INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 15
3 Consolidated balance sheet 5 Consolidated income statement 6 Statement of changes in equity 7 Condensed notes
INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 3 Consolidated financial statements Consolidated balance sheet ASSETS 31.12.2014 in % Liquid assets 1,943,679 1,544,293 399,386 25.9 Amounts due from banks 174,946 314,994 140,048 44.5 Amounts due from customers 1,709,180 1,741,575 32,395 1.9 Mortgage loans 20,299,346 20,034,416 264,930 1.3 Sub-total loans (gross) 22,008,526 21,775,991 232,535 1.1 less value adjustment for default risks 66,777 61,802 4,975 8.0 Total loans with value adjustment for default risks 21,941,749 21,714,189 227,560 1.0 Positive replacement values of derivative financial instruments 13,320 3,447 9,873 286.4 Financial investments 1,105,214 1,242,813 137,599 11.1 Accrued income and prepaid expenses 40,292 32,588 7,704 23.6 Non-consolidated participations 193,690 196,065 2,375 1.2 Tangible fixed assets 143,757 149,090 5,333 3.6 Intangible assets 13,134 20,950 7,816 37.3 Other assets 37,617 47,706 10,089 21.1 Total assets 25,607,398 25,266,135 341,263 1.4 Total subordinated claims 0 0 0 0.0 of which subject to mandatory conversion and / or debt waiver 0 0 0 0.0 LIABILITIES Amounts due to banks 355,160 263,313 91,847 34.9 Amounts due in respect of customer deposits 17,638,679 17,280,089 358,590 2.1 Negative replacement values of derivative financial instruments 54,800 44,400 10,400 23.4 Cash bonds 497,855 614,897 117,042 19.0 Bond issues and central mortgage institution loans 4,827,337 4,881,046 53,709 1.1 Accrued expenses and deferred income 92,739 84,482 8,257 9.8 Other liabilities 94,605 68,200 26,405 38.7 Provisions 32,094 43,669 11,575 26.5 Reserve for general banking risks 4,086 4,830 744 15.4 Bank s capital 7,896 7,896 0 0.0 Capital reserve 600,410 603,027 2,617 0.4 Retained earnings reserve 1,339,935 1,295,965 43,970 3.4 Own shares 15,249 20,185 4,936 24.5 Consolidated profit 77,051 94,506 17,455 18.5 Total liabilities 25,607,398 25,266,135 341,263 1.4 Total subordinated liabilities 150,000 150,000 0 0.0 of which subject to mandatory conversion and / or debt waiver 0 0 0 0.0
4 INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 OFF-BALANCE-SHEET TRANSACTIONS 31.12.2014 in % Contingent liabilities 312,566 325,222 12,656 3.9 Irrevocable commitments 528,694 1,156,252 627,558 54.3 Obligations to pay up shares and make further contributions 44,390 44,564 174 0.4 Credit commitments 13 0 13 n/a
INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 5 Consolidated income statement RESULT FROM INTEREST OPERATIONS 30.09.2014 in % Interest and discount income 290,755 310,139 19,384 6.3 Interest and dividend income from trading portfolios 11 10 1 10.0 Interest and dividend income from financial investments 23,067 23,768 701 2.9 Interest expense 100,720 135,401 34,681 25.6 Gross result from interest operations 213,113 198,516 14,597 7.4 s in value adjustments for default risks and losses from interest operations 409 88 321 364.8 Subtotal net result from interest operations 213,522 198,604 14,918 7.5 RESULT FROM COMMISSION BUSINESS AND SERVICES Commission income from securities trading and investment activities 32,361 33,142 781 2.4 Commission income from lending activities 2,899 2,474 425 17.2 Commission income from other services 21,760 20,628 1,132 5.5 Commission expense 10,291 9,603 688 7.2 Subtotal result from commission business and services 46,729 46,641 88 0.2 RESULT FROM TRADING ACTIVITIES AND THE FAIR VALUE OPTION 8,703 9,336 633 6.8 OTHER RESULT FROM ORDINARY ACTIVITIES Result from the disposal of financial investments 1,302 3,924 2,622 66.8 Income from participations 6,801 6,344 457 7.2 of which, participations recognised using the equity method 4,251 3,818 433 11.3 of which, from other non-consolidated participations 2,550 2,526 24 1.0 Result from real estate 1,455 1,112 343 30.8 Other ordinary