Annual report 2010 - Banca Privata Edmond de Rothschild Lugano ...

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banca privata Edmond dE rothschild lUGano
And on the face of it the debt situation of the federal,
state and municipal governments is worse
than that of the European Union as a whole, with no
sign of curbs on public spending being implemented
any time soon.
Meanwhile the growing lack of confidence in the
major trading blocs and their currencies prompted
investors to turn in droves to the Swiss franc,
which last year regained its traditional role as a safe
haven. It was not alone, though:
the currencies of other low-profile developed countries
with sound finances such as Norway, Sweden,
Canada and Australia were bid up as well, along with
those of emerging countries. Although regarded
in the past as unstable, the emerging economies are
nowadays underpinned by robust growth.
Moreover, because they are less sophisticated
and indebted they will no doubt be able to
weather crises better than the developed world.
While some observers fear this trend will prove
short-lived, many others believe it is here to stay.
There is no denying that China has become a leading
economic and political power in just a few years.
Other countries could follow its example, albeit to a
smaller scale.
Concern about a future surge in inflation as a
consequence of massive monetary stimulus has driven
up the prices of precious metals
and commodities.
With a few exceptions, property values meanwhile
have remained depressed owing to excess supply
and banks’ reluctance to lend.
Profit and loss account
In these tough conditions our Bank registered a gross
profit of CHF 12’778’263. Net earnings came to
CHF 10’851’561. Return on equity worked out to 9%.
Ordinary revenues, net of interests and commissions
payable, totalled CHF 35’932’150 as against
CHF 44’336’196 in 2009, down 19%. The interest
margin fell 23% while fees and commissions on
services fell 20%, in line with market developments.
Results of trading operations declined by 23% and
other ordinary income by 1%.
Costs were down 2% and remained under tight
control. Personnel expenses decreased 4%,
reflecting the reduction in staff size, while general
overheads rose 6%.