2011 AnnuAl RepoRt - Valiant Bank

2011 AnnuAl RepoRt
Short version

Key figures in brief
2011
in CHF 1 000
RepoRt by the ChAiRmAn 3
2010
in CHF 1 000
total assets 25 214 506 24 393 502
Client loans 21 394 028 21 109 554
Client deposits 17 455 793 16 826 608
Gross profit 169 728 175 678
Group profit 127 627 122 523
Value of client custody accounts 12 933 700 13 675 400
Rore (Return on required equity) 11,23 % 11,27 %
Roe (Return on equity) 1) 10,1 % 10,3 %
Core capital ratio tier 1 / tier 2 12,02 % 11,12 %
Full-time positions 2) 1 073 1 064
1) before taxes and amortization of goodwill.
2) excl. trainees.

4
RepoRt by the ChAiRmAn
Report by the Chairman
Dear Shareholders,
2011 was marked by the debt issues in the euro zone and the uS. proceeding
from Greece, the crisis has since spread, enveloping other, much more
significant eu economies. being a strictly Swiss bank we maintain hardly any
foreign currency positions in these countries, meaning the risk posed to us
in this area is small.
yet we feel the fallout of the debt crisis nonetheless. All over the world
central banks have rallied in favor of an unprecedented low-interest policy.
purposely keeping interest rates low is designed to mitigate the negative
impact of the international debt economy. but this also has consequences
for Switzerland and therefore also for Valiant: for example, by the end of
2011 our interest margin had dropped further to 1.14 %, as compared to
1.18 % at the end of 2010, this being reflected by interest income. We

eacted to this sea change in the market early on by streamlining our group
structure accordingly, i.e. by merging our four subsidiary banks. With the
steps taken so far we are able to realize recurring cost savings of ChF 5 mil-
lion – 8 million a year.
Solid showing for the year
last year we abided by our long-standing, conservative risk management
policy and deliberately curbed growth. Client loans grew by ChF 284.5 million,
or 1.4 %, to ChF 21.4 billion. Client funds showed an increase of
ChF 629.2 million to ChF 17.5 billion, translating into a plus of 3.7 % as compared
to the previous year. total assets rose by 3.4 % to ChF 25.2 billion.
the bottom-line result shows a solid group profit of ChF 127.6 million, corresponding
to an increase of ChF 5.1 million, or 4.2 %, as compared to the
previous year.
Strategic advances
our central strategic milestone last year was the merger of our four subsidiary
banks under the umbrella of Valiant bank, which saw implementation
at the operational level in early 2012. this has enabled us to unify our market
identity and thus fortify the Valiant brand. Streamlining group structures
also enables management to be simplified and costs to be cut as well.
At the end of June 2011 we were pleased to announce our marketing and
sales alliance with Zürcher Kantonalbank (ZKb) in the areas of investment
instruments, foreign exchange trading and equity research. this partnership
venture enables us to further expand our range of offerings to our clients.
RepoRt by the ChAiRmAn 5

6
RepoRt by the ChAiRmAn
Changes in the Board of Directors
last year’s AGm saw the election of the first woman to Valiant’s board of
Directors: Franziska von Weissenfluh.
this and the coming year will also see new developments affecting the
board’s membership. the current vice chairman markus häusermann and
board members marc Alain Christen and Roland Ramseier have announced
that they will no longer be standing for reelection at this year’s AGm. As a
result, the three most senior members will be leaving the board. on behalf
of the board i would like to thank them for their many years of constructive
and valuable work and for their dedication and commitment on behalf of
Valiant.
i have decided that i will be stepping down at the 2013 AGm and will no
longer be available for reelection to the board. until then i will commence
preparations for turning over the reins to my successor and optimally
preparing him for this task. Consequently, Jürg bucher, currently chief
executive officer of Swiss post, will be put forward for election to the board
at this year’s AGm. he is slated to take over the chairman’s seat after the
2013 AGm.
Changes in operations management
in September 2011 eduard Zgraggen took his well-deserved retirement. From
1996 to 2004 he was vice chairman of the executive board, and head of
logistics of luzerner Regiobank. in 2003 he joined Valiant’s Group execu-
tive board as head of logistics, becoming a member of Valiant bank’s
executive board in 2005. he has been instrumental in Valiant’s successful
development. on behalf of the board of Directors i would like to thank
eduard Zgraggen for his commitment and wish him all the best in the next
phase of his life.
Stefan Gempeler and bernhard Röthlisberger have been newly appointed to
Valiant bank’s executive board. Stefan Gempeler came to Valiant in 2007
and was last head of investment and member of the executive board of

