Annual Report 2011 - Hong Kong Monetary Authority

Extraordinary expenses totalled CHF 23 million, or 45.4%
less than the CHF 42.2 million reported the previous year.
Taxes came to CHF 29.7 million, up 8.1% on the year-earlier
figure of CHF 27.5 million.
Balance sheet review
The consolidated balance sheet total stood at CHF 14 billion
at end-2011, up 13.9% on the year-earlier level.
Current assets including cash, bank deposits, loans to
customers, mortgage bills, claims arising from money
market paper and securities and precious metals held for
trading purposes totalled CHF 12.1 billion, marking an
increase of 12.9% versus the previous year’s figure.
Financial investments amounted to CHF 1.1 billion, as
against CHF 798.7 million in 2010. Most of this rise stemmed
from the stock of precious metals used to cover our clients’
metal accounts and, to a lesser extent, from investments in
first-rate debt securities.
Fixed assets stood at CHF 248.7 million, or CHF 71.5 million
more than at end-2010. The increase was primarily due
to the purchase of a prestigious building for the Bank’s use
in Geneva.
Adjustment accounts totalled CHF 93.5 million, compared
with CHF 116.6 million the previous year.
“Other assets” came to CHF 361.5 million, as against
CHF 358.6 million at end-2010.
On the liabilities side, borrowed funds comprised of debits
on money market paper and sums due to banks and
customers together amounted to CHF 12 billion, or 85.6%
of the balance sheet total. This was up 15.9% from
CHF 10.4 billion the previous year, mostly owing to the
higher level of clients’ deposits.
“Other liabilities” totalled CHF 382.7 million, compared with
CHF 384.8 million at end-2010.
Valuation adjustments and provisions totalled CHF 65.5
million, up by CHF 4.3 million on the previous year.
58 2011 ANNUAL REPORT - BANQUE PRIVÉE EDMOND DE ROTHSCHILD SA
Reserves for general banking risks were raised 5.7% to
CHF 311.7 million from their year-earlier level of CHF 295
million.
Prior to the dividend payout, Group capital and reserves
stand at CHF 1.4 billion, representing 9.9% of the balance
sheet total.
Return on equity worked out to 9.8%. Shareholders’ equity
as required by the BIS (under Basel 2) came to CHF 321.3
million. Eligible capital totalled CHF 1.2 billion. The BIS ratio
(eligible capital in relation to shareholders’ equity required
under Swiss law) was 29.2%, well above the 12% legal
minimum.