Annual Report 2012 - Bank Sarasin

6. Segment reporting
The Sarasin Group is organised into five business segments. The first, Private Banking, incorporates the two business units Switzerland & Europe and Middle East & Asia. The second,
Trading & Family Offices, encompasses two business units: Institutional Advisory & Sales and Trading. The third segment, Asset Management, Products & Sales, is also split into two units:
Wholesale & Products and Institutional Clients. The fourth segment is bank zweiplus ltd, in which Bank Sarasin holds a majority stake of 57.5%; this business is fully consolidated within the
Group. The Corporate Center is the fifth segment, which handles all the internal support functions for the Sarasin Group.
The Private Banking segment is responsible for the acquisition, service and support of customers in the global private client business. This division operates the Groups’s locations in
Switzerland (Basel, Berne, Geneva, Lugano, Lucerne and Zurich), Europe (Germany, Ireland, Poland, the UK), the Middle East (Bahrain, Oman, Qatar and United Arab Emirates) and Asia
(Hong Kong, India and Singapore). The business segment is jointly managed by Eric G. Sarasin and Fidelis M. Goetz. On 31 December 2012, Private Banking had a headcount of 690
employees (full-time equivalents).
The Trading & Family Offices segment handles the provision of advice to family offices and external asset managers at all Sarasin Group locations. It also looks after all securities
transactions on behalf of the Group's clients and monitors Sarasin’s liquidity and proprietary trading. The Trading & Family Offices segment is managed by Peter Wild and on 31 December
2012 had a headcount of 88 employees (full-time equivalents).
The Asset Management, Products & Sales segment provides services to institutional clients and distribution partners in the wholesale area at all the Sarasin Group’s locations. It also brings
together investment and research expertise as well as product development. The fund management companies are therefore organised under this business segment. The APS segment is
managed by the Chief Investment Officer (CIO), Burkhard P. Varnholt and on 31 December 2012 had a headcount of 364 employees (full-time equivalents).
bank zweiplus is headquartered in Zurich and positions itself as a leading independent product and settlement platform for clients of independent financial advisors, asset managers and life
insurance companies. Bank Sarasin is the majority shareholder of bank zweiplus with a stake of 57.5%. Head of operations is Alfred W. Moeckli, CEO of bank zweiplus. At the end of
December 2012, bank zweiplus had a headcount of 158 employees (full-time equivalents).
The Corporate Center segment includes internal support functions in the areas of Logistics (IT, Operations and Facility Management) on the one hand, and the staff functions at the level of
the Board of Directors and Executive Committee (Group Internal Audit, Corporate Communications, Corporate Marketing, Legal & Compliance, Human Resources, Accounting & Tax,
Controlling, Risk Office, Credit und Corporate Finance) on the other. Peter Sami manages the Logistics division. The Corporate Center division is managed by the Group’s Chief Financial
Officer, Thomas A. Mueller. On 31 December 2012, the total segment had a headcount of 438 employees (full-time equivalents).
All income and expenditure that are not directly connected with front office operation activities of the Bank as a whole are reported in our Corporate Center segment, as are all consolidation
items.
Business segment reporting
2012 Private Trading & Asset Manage- bank Corporate Sarasin
CHF 000 Banking Family ment, Products zweiplus Center Group
Offices & Sales
Net interest income 112,230 10,988 3,627 5,048 8,738 140,631
Results from commission and service fee activities, trading operations and other ordinary 244,149 65,837 155,507 50,676 7,382 523,551
Operating income 356,379 76,825 159,134 55,724 16,120 664,182
Personnel expenses 162,598 26,576 94,125 24,693 86,751 394,743
General administrative expenses 43,892 5,129 26,083 13,302 52,193 140,599
Services from or to other segments 89,468 21,307 6,093 15,854 -132,722 0
Operating expenses 295,958 53,012 126,301 53,849 6,222 535,342
Operating profit 60,421 23,813 32,833 1,875 9,898 128,840
Depreciation and amortisation 5,466 107 1,738 2,071
1)
29,653 39,035
Value adjustments, provisions and losses 38,589 363 26,621 749 221 66,543
Profit before taxes per segment 16,366 23,343 4,474 -945 -19,976 23,262
Taxes 431
Group result including minority interests 22,831
Minority interests 8,337
Group result excluding minority interests 14,494
31.12.2012 Private Trading & Asset Manage- bank Corporate Sarasin
CHF 000 Banking Family ment, Products zweiplus Center Group
Offices & Sales
Segment assets 16,107,153 701,097 431,853 985,287 2) -453,473 17,771,917
Segment liabilities 13,235,853 171,252 3,821,139 907,947 2) -1,707,304 16,428,887
Investments 9,168 0 0 27,631 11,462 48,261
Assets under management (millions CHF) 41,514 7,878 34,431 4,484 9,476 97,783
Number of employees (full-time equivalents) 689.6 88.0 363.7 157.7 438.3 1,737.3
The net income from associates amounted to CHF 0.5 million (2011: CHF -1.5 million). The carrying amount of the associates, which is presented
within the segment assets, is CHF 1.5 million (31.12.2011: CHF 1.7 million). They are included in the Corporate Center.
1)
Of this, CHF 6.6 million is attributable to intangible asset impairment losses at bank zweiplus ltd.
Furthermore this item includes amortisation charges in respect of cash zweiplus ltd’s intangible assets of CHF 0.5 million.
If these amortisation charges are taken into account, the bank zweiplus segment result is CHF-8.6 million.
2)
In accordance with the accounting policy, all intercompany items are eliminated in the Corporate Center. As a result of the expansion in particular of amounts due to banks
and due from banks within the Group in the Private Banking segment, this leads to negative segment assets and segment liabilities in the Corporate Center.
Bank Sarasin & Co. Ltd, Annual Report 2012 | 84