Valiant privatbank. in 2001 bernhard Röthlisberger was appointed head of
the regions of emmental / oberaargau, lucerne and Zug, becoming a mem-
ber of the expanded executive board of Valiant bank in June 2010.
i am positive that with the new executive board we will have an experienced
and expert management team that will lead Valiant into a successful future.
Valiant shares
upon entering into the marketing and sales alliance with Valiant, ZKb
acquired 3.01 % of the share capital of Valiant holding at the going market
rate. other shareholders also acquired shares in Valiant last year. the result
is that we were able to report exceeding the 3% threshold of trea-sury shares
at the end of June.
thanks to its sound showing Valiant can maintain its dividend policy. A motion
will be made at the AGm that an unchanged distribution of ChF 3.20
per share be made from the capital contribution reserve. For natural persons
holding Valiant shares in their private wealth and having their tax domicile
in Switzerland, this dividend payment will also be income tax-exempt.
Outlook
both the eCb and the Fed have announced that they intend to keep the
prime / base rate low during the next few years to come. this means that the
Swiss national bank’s hands are tied with regard to any rises in interest rates,
and therefore the pressure on interest margins is expected to remain high.
Continuously reviewing our cost and personnel structure and branch network
will continue to be a top priority for us at Valiant this year as well.
the political climate in Switzerland remains charged owing to the issue involving
the untaxed client funds of uS persons held in Swiss banks. Since
Valiant has always been a regional bank with a focus on the Swiss market,
the number of uS persons served by us is minor. We already reached the
decision last year to sever ties with uS clients who refused to sign the required
documents for disclosing their client relation.
RepoRt by the ChAiRmAn 7

8 RepoRt by the ChAiRmAn
A word of thanks
last year brought significant changes for many of our staff due to the merger
of our four subsidiary banks under the umbrella of Valiant bank. being able
to view change as an opportunity is a trait that has always characterized
Valiant and its staff. A trait that is a fundamental prerequisite for the
continued successful development of our bank. i would like to take this op-
portunity to thank each and every staff member for the flexibility and loy-
alty demonstrated by them last year.
i would also like to extend a word of thanks to our customers for their continued
loyalty to Valiant. We are able to report an increase of ChF 629 million
in client deposits for last year: this is evidence of our clients’ unshaken
trust in Valiant.
i would like to conclude by thanking you, dear shareholders, for your support
and the confidence you have placed in Valiant. With the adaptation of the
group’s structure, the new operations management, and the successor plan-
ning in the board of Directors we have been able to achieve key milestones:
Valiant is now equipped to meet the future head-on.
Kurt Streit
Chairman of the board of Directors

interview with the Ceo
inteRVieW With the Ceo
Michael Hobmeier, Valiant successfully increased its group profit last
year by CHF 5.1 million to CHF 127.6 million. How do you assess this
result? We showed a solid result for 2011 and were able to slightly increase
our profit despite the difficult environment. this shows that we are on the
right track. last year we kept an eye on cost growth and initiated a cost
efficiency improvement program early on. Some of these actions produced
results already in 2011, however the major part of the cost savings will take
effect from 2012 on.
Net interest income was slightly less as compared to the previous year.
What do you attribute this to? i see two factors at play: first, interest
rates dropped slightly again last year, which further exacerbated the price
war in the mortgage business and heightened the pressure on margins. Secondly,
we maintained our proven, conservative risk management policy and
deliberately curbed the growth of client loans. We are not seeking to achieve
a short-term bottom-line improvement by indiscriminately increasing volume
to compensate for falling margins, but rather we think in terms of the
long-term picture and act in a risk-aware manner. i am positive that this strategy
will pay off.
9

