EN (PDF) - Finter Bank Zürich

Annual Report
2011

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Consolidated Key Figures
Board of Directors
Management
Report of the Board of Directors
Financial Year 2011
Consolidated Financial Statements
Report of the Statutory Auditor
on the Consolidated Financial Statements
Financial Statements
Report of the Statutory Auditor
on the Financial Statements
Our Offices

CONSOLIDATED KEY FIGURES
chF million 2011 2010 2009
Consolidated net result – 4.7 – 4.4 0.4
Gross result – 7.0 1.0 4.5
Total assets 911 866 1 065
Total equity 98 128 137
Total client assets 3 771 4 759 5 908
Share of these assets with portfolio
management mandates
950 1 061 1 284
Finter Bank Zürich — consolidated key Figures
1

2 Board of Directors — Finter Bank Zürich

BOARD OF DIRECTORS
Mario Cao, Chairman Canobbio
elected as Chairman 28 September 2011
Dr. Marco G. F. Lanzi, Chairman Weisslingen
resigned effective 28 September 2011
Dr. Pierfranco Riva, Vice Chairman Lugano
Marco Piccinini Monte Carlo
Ing. Giampiero Pesenti Bergamo
Gustav D. Weil Pfäffikon SZ
Dr. Giorgio Moroni Milan
elected 28 April 2011
Dr. Damiano Brusa Küsnacht
elected 21 October 2011
Dr. Pier Giorgio Barlassina Monza
resigned effective 9 March 2011
Dr. Max Amstutz Begnins
resigned effective 28 April 2011
Committees – by 31.12.2011:
Members of the Executive Committee: Mario Cao, Dr. Pierfranco Riva, Marco Piccinini
Members of the Audit Committee: Dr. Damiano Brusa, Mario Cao, Dr. Pierfranco Riva, Dr. Giorgio Moroni
Members of the Remuneration Committee: Mario Cao, Dr. Pierfranco Riva, Ing. Giampiero Pesenti
All the members of the Board of Directors and the committees have been elected until
2014. The majority of the members of the Board of Directors fulfill the independence
requirements of the Swiss Financial Market Supervisory Authority. The Chairman of the
Board of Directors is also a member of the Audit Committee, whereby it must be considered
in particular that, from a regulatory perspective, the size of the Bank is such that
there would be no requirement for it to set up an Audit Committee.
Finter Bank Zürich — Board of Directors
3

4 Management — Finter Bank Zürich

MANAGEMENT
Dr. Marco G. F. Lanzi a. I. Chief Executive Officer
elected 28 September 2011, until 11 March 2012
José Luis Ferrer, elected to CEO 12 March 2012
Vincenzo Di Pierri, resigned as CEO 27 September 2011
Michiel Hagens Group Head Private Banking
Chief Investment Officer
Roger Dürig Chief Operating Officer
Dr. Matteo Maccio Chief Financial Officer
Finter Bank & Trust (Bahamas) Ltd., Nassau
Beat Brechbühler Resident Manager
FinterLife Life Insurance Limited, Vaduz
Herbert Wahl Resident Manager
INTERNAL AUDITORS
PricewaterhouseCoopers, Switzerland
REGULATORY AUDITOR AND GROUp AUDITOR
KPMG AG, Zurich
Finter Bank Zürich — Management
5

REpORT OF ThE BOARD OF DIRECTORS
6 report of the Board of Directors — Finter Bank Zürich
The ongoing sovereign debt crisis in Europe had a strong impact on the financial markets
and the economic environment during the last year. It led to high insecurity with regard
to the further economic development of numerous countries in Europe and of the economy
on a global level. Various parties put continuance of the Euro into question; a potential
exit of single states from the currency unit is no longer viewed as a completely unrealistic
hypothesis.
As a consequence of the debt crisis stability risks in Europe rose to a level rarely seen
in the last decades. Several highly indebted states were no longer able to access financial
markets at reasonable conditions and had to be sustained by bailout schemes and pur­
chases of bond issues by the European Central Bank.
Due to the uncertain economic situation the Euro temporarily lost significantly in value
with respect to the Swiss Franc. At the beginning of August it practically reached parity
with the Franc which represented a depreciation of 17.6%. In order to counteract the
resulting menace to its economy, on 6 September the Swiss National Bank felt impelled
to fix a minimal exchange rate against the Euro of CHF 1.20. Since then the exchange
rate has not fallen below this level. As per year end the exchange rate had depreciated
2.7% compared to the beginning of the year. The USD basically followed the performance
of the Euro.
After various positive quarters the economic performance of the Euro zone again
stagnated in the forth quarter. For a number of countries the year 2012 is expected to
be a very difficult one with a decrease of economic performance; for the other countries
of the Euro zone, only modest growth is foreseen.
Positive effects are expected from decreasing inflation rates, in particular in the
emerging countries and in the US. Towards the end of the year the stabilization measures
decided by the politics and various states led to a significant tranquillization of the
financial markets. During the first weeks of the new year the situation further improved.
Several important European states were able to realize important bond issues at
con siderably more advantageous conditions. The improving economic forecasts and
the increasing confidence in the stability of the banking systems in the Euro zone
entailed a clear recovery of the quotations of shares, corporate bonds and raw materials.

The fundamental changes in the world of finance, already highlighted last year, went on in
the year 2011. Economic operators active in the financial sector are confronted with an
ever increasing density of regulation and continuously increasing requirements regarding
capital, qualified employees and their specific professional education and qualification.
This evolution represents a big challenge, especially also for Private Banking in Switzerland,
the core business of Finter Bank Zürich.
In order to operate successfully in such a changed environment we need to accept
and positively address this change process. Excellent client service and high quality services
are key in our business. The clients will select and retain their bank primarily
based on these criteria and the security offered. This change process entails additional
investments and operating costs for all financial institutions. To adapt structures
grown over the years to the new realities will be complex, labour intensive and cause
significant additional financial expense. The related activities left a clear mark in
the financial statements of Finter Bank Zürich.
In pursuing its strategic objectives the bank intends to simplify its structure and focus
its activity more clearly on the core needs of its Private Banking clients. Among other it
was decided to renounce on own funds and to offer clients only investment vehicles with
an outstanding internal assessment. In the acceptance of new client relationships and
the administration of client assets the bank continues to adopt a prudent strategy, essentially
focused on security and conservation of value. The equity is invested for the
most part in liquid fixed income instruments of high quality debtors. Credits are granted
normally only to Private Banking clients and employees against provision of adequate
c ollateral.
Finter Bank Zürich — report of the Board of Directors
7

8
FINANCIAL STATEMENTS 2011
The financial results of the year 2011 were strongly influenced, as in the prior year, by
difficult market conditions and high insecurity. The sovereign debt crisis in Europe
and regulatory developments on national and international level caused high insecurity
of institutional and private investors. Therefore they adopted a very prudent investment
strategy which resulted in a significant drop of trading volumes. Together with capital
outflows, due to fiscal reasons and stronger competition, and the reduction of the
volumes of the own funds, this led to a decrease of the consolidated net commission and
service fee income of CHF 5.7 million to CHF 26.4 million.
Net interest income remained with CHF 7.4 million practically unchanged, while
the net trading income increased slightly to CHF 3.2 million. Total revenues decreased
from CHF 43.9 million to CHF 37.6 million.
Administrative expenses amount to CHF 44.5 million, an increase of CHF 1.7 million
with respect to the prior year. Personnel expenses, as well as operating expenses include
high extraordinary costs related to the future strategic direction of the bank which should
strongly decline in the next year. Lower total revenues and slightly higher administrative
expenses resulted in a negative gross profit of CHF 6.9 million with respect to the positive
gross profit of CHF 1.0 million of the prior year.
Depreciation on fixed assets of CHF 17.9 million include an extraordinary value
adjustment of CHF 11.7 million on immaterial assets from the acquisition in the year 2008
of Bank Hugo Kahn & Co Ltd. Value adjustments and provisions of CHF 6.2 million
include provisions made in 2011 for client credits for a total amount of CHF 5.4 million.
In order to neutralize these extraordinary positions, in the reporting year CHF 22.5 million
of the reserve for general banking risks were released and credited to extraordinary
income. This position also includes the book profit of CHF 2.7 million resulting from the
sale of the property in Chiasso. The partial dissolution of the provision for deferred
taxes on the immaterial values written down in the reporting year entailed a positive tax
effect of CHF 1.9 million.
The balance sheet total rose by CHF 44.6 million to CHF 911.0 million. On the assets
side cash and other liquid assets strongly increased from CHF 15.8 million to CHF 166.9
million. This increase is essentially due to short term placements of excess liquidity from
client funds with the Swiss National Bank. Outstanding credits of CHF 119.7 million
were CHF 33 million lower than in the previous year; trading positions and fixed financial
assets decreased by CHF 69.6 million to CHF 88.2 million.
Financial statements 2011 — Finter Bank Zürich

