Annual Report 2012 - Bank Sarasin

Intangible assets
CHF 000
31.12.2012 31.12.2011
Change to 31.12.2011
CHF %
Bank Sarasin & Co. Ltd (Private Banking) 31,820 31,820 0 0.0
Bank Zweiplus Ltd 36,531 43,131 -6,600 -15.3
S.I.M. Partnership (London) Ltd (Private Banking) 23,714 23,161 553 2.4
Total 92,065 98,112 -6,047 -6.2
The goodwill for our parent company is essentially connected with the acquisition of Rabobank’s former Swiss companies. Apart from goodwill,
the Group does not have any other intangible assets with indefinite useful lives.
The value of our goodwill positions is reviewed annually at the level of the smallest cash generating unit to establish whether impairment has
Here the book value is compared with the realisable value in each case.
In Private Banking, assets under management are the key value drivers that principally determine future earnings potential and subsequently
flows as well. For these assets, typical multipliers are available on the market for determining the value of the assets under management.
Against this backdrop, Bank Sarasin essentially works out the realisable value based on the fair value less selling costs. Depending on the client
Bank Sarasin applies a multiplier of between 1% and 2% when valuing client assets.
With bank zweiplus, the discounted cash flow method is used to check for impairment.
The projected excess cash flows are discounted on the valuation date with the help of the capital costs (unchanged from 2011).
Over a five-year planning horizon, management estimates the client assets and employs a margin that is typical for the industry in order to
determine the associated excess cash flows.
The comparison between the value of use and the corresponding assets produced a valuation differential of CHF 6.6 million, which is allocated to
shareholders of Bank Sarasin & Co. Ltd.
The goodwill of bank zweiplus AG now amounts to CHF 36.5 million.
In addition, the impairment check performed showed that no additional long-term impairments exist for the other goodwill items. There could be
intrinsically possible change in the basic assumptions made which would result in the book value of the entity generating payments significantly
the realisable amount.
Bank Sarasin & Co. Ltd, Annual Report 2012 | 52