10 inteRVieW With the Ceo
Valiant’s primary source of income is interest income. In the future
you are seeking to boost commission and fee income so that it accounts
for one third of all income. Have you achieved any progress
in this area? it is true that we are seeking to stabilize our income on a
broader basis in the medium term and in so doing bolster our commission
and fee income. We have created excellent conditions for this by reorganizing
Valiant. As compared to 2010, Valiant’s income structure already shifted
slightly in this direction in 2011.
The merger of the four subsidiary banks under the umbrella of
Valiant Bank is a significant strategic milestone. What considerations
were behind this decision? this decision is logical for pure business rea-
sons. When margins narrow, costs have to come down. And that is precisely
what we did: cut costs. With the new streamlined organization we are more
efficient, can avoid duplicating our efforts while leveraging synergy opportunities.
And not only that: our organization is leaner.
How do Valiant clients benefit from this? Valiant is literally banking on
continuity in client service. this means that our clients will continue to be
served by their client advisors. thanks to our strong regional roots we are
intimately acquainted with the local conditions in the areas in which we
operate and are able to provide our clients personalized advice and service
tailored to their needs. With our new organization our client focus is even
greater, thus underscoring the professional nature of our advisory services
even more.
What does that mean specifically? let’s consider the case of a company
owner who is a Valiant client: as an individual client, a company and
an entity responsible for a pension fund. thanks to the new organization
we can now offer this client more in the way of one-stop shopping, i.e. an
entire range of products extending from mortgages to investment and retirement
solutions and financial planning from a single integrated source.
this is a key benefit to clients. At the same time we are investing more
heavily in training our staff. our objective is to enable our clients to be
served by client advisers with first-class training.

inteRVieW With the Ceo
The new Executive Board is composed of Valiant’s own management
staff – a Valiant philosophy? i am extremely pleased that we have been
able to appoint expert management members from our own ranks to the
executive board. this shows the significance we attach to employee development
at Valiant. We are able to work together efficiently as a team since
we have known each other for years.
Apart from engaging in reorganization last year Valiant also streamlined
its branch network. Why this? there was already a significant drop
in clients personally frequenting the branches we closed, meaning the closures
were a reaction to their behavior and the perceptible shift toward online banking.
to be sure, there were already other Valiant branches in the immediate
vicinity of the closed branches. Despite the closures we continue to have a
dense network of branches. And not only that: we have installed Atms at most
of our former branches, in so doing enabling clients to continue to utilize a
portion of Valiant’s services.
What strategy are you pursuing with regard to the branch network?
the examination of our branch network is an ongoing process, with constantly
changing factors playing a role. We want to be close to our clients
and also be locally rooted, which is why a dense network of branches is
important to us. Apart from locational considerations it is also key that a
branch makes economic sense. our clients currently have the option of obtaining
services free of charge throughout Switzerland from 170 Valiant
Atms and approximately another 170 RbA Atms. this trend toward selfservice
is sure to increase.
Valiant is seeking to maintain its client focus by being close to where
its clients are. Aren’t the closures a contradiction in terms? For us,
client proximity primarily means close contact with our clients and knowing
their financial needs. our client advisers will continue to be there for their
clients, i.e. in the neighboring branches – and don’t mind visiting clients in
their homes.
11