As a consequence of the unstable market situation and the low level of interest, amounts
due to customers rose by CHF 87.7 million to CHF 569.1 million. Higher provisions in
the client credit area are at the root of the increase of the value adjustments and provisions
of CHF 3.5 million to CHF 8.3 million.
Consolidated net equity before appropriation of earnings amounts to CHF 98.3 million
which, with more than triple the required net equity, continues to represent a very
solid equity capital base.
The financial statements 2011 of Finter Bank Zürich on a stand alone basis close with
a profit of CHF 8.0 million. This result includes the distribution of a dividend by
our affiliate Finter Bank & Trust, Bahamas, and exceeds the result of the prior year by
CHF 10.3 million. The balance sheet total rose, analogue to the consolidated figures,
because of the interbank placements, slightly to CHF 718 million.
The detailed figures for the reporting year and the related notes to the consolidated
financial statements are presented on page 12 to page 41; the stand alone financial
statements on page 43 to page 50.
The Board expresses its gratitude to all of our clients for the trust they have placed
in us over the last year. Our gratitude extends in particular to all our employees, for their
commitment and engagement for our bank.
On behalf of the Board of Directors
Mario Cao
Zurich, March 2012
Finter Bank Zürich — Financial stateMents 2011
9

10 FINTER BANK ZÜRICH — Consolidated Financial Statements 2011

Financial Year 2011
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
11

CONSOLIDATED FINANCIAL STATEMENTS
Balance sheets as of December 31, 2011 and 2010
Assets (in cHF 1000) Page Note 31.12.2011 31.12.2010
cash and other liquid assets 166 874 15 813
Bills of exchange and money market papers 117 235
Due from banks 313 485 290 008
Due from customers 26 3.1 68 371 90 346
Mortgages 26 3.1 51 330 62 331
Trading positions in securities and precious metals 27 3.2 39 135 86 956
Financial assets at fair value on account and risk of policyholders
of life insurance policies 200 430 191 671
Fixed financial assets 27, 29 3.2, 3.6 49 096 70 917
non-consolidated associates 27, 28 3.2, 3.3, 3.4 863 862
Fixed assets 28 3.4 6 589 17 507
intangible assets 28 3.4 6 045 20 235
accrued income and prepaid expenses 3 781 15 121
Other assets 29 3.5 4 793 4 299
Total assets 910 909 866 301
Total accounts receivable from non-consolidated associates
and qualified associates 85 210
12 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH

Balance sheets as of December 31, 2011 and 2010
Liabilities (in cHF 1000) Page Note 31.12.2011 31.12.2010
Due to bills of exchange and money market papers 43 62
Due to banks 16 186 34 930
Due to customers as savings or deposits 512
Other amounts due to customers 569 110 481 365
accrued expenses and deferred income 6 737 13 137
Other liabilities 29 3.5 4 713 4 151
Value adjustments and provisions 30 3.8 8 347 4 845
Mathematical provisions insurance business 30 3.8 207 429 199 297
reserves for general banking risks 30 3.8 2 837 25 337
Share capital 30, 31 3.9, 3.10, 3.11 45 000 45 000
retained earnings 54 576 61 425
Minority interest 581 624
net consolidated result – 4 650 – 4 384
whereof minority interest – 53 – 43
Total liabilities 910 909 866 301
Total amounts due to non-consolidated participations and qualified associates 2 791 1 045
Off-balance-sheet items as of December 31, 2011 and 2010
(in cHF 1000) Page Note 31.12.2011 31.12.2010
contingent liabilities 26, 37 3.1, 4.1 8 702 10 903
irrevocable commitments 26, 37 3.1, 4.1 2 304 3 198
Derivative financial instruments 37 4.2
– positive replacement values 1 771 1 270
– negative replacement values 1 160 1 181
– contract volume 147 399 104 731
Fiduciary transactions 38 4.3 226 474 303 602
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011 13

CONSOLIDATED FINANCIAL STATEMENTS
Profit and loss statements 2011 and 2010
(in cHF 1000) Page Note 2011 2010
Net interest income
interest income 4 648 4 192
interest and dividend income from trading positions 1 680 1 862
interest and dividend income from investment securities 1 382 1 694
interest expense – 300 – 315
Net interest income 7 410 7 433
Net commission and service fee income
credit-related fees 76 125
commission income from securities trading and investments 29 407 36 630
Service-related fees and commissions 752 1 039
commission expenses – 3 812 – 5 630
Net commission and service fee income 26 423 32 164
Net income insurance business
income from insurance business 11 962 38 582
expenses from insurance business – 11 683 – 38 281
Net income insurance business 279 301
Net trading income 38 5.1 3 160 3 052
Net other ordinary income
Profit from disposals of fixed financial assets
income from associates 138 138
of which remaining, non-consolidated associates 138 138
Profit from real estate 68 314
Other ordinary income 320 788
Other ordinary expenses – 246 – 334
Net other ordinary income 280 906
Operating revenue 37 552 43 856
Net administrative expenses
Personnel expenses 39 5.2 – 26 088 – 24 740
Operating expenses 39 5.3 – 18 459 – 18 111
Net administrative expenses – 44 547 – 42 851
Gross result – 6 995 1 005
14 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH

Profit and loss statements 2011 and 2010
(in cHF 1000) Page Note 2011 2010
Gross result – 6 995 1 005
Depreciation and amortization of fixed assets 28 3.4 – 17 882 – 6 492
Value adjustments, provisions and losses 30 3.8 – 6 188 – 623
Profit before extraordinary items and taxes – 31 065 – 6 110
extraordinary income 39 5.4 25 174 2 497
extraordinary expenses 39 5.5 – 180 – 414
Taxes 41 5.8 1 421 – 357
Net consolidated result – 4 650 – 4 384
whereof minority interest – 53 – 43
15
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011 15

CONSOLIDATED FINANCIAL STATEMENTS
Cash flow statements 2011 and 2010
(in cHF 1000)
Flows from operations
16 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
Sources
of funds
2011 2010
Uses Sources
of funds
of funds
consolidated net loss – 4 650 – 4 384
Depreciation and amortization of fixed assets 17 882 6 492
Value adjustments and provisions 3 502 3 545
accrued income and prepaid expenses 11 340 6 423
accrued expenses and deferred income 6 400 4 033
Foreign exchange differences 54 2 163
reserves for general banking risks 22 500 2 000
Minority interest 43 67
Dividend from the previous year 2 500 300
contribution of pension funds 200
Total 28 128 31 443 6 141 14 698
Net cash provided by operating activities 3 315 8 557
Flows from investment activities
associates 1 2
Fixed assets 8 026 819 3 241
intangible assets 800
Total 8 026 820 802 3 241
Net cash provided by investment activities – 7 206 2 439
Flows from banking activities
Due to banks more than 90 days
Due from banks more than 90 days
Bills of exchange and money market papers 118 45
Interbank activities 118 45
Savings and deposit funds 512 338
Due to customers 87 745 222 613
Due from customers 21 975 11 707
Mortgages 11 001 1 190
Customer activities 120 721 512 11 707 224 141
Trading positions in securities and precious metals 47 821 41 038
Fixed financial assets 21 821 11 715
Capital market activities 69 642 52 753
Uses
of funds

