 27% –10,001 –8,112 –1,889 23.3 

Tax effects of different tax rates 2,016 1,774 242 13.6 

Tax effects of changes in tax assessments –48 417 –465 –111.5 

Tax effects of non-deductible expenses –84 –2 –82 4,100.0 

Tax effects of non-assessable income 11 425 –414 –97.4 

Tax effects of utilisation of tax losses not previously recognised – – – – 

Tax effects of current year losses not capitalised –381 –545 164 –30.1 

Income tax expense –8,487 –6,043 –2,444 40.4 

Average effective tax rate 18.0 15.8 

41 Events after balance sheet date 

No events have occurred subsequent to the balance sheet date, which would require adjustments to and/or disclosure in 

these consolidated fi nancial statements. 

Part 2 

R 

55 


56 




42 Scope of consolidation 

Share Participation Participation 

capital of votes of capital 

Name Incorporated in Business activity in 1000 in % in % 

Rothschild Bank AG Zurich Bank 10,330 CHF 

Rothschild Bank Switzerland (C.I.) Ltd. St Peter Port Bank 7,000 CHF 100.00 100.00 

Rothschild Gestion S.A. Madrid Asset management 825 EUR 100.00 100.00 

Equitas SA Geneva Asset management 1,000 CHF 90.00 90.00 

Rothschild Fund Management AG Zurich Fund management 2,000 CHF 100.00 100.00 

Rothschild Vermögensverwaltungs-GmbH Frankfurt Asset management 250 EUR 100.00 100.00 

RBZ Treuhand AG Zurich Fiduciary services 100 CHF 100.00 100.00 

Creafi n AG Zurich Asset management 100 CHF 100.00 100.00 

Sagitas AG Glarus Fiduciary services 100 CHF 100.00 100.00 

Anterana Holdings AG Glarus Fiduciary services 100 CHF 100.00 100.00 

RBZ (Representative) PTE Singapore Asset management 500 SGD 100.00 100.00 

Rothschild Private Trust Holdings AG Zurich Holding 5,000 CHF 56.84 56.84 

Rothschild Trust (Schweiz) AG Zurich Trust services 500 CHF 100.00 100.00 

RTS Geneva SA Geneva Trust services 100 CHF 100.00 100.00 

Master Nominees Tortola Nominee services – USD 100.00 100.00 

Rothschild Trust Cayman Ltd. George Town Trust services 400 KYD 100.00 100.00 

Rothschild Trust BVI Ltd. Tortola Trust services 250 USD 100.00 100.00 

RTB Trustees Tortola Trust services – USD 100.00 100.00 

Rothschild Trust (Singapore) Ltd. Singapore Trust services 316 SGD 100.00 100.00 

Rothschild Trust Corp. Ltd. London Trust services 250 GBP 100.00 100.00 

Rothschild Nominees London Nominee services – GBP 100.00 100.00 

Rothschild Trust Guernsey Ltd. St Peter Port Trust services 1,000 GBP 100.00 100.00 

Rothschild Trust (Bermuda) Ltd. Bermuda Trust services 250 USD 100.00 100.00 

Integritas Management Ltd. Hong Kong Trust services 32 HKD 100.00 100.00 

Rothschild Trust Canada Inc. Charlottetown Trust services 10 CAD 100.00 100.00 

Rothschild Trust Financial Services Ltd. St Peter Port Trust services – GBP 100.00 100.00 

Rothschild Trustee Services (Ireland) Ltd. Dublin Trust services – EUR 100.00 100.00 

Rothschild Trust New Zealand Ltd. Auckland Trust services – NZD 100.00 100.00 

Rothschild Trust Protectors Ltd. Charlottetown Trust services – CAD 100.00 100.00 

Part 2 

R



43 Reconciliation of shareholders’ equity and consolidated net profi t on BAG-SFBC GAAP 1) and IFRS 

Total Total Consolidated 

equity equity net profi t 

31.3.2005 31.3.2004 2004/05 

1000 CHF 1000 CHF 1000 CHF 

Equity based on BAG-SFBC GAAP 1) 384,778 380,717 

Consolidated net profi t based on BAG-SFBC GAAP 1) 31,604 

Changes in the scope of consolidation 400 315 –685 

Adjustments on provisions 355 –355 

Adjustments on property, plant, equipment and intangible assets 

Adjustments on depreciation of property, plant, 

43,090 43,090 

equipment and intangible assets –360 –360 

Adjustments on commission income 708 494 214 

Adjustments on pension assets 598 598 1,326 

Adjustments on pension liabilities –6,607 –4,544 –492 

Adjustments on investments in associates 67 71 –4 

Adjustments on available-for-sale fi nancial assets 6,793 5,366 –3 

Deferred tax assets 854 588 54 

Deferred tax liabilities –10,715 –10,622 –71 

Total reconciliation items under IFRS 34,828 35,711 –376 

Equity based on IFRS 419,606 416,428 

Consolidated net profi t based on IFRS 31,228 

1) Guidelines to the provisions of Art. 23 –27 Ordinance to the Swiss Federal Banking Act (BankO) governing fi nancial statement reporting 

Information on the IFRS adjustments 

Changes in scope of consolidation 

Under Swiss banking GAAP, the Group excluded some subsidiaries from consolidation, for materiality reasons. Based on IAS 

27 all subsidiaries have to be included in the consolidated fi nancial statements. 

Adjustments on provisions 

Under Swiss banking GAAP the Group was allowed to recognise general provisions under certain circumstances. This is not 

allowed under IAS 37, therefore the excess provisions had to be released as per IFRS requirements. 

Adjustments on property, plant, equipment and intangible assets 

The Group elected to measure its own buildings at the date of transition to IFRS at their fair value and use that fair value as 

the deemed cost at that date. The fair value for the two buildings is based on a property valuation by a third party as per 

April 2005. The effect of the revaluation has been recognised in equity on the date of transition to IFRS. 

Part 2 

R 

57 


58 




43 Reconciliation of shareholders’ equity and consolidated net profi t on BAG-SFBC GAAP 1) and IFRS (continued) 

Adjustments on depreciation of property, plant, equipment and intangible assets 

Due to local Swiss GAAP requirements, the buildings had not been depreciated since April 1999/April 2003. In the event of 

the buildings being revalued to comply with IFRS requirements, the Group has redefi ned the useful life time of the buildings 

(50 years) and estimated their residual values (70 % of the original costs). Consequently, depreciation charges had to be 

recalculated and amended under IFRS. 

Adjustments on commission income 

Under local GAAP the fi duciary commissions are recognised at maturity of the fi duciary deposits, even if there exists the 

possibility of the deposit terms being varied by the client. To fulfi l the requirements of IAS 18, the Group has adopted the 

accrual method for fi duciary commissions. For practical purposes and due to lack of a more appropriate method, fi duciary 

commission income is recognised on a straight-line basis over the period. 

Adjustments on pension assets and liabilities 

Under IAS 19, the Swiss pension plan qualifi es as a defi ned benefi t plan. The surpluses and the defi cits arising are respectively 

recognised as pension assets and pension liabilities in the consolidated balance sheet. 

Deferred tax assets and liabilities 

As a result of all the IFRS adjustments at the transition date, additional timing differences as defi ned in IAS 12 had to be taken 

into consideration for calculating the deferred tax assets and liabilities. The applied tax rate refers to the entity where the 

IFRS adjustment had to be recognised. 

