as at December 31, 2003 - EFG Bank Group

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Review of Parent Bank Activities and Financial Statements
Activities
During 2003, EFG Bank European Financial
Group continued to focus on its role as holding
company for the EFG Bank Group, whilst
maintaining client relationships.
The Bank comprises the Banking Department,
Group Finance Department, Group Risk Unit,
and Group Control and Regulatory Unit.
Results for the year ended
December 31, 2003
The profit for the year was CHF 13.3 million
versus CHF 13.0 million for the previous year.
Net interest income went down to CHF 1.9
million (2002: CHF 2.5 million) due to lower
interest rates.
Net commission income and service fees
increased to CHF 7.6 million (2002: CHF 6.5
million). It included the recharge to Group
entities of costs incurred as a result of the
performance of monitoring tasks in its capacity as
Group parent bank, which amounted to CHF 4.0
million (2002: CHF 3.1 million). A CHF 1.4
million decrease in commissions earned on
discretionary management and fiduciary deposits
was offset by a CHF 0.4 million increase in
brokerage fees, a CHF 0.3 million increase in
account fees and a CHF 0.6 million reduction in
fees paid to the Bank’s Swiss subsidiary, EFG
Private Bank SA, in respect of client accounts that
the latter manages on behalf of the Bank.
Trading income amounted to CHF 1.1 million
(2002: CHF 1.2 million) and consisted essentially
of net income on foreign exchange transactions
entered into on behalf of clients.
Dividend income decreased to CHF 13.0 million
(2002: CHF 14.0 million) due to the effect of
lower interest rates on income generated by the
Bank’s treasury investment subsidiary, EFG
Investments (Guernsey) Ltd. Operating expenses
remained stable at CHF 10.1 million (2002:
CHF 10.5 million).
At December 31, 2003, total assets amounted at
CHF 653 million (2002: CHF 632 million).
There has been no significant change in the
Bank’s balance sheet structure compared to the
previous year’s closing.
Proposal for the appropriation of
available earnings as at December 31,
2003
With the inclusion of the balance brought
forward of CHF 34’099, the available earnings
at December 31, 2003 amounted to CHF
13’288’975.
The Board of Directors proposes that this
amount be appropriated as follows:
CHF
Allocation to general legal reserve 700’000
Allocation to other reserves 12’500’000
Retained earnings carried forward 88’975
EFG Bank European Financial Group