Cash flow statements 2011 and 2010
(in cHF 1000)
Sources
of funds
2011 2010
Uses Sources
of funds
of funds
Other assets 494 337
Other liabilities 562 4 379
Other balance sheet positions 562 494 337 4 379
Total 191 043 1 006 12 089 281 273
Net cash provided by banking activities – 190 037 269 184
Flows from insurance business
Financial assets at fair value on account and risk of policyholders of life insurance policies 8 759 80 007
Mathematical provisions insurance business 8 132 66 385
Total 8 132 8 759 66 385 80 007
Net cash provided by insurance business 627 13 622
Change in liquidity
cash and other liquid assets 151 061 60 620
Due from banks up to 90 days 23 477 262 734
Due to banks up to 90 days 18 744 29 316
Due to bills of exchange and money market papers 19 236
Total 193 301 323 554 29 552
Change in liquidity – 193 301 293 802
Total sources of funds 235 329 408 771
Total uses of funds 235 329 408 771
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
Uses
of funds
17

CONSOLIDATED FINANCIAL STATEMENTS
Notes
1. THE BANK’S OPERATIONS
General
Finter Bank Zürich is a bank active in the Private Banking
and Portfolio Management business as well as in
the ancillary activities directly related to such core
business (e.g. lending and trading in securities mainly
on behalf of clients) with headquarters in Zurich as
well as a branch office in Lugano and an agency in
Chiasso.
The bank serves an international clientele. The
bank also owns a subsidiary in the Bahamas (100%)
with the same business purpose as well as a life insurance
company in Liechtenstein (92%). In addition,
various subsidiaries support the bank’s operations in
fund management, financing and fiduciary activities. The
Finter Funds were liquidated during the reporting year.
At the end of the year, the bank had 118.5
em ployees (full time equivalents; previous year 117).
The bank focuses on the lines of business
described below. It does not pursue any other operations
that have a material impact on its risk or income
situation.
lenDinG
Lending is of secondary significance for Finter Bank
Zürich. Most loans are secured and refinanced with
client deposits.
cOMMiSSiOn BUSineSS anD SerViceS
Commissions and revenues from services are the
bank’s principal sources of income, comprising in
particular client securities and investment activities in
the areas of asset management, investment advice
and fiduciary investment. Income from these business
areas accounts for approximately two thirds of the
bank’s total revenues.
18 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
TraDinG
Finter Bank Zürich is active in both securities and
foreign exchange trading. Trading operations are
clearly defined and monitored on an ongoing basis.
This also applies to transactions involving financial
derivatives that are employed on behalf of the bank’s
clients as well as for the bank’s own account.
OTHer OPeraTiOnS
For liquidity purposes, the bank maintains a securities
portfolio containing high-quality fixed-income securities.
The bank operates in rented premises that have
been customized to its needs.
riSK aSSeSSMenT
The Board of Directors has dealt with the material risks
that the Group is exposed to in the meeting held on
March 9, 2011. We refer to the following remarks
regarding risk management.
riSK ManaGeMenT
The Group Risk Policy and Control Framework constitutes
the basis for the bank’s and the Group’s risk
management activities. This has been approved by the
Board of Directors and is periodically reviewed to
ensure its ongoing appropriateness. The implementation
of the Framework is the responsibility of the
Management Board. Clearly defined limits are established
for individual risks.
The Group Risk Committee is responsible for
ensuring compliance with the policy and the ongoing
monitoring of all relevant risks. The Committee is
chaired by the Chief Risk Officer, and several members
of the Management Board act as standing members.
Actively traded positions are valued on a daily
basis. Responsibility for risk monitoring is segregated
from responsibility for trading operations at Management
Board level.

The Management Board is regularly informed about
the bank’s financial, liquidity and earnings situation as
well as of the associated risks.
DeFaUlT riSKS
Default risks comprise all commitments from which
a loss might arise if the counterparties were no longer
in a position to fulfil their obligations. These risks are
controlled by means of limit systems and quality requirements.
The bank’s powers of credit authorization regulate
the loan approval process, whereby creditworthiness
and eligibility are assessed according to standard
banking criteria. Lending operations are mainly
restricted to clients for whom the bank provides Private
Banking services.
inTereST raTe riSKS
The bank’s Asset and Liability Committee (ALCO),
chaired by the Chief Investment Officer, is responsible
for the central monitoring and reporting of interest
rate risks arising from lending and non-lending operations.
The focus lies on interest rate volatility risk. In
addition, the net present value calculation of interestrelated
cash flows allows the bank to undertake sensitivity
analyses.
OTHer MarKeT riSKS
Other market risks, which arise primarily as a result of
positions held in securities, foreign exchange, and precious
metals, are limited by both volume and loss
limits. Traded positions are monitored on a daily basis.
liQUiDiTY riSKS
Solvency is monitored and assured as per the corresponding
regulations and requirements defined by
banking law. The bank’s proprietary positions are
regularly reviewed with respect to their liquidity.
OPeraTiOnal riSKS
Operational risks are defined as “risks of indirect or
direct losses resulting from the inadequacy or failure of
internal procedures, persons and systems, or external
events”. Such risks are mitigated by in-houseregulations
and directives that cover organizational
measures and controls. The bank’s internal auditors
regularly review the appropriateness and effectiveness
of internal controls and report their findings or recommendations
directly to the Audit Committee.
GrOUP cOMPliance riSKS
The Head Compliance is located in Zurich and reports
directly to the CEO. Finter Bank Zürich also has a
Branch Compliance Officer located in the Lugano
branch office who exercises on-site compliance functions.
The Branch Compliance Officer reports to the
Head Compliance.
Both Group Compliance and the individual
Compliance Officer ensure that the bank’s business
activity conforms to the continually changing regulatory
regime and the bank’s due diligence obligations.
Group Compliance is responsible for the review of new
guidelines or regulations issued by the financial regulators,
Swiss legislation, or other organizations responsible
for defining banking standards.
OUTSOUrcinG OF BUSineSS OPeraTiOnS
The bank has not outsourced any material lines of
business according to the meaning of the FINMA
Circular 2008/7.
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
19

2. AccOuNTINg, PRESENTATION AND VALuATION
PRINcIPLES
Accounting, valuation and presentation comply with
the provisions of the Swiss Code of Obligations, with
the provisions of the Swiss Federal Banking Act and
Ordinance, with statutory provisions, as well as with
the circulars issued by the Swiss Financial Market
Supervisory Authority (FINMA). The consolidated
financial statements provide a true and fair view of the
assets, financial position and results of the Group, and
are prepared in compliance with the reporting rules for
banks and brokers.
The accounting, presentation and valuation principles
apply to the consolidated financial statements as well
as to the standalone financial statements.
cOnSOliDaTiOn ScOPe
Parent company and subsidiaries in which the Group
directly or indirectly owns more than 50% of the voting
capital or which are controlled by other means, are
fully consolidated.
cOnSOliDaTiOn MeTHOD
Subsidiaries that are directly or indirectly controlled by
the Group are fully consolidated. Capital consolidation
is carried out according to the purchase method. Newly
acquired subsidiaries are consolidated as of the date on
which control is assumed. Subsidiaries that have been
divested remain consolidated until completion date of
the transaction. Companies that are held temporarily
and have been acquired with the intention of resale in
the near future are presented under the caption fixed
financial assets. Intercompany business and interim
gains are eliminated in the preparation of the consolidated
financial statements.
20 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
recOrDinG anD rePOrTinG
All business transactions are recorded in the bank’s
accounts on the trade date and are valued according to
the following principles. Cash transactions that have
not yet been settled are also recorded on the trade
date.
FOreiGn cUrrencieS
Assets and liabilities denominated in foreign currencies
are converted using the closing date rate. Resulting
exchange differences are booked through profit and
loss. Exchange rate differences between the trade date
of a transaction and its settlement date are booked
through the profit and loss account.
The assets and liabilities of consolidated companies are
converted using the closing date exchange rates, while
income and expenses are converted at average annual
exchange rates. Currency translation differences, resulting
from this use of different exchange rates, are
recognised in equity.
closing
date rate
2011
average annual
date rate
USD 0.9354 0.8847
eUr 1.2148 1.2329
Closing
date rate
Previous year
Average annual
date rate
USD 0.9318 1.0369
EUR 1.2502 1.3779