Conversion to IAS 39 – Financial instruments 

The Group adopted IAS 32/39 as of 1st April 2004. At that date the Group had to reclassify all fi nancial instruments into 

fi nancial assets at fair value through profi t or loss (held for trading or designated at fair value through profi t or loss), fi nancial 

assets available-for-sale and fi nancial assets and liabilities at amortised costs. Under IFRS, fi nancial instruments are mainly 

held at fair value, whereas under BAG-SFBC fi nancial instruments are essentially held at the lower of cost or market value. 

Major changes in the cash fl ow statement 

Under IFRS the classifi cations for the cash fl ow statement are different to the cash fl ow statement shown under BAG-SFBC 

as local GAAP. The IFRS cash fl ow statement is presented in a manner most appropriate to the activities of the business. 

The effects of foreign currency cash fl ow transactions of subsidiaries during the reporting period are recorded separately. 

The cash fl ow statement under IFRS includes cash and cash equivalents as well as its change within the reporting period. 

Part 2 

R

Additional Information to the 


The consolidated financial statements of the Rothschild Group comply with International Financial Reporting 

Standards (IFRS). The most significant valuation and classification differences between the guidelines to the 

provisions of Art. 23 – 27 of Ordinance of the Swiss Federal Banking Act (BAG-SFBC) governing financial 

statement reporting and IFRS are the following: 

Available-for-sale financial assets (AFS) 

Under IFRS available-for-sale financial assets are stated at fair value. Changes in the fair value net of deferred 

tax are reported within the equity until the available-for-sale financial asset is sold or is considered to be 

impaired. When an available-for-sale financial asset is classified as impaired the cumulative unrealised gain 

or loss previously reported under the equity is transferred to the consolidated income statement. Under 

BAG-SFBC these financial assets are classified as held-to-maturity and are therefore stated at the lower of 

purchase price or market value. Any depreciation in market value and all gains or losses from the sale of these 

investments are recognised within “other income”. 

Pension assets and obligation 

Under IFRS, actuarial calculations are to be performed and their adjustments are to be recognised in the 

balance sheet and the income statement. Under BAG-SFBC only current contributions to pension schemes 

are recognised in the income statement and account balances are shown in the balance sheet. No actuarial 

calculation was performed under BAG-SFBC. 

Extraordinary income and expenses 

Under BAG-SFBC, income or expenses are classified as extraordinary if they do not relate to the period under 

review. Under IFRS effectively all income and expenses are classified as ordinary. 

Part 2 

R 

59 


60 


Business and Services provided by 

Rothschild Bank AG Zurich and Subsidiaries 

Rothschild Bank AG is an independent Swiss Bank specialising in private banking and asset management. 

Consequently the most important contributions to income are derived from commissions and the provision 

of services. As a result of the links between its shareholders who are members of the Rothschild family, the 

Bank is also a member of an important world-wide group that has the benefit of far-reaching resources and 

knowledge in the field of financial services. 

The most important services that are offered within private banking are the management of accounts in all 

convertible currencies, the management and safekeeping of securities and precious metals, trading in currencies, 

securities and derivatives, secured lending, and the provision of structures for the safeguarding and transfer of 

private wealth. The accounts are managed at the head office in Zurich and within the subsidiaries, Rothschild 

Bank Switzerland (C.I.) Ltd., in Guernsey, Equitas SA, in Geneva, Rothschild Vermögens verwaltungs-GmbH 

in Frankfurt, Rothschild Gestión SA in Madrid and RBZ (Representative) PTE in Singapore. In addition 

Rothschild Bank AG is represented in London, Hong Kong, and Tokyo, and through the world-wide network 

of the Rothschild group. 

It has been the principle of Rothschilds for generations that clients and their needs are of the highest importance. 

This principle, together with the personal relationship between the client and the portfolio manager, forms the 

foundation for successful capital growth and protection. 

The number of persons employed at the end of the year was 147 (previous year: 149) in the Bank and 339 

(previous year: 320) in the Group. 

Portfolio Management 

In addition to active investment advisory services for clients, the core competence lies in asset management 

tailored to the individual needs of clients. The investment philosophy of Rothschild Bank Zurich is conservative 

and aimed at the development of long-term solutions. The dynamic asset management process is designed 

for the evaluation of broad individual client needs and for their special requirements. This process takes 

place within the investment policy of the Bank that reflects the guidelines and instructions of the client and 

minimises the investment risks. The investment process is systematically organised and simple to understand. 

In investment advisory services as well as in asset management we make use of fundamental and financial 

analysis developed by specialists of the worldwide Rothschild group. An internal investment committee reviews 

their recommendations. To ensure an ideal asset allocation, the Bank utilises both outstanding third party 

products as well as first class products developed by the Rothschild group. 

Trust and Company Management Services 

Trust and corporate services are largely provided through the subsidiary Rothschild Private Trust Holdings 

AG in Zurich. This company holds various subsidiaries, both in Switzerland and in a large number of 

foreign jurisdictions, which are specialised in the formation and management of trusts, foundations, and taxefficient 

corporate vehicles for private clients. This activity is a traditional service provided by the Rothschild 

group. The trust specialists have the benefit of considerable experience over many years, in the structuring 

and management of trusts and foundations in many jurisdictions, which bring significant benefits for the 

transfer of wealth between generations of clients. These services make it possible to meet the needs of a widely 

distributed international clientele through the selection of the most beneficial and flexible vehicles and taking 

account of the individual’s personal preferences, tax, and legal situation. 

Part 2 

R

Business and Services provided by 

Rothschild Bank AG Zurich and Subsidiaries 

Trading 

The provision of portfolio management services is supported by specialists and the necessary infrastructure in 

the trading department of the Bank. This allows quick execution and processing of orders in foreign exchange, 

fiduciary deposits, and securities transactions on good terms in all the major financial centres as well as in 

investment funds and derivatives as instruments for investment management and risk. Rothschild Bank AG is 

a licensed securities dealer, an Associated Member of the Swiss Stock Exchange and a Member of the German 

Stock Exchange Xetra. 

Lombard lending 

Within the context of overall investment management and private banking, the Bank grants loans to clients 

and guarantees to third parties on behalf of clients. This credit activity is based upon lombard lending against 

marketable securities in diversified portfolios and normally does not allow granting advances over more than 

twelve months. Within the credit policies, there are strict rules regarding the quality of collateral together with 

conservative margin requirements. 

Investment Funds 

Investment funds form an important part of the investment policy of Rothschild Bank Zurich. Investment 

funds in various investment categories are administered for the Bank through the subsidiary Rothschild Fund 

Management AG in Zurich and through other companies of the Rothschild group. The funds administered 

in Zurich are registered in Switzerland. 

Part 2 

R 

61 


62 


Auditors’ Report on Consolidated 

Financial Statements of Rothschild Bank AG 

Report of the Group Auditors 

to the General Meeting of 

Rothschild Bank AG, 

Zurich 

As group auditors, we have audited the consolidated financial statements (consolidated balance sheet, 

consolidated income statement, consolidated statement of changes in equity, statement of recognised income 

and expense, consolidated cash flow statement and notes to the consolidated financial statements) of Rothschild 

Bank AG for the year ended 31st March 2006 as presented on pages 6 to 59 of the annual report 2005/06. 

These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is 

to express an opinion on these consolidated financial statements based on our audit. We confirm that we meet 

the legal requirements concerning professional qualification and independence. 

