as at December 31, 2003 - EFG Bank Group

More documents

Recommendations

Info

54 Notes to the Consolidated Financial Statements (continued) 44. Maturity of assets and liabilities (continued) Dec. 31, 2002 Up to 1 1 - 3 3 - 12 1 - 5 Over 5 (All figures in thousands of CHF) month months months years years Total Assets Cash and balances with central banks 1’532’762 - - - - 1’532’762 Treasury bills and other eligible bills 279 379’341 661’649 - - 1’041’269 Due from other banks 2’613’169 632’896 124’774 20’490 - 3’391’329 Trading securities 62’012 210’802 223’723 2’673’605 1’569’067 4’739’209 Derivative financial instruments 72’122 39’949 48’699 120’644 30’497 311’911 Loans and advances to customers 1’285’862 3’700’178 7’772’961 4’448’364 4’164’316 21’371’681 Available-for-sale investment securities 202’293 192’551 292’297 1’308’982 3’645’942 5’642’065 Other investment securities - 350 - 185’469 - 185’819 Investments in associated undertakings - - - - 140’693 140’693 Property, plant and equipment - - - - 1’142’006 1’142’006 Intangible assets - - - 213’670 39’307 252’977 Other assets 388’878 137’143 439’605 143’721 306’664 1’416’011 Total assets 6’157’377 5’293’210 9’563’708 9’114’945 11’038’492 41’167’732 Liabilities Due to other banks 4’215’329 1’875’706 490’079 39’547 27’808 6’648’469 Derivative financial instruments 137’904 70’110 50’186 186’391 438’637 883’228 Due to customers 19’242’264 6’004’163 1’314’624 1’209’631 - 27’770’682 Liabilities evidenced by paper - 329’647 14’447 1’224’414 - 1’568’508 Other liabilities 445’450 123’402 327’487 80’552 83’004 1’059’895 Total liabilities 24’040’947 8’403’028 2’196’823 2’740’535 549’449 37’930’782 Net liquidity gap (17’883’570) (3’109’818) 7’366’885 6’374’410 10’489’043 3’236’950 The matching and controlled mismatching of the maturities and interest rates of assets and liabilities is fundamental to the management of the Group’s entities. It is unusual for banks ever to be completely matched since business transacted is often of uncertain term and of different types. An unmatched position potentially enhances profitability, but also increases the risk of losses. The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest-bearing liabilities as they mature, are important factors in assessing the liquidity of each Group entity and its exposure to changes in interest rates and exchange rates. Liquidity requirements to support calls under guarantees and standby letters of credit are considerably less than the amount of the commitment because the Group does not generally expect the third party to draw funds under the agreement. EFG Bank Group
Notes to the Consolidated Financial Statements (continued) 45. Fair values of financial assets and liabilities Fair value is the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. A market price, where an active market (such as a recognised stock exchange) exists, is the best evidence of the fair value of a financial instrument. However, market prices are not available for a significant number of financial assets and liabilities held and issued by the Group. Therefore, for financial instruments where no market price is available, the fair values are estimated using present value or other estimation and valuation techniques based on current prevailing market conditions. The values derived using these techniques are significantly affected by underlying assumptions concerning both the amounts and timing of future cash flows and the discount rates used. The following methods and assumptions indicate that the fair values of financial assets and liabilities approximate their carrying amounts: a) Trading assets, derivatives and other transactions undertaken for trading purposes as well treasury bills and available-for-sale securities are measured at fair value (see notes 16, 18, 19 and 23) by reference to quoted market prices when available. If quoted market prices are not available, then the fair values are estimated on the basis of discounted cash flows. Furthermore, investment properties which comprise freehold land and buildings are carried at fair value. Fair value is based on active market prices. b) A significant amount of the Group’s other financial assets and liabilities are at floating rates of interest, which re-price at frequent intervals. Therefore, the Group has no significant exposure to fair value fluctuations and the carrying value of the financial assets and liabilities is similar to their fair value as applicable, unless otherwise stated. 46. Fiduciary transactions (All figures in thousands of CHF) Dec. 31, 2003 Dec. 31, 2002 Fiduciary deposits with third parties 4’437’355 2’598’510 Fiduciary loans 24’748 19’260 Total 4’462’103 2’617’770 47. Related party transactions Parties are considered to be related if one party has the ability to control the other party, or exercise significant influence over the other party, in making financial or operational decisions. A number of banking transactions are entered into with related parties in the normal course of business and on an arm’s length basis. These include loans, deposits, letters of guarantee and derivatives. The impact of transactions with related parties on the statement of income is not significant. The volumes of related party transactions and outstanding balances are as follows: (All figures in thousands of CHF) Dec. 31, 2003 Dec. 31, 2002 Loans and advances to customers 106’712 81’104 Trading securities 369 1’207 Available-for-sale investment securities 34’931 26’946 Letters of guarantee issued 39’867 48’243 Deposits from customers 157’741 465’670 At December 31, 2003, included in loans and advances to customers, are credit facilities granted to members of the Group Board of Directors, Group committees and Group executive employees of CHF 16’560 thousands (2002: CHF 7’748 thousands). Annual Report 2003 Group 55
Page 1:
Annual Report 2003
Page 4 and 5:
Contents 3 Consolidated financial h
Page 6 and 7: 4 Report of the Board of Directors
Page 8 and 9: 6 Report of the Board of Directors
Page 10 and 11: 8 EFG Bank Group’s Activities The
Page 12 and 13: 10 EFG Bank Group’s Activities (c
Page 14 and 15: 12 Consolidated Statement of Income
Page 16 and 17: 14 Consolidated Statement of Change
Page 18 and 19: 16 Notes to the Consolidated Financ
Page 60 and 61: 58 Principal Offices (continued) Pr
Page 62 and 63: 60 Principal Offices (continued) Pr
Page 64 and 65: Contents 64 Review of Parent Bank a
Page 66 and 67: 64 Review of Parent Bank Activities
Page 68 and 69: 66 Statement of Income for the year
Page 70 and 71: 68 Off Balance Sheet Positions at D
Page 72 and 73: 70 Notes to the Financial Statement
Page 78: 76 Board of Directors and Advisory
show all

as at December 31, 2003 - EFG Bank Group

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?