General ValUaTiOn PrinciPleS
All individual positions recorded in the balance sheet
are valued individually (“individual valuation”).
Accounts payable and receivable denominated
in foreign currencies as well as foreign currency coins
and banknotes are valued using the closing date rate.
caSH anD OTHer liQUiD aSSeTS, BillS OF excHanGe
anD MOneY MarKeT PaPerS anD DUe FrOM BanKS
These are carried in the balance sheet at their nominal
value. Where necessary, individual value adjustments
are booked for receivables at risk.
aMOUnTS DUe FrOM cUSTOMerS anD aMOUnTS DUe
SecUreD BY MOrTGaGe
Amounts due from customers that are at risk, i.e.
amounts owed by borrowers who are unlikely to be
able to meet their future commitments, are valued
individually and the expected loss is accounted for by
individual value adjustments. Off-balance sheet business
transactions such as fixed commitments, guarantees
and derivative financial instruments are also
reviewed in this revaluation process.
Amounts due from customers are classified as
at risk at the latest when the contractually agreed payments
for principal and/or interest have been outstanding
for more than 90 days. Interest payments outstanding
for more than 90 days are deemed overdue.
Overdue and at risk interest payments are recorded as
“value adjustments and provisions” instead of being
recorded as income.
Amounts due from customers are recorded
without interests when the realization of the interest
seems so doubtful that a deferral can no longer be
deemed sensible.
The expected loss is calculated as the difference
between the book value of the receivable and the
amount that is expected to be realized, taking into
account counterparty risk and the net proceeds
expected from the liquidation of collaterals.
The individual value adjustments are recorded
as “value adjustments and provisions”.
If a receivable is to be classified as fully or partially
not realizable or if the claim is waived off, the
receivable is booked against the respective value
adjustment. Any amounts that are recovered at a later
date are directly booked to “value adjustments for
default risks”.
TraDinG POSiTiOnS in SecUriTieS anD PreciOUS
MeTalS
In principle, trading positions in securities and precious
metals are valued and recorded at fair value. Fair value
is defined as the price traded in an efficient and liquid
market or as a model based valuation. Alternative
investments are valued with the market prices available
as of the closing date. If, in exceptional cases, a fair value
is not available, the position is valued and recorded
according to the lower of cost or market principle.
Gains and losses resulting from valuation are
recorded under “net trading income”. Interest received
and dividends paid on trading positions in securities are
credited to “interest and dividend income from trading
positions”. No capital refinancing costs are charged
under “net trading income”.
The caption “net trading income” also includes
primary trading income from emissions.
Physical positions of precious metals are valued
at market prices.
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
21

FixeD Financial aSSeTS
Fixed-income debt securities, convertible bonds and
bonds with warrants not recorded under trading positions
are valued at the lower of cost or market provided
there is no intention to hold such positions to maturity.
The net balance of value adjustments is recorded
as “other ordinary expenses” or “other ordinary
income”. A revaluation up to no more than the historic
cost is made if the market value rises again after a drop
below the historic cost.
Debt securities acquired with the intention of
being held to maturity are valued according to the accrual
method. Premium and discount are accrued over the
remaining life time of the security until maturity.
Interest related gains or losses resulting from sale or
redemption before maturity are accrued over the remaining
time period, i.e. until the original maturity date.
Losses and gains related to the solvability of
issuers are recorded under “other ordinary income” in
the profit and loss statement. Any proceeds (difference
between book value and sale price) arising from fixed
financial assets valued at the lower of cost or market
are booked to “proceeds of sales of fixed financial
assets”. Positions held in equity securities and precious
metals are valued at the lower of cost or market.
nOncOnSOliDaTeD aSSOciaTeS
Minority participations upon which the Group can
exercise a significant influence are recorded according
to the equity method. Significant influence is typically
assumed when the Group owns at least 20% of the
voting rights. Companies upon which the Group can
exercise no significant influence or whose size and
activity are not material for the Group are recorded
under “non-consolidated associates” and valued at the
lower of cost or market.
22 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
FixeD aSSeTS
Investments in new fixed assets are capitalized and
valued at cost if they are used over more than one
financial period. Investments in new IT applications
are capitalized if the investment exceeds CHF 100 000
or equivalent.
Investments in existing fixed assets are capitalized
if their market value or value in use is sustainably
increased or if their useful life is significantly prolonged.
In following valuations the fixed assets are
recorded at cost less accumulated amortization and
depreciation. Assets are systematically amortized over
their estimated useful lives. The sustainability is reviewed
on an annual basis.
If a sustainability review identifies a change in
the useful life or a loss in value, the residual value is
then systematically amortized over the reassessed useful
life of the asset, or the asset is impaired.
Amortizations, depreciations and impairments
are recorded in the profit and loss statement as “depreciation
and amortization of fixed assets”. If the reason
for an impairment ceases to apply, the corresponding
amount is credited back to the item.
The estimated useful lives of individual fixed
asset categories are as follows:
Own bank building, without land:
(sold during the reporting year in December)
25 years
renovation investments in leased premises: 5 years
Furniture and facilities: 5 years
iT applications: 5 years
iT hardware including networks: 2 years

Profits realized from the sale of fixed assets are recorded
as “extraordinary income”, and the corresponding
losses as “extraordinary expenses”.
IntangIble assets
The capitalized intangible assets related to the acquisition
of Bank Hugo Kahn & Co Ltd include the acquired
client relationships and software, as well as the resulting
goodwill. The client base was valued according to
estimated future revenue generation, while software
was valued according to the replacement value. The
intangible assets related to the acquired client relationships
as well as goodwill are amortized over ten years,
while the intangible assets related to software are
amortized over five years. Based on the impairment
test, intangible assets were written down by CHF 11.7
million in the reporting year.
benefIt plan lIabIlItIes
The Group maintains two retirement funds in Switzerland
for its staff. Both are to be considered as defined
contribution schemes according to Swiss law.
The benefit plan liabilities and the assets that
cover these liabilities are in a legally independent foundation
with a collective agreement and in an affi lia tion
contract to a collective fund of an insurance company.
The organization, management, and financing
of the benefit plans comply with the legal provi sions,
with the foundation by-laws, and with the applicable
rules and regulations of the basic plan. The second
plan insures those salary components that exceed the
maximum insurable salary of the basic plan. The Group
fully funds the second plan.
As of the closing date, the basic plan covered
111 insured employees, of which 110 were fully insured
and one employee was insured for risk only. In the previous
year there were 113 insured employees, of which
one was insured for risk only. 10 employees are co -
vered by the second plan.
For each pension plan, according to the Swiss
GAAP FER 16, the bank has to evaluate whether any
debit or credit balance may result in economic risks or
economic returns. Currently avai lable assets slightly
exceed the benefit plan’s liabilities. This small excessive
cover does not need to be recognized. Em ployer
contribution reserves or similar items are recognised
as “other assets” on the balance sheet. The financial
statements of the pension fund provide the basis for
the annual assessment.
Employer contribution reserve, both plans:
CHf 1 000
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
31.12.11 Previous
year
Reserve at the beginning of year 1 487 1 287
allocation 135 200
Reserve at end of year 1 622 1 487
The Group acquired Bank Hugo Kahn & Co Ltd (BHK)
as per October 1, 2008. The employees of BHK were
covered by two plans, by a basic plan and by a second
plan. The basic plan of BHK was closed by January 1,
2010, and the second plan by January 1, 2011 and all
former insured persons habe been integrated into the
group plans.
The pension fund of BHK still has assets related
to the employers' contribution reserve. This employer
contribution reserve is not recorded in the balance
sheet because it is intended to be used for the pension
plan for the former BHK employees.
23

