CA Indosuez (Switzerland) SA - 2018 Annual Report

71

2018 annual financial statements

5.16. Value adjustments, provisions and reserves for general banking risks

(in thousands of CHF)

Balance at

31.12.2017

Use in compliance with

designated purpose

Reclassifications Currency

differences

Past-due interest, recoveries

New provisions

charged to income statement Releases

to income

statement

Balance at

31.12.2018

Provisions for other operating risks

31,863 -3,947

0

-111

0

764 -2,106 26,463

Other provisions

82,491

0

0

0

0

0

0 82,491

Total provisions

114,354 -3,947

0

-111

0

764 -2,106 108,954

Reserves for general banking risks

19,400

0

0

0

0

0

0 19,400

Value adjustments for default and country risks

158,483 -5,505

0

1,065 -1,479

411 -3,193 149,782

Of which value adjustments for the risk of default on impaired loans

158,483 -5,505

0

1,065 -1,479

411 -3,193 149,782

The reserves for general banking risks are subject to tax. Other provisions include hidden reserves. Through its business, the Bank is exposed to legal and regulatory risks. The Bank is also called upon to cooperate with the investigations of Swiss and foreign supervisory authorities. In accordance with its policy, the Bank sets aside provisions for potential or ongoing legal proceedings when management believes the proceedings are likely to result in a financial obligation.