Annual Review 2008 - Hyposwiss Privatbank AG

Editorial
Dear Customers
Ladies and Gentlemen
Last year, we faced the worst financial crisis in recent memory.
Investors as well as financial institutions met with unprecedented
turmoil on the global financial markets, and recovery is likely
to take some time. Naturally, our earnings could not escape the
broad decline in financial values across the globe. At times like
this, it is important to remember that changes of this magnitude
do not only carry risk, they also create new opportunities
for the canny and patient investor. The theme of this year’s
annual review draws an analogy to one of Switzerland’s worst
natural disasters: the landslide that hit the village of Arth-Goldau
in 1806. Since then, new and vibrant life has emerged from
the total devastation, and the area has become a thriving part
of Switzerland.
As a result of the financial crisis, the performance of our clients’
assets in the past year was disappointing. We have initiated the
necessary steps to remedy the situation. Thanks to our excellent
financial strength and creditworthiness, we were able to attract
significant new funds from new and existing clients throughout
the year. Net new money grew by close to 20% measured against
funds under administration at the end of 2007.
2008 was a challenging year in terms of our financial results.
Operating income was down 17% year on year. Following the
completion of major IT infrastructure investments in previous
years, we were able to cut our operating expenses by 11% in
the year under review. Despite these savings, gross profit fell
by 22% and net income for the year was down 36%.
On a more positive note, our excellent reputation on the labour
market allowed us to increase our workforce in terms of both
quality and quantity from 164 to 171 persons (full-time positions).
In the coming year, we will continue to expand.
During the year, we completed the renewal of the executive
committee begun in the second half of 2007. In April 2008,
Alexander Iten became Head of Private Banking and a Member
of the Executive Board. In September, I took over the position
of CEO from my predecessor Theodor Horat. On behalf of all my
colleagues, I would like to thank him for his unflagging commitment
to clients and employees alike. As of September 2008,
Theodor Horat returned to the Board of Directors. At the same
time, Stefan Klinger was also elected as a new board member.
I would like to thank all our customers for their trust and support
during this turbulent period in the world’s financial markets.
Your loyalty, but also your constructive criticism in difficult
times, gives us the strength and conviction to face the future
challenges with confidence and optimism.
Siegfried R. Peyer
CEO
Hyposwiss Annual Review 2008 5