TaxeS
cUrrenT TaxeS
Current taxes are recurring, generally annual income
and capital taxes. One-off or transaction related taxes
are not recorded as current taxes. Current taxes on the
net income for a period are calculated in accordance
with local tax law, regulations and guidelines and are
recorded as expenses in the accounting period in which
the respective profits were generated. Direct taxes
owed from current profits are booked under liabilities
as accrued expenses.
DeFerreD TaxeS
Deferred taxes are separately determined for each taxpaying
entity in each business period. There are currently
no tax effects arising from temporal differences
between the values of assets and liabilities recorded in
the balance sheet and the actual tax values of these
items. In connection with the acquisition of Bank Hugo
Kahn & Co Ltd, deferred taxes totalling CHF 1 547 000
were accounted for after impairment.
reSerVeS FOr General BanKinG riSKS
According to the Swiss Federal Banking Act Ordinance,
“reserves for general bank risks” are considered equity
and taxed. The amount includes the first time capitalization
of the employer contribution reserve of CHF
687 000.
OFF Balance SHeeT TranSacTiOnS
Off balance sheet transactions are disclosed at their
nominal value. Provisions are recorded for anticipated
losses.
24 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
ValUe aDJUSTMenTS anD PrOViSiOnS
Individual value adjustments and provisions are recorded
for all loss risks identified. No longer required
value adjustments and provisions are dissolved
through profit and loss.
DeriVaTiVe Financial inSTrUMenTS
The relevant business policy and risk management
measures are outlined under the heading “Bank’s operations”.
TraDinG
All derivative financial instruments are valued at fair
value (with the exception of derivatives used in conjunction
with hedging transactions). These instruments
are recorded as “other assets” or “other liabilities” with
positive or negative replacement values.
Any profit or loss generated in trades with derivative
financial instruments is recorded as “net trading
income”.
HeDGinG TranSacTiOnS
Derivative financial instruments may be used within
the scope of asset and liability management in order to
hedge interest rate and exchange rate risks or to hedge
other balance sheet assets.
Hedging transactions are valued in the same
way as the underlying transaction being hedged. Any
profit or loss from hedging transactions is recorded
through the profit and loss of the transaction being
hedged.
Profits or losses incurred with derivatives used
to hedge interest rate risks are calculated according to
the accrual method. The interest component is apportioned
by means of the compound interest method
applied throughout the product maturity. Accrued
interest on the hedged position is recorded in the “settle -
ment account” as “other assets” or “other liabilities”.

TranSacTiOnS WiTH relaTeD ParTieS
Most transactions with related parties are secured
loans granted to employees at preferential interest
rates. Furthermore conventional banking services such
as securities transactions, payment transactions and
asset management services are offered to employees at
standardized preferential terms.
Finter Bank Zürich is also mandated to manage
the portfolios of several Group companies of its parent
company, Italmobiliare S.p.A., Milan, at preferential
terms.
cHanGeS in accOUnTinG anD ValUaTiOn PrinciPleS
There have been no changes in the accounting and
valuation principles since last year.
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
25

3. COMMENTS ON THE BALANCE SHEET
3.1 Breakdown of loan collateral and off-balance-sheet operations
(in CHF 1000)
Loans
26 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
Secured by
mortgage
Other
collateral
Un-
secured Total
Due from customers 5 915 56 882 5 574 68 371
Mortgages
– Residential properties 49 635 49 635
– Business and office properties 1 545 1 545
– Commerce and industry 150 150
– Others
Total mortgages 51 330 51 330
Total loans 31.12.2011 57 245 56 882 5 574 119 701
Previous year 62 697 89 522 458 152 677
Off-balance-sheet operations
Contingent liabilities 8 546 156 8 702
Irrevocable commitments
Liabilities for calls on shares and other equity
2 304 2 304
Committed credits
Total off-balance-sheet operations 31.12.2011 8 546 2 460 11 006
Previous year 10 339 3 762 14 101
(in CHF 1000)
Gross
outstanding
amount
Estimated
liquidation
value of
collateral
Net
outstanding
amount
Individual
Provision
Doubtful accounts receivable 31.12.2011 9 256 3 744 5 512 5 512
Previous year 189 189 192

3.2 Trading positions in securities and precious metals, fixed financial assets and participations
(in CHF 1000) 31.12.2011 31.12.2010
Trading positions in securities and precious metals
Interest-bearing debt certificates
– listed 34 227 77 947
– not listed 631 1 427
Equities 472 4 864
Alternative Investments 3 766 2 685
Precious metals 39 33
Total trading positions in securities and precious metals 39 135 86 956
– of which securities eligible for repo accordant liquidity regulations 4 334 53 814
(in CHF 1000)
Fixed financial assets
Book value
31.12.2011
Fair value
31.12.2011
Book value
31.12.2010
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
Fair value
31.12.2010
Debt certificates 49 096 49 846 70 917 71 584
– of which with retaining intent until maturity 49 096 49 846 70 917 71 584
Participations
– of which qualifying participations
Total fixed financial assets in interest-bearing securities and options listed
on the stock exchange 49 096 49 846 70 917 71 584
– of which securities eligible for repo accordant liquidity regulations 43 693 44 464 65 715 66 379
(in CHF 1000)
Non-consolidated participations
with market value
Book value
31.12.2011
Book value
31.12.2010
without market value 863 862
Total non-consolidated participations 863 862
27

3.3 Comments on significant subsidiaries
Company name Domicile Business activity Currency
Full consolidated subsidiaries
28 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
Share
Capital
in 1 000 31.12.2011 31.12.2010
Finter Bank & Trust (Bahamas) Limited Nassau Bank USD 5 000 100 100
Finter Fund Management Company SA Luxembourg Fonds-Management CHF 250 100 100
Enhanced Frontier (SAC) Ltd. Nassau Fonds-Management EUR 0.1 100 100
Finter Life Lebensversicherungs-
Aktiengesellschaft Vaduz Life insurance CHF 7 000 92 92
Finance Company Hugo Kahn & Co Ltd. Zurich Finance Company CHF 10 000 100 100
Amazonas Investments Limited Nassau Trust company USD 10 100 100
Frederick Investment Limited Nassau Trust company USD 10 100 100
3.4 Analysis of fixed assets
(in CHF 1000)
Total non-consolidated
Cost
price
Accrued
depreciation
and
amortization
Book value
31.12.2010
Conversion
differences Investments Divestments Depreciation
Book value
31.12.2011
associates 8 176 7 312 862 1 863
– Bank premises 20 458 12 076 8 382 152 – 8 026 – 508
– Other equipment 8 998 8 244 754 – 343 411
– IT-Software 20 393 13 082 7 311 – 12 83 – 1 974 5 408
– Other fixed assets 21 888 20 828 1 060 – 7 584 – 867 770
Total fixed assets 71 737 54 230 17 507 – 19 819 – 8 026 – 3 692 6 589
– Goodwill 8 022 1 604 6 418 – 6 418
Participation in %
– Intangible assets 17 472 3 655 13 817 – 7 772 6 045
Total intangible assets 25 494 5 259 20 235 – 14 190 6 045
Total 105 407 66 801 38 604 – 18 819 – 8 026 – 17 882 13 497
Fire insurance value of properties 281
Fire insurance value of the other fixed assets 36 836

3.5 Other assets and liabilities
(in CHF 1000)
Replacement values of derivative financial instruments
Other
assets
31.12.2011
Other
liabilities
31.12.2011
Other
assets
31.12.2010
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
Other
liabilities
31.12.2010
– Contracts as trader 1 771 1 160 1 270 1 181
Indirect taxes 345 2 491 364 2 420
Settlement accounts 592 634 251 41
Employer contribution reserve 1 622 1 487
Other assets and liabilities 463 428 927 509
Total other assets and liabilities 4 793 4 713 4 299 4 151
3.6 Pledged or assigned assets to secure own commitments
(in CHF 1000)
Pledged assets
Book-
value
31.12.2011
outstanding
amount
31.12.2011
Book-
value
31.12.2010
Bookvalue of own securities included in the position
“investment securities”* 19 759 22 212
* Assets pledged or assigned as collateral for guarantees for joint operations for banks and for Repos with the Swiss National Bank (SNB).
3.7 Committments to own pension funds
outstanding
amount
31.12.2010
(in CHF 1000) 31.12.2011 31.12.2010
Obligations 827 204
Employer contribution reserves capitalized 1 622 1 487
The benefit plans maintained by the Group for employees are defined contribution plans under Swiss law.
Apart from part-time employees and apprentices, all staff members employed by the Swiss company are insured by
two plans. The standard age of retirement is 65, but staff members over 59 have the option to request early retirement, with
a corresponding reduction in the amount of pension received. In addition to providing mandatory benefits pursuant to the
BVG (Berufliches Vorsorgegesetz: Occupational Pensions Act), the plan also covers voluntary benefits under the BVG.
The employer contributions are recognized unchanged as an expenditure in the profit and loss account. Obligations are
deemed fulfilled with the payment of the amounts specified in the plan regulations.
29

