Annual Report 2011 - Hong Kong Monetary Authority

esources of institutional clients is the job of LCF Edmond
de Rothschild Asset Management Ltd. Its teams of experts
market and direct funds of hedge funds in close cooperation
with the Group as a whole.
In a year shaped by transition Edmond de Rothschild Ltd
reported a net profit of CHF 4 million (GBP 2.9 million), as
against CHF 8.8 million (GBP 5.5 million) in 2010, marking a
fall of 54.1%.
Guernsey
In Guernsey LCF Edmond de Rothschild (C.I.) Limited provides
asset risk management services on a consulting basis
as well as under discretionary mandates. The company is a
shareholder of the Channel Islands Stock Exchange, where
it handles issuance of investment funds and notes. It also
operates in the fixed-income segment.
Monaco
Our Monaco affiliate, Banque de Gestion Edmond de
Rothschild - Monaco, is 54.8% owned by the Banque Privée
Edmond de Rothschild Group and is run by Giampaolo
Bernini. This unit posted a net profit of CHF 7.4 million
(EUR 6.0 million) in 2010, down 9.9% on the previous year’s
level of CHF 8.2 million (EUR 6 million).
Bahamas
Under the guidance of Gian Fadri Pinoesch, Banque Privée
Edmond de Rothschild Ltd continued to grow steadily. Our
Nassau subsidiary reported a net profit of CHF 10.1 million,
9.1% above the 2010 figure (CHF 9.2 million).
Roundup of 2011 results
Group net profit came to CHF 125.1 million, down 16.6% on
the 2010 level of CHF 149.9 million. As in previous years our
results were heavily impacted by the weak euro and dollar
(the latter of which shed 8% in the reporting year).
Revenue
Interest income totalled CHF 64.8 million, up 19.5% compared
with the 2010 figure (CHF 54.3 million).
Income from fees and commissions fell 5.7% to CHF 504.2
million from CHF 534.6 million the previous year.
Results of trading operations amounted to CHF 87.9 million,
down 8.3% on their 2010 level of CHF 95.8 million. The
drop was largely due to a lower profit on securities dealing.
Other ordinary results totalled CHF 42.3 million, marking an
increase of 8.3% on the year-earlier figure. This item comprises
dividends deriving from non-consolidated holdings.
Expenses
The average number of staff employed by our Group last
year was 1688, up from 1617 in 2010. Personnel expenses
amounted to CHF 357 million compared with CHF 372.2
million the previous year, down 4.1%.
Other operating expenses rose 5.2% to CHF 134.4 million
from CHF 127.8 million in 2010.
Total operating expenses came to CHF 491.4 million, 1.7%
lower than the year-earlier level.
Gross profit
Group gross profit was down 7.2% and totalled CHF 207.7
million, versus CHF 223.7 million in 2010.
Depreciation of fixed assets worked out to CHF 36 million,
or 3.9% more than in the previous year.
Extraordinary income amounted to CHF 12.3 million, down
sharply on the 2010 figure. This item chiefly includes the
release of provisions no longer required for operating
purposes.
FINANCIAL REPORT CONSOLIDATED ACCOUNTS 57