2012 proves a good financial year for Bank Frick
15. May. 2013
Bank Frick began the 2012 financial year in a spirit of healthy optimism. Today, the Management Board can look back on a very good twelve months of business.
Despite one-off investments amounting to some CHF 1.5 million, it was possible to increase net profit by +3.87% to CHF 4.54 million. As at 31 December 2012, Bank Frick’s equity capital (inclusive of provisions for general banking risks) rose to CHF 72.95 million (2011: CHF 69.92). Assets under management increased to approximately CHF 3.5 billion (+ 7.29 %). Net new money totalled approximately CHF 104 million.
Bank Frick's business strategy focuses on the growth and development of new business areas. With Bank Frick UK Branch, Bank Frick has now had a presence in London for over a year.
The year 2012 was also notable for the development of the Bank's infrastructure. The management of Bank Frick guided various IT projects to a successful conclusion.
A new business area – payment services – started operations in autumn 2012, and this is likely to already provide the Bank with positive contribution margins towards the end of 2013.
Sources of revenue and cost-income ratio
The profit generated by interest amounted to CHF 7.33 million (+57.92%). This is a marked increase in comparison with the previous year. It resulted partly from an increase in credit volume, via loan transactions, and partly from low refinancing costs. Bank Frick adopts a conservative approach to lending activities. The credit portfolio is very well balanced and backed by high-quality collateral.
Profit from commissions and services stood at CHF 6.07 million (+5.84%). Profit from financial operations fell to CHF 3.41 million (–25.22%).
As at 31 December 2012, bank expenditure stood at CHF 11.67 million (+19.19%). This figure includes one-off expenses of approximately CHF 1.5 million. Adjusted for these expenses, expenditure rose by +3.88%.
The cost-income ratio stood at 70.40% (2011: 66.78%).
Bank Frick UK Branch
Bank Frick UK Branch successfully built up and expanded its activities in London. In addition to LDF (Liechtenstein Disclosure Facility) business, initial steps were also made in the area of wealth management. Institutional business also made good progress. Bank Frick aims to pinpoint specific areas of business for exploitation in the UK market during 2013.
The management of Bank Frick plans to establish further (sub-) branches in foreign countries. The necessary IT changes were implemented to ensure the best possible interconnectivity between the Bank's head office and its branches. For example, clients will be able to use e-banking to make transaction enquiries as from the middle of 2013. Clients have also been able to use a Bank Frick ATM card since March 2013.
The financial markets have still not regained their equilibrium. It will probably take them a few more years to do so. We have been living with this situation for more than half a decade. Amid exceptional circumstances, a degree of normality has established itself. That is precisely why it is important to enter into commitments carefully and cautiously. We have learnt to operate in a difficult and challenging environment. Accordingly, we will grasp opportunities to generate further growth, while always keeping a close eye on the risks.
For the Management Board:
Chairman of the Management Board