3.8 Value adjustments and provisions / Reserves for general banking risks
(in CHF 1000)
30 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
Status
31.12.2010
Uses and
releases as
designated
Recoveries of
interest at
risk and
currency
differences
New
provisions
charged to
P&L
Releases
in favor
of P&L
Status
31.12.2011
Provisions for deferred taxes 3 460 – 1 913 1 547
Value adjustments and provisions
for default and other risks
Value adjustments and provisions for default
risks (delcredere and country risks)
Value adjustments and provisions
for other business risks
252 – 51 5 372 5 573
Provisions for restructuring 395 – 330 6 5
Other provisions
Total value adjustments and provisions
738 424 1 162
as per balance sheet 4 845 – 2 294 5 796 8 347
Reserves for general banking risks 25 337 – 22 500 2 837
Mathematical provisions insurance business 199 297 8 132 207 429
The position “Reserves for general banking risks” is taxed in full.
3.9 Share capital and shareholders with shares greater than 5% voting rights
The share capital of the company, amounting to CHF 45 000 000, subdivided into registered shares of a par value of
CHF 100 each, remained unchanged. All 450 000 shares have full rights for dividends.
Important shareholders and groups with voting rights
Finter Bank Zürich Ltd is a fully owned subsidiary of SOPARFI Société de Participation
Financière Italmobiliare SA, Luxembourg, which in turn is fully owned by Italmobiliare
S.p.A., Milan (a company quoted on the stock exchange). 100%
In the previous year Finter Bank Zürich Ltd was a fully owned subsidary of Fincomind AG,
Lugano which in turn was owned by Italmobiliare S.p.A., Milan (69.93%) and by SOPARFI
Société de Participation Financière Italmobiliare SA, Luxembourg (30.07%).
31.12.2011 31.12.2010

3.10 Changes in shareholders equity
(in CHF 1000)
Equity at the beginning of the year
Share capital 45 000
Retained earnings (incl. foreign exchange differences) 61 425
Minority interest 624
Reserves for general banking risks 25 337
Consolidated result – 4 384
Total equity at the beginning of the year (before distribution of profit) 128 002
Changes
– Dividend and other distributions of consolidated profit
of the previous year – 2 500
– Release of reserves for general banking risks – 22 500
– Foreign exchange differences 35
– Change of minority interest in equity – 43
– Consolidated result – 4 650
Total equity as per 31.12.2011 (before distribution of profit) 98 344
Share capital 45 000
Retained earnings (incl. Foreign exchange differences) 54 576
Minority interest 581
Reserves for general banking risks 2 837
Consolidated result – 4 650
3.11 Regulatory requirements regarding the publication of the allocation of equity
(in CHF 1000) 31.12.2011 31.12.2010
Total eligible equity 84 521 99 340
Required equity 25 281 32 469
whereof for credit risks 12 487 16 120
whereof for non counterparty related risks 3 136 5 887
whereof for market risks 2 794 2 506
whereof for operational risks 6 864 7 956
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
31

3.12 Maturity profile of current assets, fixed financial assets and borrowed funds
(in CHF 1000)
Current assets
32 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
On
demand Callable
Due
within
3 months
Due after
3 to 12
Months
Due after
1 to 5
years
Due
after 5
years
Immobi-
lized Total
Cash and other liquid assets 166 874 166 874
Bills of exchange and money
market papers 117 117
Due from banks 63 535 249 950 313 485
Due from customers 21 777 27 428 8 616 10 550 68 371
Mortgages 27 911 4 588 12 274 6 457 100 51 330
Trading positions in securities
and precious metals
Trading positions on account
and risk of holders of life
39 135 39 135
insurance policies 200 430 200 430
Fixed financial assets 6 540 2 033 37 802 2 721 49 096
Total current assets 31.12.2011 297 572 222 207 288 506 22 923 54 809 2 821 888 838
Previous year 101 834 208 357 305 337 81 620 104 038 7 091 808 277
Borrowed funds
Due to bills of exchange and
money market papers 43 43
Due to banks 10 634 5 552 16 186
Other amounts due to customers 569 110 569 110
Total borrowed funds 31.12.2011 579 787 5 552 585 339
Previous year 492 930 23 940 516 870

3.13 Claims and liabilities to affiliated companies as well as loans extended to the organs of the company
(in CHF 1000) 31.12.2011 31.12.2010
Due from affiliated companies 209 478
Due to affiliated companies
Loans extended to the organs of the company 3 750 3 553
3.14 Analysis of assets by countries / group of countries
(in CHF 1000) 31.12.2011 share in % 31.12.2010 share in %
Assets
Western Europe (excluding Switzerland) 561 299 62 588 139 68
Others 40 293 4 49 076 6
Switzerland 309 317 34 229 086 26
Total assets 910 909 100 866 301 100
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
33

3.15 Domestic / foreign analysis of balance sheet
(in CHF 1000)
Assets
34 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
Domestic
31.12.2011
Foreign
31.12.2011
Domestic
31.12.2010
Foreign
31.12.2010
Cash and other liquid assets 164 231 2 643 14 450 1 363
Bills of exchange and money market papers 117 235
Due from banks 43 892 269 593 62 642 227 366
Due from customers 17 411 50 960 17 813 72 533
Mortgages 47 620 3 710 58 547 3 784
Trading positions in securities and precious metals 556 38 579 949 86 007
Trading positions on account and risk of
holders of life insurance policies 200 430 191 671
Fixed financial assets 16 971 32 125 23 687 47 230
Non-consolidated associates 834 29 834 28
Fixed assets 5 347 1 242 15 996 1 511
Intangible assets 6 045 20 235
Accrued income and prepaid expenses 3 144 637 6 071 9 050
Other assets 4 223 570 3 513 786
Total assets 310 391 600 518 224 972 641 329
(in CHF 1000)
Liabilities
Domestic
31.12.2011
Foreign
31.12.2011
Domestic
31.12.2010
Due to bills of exchange and money market papers 43 62
Foreign
31.12.2010
Due to banks 11 678 4 508 9 202 25 728
Due to customers as savings or deposits 500 12
Other amounts due to customers 62 092 507 018 61 794 419 571
Accrued expenses and deferred income 5 701 1 036 5 258 7 879
Other liabilities 4 237 476 3 605 546
Value adjustments and provisions 8 006 341 4 784 61
Mathematical provisions insurance business 207 429 199 297
Reserves for general banking risks 2 837 25 337
Share capital 45 000 45 000
Retained earnings 54 576 61 425
Minority interest 581 624
Group result – 4 650 – 4 384
whereof minority interest – 53 – 43
Total liabilities 190 101 720 808 213 207 653 094

3.16 Analysis of balance sheet by currency
(at 31 December 2011 in CHF 1000) CHF EUR USD Other Total
Assets
Cash and other liquid assets 162 765 3 821 164 124 166 874
Bills of exchange and money market papers 117 117
Due from banks 3 382 166 429 93 910 49 764 313 485
Due from customers 23 517 14 048 14 031 16 775 68 371
Mortgages 51 330 51 330
Trading positions in securities and precious metals 11 716 20 965 6 415 39 39 135
Trading positions on account and risk of
holders of life insurance policies 2 712 193 330 1 512 2 876 200 430
Fixed financial assets 26 339 17 807 305 4 645 49 096
Non-consolidated associates 863 863
Fixed assets 6 282 212 95 6 589
Intangible assets 6 045 6 045
Accrued income and prepaid expenses 2 067 1 149 455 110 3 781
Other assets 4 526 116 102 49 4 793
Total assets by balance sheet 301 544 417 665 117 106 74 594 910 909
Delivery rights from foreign exchange forwards and currency options 14 721 45 515 77 698 8 798 146 732
Total assets 316 265 463 180 194 804 83 392 1 057 641
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
35

