Full Year 2012 Results: With Net Profits of CHF 130.2 Million, Crédit Agricole (Suisse) SA Confirms Its Status as Major Player in Swiss Market
Crédit Agricole Suisse has reported consolidated net profits of CHF 130.2 million for 2012, compared with CHF 158.1 million in 2011, amid tough conditions. The year was marked yet again by a deepening economic crisis, low interest rates and a strong Swiss franc. The bank’s performance helped maintain the Crédit Agricole Group’s solid position in Switzerland while strengthening its capital base, evidenced in a Core Tier 1 ratio of 13.2%.
In 2012 Crédit Agricole Suisse showed that it was both stable and quick to respond to challenging economic conditions, regulatory changes and concerns among private banking clients about financial market uncertainty.
As per 31 December 2012, operating income totalled CHF 601.8 million, compared with CHF 632.5 million in 2011. After deducting expenses of CHF 392.3 million (versus CHF 398 million in 2011), consolidated gross operating profit was CHF 209.5 million against CHF 234.5 million in 2011. Consolidated net profits after depreciation, amortisation, provisions and tax reached CHF 130.2 million in 2012, compared with CHF 158.1 million in 2011.
The total headcount was stable, with close to 1,400 employees as per 31 December 2012. Over the past year, the bank strengthened its sales teams in Switzerland and Asia, and recruited additional IT staff.
Crédit Agricole (Suisse) SA's 2012 consolidated shareholders’ equity, defined by Article 18 OFR (Tier 1), came to CHF 1,541 million after appropriation of income, compared with CHF 1,530 million in 2011. As per 31 December 2012 the Tier 1 capital ratio was steady at 13.2%.
Commenting, Chief Executive Officer Hervé Catala said, “Operational excellence is a top priority for our teams in order to ensure our business develops profitably and sustainably. Our results are evidence of this, despite tough market conditions. Thanks to the personal dedication of each and every member of staff, Crédit Agricole Suisse was able to achieve results in line with the targets set by our shareholder. With our international reach, top-flight teams and loyal clients, we have high hopes for 2013”.
Private Banking: increase in assets under management
Private Banking is Crédit Agricole Suisse’s main business, contributing 70% of revenues. As per 31 December 2012, despite variable conditions and persistent pressure on the Swiss banking model, the bank’s total assets under management rose nearly CHF 1 billion to CHF 44.9 billion, compared with CHF 44 billion in 2011.
Another highlight of 2012 was the full deployment of our Hong Kong office, including the booking centre opened in 2011. Its aim is to fully capitalise on the Greater China market with both a local presence and a range of specialist services. Crédit Agricole Suisse’s Asian operations now boast broad geographic reach, with a presence in both the north and the south, providing extensive commercial coverage with high-level expertise across the region.
With strong backing from the Crédit Agricole Group, the bank will continue to expand into all growth regions in 2013, notably in Asia and the Middle East, where it will strengthen its teams, as well as in Latin America and Eastern Europe.
Commercial Banking: delivering on the promise with a full range of financing tools
Commercial Banking comprises two separate segments: Transactional Commodity Finance and Corporate Banking activities for large multinational corporations.
In 2012 the Transactional Commodity Finance business adapted to volatile market conditions and balance sheet constraints. It rounded out its service offering by working with the Structured Commodity Finance department to create a new specialty department that more effectively covers the full range of sector participants’ financing needs. Relying on its ability to adapt, the business was able to shift its focus and take advantage of market opportunities.
Corporate Banking participated in several consortiums, both in Switzerland and internationally. Despite the Swiss franc’s continued strength and its impact on the real economy, the quality of the loan portfolio remained intact and the cost of risk was kept under control throughout the year.
Capital Markets: a remarkable performance
The Capital Markets teams serve CA Suisse’s private banking, institutional and corporate clients. In 2012 they made the most of a market characterised by low interest rates and tame currency volatility. The division increased revenues while completing a plan to refocus on a portfolio of major clients.
Banking Logistics: a significant edge in a competitive banking environment
Based in Lausanne-Vennes, the Crédit Agricole Suisse Logistic Centre is the IT processing and back office hub for the Crédit Agricole Group’s International Private Banking entities. It also offers non-Group banks in Switzerland and elsewhere a full range of outsourcing services for their IT, back office and accounting requirements for more than 15 years.
A total of 25 banks in 10 countries, representing more than 3,500 users overall, have opted for the S2i system, which can be scaled to meet their changing needs and those of their clients. All banks combined, more than CHF 115 billion in client assets are managed through the S2i integrated banking system.
The division signed new outsourcing and back office contracts with non-Group banks in 2012, demonstrating the appeal of both the system’s performance and the support teams’ professionalism. With more than 520 employees – a five-fold increase on 1994 – BPO has grown strongly since launch.
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