Our audit was conducted in accordance with Swiss Auditing Standards and with the International Standards 

on Auditing (ISA), which require that an audit be planned and performed to obtain reasonable assurance 

about whether the consolidated financial statements are free of material misstatement. We have examined on 

a test basis evidence supporting the amounts and disclosures in the consolidated financial statements. We have 

also assessed the accounting principles used, significant estimates made and the overall consolidated financial 

statement presentation. We believe that our audit provides a reasonable basis for our opinion. 

In our opinion, the consolidated financial statements give a true and fair view of the financial position, the 

results of operations and the cash flows in accordance with the International Financial Reporting Standards 

(IFRS) and comply with Swiss law. 

We recommend that the consolidated financial statements submitted to you be approved. 


Roland Müller Cinzia Visinoni 

Swiss Certified Accountant Swiss Certified Accountant 

Auditor in Charge 

Zurich, 10th July 2006 

Part 2 

R

Part 3 

Financial Statements 

of 

Rothschild Bank AG 

R 

63 


64 


Balance Sheet of Rothschild Bank AG 


Assets 

31.3.2006 31.3.2005 Change 


Cash 16,493 13,987 2,506 17.9 

Due from banks 2, 8 528,092 419,079 109,013 26.0 

Due from customers 4, 8 171,293 168,676 2,617 1.6 

Trading balances in securities and precious metals 2 15,733 21,650 –5,917 –27.3 

Financial investments 2 151,609 150,380 1,229 0.8 

Participations 26,992 23,829 3,163 13.3 

Fixed assets 37,056 36,257 799 2.2 

Intangible assets 732 394 338 85.8 

Accrued income and prepaid expenses 7,486 7,405 81 1.1 

Other assets 1 12,968 15,689 –2,721 –17.3 

Total assets 968,454 857,346 111,108 13.0 

Total subordinated claims 

Total due from Group companies 

6,000 6,000 0 0.0 

and signifi cant shareholders 9,455 7,256 2,199 30.3 

Part 3 

R

Balance Sheet of Rothschild Bank AG 


Liabilities and Equity 

31.3.2006 31.3.2005 Change 


Money market instruments 50 55 –5 –9.1 

Due to banks 8 240,879 190,921 49,958 26.2 

Due to customers, other 3, 8 338,458 290,135 48,323 16.7 

Accrued expenses and deferred income 19,337 11,554 7,783 67.4 

Other liabilities 1 13,525 14,605 –1,080 –7.4 

Valuation adjustments and provisions 4 503 1,094 –591 –54.0 

Reserves for general banking risks 4, 7 22,769 22,769 0 0.0 

Share capital 5, 6, 7 10,330 10,330 0 0.0 

General legal reserve 7 47,900 45,300 2,600 5.7 

Other reserves 7 240,500 240,500 0 0.0 

Retained earnings brought forward 7 1,483 2,838 –1,355 –47.7 

Net profi t 7 32,720 27,245 5,475 20.1 

Total liabilities and shareholders’ equity 

Total due to Group companies 

968,454 857,346 111,108 13.0 

and signifi cant shareholders 181,086 202,411 –21,325 –10.5 

Part 3 

R 

65 


66 


Off-Balance Sheet Transactions 


31.3.2006 31.3.2005 Change 

Note 1000 CHF 1000 CHF 1000 CHF % 


Obligations to pay in and pay up on shares 

30,362 32,043 –1,681 –5.2 

and other participation instruments 

Derivative instruments 

0 83 –83 –100.0 

– positive replacement value 12,625 15,294 –2,669 –17.5 

– negative replacement value 11,802 13,639 –1,837 –13.5 

– Contract volume 1,306,591 1,381,566 –74,975 –5.4 

Fiduciary transactions 9 2,358,841 2,497,108 –138,267 –5.5 

Part 3 

R

Income Statement 


2005/06 2004/05 Change 


Interest and discount income 15,193 12,465 2,728 21.9 

Interest and dividend income on fi nancial investments 4,491 4,137 354 8.6 

Interest expense –6,461 –6,131 –330 5.4 

Net interest income 13,223 10,471 2,752 26.3 

Commission income on lending activities 503 572 –69 –12.1 

Commission income on asset management 54,931 45,600 9,331 20.5 

Commission income on other services 1,739 1,669 70 4.2 

Commission expense –933 –857 –76 8.9 

Net commission income 56,240 46,984 9,256 19.7 

Results from trading operations 11 11,859 10,480 1,379 13.2 

Results from the sale of fi nancial investments –84 10 –94 –940.0 

Participation income 12,860 12,027 833 6.9 

Net income from real estate holdings 3,215 2,640 575 21.8 

Other ordinary results 15,991 14,677 1,314 9.0 

Total income 97,313 82,612 14,701 17.8 

Personnel expenses –41,963 –34,015 –7,948 23.4 

Other operating expenses –12,748 –13,663 915 –6.7 

Total operating expenses –54,711 –47,678 –7,033 14.8 

Gross profi t 42,602 34,934 7,668 21.9 

Depreciation and write-offs of non-current assets –2,953 –2,828 –125 4.4 

Valuation adjustments, provisions and losses –793 –1,169 376 –32.2 

Result before extraordinary items and taxation 38,856 30,937 7,919 25.6 

Extraordinary income 0 607 –607 –100.0 

Taxation –6,136 –4,299 –1,837 42.7 

Net profi t 32,720 27,245 5,475 20.1 

Part 3 

R 

67 


68 


Proposal of the Board of Directors to the 

Annual General Meeting 

The following amount is available for distribution: 

Net profi t for 2005/06 

1000 CHF 

32,720 

Carried forward from previous year 1,483 

The Board of Directors proposes to the Annual General Meeting to allocate this amount as follows: 

34,203 

Allocation to general legal reserve 2,800 

Allocation to other reserves 0 

Distribution of a gross dividend 28,000 

Balance to be carried forward 3,403 

After distribution of the dividend as proposed the reported capital resources are as follows: 

34,203 

Share capital 10,330 

General legal reserves 50,700 

Other reserves 240,500 

Reserves for general banking risks 22,769 

Balance to be carried forward 3,403 

Shareholders' equity after distribution of the dividend 327,702 

The Board of Directors 

Part 3 

R

Accounting and Valuation Principles 

of Rothschild Bank AG 

General Principles 

The accounting and valuation principles comply with the Swiss Code of Obligations, the Bank Law, including 

the Federal Banking Commission guidelines, and Statutory directives. 

Accounting and Booking of Transactions 

All transactions effected up to and including the balance sheet date are accounted for on the closing date and 

are, from this date on, stated and assessed according to the principles laid out below. 

Foreign Currency Translation of the Financial Statements 

Income and expenses denominated in foreign currencies are translated into Swiss francs at the exchange rates 

prevailing at the transaction date. Assets and liabilities denominated in foreign currencies are translated using 

the average exchange rates prevailing on the balance sheet date and booked to the income statement. 

The following rates prevailing on the balance sheet date were used for foreign currency translations: 

31.3.2006 31.3.2005 

USD 1.3050 1.1960 

EUR 1.5810 1.5495 

GBP 2.2670 2.2515 

Cash and other liquid Assets, Amounts due from and to Money Market 

Instruments, Amounts due from and to Banks 

Assets and liabilities are stated in the balance sheet at their face value. 