(at 31 December 2011 in CHF 1000) CHF EUR USD Other Total
Liabilities
Due to bills of exchange and money market papers 43 43
Due to banks 10 019 1 113 21 5 033 16 186
Due to customers as savings or deposits
Other amounts due to customers 132 239 219 392 158 561 58 918 569 110
Accrued expenses and deferred income 5 987 304 366 80 6 737
Other liabilities 4 608 – 111 235 – 19 4 713
Value adjustments and provisions 8 006 341 8 347
Mathematical provisions insurance business 2 712 200 329 1 512 2 876 207 429
Reserves for general banking risks 2 837 2 837
Share capital 45 000 45 000
Retained earnings 54 576 54 576
Minority interest 581 581
Group result – 4 650 – 4 650
whereof minority interest – 53 – 53
Total liabilities by balance sheet 261 915 421 070 161 036 66 888 910 909
Delivery obligations from foreign exchange forwards
and currency options 70 433 30 279 29 503 15 909 146 124
Total liabilities 332 348 451 349 190 539 82 797 1 057 033
Net position by currency – 16 083 11 831 4 265 595 608
36 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH

4. INFORMATION ON THE OFF-BALANCE-SHEET POSITIONS
4.1 Off balance sheet liabilities
(in CHF 1000) 31.12.2011 31.12.2010
Contingent liabilities 8 702 10 903
Irrevocable commitments (payment obligations to depositor protection schemes) 2 304 3 198
4.2 Open derivative financial instruments
(in CHF 1000)
Trading instruments
Foreign exchange
Positive
Replacement
values
31.12.2011
Negative
Replacement
values
31.12.2011
Contract
volume
31.12.2011
Positive
Replacement
values
31.12.2010
Negative
Replacement
values
31.12.2010
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
Contract
volume
31.12.2010
Forwards 770 576 43 810 765 788 65 112
Combined interest-/cross currency swaps 1 001 584 102 913 505 393 35 015
Equity / Indices
Futures 676 4 604
Total 1 771 1 160 147 399 1 270 1 181 104 731
As of 31 December 2010 and 2011 there were no hedging instruments in place.
37

4.3 Fiduciary transactions
(in CHF 1000) 31.12.2011 31.12.2010
Fiduciary deposits with third-party banks 226 474 303 602
Fiduciary loans and other fiduciary financial transactions
Total fiduciary transactions 226 474 303 602
4.4 Assets under Management
(in CHF 1 000 000) 31.12.2011 31.12.2010
Type of assets under Management
Assets in own-managed collective investment instruments 15 302
Assets with portfolio mandate 950 1 061
Other assets under Management 2 806 3 396
Total assets under Management (incl. double counts) 3 771 4 759
Of which double counts 70 326
Net inflow of new money (incl. double counts) – 591 – 658
The client assets are composed of current accounts, fiduciary deposits, calls, precious metals and securities, which are held or
managed by the bank on behalf of clients and from which we receive commission income. Loans to clients are not deducted
from the total of Assets under Management indicated above. The values for double counting are fund units registered as fund
assets on one side. On the other side they are part of the clients assets. The calculation of net inflow/outflow of money is based
on the pure cash flow of funds in cash and securities. Performance, commissions and interest are not considered as cash flow.
5. INFORMATION ON THE PROFIT AND LOSS STATEMENT
5.1 Net trading income
(in CHF 1000) 2011 2010
Securities – 934 – 1 736
Foreign exchange and notes 4 092 4 788
Foreign exchange options 2
Precious metals
Net trading income 3 160 3 052
38 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH

5.2 Personnel expenses
(in CHF 1000) 2011 2010
Bank authorities, attendance fees and fixed compensation 1 059 896
Salaries and bonuses 19 065 17 822
Statutory and contractual benefit contributions 1 551 1 259
Contributions to pension funds 2 937 3 366
“Other personnel expenses
(recruitment, training, insurance, luncheon)” 1 476 1 397
Personnel expenses 26 088 24 740
5.3 Operating expenses
(in CHF 1000) 2011 2010
Premises expenses 3 194 3 257
Expenses for IT (internal and external information
and communication systems)
Other administrative expenses related to office supplies, printed
material, transportation, travel representation, specialist
literature, insurance, advertising, memberships, legal costs and
5 956 6 074
fees for auditors etc. 9 309 8 780
Operating expenses 18 459 18 111
5.4 Extraordinary income
(in CHF 1000) 2011 2010
Release of reserves for general banking risks 22 500 2 000
Capital gain related to the sale real estate 2 674
Other related to other periods and non recurring income 497
Total 25 174 2 497
5.5 Extraordinary expenses
(in CHF 1 000) 2011 2010
Related to other periods and non recurring expenses 180 414
Total 180 414
5.6 Revaluation of fixed assets to the maximum of cost price (Art 665 and 665a Swiss code of obligation)
None of the companies included in the scope of consolidation of Finter Bank Zürich Ltd made any revaluation of fixed assets.
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
39

5.7 Income and expenses from the ordinary banking business divided by domestic and foreign according
to the principle of units
(in CHF 1000)
Income and expenses from the ordinary banking business
Net interest income
40 Consolidated Financial Statements 2011 — FINTER BANK ZÜRICH
Domestic
31.12.2011
Foreign
31.12.2011
Domestic
31.12.2010
Foreign
31.12.2010
Interest income 4 562 86 4 073 119
Interest and dividend income from trading positions 1 569 111 1 710 152
Interest and dividend income from investment securities 1 382 1 694
Interest expense – 767 467 – 630 315
Net interest income 6 746 664 6 847 586
Net commission and service fee income
Credit-related fees 76 125
Commission income from securities trading and investments 25 818 3 589 31 154 5 476
Service-related fees and commissions 567 185 646 393
Commission expenses – 3 617 – 195 – 5 120 – 510
Net commission and service fee income 22 844 3 579 26 805 5 359
Net income insurance business
Income from insurance business 11 962 38 582
Expenses from insurance business – 11 683 – 38 281
Total net income insurance business 279 301
Net trading income 2 945 215 3 064 – 12
Other ordinary income
Profit from disposals of fixed financial assets
Income from associates 138 138
Profit from real estate 116 – 48 346 – 32
Other ordinary income 316 4 715 73
Other ordinary expenses – 246 – 334
Total other ordinary income 324 – 44 865 41
Administrative expenses
Personnel expenses – 23 808 – 2 280 – 22 922 – 1 818
Operating expenses – 16 973 – 1 486 – 16 112 – 1 999
Total administrative expenses – 40 781 – 3 766 – 39 034 – 3 817
Gross result – 7 922 927 – 1 453 2 458

5.8 Tax expenses
(in CHF 1000) 2011 2010
Capital tax – 264 – 258
Income tax – 228 – 99
Dissolution of deferred taxes 1 913
Tax incom/expenses 1 421 – 357
FINTER BANK ZÜRICH — Consolidated Financial Statements 2011
41

42 Report of the Statutory Auditor 2011 — FINTER BANK ZÜRICH

Financial statements
Balance sheets as of December 31, 2011 and 2010
assets (in CHF 1000) Note 31.12.2011 31.12.2010
Cash and other liquid assets 168 500 16 334
Bills of exchange and money market papers 117 235
Due from banks 302 552 290 215
Due from customers 62 729 84 383
Mortgages 51 330 62 331
Trading positions in securities and precious metals 34 942 78 216
Fixed financial assets 49 096 70 917
Subsidiaries and associates 29 845 32 128
Fixed assets 5 278 15 907
Intangible assets 6 045 20 235
Accrued income and prepaid expenses 2 999 6 225
Other assets 2.3 4 560 3 838
total assets 717 993 680 964
Total accounts receivable from subsidiaries and associates 3 418 7 900
FINTER BANK ZÜRICH — Financial Statements 2011 43

