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GENERAL CONSIDERATIONS
The year 2009 has been, for the global economy, the most difficult year since World War II,
as the financial crisis hit industrialized countries driving their economies into a severe
recession.
Taking into consideration the high risk facing the global financial system, central
banks and governments intervened in several ways to provide support and liquidity to the
markets’ seeking to restore confidence and to revive economic growth. Hence, equity
markets have regained strength in the second quarter of 2009 and surged by the end of the
year boosted by better international economic prospects. Some
BALANCE SHEET : STRONG UPTREND
Monetary policies in 2009 have significantly impacted interest rates causing yields on
fiduciary deposits to decline reaching levels close to zero and making these kind of
placements unattractive to investors. Thus, the excess of liquidity in search of profitable
investments ended up in our clients’ current accounts balances, contributing to the growth
of our balance sheet from CHF 198 million to 642 million, recording an increase of 324%.
CREDITS : SELECTIVITY AND PRUDENCE REMAIN RELEVANT
Global equity markets, which had collapsed by 42% in 2008 and continued to fall by around
20% during the first two months of 2009, resumed a strong upsurge trend afterwards,
increasing investors’ need for additional funds. This led to a rise in credit by CHF 22.9 million,
or a 33% increase, to reach CHF 92 million by the end of 2009.
Worth mentioning that our bank adopts a strict and cautious credit policy as we do not
provide any loan unless it is backed by collaterals, i.e. securities or assets in foreign
currency, and we require also additional significant safety margins.
SHAREHOLDERS' EQUITY : VERY SOLID FINANCIAL STRUCTURE
The bank’s earnings that are normally retained in the balance sheet, reinforced the latter’s
capital stock base, thereby guaranteeing good conditions for future growth and providing
coverage for potential hazards. Prior to taking into account the after tax profits of CHF
6.234.235 the bank’s capital reached CHF 93.558.000, about 4.69
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