2005 Annual Report / Crédit Agricole (Suisse) SA

2005 Annual Report / Crédit Agricole (Suisse) SA – 152005 was devoted to implementing the merger with CréditLyonnais (Suisse) SA and validating the good fit of thebusiness lines and networks resulting from this operation.This step comes after several years in which, through aseries of mergers, the dimensions and sphere of activitiesof Crédit Agricole (Suisse) SA have changed.Crédit Agricole (Suisse) SA is now one of the leading foreignbanks in Switzerland based on assets under management.The merger with Crédit Lyonnais (Suisse) SA has enabledCrédit Agricole (Suisse) SA to broaden its branch networkin Switzerland and its international network. The bank hasambitious development plans involving more efficient useof complementary skills.Crédit Agricole (Suisse) SA has continued to benefit fromthe financial strength of the Crédit Agricole Group and thequality of its AA- rating (Standard & Poor’s).Private BankingThe Private Banking division had a mixed first half, with themerger inevitably bringing a period of uncertainty. This periodwas followed by a very sharp improvement as from thesummer, in keeping with the markets and the strengtheningof the US dollar against the euro and the Swiss franc.Assets under management increased, especially in marketsoutside Europe, but most particularly in emerging markets,Asia and the Middle East. The Advisory segment recordedsignificant revenues. Discretionary management once againrecorded strong growth. Crédit Agricole (Suisse) SA’s abilityto provide an offer combining asset management in itsstrict sense, legal and tax expertise and credit means it iswell placed to meet particularly complex needs andensures that it now ranks among the most sophisticatedplayers in the market. Keen to operate close to its clients,Crédit Agricole (Suisse) SA now has a branch in Singaporeand a subsidiary in Nassau. Work has commenced onestablishing new sites in Beirut and Montevideo.In terms of income, revenues reached CHF 364.9 millionin 2005 compared with CHF 213.6 million in 2004. Grossoperating profit came to CHF 112.6 million in 2005 comparedwith CHF 55.2 million in 2004.Corporate Banking2005 was a decisive year for Corporate Banking, whichcomprises two business lines: Transactional CommodityFinance and Commercial Banking.Transactional Commodity Finance benefited from exceptionalmarket conditions in 2005, especially in the energysector, due to production constraints combined with asharp increase in demand, mainly in Asia and the UnitedStates. The price of oil with the US benchmark WTIappreciated from $42/bbl in January to USD 70.85 perbarrel in New York on 30 August 2005. This high degreeof volatility favoured arbitrage transactions by clients. In2005, Geneva confirmed its role as the global centre ofexcellence for the business lines and now draws supportfrom the structures in Paris, Hong Kong, Singapore andMoscow. The client portfolio was consolidated in theCommercial Bank’s three areas : import/export, corporateand property.Merging the portfolios and the teams of Crédit Lyonnais(Suisse) SA and Crédit Agricole Indosuez (Suisse) SA hasenabled Crédit Agricole (Suisse) SA to position itself as amajor player in the Swiss market. This developmentforms part of the long-term approach, which favours theenergy sector, while at the same time maintaining theoverall balance of the portfolio and strengthening theglobal nature of the business.With revenues of CHF 98.8 million in 2005 comparedwith CHF 47.3 million in 2004 and a gross operatingprofit of CHF 66.1 million compared with CHF 29.5 millionin 2004, Corporate Banking posted excellent results in2005 thanks to the momentum displayed by the marketsand the dynamism of its staff.Capital Markets activitiesThe dollar’s weakness dampened activity for CapitalMarkets in the first quarter, but its appreciation in thesecond quarter and the highly volatile foreign exchangemarkets paved the way for a new cycle of good results,which continued into the third and fourth quarters.The treasury activity benefited from very low CHF interestrates that remained stable throughout the year. AnAsset/ Liability Management activity was established incoordination with the parent company, Calyon. The marketingof Structured Products to institutional clients inSwitzerland and Liechtenstein and to independent assetmanagers soared in Switzerland. The developmentobjectives were met and the merger of the teams wasaccomplished in a positive manner.Capital Markets generated revenues of CHF 54.4 millionin 2005 compared with CHF 26.7 million in 2004. Grossoperating income came to CHF 37.3 million in 2005compared with CHF 15.5 million in 2004.