Due from Customers 

Claims – taking all off-balance sheet items into account – which the debtor will be unlikely to satisfy in future 

are covered by individual provisions. These are classified as non-performing if interest and capital payments 

are overdue for more than 90 days. Individual provisions are deducted directly from the corresponding asset 

positions. 

Claims rated as uncollectible are written off against the individual provisions made. 

Trading Portfolios in Securities and Precious Metals 

Securities and precious metals in trading portfolios are in principle stated at the fair value. The price obtained 

on a price-efficient and liquid market is taken as the fair value, which as a rule corresponds to the market 

value. 

If in exceptional cases there is no fair value available, securities and precious metals in trading portfolios will 

be valued and stated at the lower of cost or market value. 

Interest, discount, and dividend income from trading securities are set off against refinancing expenses and 

booked as income from trading operations. 

Part 3 

R 

69 


70 




Financial Investments 

Financial investments are securities held on a long term basis for special business purposes. Fixed income 

securities that are planned to be held until maturity are valued by the accrual method. Premiums and discounts 

are amortised over the remaining life of the respective security and are recognised in interest and dividend 

income on financial investments. Other financial investments are valued at cost, or the lower market value. 

Participations 

Participations are stated at the cost price less any necessary operational depreciation (book value). 

Fixed Assets 

Fixed assets are valued at cost less depreciation over an expected useful lifetime of maximum ten years for 

fit-out costs and maximum six years for other tangible fixed assets and maximum three years for IT assets. 

Bank buildings and other properties are depreciated to a base level generally accepted by the tax authorities. 

The value is reviewed on a regular basis. If a review reveals an impairment in value, an additional, unscheduled 

write-off is made. The remaining book value is subsequently written down over the residual useful lifetime. If 

the review reveals a change in the useful lifetime, the remaining book value is written down as planned over 

the adjusted useful life. Small investment outlays are charged directly to operating expenses at the time of 

purchase. 

Intangible Assets 

Software 

Intangible assets acquired are stated at cost less depreciation over a measurable useful life of maximum 

three years. Reviews and adjustments of value are carried out in the same way as with tangible assets. Small 

investment outlays are charged directly to operating expenses at the time of purchase. 

Liabilities to Pension Plans 

All employees of the Bank are members of defined contribution pension schemes. The Bank books the 

employer contributions under personnel expenses. 

Taxes 

Current taxes are recurring taxes on capital and income. Non-recurring or transaction-related taxes are not 

stated under this item. Current taxes are determined in accordance with the local fiscal regulations on 

ascertaining profits and capital tax and are stated as expenses during the accounting period. Taxes owed are 

booked as accrued expenses. 

Adjustments and Provisions 

Claims which the debtor will be unlikely to satisfy in future are covered by individual valuation adjustments. 

Individual valuation adjustments are deducted directly from the corresponding asset positions. Individual 

valuation adjustments and individual provisions are made for all other recognisable loss risks according to the 

principle of caution. 

Part 3 

R



Contingent Liabilities and Fiduciary Operations 

Transactions resulting from these activities are stated off-balance sheet at their face value. For recognisable risks 

provisions are made and recorded under liabilities. 

Derivative Instruments 

Trading Activities 

Derivative financial instruments of Rothschild Bank AG are carried at fair value. The positive and negative 

replacement values are booked in the balance sheet under other assets and other liabilities. In the case of 

transactions with derivative financial instruments, the unrealised/realised gains are booked to results from 

trading operations. All derivative financial instruments are allocated to the trading book. 

Part 3 

R 

71 


72 General Principles 


Notes on Risk Management 


Taking risks lies at the heart of banking. Dealing with these risks is therefore an important part of the corporate 

culture of Rothschild Bank. The risk policy and risk management are of particular importance in this regard. 

The Board of Directors of the Bank is responsible for the formulation and implementation of the risk policy. 

To this end, the Board of Directors has established a written risk policy which both takes into account the 

circumstances of the business activities of the Bank and its subsidiaries and also reflects the capital funds 

situation of the group, the interest of the shareholders and the regulatory environment. The risk policy is 

constantly monitored and amended if necessary. 

The formal methodology of the risk policy relates primarily to the observance of strict quantitative risk limits, 

especially for credit and market risks, and to the qualitative aspects of risk diversification and of working 

procedures for reducing operational risks. At the same time, great importance is attached to the risk awareness 

of the management bodies and all group staff. Hence the Board of Directors and the Management Committee 

pursue an open risk culture which is also implemented by responsible, careful and professional behaviour 

from all employees. The group consciously depends on the personal integrity, specialist competence and riskawareness 

of each individual. 

The implementation of the risk policy and risk culture is the responsibility of the Management Committee. 

Management are supported in this by a risk control unit which is independent from trading and client-related 

services and monitors compliance with limits and the risk policy. The competencies of the Management 

Committee are laid down by the Board of Directors in the Articles and the risk policy. According to the 

Articles, large credit transactions or new business activities must be submitted to the Committee of the Board 

of Directors for approval. The Management Committee has further delegated some of its competencies to 

individuals or sub-committees of the Management Committee by means of internal operating instructions, 

for example to the Credit Committee or the Treasury Committee. 

Credit Risks 

Credit risk describes the potential for loss as a result of insolvency of a client or counterparty. A potential loss 

arises in particular when maturing loans or other obligations to payment are not repaid or cannot be repaid 

when due. For this reason loans and other credits are only granted after taking into account fundamental 

principles of caution. Since the banking business is strongly focused on private banking, loans are mainly 

granted against collateral in the form of pledged investment portfolios. 

The competencies for loans approvals and the monitoring of credit positions are subject to clear rules and 

supervised by people who are independent of the client advisors. The Board of Directors and the Management 

Committee have laid down clear guidelines for loanable values and the pledging of collateral. In general, 

collateralised assets are held in the Bank’s custody and pledged to the Bank under contractual agreements. The 

loanable values of the pledged portfolios, which are derived from market values, are compared daily to the loan 

commitments secured and are subject to constant monitoring. If coverage threatens to become insufficient, 

steps are taken to re-establish the necessary loanable value. If in exceptional cases no published market value is 

available for a collateralised asset, internal valuations calculated using standard banking methods will be applied. 

General principles have also been set out which aim for appropriate diversification of loan commitments and 

collateral. The concentration of risks on one client or counterparty or on one group of linked clients or 

counterparties is constantly monitored. Appropriate measures are taken to avoid the emergence of “cluster 

risks”, taking into account the risk policy of the group and the legal regulations. 

Part 3 

R



No “cluster risks” have arisen in the financial year 2005/06. The maximum default risk for Rothschild Bank 

corresponds to the balance sheet position. 

Counterparties are defined as banks or brokers with which the Bank trades or from which it purchases services. 

Counterparties are carefully selected on the basis of their creditworthiness, drawing on external ratings. 

Transactions with banks and brokers which lead to a potential credit exposure are subject to the availability 

of an internal limit for the counterparty in question. The approval of such limits is linked to rules similar to 

those for approving loans to clients. Large counterparty limits must be submitted to the Committee of the 

Board of Directors for approval. 