12 inteRVieW With the Ceo
Cooperative ventures have always been key pillars in Valiant’s growth
strategy. What went on here in 2011? last summer we announced our
marketing and sales alliance with Zürcher Kantonalbank (ZKb) in various
areas including investment products, foreign exchange trading and equity
research. this enables us to offer our clients specific ZKb investment products
at attractive conditions. institutional investors like pension funds in particular
also benefit as we are able to offer them more in the way of solutions
tailored to their specific requirements. this has already proven itself in
practice. We also benefit from this cooperative venture when it comes to
financial analysis because establishing a unit of our own would not have
been cost-effective.
After entering into this cooperative venture ZKB acquired 3.01 % of
Valiant’s share capital. What does this mean? the purchase of this share
package underscores the long-term nature of the venture. but this is not a
strategic alliance but rather purely a joint marketing and sales venture, meaning
Valiant and ZKb will remain independent entities. our sales markets don’t
overlap, and that is clearly an advantage to both sides.
How is the partnership with PostFinance faring? After the cooperative
venture in commercial banking got off the ground, we expanded the venture
in September 2010 to the private banking business. this has proven to be a
wise move. in the lending business both partners operate only in the Swiss
market, pursue a conservative risk policy and have similar objectives. We are
satisfied with the lending volume that has been generated.
What areas do you concentrate on when it comes to market development?
one focus of our current marketing efforts is young people. to
this end we have created websites each targeting a specific age group and
featuring competitions, games and FAQs on money issues and other topics
of interest to young people. We also communicate with this group of clients
using social media like Facebook. We seek to serve our clients throughout all
the phases of their lives and establish long-term client relationships with them.

inteRVieW With the Ceo
Valiant Bank has been operating on the new Finnova IT platform for
well over one year now. Have your expectations with regard to the
switch to the new platform been met? things are functioning well for
the most part. it comes as no surprise that a project of this magnitude will
always have teething problems, however we were able to resolve them
quickly. the positive thing is we have a direct impact on the ongoing development
work at Finnova, i.e. Finnova has been catering to specific wishes
voiced by Valiant. this flexibility translates into a substantial advantage and
has convinced us that the Finnova solution is future-proof.
The former subsidiaries Banque Romande Valiant and Spar + Leihkasse
Steffisburg migrated to Finnova as well at the end of 2011. Is
this process concluded? the migration of banque Romande Valiant and
Spar + leihkasse Steffisburg went without a hitch. of course, we were able
to benefit from the experience gained in the previous migration project.
Result: all data has been transferred to the Finnova platform. in the autumn
of 2012 we will be merging the technical platform with Valiant bank, then
this project will be completed.
Let’s take a look at the current year: what are your priorities for
2012? As already in 2011 the three C’s will play a key role: client focus, cost
management and controlled growth. our first priority will be the operational
realization of the merger of the four subsidiary banks – to the benefit of our
clients.
13

14
ConSoliDAteD bAlAnCe Sheet
Assets
31.12.2011
in CHF 1 000
31.12.2010
in CHF 1 000
Cash 751 209 453 599
money market instruments 1 347 21 508
Due from banks 1 194 915 1 038 892
Due from customers 2 359 458 2 332 025
mortgages 19 034 570 18 777 529
Securities and precious metals trading portfolio 113 478
Financial investments 1 334 394 1 341 290
non-consolidated participations 166 822 62 880
Fixed assets 189 106 199 682
intangible assets 58 278 50 272
Accrued income and prepaid expenses 46 856 34 949
other assets 77 438 80 398
Total assets 25 214 506 24 393 502
total subordinated claims 4 000 12 766
total due from non-consolidated participating interests 403 005 484 613
Liabilities
money market liabilities 261 1
Due to banks 241 399 258 285
Due to customers, in the form of savings or deposits 12 394 964 12 042 253
Due to customers, other 4 236 273 3 822 970
Cash bonds 824 556 961 385
Debentures and mortgage bond loans 5 313 082 5 299 430
Accrued expenses and deferred income 100 289 121 814
other liabilities 124 509 104 159
Value adjustments and provisions 141 149 161 512
Reserves for general banking risks 21 613 40 179 1)
Share capital 7 896 7 896
Capital reserve 676 767 626 698 1)
profit reserve 1 029 687 957 700
own shares – 25 566 – 133 303
Group profit 127 627 122 523
Total liabilities 25 214 506 24 393 502
total subordinated debt 0 0
total liabilities due to non-consolidated participating interests 29 481 25 944
1) of which transfer of ChF 19.679 million untaxed reserves from the capital reserves for general bank risks.

