Falcon Private Bank Annual Report 2010 - …vpr.hkma.gov.hk/pdf/100274/ar_10/ar_10.pdfFalCon private bank report ... lize our recruitment targets. These components form the basis to

Falcon Private Bank

Annual Report 2010

Content

FalCon private bank report

4 Foreword by the Chairman of the Board of Directors and the Chief Executive Officer

6 Board of Directors

7 Executive Committee

FalCon private bank Group Consolidated FinanCial statements

10 Consolidated Balance Sheet and Off-Balance Sheet Items

11 Consolidated Profit and Loss Account and Consolidated Net Loss

12 Description of Business Activities

15 Accounting Policies and Valuation Principles

20 Subsidiaries and Significant Participations

21 Consolidated Balance Sheet Information

31 Consolidated Off-Balance Sheet Items

33 Consolidated Profit and Loss Account Information

35 Report of the Auditor

FalCon private bank FinanCial statements

38 Balance Sheet and Off-Balance Sheet Items

39 Profit and Loss Account and Net Loss

40 Resolution of the Shareholders’ Meeting

41 Description of Business Activities

42 Accounting Policies and Valuation Principles

43 Balance Sheet Information

46 Off-Balance Sheet Items and Profit and Loss Account Information

47 Report of the Auditor

48 Addresses

4 | Falcon Private Bank

The fiscal year 2010 proved to be one of transforma-

tion and consolidation for Falcon Private Bank. Following

the Bank’s ownership and name change in the previous

year, the Bank focused exclusively on private banking for

wealthy private and institutional clients. This required a

strategic and organizational realignment, which was suc-

cessfully implemented during the reporting year in our

core markets of Switzerland, the Middle East, Asia as well

as Northern and Eastern Europe.

Capitalizing on our expertise in Swiss private banking –

which stretches over more than 40 years – paid off during

a period of structural change within the financial industry

and the rapid advance toward greater regulation of the

financial markets. Now more than ever, the Swiss financial

centre represents a safe haven, thanks to its monetary,

social, economic and political stability, and its superb

reputation worldwide as a leading centre for excellence

in wealth management. For these reasons, we see the far-

reaching changes in the financial market as an opportu-

nity to position ourselves as an agile, adaptable institution

with a clear focus on “Fine Swiss Private Banking.”

Quality, security and trust, together with a stable capital

base, form the cornerstone of our business. The strength

of these values is reflected in the worldwide growth in

assets under management of Falcon Private Bank, which

increased by 9 percent (as of December 31, 2010). An es-

sential part of this success is due to our targeted strategy

of recruiting new talent for the Bank in order to meet the

increasingly demanding needs of our clients. Thanks to the

extensive support of our owner Aabar Investments PJS,

we are in the comfortable position of being able to rea-

lize our recruitment targets. These components form the

basis to achieve our ambitious growth objective, namely

to double client assets under management in the next five

years.

Focusing on the core business also required structural ad-

justments within the subsidiaries of Falcon Private Bank. As

such the decision was taken to discontinue the services of

Vienna-based Falcon Europe, which is specialized in finan-

cial services, as well as those of the asset management

company Falcon Portfolio Management in Zurich. These

two entities will be liquidated during the course of 2011.

We look forward with great anticipation to the opening

of our Representative Office in Abu Dhabi in the first

quarter of 2011. With this initiative and the already well

established Dubai Representative Office, we will be well

positioned to expand our business in the Middle East.

Financially 2010 continued to be a challenging year for the

Bank. With however, a core capital ratio (Tier 1) of 26.87

percent (previous year: 14.04 percent), Falcon Private Bank

possesses a very strong and stable capital base, which

allows us to regard future challenges with equanimity.

Managed client assets developed in the reporting year

in an encouraging way, increasing 9 percent to 12 billion

Swiss francs (previous year: 11 billion Swiss francs).

Due to the new strategic positioning of Falcon Private

Bank, there were several changes in the Board of Directors

and senior management during the year. H. E. Khadem

al Qubaisi was re-elected as Chairman of the Board on

May 12, 2010. David J. Forbes exited the Board at the

same time.

In addition, several personnel changes took place, effec-

tive October 1, 2010, in the Executive Board as well as in

key leadership positions. Alfred A. Moeckli left the Execu-

tive Board to take up a new challenge as Chief Executive

Officer of bank zweiplus ag, in which Falcon Private Bank

holds a 42.5 percent stake. Succeeding Alfred Moeckli in

his role as Deputy Chief Executive Officer and Chief Operat-

ing Officer is Tobias Unger, who joined the Bank in 2009

as Deputy Chief Financial Officer and Head of Strategy &

Analysis. Rocco Sgobbo, member of the Executive Board

of Falcon Private Bank, took over global responsibility for

the Investment Solutions division, leaving his position

as Head of Asia Pacific to Alex Jagmetti, who joined the

bank after several years of experience in private banking

in Asia. David B. Pinkerton took over the role of Chief In-

vestment Officer, bringing to the Bank 24 years of diverse

investment experience and expertise in the private equity

and hedge fund sector. We would like to thank the retiring

members of the Board of Directors and Executive Board for

their commitment, and wish them every success in their

future endeavors.