Liquidity risk 

Liquidity risk describes the risk that in some circumstances, for example changed market conditions, the Bank 

might not be able to meet all its payment obligations as they fall due. To avoid this happening the Bank has 

to carefully arrange incoming and outgoing payment streams and actively manage the maturity structure of 

its payment obligations. The total of payment obligations results from the maturity structure of balance sheet 

transactions and from the settlement of trading and off-balance sheet transactions. Balance sheet transactions 

are subject to liquidity rules under banking law, which prescribe a certain level of short-term assets in relation 

to liabilities. Constant supervision ensures compliance with the requirements of banking law. In addition, 

the treasury unit carefully places the money flows arising from balance-sheet, trading and off-balance sheet 

transactions several times a day. At the same time the money-market trading unit manages the short-term 

maturity structure so that sufficient liquidity is available at any time. The Bank maintains additional liquidity 

facilities in the form of overdraft lines at correspondent banks and secured finance facilities with clearing 

institutions for the exceptional event that counterparties or clients do not meet their payment obligations 

punctually. 

Market Risk 

Market risk describes the risk that the Bank could suffer losses as a result of changes on the financial markets 

(interest rates, FX rates, share prices). The business policy of the Bank is to only permit open market risk 

positions to a small degree in relation to client business volumes and available capital funds. 

The Board of Directors of the Bank has laid down specific and general risk limits for each risk category (interest 

rates, FX, precious metals, equities and options). The Management Committee has partially delegated the use 

of these risk limits to the trading department. The Treasury Committee manages general interest rate risk in 

the banking book and monitors the balance sheet structure. Market risk positions are calculated using the 

standard method as specified by the Swiss Federal Banking Commission. Calculation of risk positions and 

monitoring of compliance with the limits is performed by a team independent from the trading department. 

Market risk positions may only be taken within the approved limits. They are calculated daily using published 

market data and reported daily to the members of the Management Committee together with the resulting 

profits and losses. 

Part 3 

R 

73 


74 Operational Risk 




Operational risk entails the possibility that losses may be incurred directly or indirectly due to the 

inappropriateness or failure of internal procedures, persons or systems or due to external events that cannot be 

influenced. Operational security is a high priority for the Bank. In accordance with best practice standards in 

banking and the Bank’s dedication to ensure high quality services for its clients, the Management Committee 

has implemented a set of processes and work flows by means of internal policies and procedures on organisation 

setup and controls, which are designed to maintain operational security at a high level. Particular attention is 

given to the quality and skills of staff, the segregation of duties, the careful selection of counterparties and the 

security of the central computer systems and networks. 

The Internal Audit department reviews the procedures and internal controls at regular intervals. 

The central computer system is operated in association with Banque Privée Edmond de Rothschild in Geneva. 

Both banks subscribe to high security standards, which are monitored on a regular basis thus ensuring that 

bank-client confidentiality is maintained. The Service Level Agreement providing the contractual basis for 

these standards corresponds to the requirements of the Swiss Federal Banking Commission. 

The Board of Directors has considered the main Operational Risks of the Group in connection with the 

forthcoming Banking Ordinance and Regulation (Basel II) and has issued guidelines (principles) for the 

measurement and limitation of Operational Risk. These guidelines will additionally be implemented by the 

end of 2006. In this respect, the Basic Indicator Approach will be implemented. 

Legal Risks and Compliance 

In order to monitor legal and regulatory risks, the Bank maintains a Legal Department and a Compliance 

Office. These ensure that the Bank’s business activities are conducted in accordance with the applicable 

regulations and the obligation of financial intermediaries to observe due diligence. A Directives Committee 

comprising members of the Management Committee, the Internal Audit Department, the Legal Department 

and the specialist units affected is responsible for reviewing the requirements and developments on the part of 

the supervisory authority, legislators or other organisations and implementing their findings in the directives. 

When required, external legal advice is sought. 

Part 3 

R

Notes to the Financial Statements 

Information on the Balance Sheet 

1 Other assets and other liabilities 

31.3.2006 31.3.2005 

Other Other Other Other 

assets liabilities assets liabilities 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Replacement values of all derivative fi nancial instruments 12,625 11,802 15,294 13,639 

Withholding tax 321 211 219 34 

Compensation accounts, stamp duty, VAT 22 1,506 176 926 

Other assets and liabilities 0 6 0 6 

Total other assets and other liabilities 12,968 13,525 15,689 14,605 

2 Indication of pledged or assigned assets to secure own commitments and of assets to reservation of title 

Pledged or ceded assets and assets to reservation of title 31.3.2006 31.3.2005 

without securities lending and borrowing and without of which of which 

repurchase and reverse repurchase agreements Book value used Book value used 

1000 CHF 1000 CHF 1000 CHF 1000 CHF 

Due from banks 1,014 209 1,282 294 

Securities 34,094 0 30,872 0 

Total 35,108 209 32,154 294 

3 Disclosure of liabilities to Rothschild Bank Pension Plan 

31.3.2006 31.3.2005 

1000 CHF 1000 CHF 

Included in the position due to customers, other 4,630 5,170 

All employees working for the Rothschild Bank are members of a defi ned contribution pension scheme, which covers the mandatory benefi ts specifi ed in the BVG 

and super-obligatory benefi ts. A second, supporting foundation provides further supplementary super-obligatory benefi ts. All employees are admitted as members to 

this supporting foundation once they have been with the company for two years. 

The employer contributions contained in the personnel expenses of CHF 5.26 million (last year: CHF 4.78 million) correspond to the expenses booked. In addition 

to the employer contributions, the Bank also bore costs such as contributions to the safety fund, risk insurance premiums, auditing and supervisory fees totalling 

CHF 0.85 million (last year: CHF 0.67 million). 

As per revised accounting standards Swiss GAAP ARR 16, the actual economic implication of the pension fund liabilities is based on the fi nancial year-end accounts 

of the Rothschild Bank AG Pension Fund prepared in accordance with Swiss GAAP ARR 26. The funded status amounts to 114.6 % as of 31st December 2005 in 

addition to employer contribution reserves of CHF 598,000, which will be used to balance fl uctuations in market values and its impact on the interest rate applied to 

the BVG savings. Rothschild Bank AG does not recognise employer contribution reserves. 

Part 3 

R 

75 


76 



4 Valuation adjustments and provisions, reserves for general banking risks 

Change in Recoveries, 

defi nition doubtful Newly Reversals 

Balance Special of purpose, interest, charged credited to Balance 

previous usage and reclassi- currency to income income current 

year reversals fi cations differences statement statement year 


Valuation adjustments and 

provisions for credit and 

country risks 

Valuation adjustments and 

provisions for 

21,633 722 22,355 

other business risks 0 0 

Other provisions 

Total valuation adjustments 

1,094 –755 44 120 503 

and provisions 

Less valuation adjustments 

22,727 –755 0 766 120 0 22,858 

directly netted with assets 

Total valuation adjustments and 

21,633 22,355 

provisions as per balance sheet 1,094 503 


5 Schedule of share capital and disclosure of shareholders with ownership of more than 5 % of all voting rights 

31.3.2006 31.3.2005 

Dividend Dividend 

Nominal bearing Nominal bearing 

value Number capital value Number capital 

1000 CHF of units 1000 CHF 1000 CHF of units 1000 CHF 

Capital structure 

Share capital 10,330 103,300 10,330 10,330 103,300 10,330 

6 Signifi cant shareholders and shareholder groups 

31.3.2006 31.3.2005 

Nominal Participation Nominal Participation 

1000 CHF in % 1000 CHF in % 

Rothschild Holding AG 

Signifi cant Shareholders of Rothschild Holding AG: 

10,330 100.00 10,330 100.00 

Rothschilds Continuation Holdings AG1) 7,131 66.50 7,131 66.50 

Rothschild Family interests 2,341 21.80 2,341 21.80 

Banque Privée Edmond de Rothschild SA 1,016 9.50 1,016 9.50 

1) The majority (approx. 52 %) of the share capital of Rothschilds Continuation Holdings AG is directly or indirectly held by a group of shareholders which consists of 

Rothschild Family members or entities controlled by Rothschild Family members. Other important shareholders of Rothschilds Continuation Holdings AG are Jardine 

Matheson Group with 20 % and Banque Privée Edmond de Rothschild SA with 6,2 %. 