ConSoliDAteD inCome StAtement
Net interest income
2011
in CHF 1 000
2010
in CHF 1 000
interest and discount income 537 726 561 993
interest and dividends from trading portfolios 12 11
interest and dividends from financial investments 33 880 34 314
interest expense – 261 440 – 275 030
Subtotal net interest income 310 178 321 288
Net commission and fee income
Commission income from credit-granting business 1 596 1 090
Commission income from security trading and investment activities 57 598 59 750
Commission income from other services 24 797 22 252
Commission expense – 12 010 – 14 273
Subtotal net commission and fee income 71 981 68 819
Net trading income
Subtotal net income from trading operations 17 377 15 790
Other ordinary income
income from sale of financial investments 1 704 2 416
income from participating interests 12 094 3 209
thereof from participations accounted for by equity method 6 730 389
thereof from other non-consolidated participating interests 5 364 2 820
income from real estate 3 171 3 062
other ordinary income 3 395 3 217
other ordinary expense – 6 501 – 3 829
Subtotal other ordinary income 13 863 8 075
Operating expenses
personnel expenses – 137 215 – 137 708
other operating expenses – 106 456 – 100 586
Subtotal operating expenses – 243 671 – 238 294
Gross profit 169 728 175 678
Group profit
Gross profit 169 728 175 678
Depreciation of capital assets – 38 257 – 30 534
Value adjustments, provisions and losses – 1 830 – 2 363
Result before extraordinary items and taxes 129 641 142 781
extraordinary income 28 161 11 078
extraordinary expenses – 176 – 84
taxes – 29 999 – 31 252
Group profit 127 627 122 523
15

16
bAlAnCe Sheet VAliAnt holDinG AG
Assets
31.12.2011
in CHF 1 000
31.12.2010
in CHF 1 000
Due from subsidiary banks 46 780 47 417
Due from customers 34 2
Financial investments 73 414 68 190
participating interests 1 164 527 1 167 223
Fixed assets 695 129
Accrued income and prepaid expenses 92 292 103 619
of which, allocated to subsidiaries 92 280 103 520
other assets 144 129
Total assets 1 377 886 1 386 709
Liabilities
Due to banks 75 545 42 304
Accrued expenses and deferred income 8 055 55 078
other liabilities 1 349 1 411
Value adjustments and provisions 478 478
Share capital 7 896 7 896
legal reserves 711 846 778 286
Reserves from capital 71 373 0
other reserves 425 149 315 052
Reserve for own shares 25 566 133 303
profit carried forward 4 3
net profit for the year 50 625 52 898
Total liabilities 1 377 886 1 386 709

inCome StAtement VAliAnt holDinG AG
Net interest income
2011
in CHF 1 000
2010
in CHF 1 000
interest and discount income 56 118
interest and dividends from financial investments 2 736 6 821
interest expense – 1 903 – 1 303
Subtotal net interest income 889 5 636
Net commission and fee income
Commission expense – 176 – 393
Subtotal net commission and fee income – 176 – 393
Other ordinary income
income from sale of financial investments – 11 743 4 507
income from participating interests 106 400 103 400
other ordinary income 22 822 24 449
other ordinary expense – 9 529 – 61 672
Subtotal other ordinary income 107 950 70 684
Operating expenses
personnel expenses – 15 078 – 16 603
other operating expenses – 6 597 – 5 912
Subtotal operating expenses – 21 675 – 22 515
Gross profit 86 988 53 412
Net profit for the year
Gross profit 86 988 53 412
Depreciation of capital assets – 554 – 269
Value adjustments, provisions and losses 0 0
Result before extraordinary items and taxes 86 434 53 143
extraordinary income 17 26
extraordinary expenses 1) – 35 593 0
taxes – 233 – 271
Net profit for the year 50 625 52 898
1) loss realized on holdings of treasury shares assumed by Valiant bank AG as of January 1, 2011.
17

