Elaborar el diagnóstico del actual proceso de determinación de los costos y

2015: business report

For the Wealth Management Sector, the trend observed in recent years continued in 2015: there was solid business growth in the onshore business, but outflows in the offshore business, as expected.

Institutional asset management saw firm growth and substantial inflows, particularly in German-speaking Switzerland, which accounted for around one third of all new money in that business.

In 2015, the Sector’s assets under management grew 1% to CHF 68.3bn. Although the real-estate market slowed, the mortgage book grew 4.2% to CHF 7.2bn last year. Wealth Management’s revenues rose 1.1% to CHF 335m, and operating profit was up 15% to CHF 106m.

2016: objectives and outlook

In 2016, we will press ahead with our growth strategy in onshore wealth management, aiming to remain a market leader in Vaud Canton.

In institutional asset management, we will continue to grow our business in German-speaking Switzerland through our representative office in Zurich. As a creator and distributor of investment products, Asset Management will continue to design its investment strategies with a sharpened focus on the risk/return profile. The product range will be expanded in an effort to offer investors a more diverse choice of regions, asset classes and investment styles. Piguet Galland & Cie SA’s management is continuing its efforts to generate synergies with BCV, capitalizing fully on work done at the parent company. It is also aiming to develop its business in French-speaking Switzerland’s wealth management market.

Year in Review – Business Sector Reports

Key figures

2015 2014

Total revenues (CHF millions) 335.3 331.7

Operating profit (CHF millions) 105.9 91.7

Cost/income ratio (excluding goodwill amortization and write-downs) 66% 68%

ROE (based on net profit) 26.2% 23.8%

Headcount 571 586

2014 figures were adjusted to facilitate like-for-like comparisons

2011-2012 figures for assets under management were adjusted to exclude custody-only assets 43 2015 Annual Report 42 2011–2015 financial data 2011 2012 58.4 2013 61.4 2014 65.4 2015 67.6 68.3

Assets under management

in CHF billions 2011 2012 230 233 2013 228 2014 230 ₂₁₇ 2015

Fee and commission income

Trading

• Currency trading had a record year after the SNB’s surprise announcement on 15 January that it was scrapping the EUR/CHF floor rate. In response to renewed volatility, many customers contacted the trading room to buy foreign currencies on a spot basis, or to arrange hedging.

• The structured products business also performed well, with a high level of customer-driven issuance activities.

• Trading revenues jumped 35% to CHF 67m, and operating profit rose 72% to CHF 39m.

• Risk levels stayed very low, as our trading activities are focused primarily on customer-driven transactions. Business and strategy

We aim to meet our customers’ trading needs and to offer them a broad array of products and services. To achieve this, we have one of the largest trading rooms in French- speaking Switzerland. Our traders operate directly on the following exchanges: SIX Swiss Exchange, Eurex and Scoach (Switzerland). Our Trading Sector focuses on investment and hedging products (currencies, equities, bonds, derivatives and structured products) that are denominated primarily in Swiss francs and aimed at clients based mainly in Switzerland. More than a third of customers who trade currencies with BCV use our e-FOREX trading platform. Our trading room focuses on client transactions. This means that the Bank’s risk levels are low.

The Sector’s activities come under the Asset Management & Trading Division, which encompasses asset management, investment policy and the trading room. This combination enables us to make the most of synergies between the trading room and the Asset Management Department, helping us to provide investment products that are responsive to customer needs and consistent with our investment policy.

Market and competitive environment

Unlike previous years, 2015 was a difficult period for stock markets. In particular, major indexes suffered a correction in August due to the stock-market crash in China and concerns about the Chinese economy. In Switzerland, the SMI index – made up of SIX Swiss Exchange’s leading stocks – had already undergone a correction in January after the SNB scrapped its currency floor. It later rebounded, but ultimately ended the year down 1.8%. In the USA, the S&P 500 fell 0.7%. But the biggest loser was the MSCI emerging- markets index, which slumped 17.0%. On the plus side, the Euro Stoxx 50 eurozone blue-chip index gained 3.8%, reflecting the gradual upturn in the European economy. Although market returns varied, trading volumes rose in general and by 24% for the SIX Swiss Exchange specifically. In the forex market, the main event of the year was the SNB’s decision to drop the EUR/CHF floor rate on 15 January. Immediately after the announcement, the Swiss franc gained more than 35%, with the value of one euro falling from CHF 1.20 to CHF 0.8597. The euro ended the year at CHF 1.08, a decline of 9.5%. The dollar rose above levels seen in recent years, moving from CHF 0.99 at the end of 2014 to CHF 1.00 at the end of 2015.

2015: business report

Our currency trading business grew strongly relative to 2014, mainly due to renewed volatility in the forex market after the SNB’s January decision, but also because our strengthened sales force was successful in attracting new clients. Issuance of structured products also saw firm growth in 2015.

Overall, trading revenues rose sharply relative to 2014, climbing 35% to CHF 67m, while operating profit surged 72% to CHF 39m.

The Sector’s risk profile remained very low, with VaR (1-day, 99%) of CHF 0.37m at 31 December 2015.

Year in Review – Business Sector Reports

45