Part 3 

R


7 Statement of changes in shareholders’ equity 

Share capital 

1000 CHF 

10,330 

General legal reserve 45,300 


Reserves for general banking risks 1) 22,769 

Retained earnings 30,083 

Shareholders’ equity at beginning of current year 

(before profi t distribution) 

348,982 

minus dividends of retained earnings brought forward –26,000 

Net profi t 32,720 

Shareholders’ equity at end of current year 

(before profi t distribution) 

355,702 

Share capital 10,330 

General legal reserve 47,900 


Reserves for general banking risks 1) 22,769 

Retained earnings 34,203 

1) From the reserves for general banking risks CHF 7.0 mio. (previous year CHF 7.0 mio.) are taxed. 

8 Disclosure of amounts due from and due to affi liated companies as well as loans and exposures to directors and 

senior executives 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Claims against affi liated companies 39 246 –207 –84.1 

Liabilities to affi liated companies 68,106 25,351 42,755 168.7 

Loans and exposures to directors and senior executives 25,277 13,942 11,335 81.3 

Transactions with affi liated persons and companies (in particular parent and subsidiary companies) such as securities transactions, granting loans and interest accounts 

are carried out at the conditions offered to third parties. Members of the Management Committee are offered the Bank’s normal conditions for employees. Members 

of the Board are charged at least the Bank’s normal conditions for employees. 

Information on Off-Balance Sheet Transactions 

9 Analysis of fi duciary transactions 

31.3.2006 31.3.2005 Change 

1000 CHF 1000 CHF 1000 CHF % 

Fiduciary placements with third party banks 

Fiduciary placements with banks of the Group 

1,903,221 1,948,760 –45,539 –2.3 

and affi liated banks 

Fiduciary credits and other 

452,607 343,923 108,684 31.6 

Fiduciary fi nancial transactions 3,013 204,425 –201,412 –98.5 

Total 2,358,841 2,497,108 –138,267 –5.5 

Part 3 

R 

77 


78 



10 Client assets 

31.3.2006 31.3.2005 Change 

CHF Mio. CHF Mio. CHF Mio. % 

Type of client assets 

Other client assets 6,871 6,323 548 8.7 

Fund assets managed by the Bank 142 144 –2 –1.4 

Assets with management mandate 3,695 2,867 828 28.9 

Total clients assets (incl. double count) 10,708 9,334 1,374 14.7 

thereof double count 169 171 –2 –1.2 

Changes in net new money 301 316 –15 –4.7 

Method of calculation 

Assets under management are stated according to the guidelines of the accounting regulations of the Swiss Federal Banking 

Commission (SFBC Newsletter No. 29 on the disclosure of assets under management). 

Other client assets 

The calculation of other client assets takes into account client deposits as well as the market value of securities, precious metals 

and fi duciary investments. The Bank does not have any "custody-only" assets. 

Fund assets managed by the Bank 

This item covers the assets of all actively marketed investment funds of the Bank. 

Assets with management mandate 

The calculation of assets with management mandate takes into account client deposits as well as the market value of securities, 

precious metals and fi duciary investments. The information covers both assets deposited with Group companies and assets 

deposited at third-party institutions for which the Bank holds a management mandate. 

Double count 

This item covers investment fund units from own-managed funds that are included in the assets with management mandate and 

other client assets. 

Changes in net new money 

This item consists of all external cash deposits and withdrawals on client accounts as well as all external in- and outfl ows from/ 

into client deposits. Interest and dividend income are not taken into account. 

Information on the Income Statement 

11 Trading income 

2005/06 2004/05 Change 

1000 CHF 1000 CHF 1000 CHF % 

Profi t on foreign exchange and bank notes 9,929 9,562 367 3.8 

Profi t on bullion transactions 279 99 180 181.8 

Profi t on securities 1,651 819 832 101.6 

Total 11,859 10,480 1,379 13.2 

Part 3 

R

Report of the Auditors 

Report of the Statutory Auditors 

to the General Meeting of 

Rothschild Bank AG, Zurich 

As statutory auditors, we have audited the accounting records and the financial statements (balance sheet, 

income statement and notes) of Rothschild Bank AG for the year ended 31st March 2006 as presented on 

pages 64 to 78 of the annual report 2005/06. The prior year corresponding figures were audited by other 

auditors. 

These financial statements are the responsibility of the Board of Directors. Our responsibility is to express an 

opinion on these financial statements based on our audit. We confirm that we meet the legal requirements 

concerning professional qualification and independence. 

Our audit was conducted in accordance with Swiss Auditing Standards, which require that an audit be 

planned and performed to obtain reasonable assurance about whether the financial statements are free from 

material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures 

in the financial statements. We have also assessed the accounting principles used, significant estimates made 

and the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 

opinion. 

In our opinion, the accounting records and financial statements and the proposed appropriation of available 

earnings comply with Swiss law and the company’s articles of incorporation. 

We recommend that the financial statements submitted to you be approved. 


Roland Müller Cinzia Visinoni 

Swiss Certified Accountant Swiss Certified Accountant 

Auditor in Charge 

Zurich, 30th June 2006 

Part 3 

R 

79 


80 Head Office 

Subsidiaries 


Head Office, Subsidiaries and 

Representatives 


Rothschild Bank AG 

Zollikerstrasse 181 

8034 Zurich 

Telephone +41 (0)44 384 7111 

Facsimile +41 (0)44 384 7222 

www.rothschildbank.com 

contact@rothschildbank.com 

Equitas SA 

M. Mariñez 

21, rue du Rhône 

1211 Geneva 11 

Telephone +41 (0)22 310 1833 

Facsimile +41 (0)22 310 2450 

manuel.marinez@rothschildbank.com 

Rothschild Gestión, A.V.S.A. 

A. Villacieros 

Ch. Ioas 

Paseo de la Castellana, no 21 

3o planta derecha 

28046 Madrid 

Telephone +34 91 310 7570 

Facsimile +34 91 319 4455 

contact@rothschild-gestion.com 

Rothschild Gestión, A.V.S.A. 

Barcelona Branch 

C. Barceló 

Passeig de Gracia 60 

08007 Barcelona 

Telephone +34 93 467 5751 

Facsimile +34 93 467 5763 

contact@rothschild-gestion.com 

RBZ (Representative) Pte. Ltd. 

E. Hart 

Equity Plaza 

20 Cecil Street, 09-00 

Singapore 049705 

Telephone +65 6532 08 66 

Facsimile +65 6532 41 66 

elizabeth.hart@rothschildbank.com 

Rothschild Trust 

(Switzerland) Ltd. 

T. Urquhart 



Telephone +41 (0)44 384 7111 

Facsimile +41 (0)44 384 7201 

info@rothschildtrust.com 

RTS Geneva SA 

M. Bowen 

21, rue du Rhône 

1211 Geneva 11 

Telephone +41 (0)22 310 5931 

Facsimile +41 (0)22 310 8670 

info@rothschildtrust.com 

Rothschild Fund 

Management AG 

E. Letter 



Telephone +41 (0)44 384 7111 

Facsimile +41 (0)44 384 7222 


RBZ Fiduciary Ltd. 