Balance sheets as of December 31, 2011 and 2010
liabilities (in CHF 1000) Note 31.12.2011 31.12.2010
Due to bills of exchange and money market papers 43 62
Due to banks 83 145 130 687
Due to customers as savings or deposits 512
Other amounts due to customers 522 316 424 377
Accrued expenses and deferred income 5 390 5 019
Other liabilities 2.3 4 713 4 135
Value adjustments and provisions 2.4 7 806 4 584
Reserves for general banking risks 2.4 2 837 25 337
Share capital 2.6 45 000 45 000
General legal reserves 31 050 31 050
Other reserves 9 800 12 300
Loss/profit carried forward – 2 098 196
Net result 7 991 – 2 295
total liabilities 717 993 680 964
Total due to subsidiaries and associates and to holders of qualifying participation rights 91 504 114 917
Off balance sheet positions as of December 31, 2011 and 2010
(in CHF 1000) Note 31.12.2011 31.12.2010
Contingent liabilities 8 702 10 504
Irrevocable commitments 2 304 3 198
Derivative financial instruments
– positive replacement values 1 769 1 266
– negative replacement values 1 175 1 190
– contract volume 148 302 105 095
Fiduciary transactions 3.1 201 292 287 611
44
Financial Statements 2011 — FINTER BANK ZÜRICH

Financial statements
Profit and loss statements 2011 and 2010
(in CHF 1000) Note 2011 2010
net interest income
Interest income 4 584 4 079
Interest and dividend income from trading positions 1 569 1 710
Interest and dividend income from investment securities 1 382 1 694
Interest expense – 1 186 – 1 048
total net interest income 6 349 6 435
net commission income
Credit-related fees 76 125
Commission income from securities trading and investments 25 818 31 158
Service-related fees and commissions 567 646
Commission expenses – 3 617 – 5 120
total net commission income 22 844 26 809
net trading income 4.1 2 945 3 088
Other ordinary income
Profit from disposals of fixed financial assets
Income from participating interests 13 156 3 774
Profit from real estate 116 346
Other ordinary income 2 347 2 197
Other ordinary expenses – 246 – 334
total other ordinary income 15 373 5 983
administrative expenses
Personnel expenses – 23 792 – 22 906
Operating expenses – 16 965 – 16 070
total administrative expenses – 40 757 – 38 976
Gross result 6 754 3 339
FINTER BANK ZÜRICH — Financial Statements 2011 45

Profit and loss statements 2011 and 2010
(in CHF 1000) Note 2011 2010
Gross result 6 754 3 339
Depreciation and amortization of fixed assets – 19 742 – 6 735
Value adjustments, provisions and losses 2.4 – 5 832 – 605
Profit before extraordinary items and taxes – 18 820 – 4 001
Extraordinary income 25 174 2 362
Extraordinary expenses – 180 – 414
Taxes 1 817 – 242
net result 7 991 – 2 295
appropriation of retained earnings
(in CHF 1000) 2011 2010
Retained losses/earnings brought forward – 2 098 197
Net result 7 991 – 2 295
Balance available for appropriation 5 893 – 2 098
Dividend
Transfer to general legal reserves
Transfer to other reserves
Other appropriation of profit
to be carried forward 5 893 – 2 098
46
Financial Statements 2011 — FINTER BANK ZÜRICH

Financial statements
1 NOTES TO FINANCIAL STATEMENTS
The information related to operations as well as to accounting policies and valuation principles applies to both financial
statemetns in this report. For details, please refer to the consolidated financial statements.
2 COMMENTS ON THE BALANCE SHEET
2.1 Pledged or assigned assets to secure own commitments
The comments on the bank and consolidated financial statements are identical. Therefore please refer to the explanations on
the consolidated financial statements.
2.2 Pension funds liabilities
The comments on the bank and consolidated financial statements are identical. Therefore please refer to the explanations on
the consolidated financial statements.
2.3 Other assets and liabilities
(in CHF 1000)
Replacement values of derivative financial instruments
Other
assets
31.12.2011
Other
liabilities
31.12.2011
Other
assets
31.12.2010
Other
liabilities
31.12.2010
– Contracts as trader 1 769 1 175 1 266 1 190
Indirect taxes 345 2 491 364 2 420
Settlement accounts 565 619 251 41
Employer contribuition reserve 1 622 1 487
Other assets and liabilities 259 428 470 483
total other assets and liabilities 4 560 4 713 3 838 4 134
FINTER BANK ZÜRICH — Financial Statements 2011 47

2.4 Value adjustments and provisions / Reserves for general banking risks
(in CHF 1000)
48
Financial Statements 2011 — FINTER BANK ZÜRICH
Status
31.12.2010
Uses and
releases as
designated
Recoveries of
interest at
risk and
currency
differences
New
provisions
charged to
P&L
Releases
in favor
of P&L
Status
31.12.2011
Provisions for defered taxes 3 460 – 1 913 1 547
Value adjustments and provisions
for default and other risks
Value adjustments and provisions for default risks
(delcredere and country risks)
Value adjustments and provisions
for other business risks
191 – 51 5 372 5 512
Provisions for restructuring 395 – 330 65
Other provisions 538 144 682
total value adjustments and provisions
as per balance sheet 4 584 – 2 294 5 516 7 806
Reserves for general banking risks 25 337 – 22 500 2 837
The position “Reserves for general banking risks” is taxed in full.
2.5 share capital and shareholders with shares greater than 5% voting rights
The comments on the bank and consolidated financial statements are identical. Therefore please refer to the explanations on
the consolidated financial statements.

2.6 changes in shareholders equity
(in CHF 1000) 2011
shareholders equity
equity at the beginning of the year
Share capital 45 000
General legal reserves 31 050
Other reserves 12 300
Reserves for general banking risks 25 337
Result for distribution – 2 099
total equity at the beginning of the year (before distribution of profit)
Changes
111 588
– Dividend and other distributions of the net income from the previous year – 2 500
– Release of reserves for general banking risks – 22 500
+ Net result 7 991
total equity as per 31.12.2011 (before distribution of profit) 94 580
Share capital 45 000
General legal reserves 31 050
Other reserves 9 800
Reserves for general banking risks 2 837
Retained earnings available for appropriation 5 893
2.7 claims and liabilities to affiliated companies as well as loans extended to the organs of the company
The comments on the bank and consolidated financial statements are identical. Therefore please refer to the explanations on
the consolidated financial statements.
FINTER BANK ZÜRICH — Financial Statements 2011 49

3. COMMENTS ON THE OFF-BALANCE-SHEET POSITIONS
3.1 Fiduciary transactions
(in CHF 1000) 31.12.2011 31.12.2010
Fiduciary deposits with third-party banks 201 292 287 611
Fiduciary loans and other fiduciary financial transactions
total 201 292 287 611
4. COMMENTS ON THE PROFIT AND LOSS STATEMENTS
4.1 net trading income
(in CHF 1000) 31.12.2011 31.12.2010
Securities – 894 – 1 573
Foreign exchange and notes 3 837 4 661
Foreign exchange options 2
Precious metals
total 2 945 3 088
4.2 extraordinary income and expenses
Reference is made to tables 5.4 and 5.5 on page 39.
50
Financial Statements 2011 — FINTER BANK ZÜRICH

FINTER BANK ZÜRICH — Report of the Statutory Auditor 2011
51

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www.finter.ch
ZURICh
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head Office
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Phone: +41 (0)44 289 55 00
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P. O. Box N­3744
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Phone: +1 (242) 356 64 51
Fax: +1 (242) 356 58 18
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www.finter.bs
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Liechtenstein
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www.finterlife.li
Finter Bank Zürich — Our Offices
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Published in English, German and Italian.
Please note that this is a translation,
and subordinate to the German language.
Photos: page 2, 4 Katharina Wernli, Zurich
Print production: Neidhart + Schön AG, Zurich
Printed in Switzerland, 2012
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