Annual Report - EFG Bank Group

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78 Review of Parent Bank Activities and Financial Statements Activities EFG Bank European Financial Group, based in Geneva, is the parent bank of the EFG Group. As such, its primary activity consists of supervising the EFG Group. This supervision is performed by the Board of Directors and its Group Audit and Risk Committees and, at the executive level, by the Group Executive Committee, Group Risk Unit, Group Control and Regulatory Unit, and Group Finance Department. The Bank also has a Banking Department, which services private banking clients using the operating platform provided by its Swiss subsidiary, EFG Bank. Results for the year ended December 31, 2006 The profit for the year reached CHF 11.0 million, slightly ahead of last year’s CHF 10.0 million. Net interest income rose by CHF 1.1 million to CHF 3.3 million as a result of the increase in interest rates, while net commission income and service fees remained relatively stable at CHF 4.9 million, against CHF 5.1 million for the previous year. Trading income amounted to CHF 0.5 million compared to CHF 0.7 million a year before and consists essentially of income on foreign exchange transactions entered into on behalf of clients. Dividend income increased significantly to CHF 13.1 million versus CHF 9.3 million for the previous year as a result of more dividends distributed by the Bank’s direct subsidiaries. Operating expenses remained relatively stable at CHF 10.3 million versus CHF 10.7 million for the previous year. At December 31, 2006, total assets amounted to CHF 694 million versus CHF 690 million a year ago, with no major change in the balance sheet structure. Shareholders’ equity increased by CHF 11 million, reflecting the net profit for the year. Proposal for the appropriation of available earnings as at December 31, 2006 With the inclusion of the balance brought forward of CHF 61,744, the available earnings at December 31, 2006 amounted to CHF 11,087,668. The Board of Directors proposes that this amount be appropriated as follows: CHF Allocation to general legal reserve 600,000 Allocation to other reserves 10,400,000 Retained earnings carried forward 87,668 EFG Bank European Financial Group
Report of the Statutory Auditors to the General Meeting of the Shareholders As statutory auditors, we have audited the accounting records and the financial statements (statement of income, balance sheet and notes set out on pages 80 to 89) of EFG Bank European Financial Group for the year ended December 31, 2006. 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. PricewaterhouseCoopers SA Jean-Christophe Pernollet Christophe Kratzer Geneva, April 27, 2007 Annual Report 2006 79
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Annual Report 2006
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Contents 3 Consolidated Financial H
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4 Report of the Board of Directors
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6 EFG Group’s Activities The EFG
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8 EFG Group’s Activities (continu
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10 Group Presence EFG Bank European
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12 Board of Directors and Group Exe
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14 Consolidated Statement of Income
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16 Consolidated Statement of Change
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18 Notes to the Consolidated Financ
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Annual Report - EFG Bank Group

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