2005 Annual Report Julius Baer Holding Ltd. - GAM Holding AG

Notes
8 Segment reporting by business line
The segment reporting comprises the three operating
business lines Private Banking, Asset Management
and Trading & Sales. Income and expenses that are
not directly connected with the three business lines
are attributed to the Corporate Center.
Management accounting policies
The external segment reporting reflects the internal
organizational structure and management financial
98 JULIUS BAER GROUP
Private Banking Asset Management
2004 2005 2004 2005
CHF m CHF m CHF m CHF m
restated restated
Operating income 453.5 583.2 368.0 695.0
Personnel expenses 130.3 223.6 136.2 321.3
General expenses 58.7 107.4 42.7 64.4
Services to/from other business lines 139.9 156.3 49.3 56.4
Depreciation and write-offs of non-current assets 2.7 15.3 1.1 17.0
Valuation adjustments, provisions and losses 10.1 37.6 5.2 4.9
Operating expenses 341.7 540.2 234.5 464.0
Net profit before taxes per business line 111.8 43.0 133.5 231.0
Taxes
Consolidated profit
of which shareholders of Julius Baer Holding Ltd.
of which minority interest
Assets under management 61103 121739 73606 181817
change through acquisition 2 - 57255 - 70851
change through divestment 3 - -5825 - -
change through net new money -814 -1456 16572 17611
change through market appreciation 745 10662 3390 19749
Assets 4 2673 11647 733 4169
Liabilities 4 3522 10102 1901 2368
Investments 0.9 2011.9 2.5 3133.2
Number of employees (FTE) 4 491 1447 344 1043
Allocated FTE from Corporate Center 5 317 242 122 92
Total (FTE) 808 1689 466 1135
1 Including residual items and eliminations
2 As per 02.12.2005, Julius Baer acquired the three private banks Ehinger & Armand von Ernst AG, Ferrier Lullin & Cie SA and BDL Banco di Lugano as well as GAM Holding AG
from UBS AG.
3 As per 01.04.2005, Julius Baer sold the private banking activities in the USA to UBS AG.
4 The strong increase in assets and liabilities as well as the number of employees in Private Banking and Asset Management relates primarily to the above-mentioned acquisitions.
5 In accordance to the transfer price system
accounts. Income and expenses are assigned to the
business lines according to the principle of accountability
based on the client relationships. Indirect costs
for internal service relationships between the segments
are fundamentally accounted for according to
the principle of causation and recorded as a cost
reduction for the service provider and as a cost
increase for the service beneficiary. These internal
service allocations are based on a transfer price system
and are carried out at actual cost.