18
GRoup StRuCtuRe
2011
Valiant Bank AG
Retail banking for
private and corporate
clients in Germanspeaking
Switzerland
• Saving and investment
• Financing
• Retirement planning
• Payment transactions
2012
Banque Romande
Valiant SA
Retail banking for
private and corporate
clients in Frenchspeaking
Switzerland
Valiant Holding AG
Valiant Bank AG
Investas AG
Spar + Leihkasse
Steffisburg AG
Valiant
Holding AG
Groupe Management and
Shared Services
Retail banking for
private and corporate
clients in the district
of Thun and
neighboring areas
Executive Board until December 31, 2011
Michael Hobmeier, Ceo
Rolf Beyeler, CFo
Martin Gafner, Ceo of Valiant privatbank AG
Eduard Zgraggen, head of logistics 1)
Statutory Auditor
KPMG AG, muri near berne
1) Retired as of September 30, 2011
Valiant Privat-
bank AG
Asset management
for private and institutional
customers
• Asset
management
• Investment
advisory services
• Financial and tax
planning
Investas AG
Independent asset
management specialized
in the care of
private and institutional
clients
• Asset
management
• Investment
advisory services
Revi-Leasing und
Finanz AG
Car leasing for private
and corporate
clients
• Private leasing
• Corporate leasing
Board of Directors
Kurt Streit, Chairman
Markus Häusermann, Vice Chairman
Dr. Hans-Jörg Bertschi
Jean-Baptiste Beuret
Marc Alain Christen
Andreas Huber
Paul Nyffeler
Roland Ramseier
Franziska von Weissenfluh
Franz Zeder
Executive Board from January 1, 2012
Michael Hobmeier, Ceo
Martin Gafner, Deputy Ceo,
head of Clients / markets
Rolf Beyeler, CFo
Stefan Gempeler, head of operations
Bernhard Röthlisberger, head of
Credit office

ShARe inFoRmAtion
Share distribution
Number of
shareholders
Performance of Valiant Holding AG shares from 2002 to 2011 (indexed)
Number of
shares %
Size of holding
1 – 100 15 749 696 929 4,8
101 – 1 000 28 920 7 714 447 53,1
1 001 – 10 000 1 246 2 616 678 18,0
10 001 – 100 000 60 1 597 528 11,0
> 100 000 6 1 911 656 13,1
Total registered shares 45 981 14 537 238 100,0
Trading volumes
SIX
Swiss
Exchange
BX
Berne
eXchange Total 2011 Total 2010
total in ChF 834 754 411 69 758 676 904 513 087 931 390 784
Daily average in ChF 3 286 435 274 640 3 561 075 3 666 893
total in shares 6 895 542 563 443 7 458 985 5 181 459
Daily average in shares 27 148 2 218 29 366 20 400
300%
250 %
200%
150%
100%
50%
0%
Valiant Holding AG
SMIM
SWX Banks
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Indexed at 100. Source: Bloomberg
19

Valiant holding AG
6003 lucerne
Valiant holding AG
investor Relations
General Secretariat
laupenstrasse 7
p.o. box
3001 berne
telephone 031 310 72 12
telefax 031 310 71 12
www.valiant.ch
ir@valiant.ch
the present text is a translation of
the original German 2011 annual
report, short version («Geschäftsbericht
2011, Kurzversion»), which
constitutes the definitive text and
is binding in law.