Annual Review 2008 - Hyposwiss Privatbank AG
Annual Review 2008 - Hyposwiss Privatbank AG
Annual Review 2008 - Hyposwiss Privatbank AG
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Net interest income fell in the year under review by<br />
CHF 3.3 million to CHF 21.0 million. This result was significantly<br />
affected by the dramatic decline in interest rates during the<br />
financial year, lower loans to customers and the weakness of<br />
key conversion rates. Mortgage interest stagnated at prior-year<br />
levels at CHF 6.7 million.<br />
The exceptional crisis on the financial markets was reflected in<br />
the lower net fee and commission income. These reached a<br />
figure of CHF 70.5 million in the financial year and were thus<br />
CHF 16.3 million or 18.8% below the outstanding prior-year<br />
result. The biggest earnings slump was recorded in the securities<br />
business. Receipts here were around one-third lower than<br />
the figure for 2007. <strong>Hyposwiss</strong> was also exposed to customers’<br />
reluctance in this difficult economic environment to make new<br />
investments in securities. This was exacerbated by the fact that<br />
the market for structured products recorded a massive fall-off.<br />
The sharp price losses and resulting reduction in client assets<br />
impaired the portfolio-dependent earnings. The prior-year<br />
value for fiduciary commissions was exceeded thanks to the<br />
dramatic increase in assets.<br />
Net trading income fell from CHF 9.2 million to CHF 8.1 million.<br />
The decline in our customers’ transaction volumes led to lower<br />
foreign exchange earnings.<br />
Administrative expenses fell during the year under review by<br />
CHF 5.8 million to CHF 48.5 million. Despite a higher number<br />
of staff, personnel expenses were reduced by CHF 2.3 million<br />
to CHF 33.3 million. This is due first and foremost to lower<br />
performance-related remuneration.<br />
After investments in the new Avaloq Banking System had<br />
sharply increased other operating expenses the previous year,<br />
this slid back in the year under review by CHF 3.5 million<br />
to CHF 15.1 million. Savings were also made in the area of<br />
marketing and communications.<br />
The massive collapses on the international share markets meant<br />
that individual collateral loans were not sufficiently covered<br />
by the underlying securities. Net value adjustments of<br />
CHF 7.2 million were formed in order to allow for this. The<br />
value adjustments for default risks in place as at the balance<br />
sheet date amounted to 2.0% of the loans.<br />
Extraordinary income contains the capital gains from the<br />
sale of our shareholding in Pfandbriefbank Schweizerischer<br />
Hypothekarinstitute.<br />
<strong>Hyposwiss</strong> <strong>Annual</strong> <strong>Review</strong> <strong>2008</strong> 23