Dr. P. Henggeler 



Telephone +41 (0)44 384 7111 

Facsimile +41 (0)44 384 7222 


Rothschild 

Vermögensverwaltungs-GmbH 

H. Willms 

Ulmenstraße 18 

60325 Frankfurt, Germany 

Telephone +49 (0)69 4080 2615 

Facsimile +49 (0)69 4080 2655 

hayo.willms@rothschild-frankfurt.de 

Rothschild Bank Switzerland 

(CI) Limited 

R. van Beek 

PO Box 330, St. Julian’s Court 

St. Julian’s Avenue, St. Peter Port 

Guernsey, Channel Islands GY1 3UA 

Telephone +44 (0) 1481 710521 

Facsimile +44 (0) 1481 711272 

ronald.vanbeek@rothschildbank.com 

Part 4 

R

Head Office, Subsidiaries and 



Rothschild Trust Guernsey 

Limited 

S. Skelly 

PO Box 472 

St. Peter’s House, Le Bordage 

St. Peter Port, Guernsey 

Channel Islands GY1 6AX 

Telephone +44 (0)1481 707800 

Facsimile +44 (0)1481 712686 

stephen.skelly@rothschild.co.uk 

Rothschild Trust Corporation 

Limited 

S. Skelly 

New Court, St. Swithin’s Lane 

London EC4P 4DU, UK 

Telephone +44 (0)20 7280 5000 

Facsimile +44 (0)20 7929 5239 

stephen.skelly@rothschild.co.uk 


(Bermuda) Limited 

M. Wolfe 

PO Box HM 1565, 20 Victoria Street 

Hamilton HM 12, Bermuda 

Telephone +1 (0)441 295 8591 

Facsimile +1 (0)441 295 3201 

michelle.wolfe@rothschildtrust.bm 

Rothschild Trust BVI Limited 

Palm Grove House, PO Box 438 

Road Town, Tortola 

British Virgin Islands 

Telephone +1 284 494 7106 

Facsimile +1 284 494 7105 

Rothschild Trust Cayman 

Limited 

B. Balleine 

PO Box 10129 APO 

5th Floor, Citrus Grove, Goring Avenue 

George Town 

Grand Cayman, Cayman Islands 

British West Indies 

Telephone +1 (0)345 946 7033 

Facsimile +1 (0)345 946 7043 

brian.balleine@rothschildtrust.com 

Part 4 


(Singapore) Limited 

M. Laeuchli 

Equity Plaza, 20 Cecil Street 09-00 


Telephone +65 6532 0866 

Facsimile +65 6532 4166 

martin.laeuchli@rothschild.com.sg 


London 

R. Greenwood 

New Court, St. Swithin's Lane 

London EC4P 4DU 

Telephone +44 (0)20 7280 5000 

Facsimile +44 (0)20 7280 1567 

robin.greenwood@rothschild.co.uk 

Hong Kong 

F. Cheng 

Alexandra House 

Chater Road 

Central, Hong Kong 

Special Administration Region 

Telephone +852 2525 5333 

Facsimile +852 2868 1773 

franco.cheng@rothschild.com.hk 

Tokyo 

H. Suzuki 

Suite 515, 5th Floor, Main Building 

Imperial Hotel, 1-1-1 Uchisaiwai-cho 

Chiyoda-ku, Tokyo 100-8558, Japan 

Telephone +81 (0)3 3519 8835 

Facsimile +81 (0)3 3519 8838 

hideyuki.suzuki@rothschild.co.jp 

R 

81 


82 


Group Directory 

Australia 

Rothschild Australia Limited 

Level 16, 1 O’Connell Street, Sydney 

NSW 2000, Australia 

Telephone +61 (0)2 9323 2000 

Facsimile +61 (0)2 9323 2323 

Level 21, 120 Collins Street, Melbourne 

Victoria 3000, Australia 

Telephone +61 (0)3 9656 4600 

Facsimile +61 (0)3 9656 4700 

ABN AMRO Rothschild 

ABN AMRO Tower, Level 29 

88 Phillip Street 

Sydney NSW 2000, Australia 

Telephone +61 (0)2 8259 5000 

Facsimile +61 (0)2 8259 5444 

Brazil 

N M Rothschild & Sons 

(Brasil) Limitada 

Av. Brigadeiro Faria Lima 2055 

(18th Floor) 

São Paulo 01451-000, Brazil 

Telephone +55 (0)11 3039 5828 

Facsimile +55 (0)11 3039 5826 

Canada 


Canada Limited 

BCE Place, TD Canada Trust Tower 

161 Bay Street, Suite 3150, PO Box 206 

Toronto, Ontario M5J 2SI, Canada 

Telephone +1 (0)416 369 9600 

Facsimile +1 (0)416 864 1261 

1002 rue Sherbrooke ouest 

Bureau 2300, Montréal 

Québec, Canada H3A 3L6 

Telephone +1 (0)514 840 1016 

Facsimile +1 (0)514 840 1015 

Channel Islands 


(CI) Limited 


St. Julian’s Avenue, St. Peter Port 

Guernsey, Channel Islands GY1 3BP 

Telephone +44 (0)1481 713713 

Facsimile +44 (0)1481 727705 

Rothschild Private 

Management (CI) Limited 


St. Peter Port, Guernsey 

Channel Islands GY1 6JB 

Telephone +44 (0)1481 705050 

Facsimile +44 (0)1481 712575 

Chile 

BICE Chileconsult Asesorias 

Financieras S.A. 

Teatinos 220, Piso 5, Santiago, Chile 

Telephone +56 (0)2 696 3576 

Facsimile +56 (0)2 696 5825 

China 

N M Rothschild China 

Holding AG 

Beijing Representative Office 

Suite 1305, China World Tower 1 

1 Jian Guo Men Wai Street 

Beijing 100004 

People’s Republic of China 

Telephone +86 10 6505 2018 

Facsimile +86 10 6505 2028 

Shanghai Representative Office 

Suite 1201, Plaza 66 

1266 Nan Jing Xi Road 

Shanghai 200040 


Telephone +86 21 6288 1528 

Facsimile +86 21 6288 1517 


(Hong Kong) Limited 

16/F Alexandra House 

16-20 Chater Road, Central 

Hong Kong SAR 


Telephone +852 2525 5333 

Facsimile +852 2868 1773 


41/F Cheung Kong Center 

2 Queen’s Road Central 

Hong Kong SAR 


Telephone +852 2700 3000 

Facsimile +852 2700 5968 

France 

Rothschild & Cie Banque 

17 avenue Matignon 

(After 1 November 2006: 

21 avenue de Messine) 

75008 Paris, France 

Telephone +33 (0)1 4074 4074 

Rothschild & Cie 

1 rue Rabelais 


23 bis avenue de Messine) 


Telephone +33 (0)1 4074 4074 


40 rue de Courcelles 


Telephone +33 (0)1 5621 5500 

Facsimile +33 (0)1 5621 5530 

Part 4 

R


asdfasdfasdfasdf 

Rothschild & Cie Gestion 

42 rue d’Anjou 

asdfasdfasdf 



21 avenue de Messine) 

asdfasdfaasdf 


Telephone +33 (0)1 4074 4074 

Germany 

Rothschild GmbH 

Börsenplatz 13–15 

60313 Frankfurt am Main, Germany 

Telephone +49 (0)69 299 8840 

Facsimile +49 (0)69 287 820 

India 

N M Rothschild & Sons (India) 

