2005 Annual Report / Crédit Agricole (Suisse) SA

08 – 2005 Annual Report / Crédit Agricole (Suisse) SAMessage from the Chairman andthe Chief Executive OfficerWhile the highlight of the year was the merger, on19 March, of Crédit Agricole Indosuez (Suisse) SA andCrédit Lyonnais (Suisse) SA, 2005 has proved to be arecord year for the new Group entity, Crédit Agricole(Suisse) SA, in terms of both revenues and overall netprofit.Achieved during a merger period, often synonymouswith instability, these good performances reflect thestrong support of the staff who prepared for and implementedthe operation, the good integration of CréditLyonnais (Suisse) SA's staff within the organisation, themanagerial principles of Crédit Agricole (Suisse) SA, andthe implementation of both firms’ best practices withinthe various business lines. This performance demonstratesthe complementary nature and gearing up of theproduct units, the improved geographical coverage andthe synergies realised by the Logistics service centre.After four years of major transformation, this new phasewill enable Crédit Agricole (Suisse) SA to focus henceforthon its creation of value objectives : controlledgrowth outside Switzerland through access to broaderdistribution networks and the development of productplatforms. These projects must be accompanied by adynamic management of human resources so as tomobilise the means needed to ensure their success.The implementation of the merger with Crédit Lyonnais(Suisse) SA also paved the way for realising the firstbenefits from synergies between the two firms.Consolidated net profit after depreciation and amortisation,exceptional income and charges, tax and provisionstotalled CHF 154.5 million, an increase of CHF 49.5 million(up 47.1%) compared with the previous year based onequal consolidation scope.The Bank’s assets under management totalledCHF 47.2 billion at 31 December 2005.The group’s three main business lines – Private Banking,Corporate Banking and Capital Markets – all contributedto this excellent performance.Private Banking had a lacklustre first half due to theUS dollar’s weakness, the hesitancy shown by financialmarkets and merger preparations. However, the secondhalf proved to be far more positive, thanks to the beneficialeffects of the merger, the strengthening of the US dollaragainst the Swiss franc and the euro, and better conditionsin the stock markets in Europe and emerging markets.These developments are taking place in a fast-changingenvironment that, for Crédit Agricole (Suisse) SA, impliesan increased presence in emerging markets (Asia, LatinAmerica and Central and Eastern Europe) and theMiddle East.We note that Crédit Agricole (Suisse) SA's good performancein 2005 was achieved in a climate of uncertaintyfor investors – devastating hurricanes, an inordinate risein oil prices, fears of renewed inflation – although conditionswere generally favourable : good performancesfrom stock markets in Europe and emerging marketsand the strengthening of the US dollar in the secondhalf of the year.