2014 Valartis Group Consolidated Financial Statements - Seite 2

Valartis Group's continued operations comprise the Private Clients and Institutional Clients segments which include the Private Banking and Wealth Management units together with Asset Management, Private Equity, Cor­porate Finance, and Real Estate Management.

From a purely operational viewpoint, i.e. without taking non-recurring, exceptional factors into consideration, income from commission and services for continued operations remained stable at CHF 47.2 m (2013: CHF 47.1 m) in comparison with the previous year. In the Private Clients segment, the Valartis private banks performed very nicely. Income from com­mission and services was up by 19 percent to CHF 40.7 m (2013: CHF 34.3 m). In particular, the bank in Liechtenstein posted a robust annual profit for 2014.

Despite the challenging environment, continued operations achieved a net new money inflow of CHF 285 m (2013: CHF 438 m) and client assets rose by 9 percent to CHF 6.5 bn (2013: CHF 6.0 bn). This was largely attributable to the Private Clients segment which achieved a net new money inflow of CHF 530 m (2013: CHF 508 m) and a rise in client assets under management of 15 percent to CHF 6.1 bn (2013: CHF 5.3 bn). Valartis Bank (Liechtenstein) AG made the greatest contribution to this satisfactory result.

Despite the costs arising out of implementation of new regulatory requirements in 2014, overall costs for the financial year only rose by 2 percent to CHF 53.0 m (2013: CHF 52.0 m).

Equity capital base

In summer 2014 Valartis Group incorporated Valartis Finance Holding AG in Liechtenstein in which the relevant operating activities of the Private Banking, Wealth Management and Private Equity units, together with financial holdings, are combined. Valartis Finance Holding AG is subject to the consolidated banking supervision by the Financial Market Authority in Liechten­stein (FMA). In Liechten­stein, as of 31 December 2014, risks are assessed using Basel II approaches. As at 31 December 2014, the hard core capital ratio according to Basel II for Valartis Finance Holding AG was 15 percent and the overall capital ratio in accordance with Basel III for Valartis Group was 16 percent. This equity capital base and the risk-bearing capacity thus cushion the above-mentioned business risks - primarily evaluation adjustments which are not cash-effective, or market movements - which have led to the overall Group loss.