CA Indosuez (Switzerland) SA - 2018 Annual Report

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Activity report 2018 CA Indosuez (Switzerland) SA

Assets under management In 2018, the financial markets suffered a number of heavy losses which were exacerbated in the fourth quarter. Notwithstanding negative market and forex impacts (EUR -3.9bn), assets entrusted to the Indosuez Wealth Management group rose +3.6%, which is a sign of sustained sales momentum with net inflows of nearly EUR 5bn. Furthermore, 2018 was marked by the onboarding of assets from Banca Leonardo (EUR 5bn) in the second quarter. NBI Net Banking Income (NBI) rose by EUR 57.1m (i.e. +7%) in 2018, reaching EUR 822.5m. Negative forex impacts (EUR -12.4m) combined with the coming into effect of new regulations in Europe (EUR -16.5m) and the downturn in the financial markets (EUR -14m) were more than offset by positive aspects. In fact, acquisitions in 2016 (a referral agreement in Monaco for HSBC clients) and in 2017 (acquisition of CIC’s wealth management business in Asia) made a positive contribution to the increase in NBI (EUR +41m) in addition to the integration of Banca Leonardo (EUR +17.5m) and teams based in Spain (EUR +2.2m), i.e. a total of more than EUR 60m. Furthermore, NBI directly related to sales remained strong, increasing of EUR 22.5m compared to 2017. GOI In 2018, gross operating income (GOI) fell compared to the previous year. It was particularly hurt by a number of different non-recurring expenses related to recent acquisition activities and by the costs associated with new regulatory requirements.

EUR million

2018

2017

2016

110 008

118 329

122 799

EUR million

2018

2017

2016

822.5

729.7

765.3

EUR million

2018

2017

2016

96.9

136

128.8

Geographic vision by country of residence

Asset allocation

Europe (including Switzerland and Monaco) France Asia-Pacific Middle East & Africa Latin America Eastern Europe

Funds Cash assets Bonds Life insurance Equity Other (including Private Equity) Structured products

39.5% 36.5%

23% 20.5% 19.5%

9% 8% 6% 1%

16% 13%

5% 3%

Solid client diversification thanks to our multiple growth drivers

Diversified asset allocation, which results from our goal of protecting and growing our clients’ wealth.

14 countries

3150 employees representing an array of expertise