Private Limited 

52 Maker Chambers VI, Nariman Point 

Mumbai 400 021, India 

Telephone +91 (0)22 2281 7000 

Facsimile +91 (0)22 2281 6343 

Indonesia 

PT Rothschild Indonesia 

Jakarta Stock Exchange Building 

Tower 1, 15th Floor 

Jl. Jend. Sudirman Kav. 52-53 

Jakarta 12190, Indonesia 

Telephone +62 (0)21 515 3588 

Facsimile +62 (0)21 515 3589 


Jakarta Stock Exchange Building 

Tower 1, 15th Floor 

Jl. Jend. Sudirman Kav. 52–53 

Jakarta 12190, Indonesia 

Telephone +62 (0)21 515 3588 

Facsimile +62 (0)21 515 3589 

Part 4 

Italy 

Rothschild SpA 

Corso Magenta 12 

20123 Milan, Italy 

Telephone +39 02 7244 31 

Facsimile +39 02 7244 3310 

Via S. Nicola da Tolentino 1/5 

00187 Rome, Italy 

Telephone +39 06 4217 01 

Facsimile +39 06 42170 252 

Malaysia 

Rothschild Malaysia Sdn Bhd 

Letter Box No. 42, 29th Floor 

UBN Tower, 10, Jalan P. Ramlee 

50250 Kuala Lumpur, Malaysia 

Telephone +603 2687 0966 

Facsimile +603 2070 1001 

México 


(México) SA de CV 

Campos Eliseos 345-8° Piso 

Polanco CP 11550 México, DF México 

Telephone +52 555 327 1450 

Facsimile +52 555 327 1485 

Netherlands 

Rothschild Europe BV 

Herengracht 556 

1017 CG Amsterdam, Netherlands 

Telephone +31 (0)20 422 2516 

Facsimile +31 (0)20 422 2516 


Gustav Mahlerlaan 10 

11082 PP Amsterdam, Netherlands 

Telephone +31 (0)20 628 9393 

Facsimile +31 (0)20 628 8880 

Poland 

RCF Polska sp. zo.o. 

Rzymowskiego 34 

02-697 Warsaw, Poland 

Telephone +48 (0)22 549 6400 

Facsimile +48 (0)22 549 6402 

Portugal 

Rothschild Portugal - Serviços 

Financeiros, Limitada 

Calçada do Marquês de Abrantes 

40-1° Esq., 1200-719 Lisbon, Portugal 

Telephone +351 (0)21 397 5378 

Facsimile +351 (0)21 397 5476 

Russia 

Rothschild Russia BV 

Novinsky Passazh (8th Floor) 

31 Novinsky Boulevard 

123242, Moscow, Russia 

Telephone +7 095 775 8221 

Facsimile +7 095 775 8222 

Singapore 


(Singapore) Limited 

Equity Plaza, 20 Cecil Street 09-00, 


Telephone +65 6535 8311 

Facsimile +65 6535 8326 

South Africa 


(South Africa) (Pty) Limited 

1st Floor, Kagiso House, 

16 Fricker Road 

Illovo 2196, South Africa 

Telephone +27 (0)11 215 6800 

Facsimile +27 (0)11 215 6826 

R 

83 


84 




Spain 

asdfasdfasdf Rothschild España SA 


Paseo de la Castellana, 21 

asdfasdfaasdf 

4º Planta, 28046 Madrid, Spain 

Telephone +34 91 702 2600 

Facsimile +34 91 702 2531 

Switzerland 

Rothschilds Continuation 

Holdings AG 

Baarerstrasse 95, Postfach 735 

6301 Zug, Switzerland 

Telephone +41 (0)41 720 0680 

Facsimile +41 (0)41 720 0683 

United Kingdom 

N M Rothschild & Sons Limited 

New Court, St. Swithin’s Lane 

London EC4P 4DU, UK 

Telephone +44 (0)20 7280 5000 

Facsimile +44 (0)20 7929 1643 

Telex 888031 

82 King Street 

Manchester M2 4WQ, UK 

Telephone +44 (0)161 827 3800 

Facsimile +44 (0)161 833 0293 

67 Temple Row 

Birmingham B2 5LS, UK 

Telephone +44 (0)121 600 5252 

Facsimile +44 (0)121 643 7207 

1 Park Row 

Leeds LS1 5NR, UK 

Telephone +44 (0)113 200 1900 

Facsimile +44 (0)113 243 3039 

Cardiff 

Telephone +44 (0)29 2022 6666 

Facsimile +44 (0)29 2070 8133 


250 Bishopsgate 

London EC2M 4AA, UK 

Telephone +44 (0)20 7678 1700 

Facsimile +44 (0)20 7678 1500 

Rothschild Private 

Management Limited 

1 King William Street 

London EC4N 7AR, UK 

Telephone +44 (0)20 7280 5000 

Facsimile +44 (0)20 7280 1567 

Five Arrows Commercial 

Finance Limited 

50 Southwark Street 

London SE1 1UN, UK 

Telephone +44 (0)20 7089 7749 

Facsimile +44 (0)20 7407 5927 

82 King Street 

Manchester M2 4WQ, UK 

Telephone +44 (0)161 832 4442 

Facsimile +44 (0)161 832 4050 

1 Park Row 

Leeds LS1 5NR, UK 

Telephone +44 (0)113 242 8180 

Facsimile +44 (0)113 243 3039 

Rotterdam House 

116 Quayside, Newcastle upon Tyne 

NE1 3DY, UK 

Telephone +44 (0)191 284 7074 

Facsimile +44 (0)191 284 1110 

Five Arrows Leasing Group 

Limited 

Heron House, 5 Heron Square 

Richmond-upon-Thames 

Surrey TW9 1EL, UK 

Telephone +44 (0)20 8334 3900 

Facsimile +44 (0)20 8332 1636 

United States 

Rothschild North America Inc. 

Rothschild Inc. 

Rothschild Asset Management 

Inc. 

Rothschild Realty Inc. 

Five Arrows Capital 

1251 Avenue of the Americas, 51st Floor 

New York, NY 10020, USA 

Telephone +1 (0)212 403 3500 

Facsimile +1 (0)212 403 3501 

Rothschild Inc. 

1101 Connecticut Avenue NW 

Suite 700, Washington DC 20036, USA 

Telephone +1 (0)202 862 1660 

Facsimile +1 (0)202 862 1699 


(Denver) Inc. 

Suite 2150, Republic Plaza 

370 Seventeenth Street, Denver 

Colorado 80202, USA 

Telephone +1 (0)303 607 9890 

Facsimile +1 (0)303 607 0998 

ABN AMRO Rothschild LLC 

Park Avenue Plaza 

55 East 52nd Street 

New York, NY 10055, USA 

Telephone +1 (0)212 409 1414 

Facsimile +1 (0)212 409 1462 

Zimbabwe 

MBCA Bank Limited 

Old Mutual Centre, Third Street 

Harare, Zimbabwe 

Telephone +263 (0)4 701636 

Facsimile +263 (0)4 708005 

Part 4 

R

Rothschild Bank AG Zurich - Rothschild | Private Banking & Trust

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?