Ba annual report
Table of Contents
Report of the Board of Directors 3 Financial Statements for the Year Ended 31st December, 2009
Balance Sheet 5 Off-Balance Sheet 5 Income Statement for the year ended 31st December, 2009 6 Allocation of Net Income 7 Notes to the Financial Statements 8 Auditors' Report 22
Board of Directors and Management 24
REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR ENDED 31st DECEMBER 2009
OVERVIEW
The net income for the year amounts to CHF 7.193 million compared to CHF 10.884 million for 2008, a reduction of CHF 3.691 million or 34%. The operating revenues for 2009 amount to CHF 34.295 million compared to CHF 41.319 million in 2008, a reduction of CHF 7.024 million or 17%. Operating expenses amount to CHF 22.968 million in 2009 compare to CHF 24.268 million in 2008, a reduction of CHF 1.300 million or 5%. During the year the balance sheet footings grew significantly, amounting to CHF 948.886 million at year end compared to CHF 596.613 at the end of 2008, an increase of CHF 352.273 million or 59%. The reduced result and the increase in the balance sheet total are the consequence of exceptional circumstances in 2009 and result from the financial crisis in the latter part of 2008. The historic drop in interest rates, accompanied by the uncertainties surrounding the global financial sector had the combined effect of reducing the bank's interest margin at the same time as swelling the level of customer deposits. The average exchange rate of the Swiss franc to the US dollar in 2009 was 1.08 compared to 1.20 in 2008. Approximately two thirds of the bank's revenues are generated in US dollars. Depreciation of fixed assets amounts to CHF 1.180 million compared to CHF 0.860 million in 2008, an increase of CHF 0.320 million or 37% and corresponds to the impact of the acquisition of the office premises during the year. Valuation adjustments, provisions and losses amount to CHF 0.374 million compared to CHF 0.822 million in 2008, a