income 176 36 140 388.9 Other ordinary expenses 54 149 95 63.8 Subtotal other result from ordinary activities 9,680 11,267 1,587 14.1 Total gross operating income 278,634 265,848 12,786 4.8 OPERATING EXPENSES Personnel expenses 85,127 86,297 1,170 1.4 General and administrative expenses 77,288 76,925 363 0.5 Subtotal operating expenses 162,415 163,222 807 0.5 Value adjustments on participations and depreciation and amortisation of tangible fixed assets and intangible assets 22,141 26,698 4,557 17.1 s to provisions and other value adjustments, and losses 223 97 126 129.9 Operating result 93,855 75,831 18,024 23.8 GROUP PROFIT Extraordinary income 2,293 1,543 750 48.6 Extraordinary expenses 112 0 112 n/a in reserves for general banking risks 744 0 744 n/a Taxes 19,729 13,648 6,081 44.6 Consolidated profit 77,051 63,726 13,325 20.9
6 INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 Statement of changes in equity Share capital Capital reserve Retained earnings reserve Reserves for general banking risks Treasury shares Profit for the period Total Shareholders' equity at the beginning of the reporting period 7,896 603,027 1,295,965 4,830 20,185 94,506 1,986,039 Appropriation of net profit previous year 94,506 94,506 Sale of treasury shares 4,936 4,936 Gain (loss) from the sale of treasury shares 2,898 2,898 Dividends and other distributions 281 50,536 50,255 Other allocations to (withdrawals from) the reserves for general banking risks 744 744 Consolidated profit 77,051 77,051 Shareholders' equity at the end of the reporting period 7,896 600,410 1,339,935 4,086 15,249 77,051 2,014,129
INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 7 Condensed notes s to accounting and valuation principles as well as any error corrections and their impact on the interim financial statements The recognition and measurement principles have been adjusted in line with the changes in Swiss accounting rules for banks. In some cases, this resulted in the reclassification of the previous year s figures (adjustment to new requirements with regard to the minimum structure). These interim financial statements, including the previous year s figures, are presented as if the new recognition and measurement principles had always applied (restatement). Except for the representation of the value adjustments for loan default, this resulted in no significant changes in either the figures for financial year 2015 or those for the previous year. In accordance with the transitional provisions provided in Article 69 (1) of the Banking Ordinance (BankV), Valiant presents all value adjustments for default risks as negative positions under assets for the duration of the transitional period. The option to directly offset value adjustments and provisions for default risks has been used for the first time in the interim financial statements as at 30 September 2015. Information on factors that influenced the economic position of the bank during the current period and in comparison with the previous period The adjustments made to the recognition and measurement principles compared to the previous year have resulted in no significant changes being made in the assessment of Valiant s financial position. Extraordinary income and extraordinary expenses EXTRAORDINARY INCOME 30.09.2014 Gain from the sale of properties 1,109 1,252 Reversal of negative goodwill 1) 889 0 Gain from the sale of holdings 272 288 Other items 23 3 Total extraordinary income 2,293 1,543 EXTRAORDINARY EXPENSES Loss from the sale of properties 112 0 Total extraordinary expenses 112 0 1) Current negative goodwill was written off following the implementation of the new accounting rules for banks. Material events occurring after the date of the interim financial statements No extraordinary events have occurred in the period since the balance sheet date that might have a material influence on the assets, financial position and income situation of Valiant in past periods.