Foreword by the Chairman oF the board oF direCtors and the ChieF exeCutive oFFiCer

Falcon Private Bank | 5

We would like to express our sincere gratitude to our com-

mitted employees and to our valued clients. Without their

support, the successful consolidation and repositioning of

Falcon Private Bank would not have been possible. Backed

by their continued trust, we look forward to realizing the

opportunities ahead of us.

H.E. Khadem al Qubaisi Chairman of the Board of Directors

Eduardo Leemann Chief Executive Officer


board oF direCtorsAs of December 31, 2010

khadem abdulla al Qubaisi

Chairman of the Board of Directors

Abu Dhabi, U.A.E.

International Petroleum Investment Company (IPIC)

mohamed badawy al-husseiny

Member of the Board of Directors

Abu Dhabi, U.A.E.

Aabar Investments PJS

miChael baer 1)


Zurich, Switzerland/Dubai, U.A.E.

baerpro AG/Baer Capital Partners International Ltd.

lennart bleCher 1)

Vice-Chairman of the Board of Directors

Herrliberg, Switzerland

EQT AG

dr. h.C. GeorG F. thoma


Neuss, Germany

Shearman & Sterling LLP

dr. Christian wenGer 1)


Zumikon, Switzerland

Wenger & Vieli AG

1) Members of the Board of Directors meet the independence criteria set out in FINMA Circular 08/24 Margin Notes 20–24.

Resignation of Mr. David Forbes as of May 12, 2010.


exeCutive CommitteeAs of December 31, 2010

eduardo leemann

Chief Executive Officer and

Head International Private Banking

mary antenen

Chief Financial Officer and

Head Finance

ZaFar habib khan

Chief Executive MENA Region

tobias unGer

Chief Operating Officer and

Deputy Chief Executive Officer

dr. ulriCh sChillinG

Head Banking Services

roCCo sGobbo

Head Investment Solutions

Consolidated FinanCial statements

FALCON PRIVATE BANK GROUP


Notes 2010 2009

Assets

Cash 88 303 83 199

Money market papers 23 014 5 871

Due from banks 150 681 189 571

Due from customers 2 991 451 579 899

Mortgage loans 2 25 021 57 592

Securities and precious metals held for trading purposes 3a 116 581 24 419

Financial investments 3b 244 164 306 073

Participations 1, 3c 19 217 21 458

Tangible fixed assets 4 7 297 45 492

Intangible assets 4 8 568 9 060

Accrued income and prepaid expenses 13 713 24 384

Other assets 10 83 747 41 883

Total assets 1 771 757 1 388 901

Total subordinated assets 9 197 0

Total due from non-consolidated Group companies and significant shareholders 0 0

Liabilities

Money market papers 7 349

Due to banks 235 521 207 697

Due to customers with savings and deposit accounts 0 0

Other amounts due to customers 1 241 028 925 623

Accrued expenses and deferred income 23 769 30 228

Other liabilities 10 75 594 28 332

Valuation adjustments and provisions 7 17 664 9 978

Reserves for general banking risks 8 3 000 3 000

Share capital 8 120 000 120 000

Profit reserve 8 62 343 92 086

Minority interest in shareholders’ equity 8 416 420

Consolidated net loss 8 –7 585 –28 812

Of which minority interest 1 033 684

Total liabilities and shareholders’ equity 1 771 757 1 388 901

Total subordinated liabilities 28 150 3 150

Total due to non-consolidated Group companies and significant shareholders 93 422 46

Consolidated Off-Balance Sheet Items as of December 31

Notes 2010 2009

Contingent liabilities 2, 11a 34 482 14 749

Irrevocable commitments 3 150 4 034

Derivative instruments

– positive replacement values 11b, 11c 66 578 29 325

– negative replacement values 11b, 11c 67 534 23 064

– contract volume 11b, 11c 3 688 743 2 760 391

Fiduciary items 11d 887 243 883 213

Consolidated balanCe sheet as oF deCember 31 in 1000 CHF


Income and Expenses from Ordinary Banking Activities

Notes 2010 2009

Results from interest activities

Interest and discount income 24 561 22 689

Interest and dividend income on financial investments 6 826 8 601

Interest expenses –8 491 –14 018

Net result from interest activities 22 896 17 272

Results from commission and fee activities

Commission and fee income from lending activities 2 666 1 111

Commission and fee income from securities and investment activities 49 977 59 685

Commission and fee income from other services rendered 1 331 484

Commission expenses –10 749 –11 971

Net result from commission and fee activities 43 225 49 309

Results from trading operations 13a 9 512 9 270

Other ordinary income and expenses

Profit on sales of financial investments –435 367

Income from equity participations according to the equity method 672 3 288

Income from other participations 166 0

Rental income 601 544

Other ordinary income 3 018 2 977

Other ordinary expenses –716 –8 304

Other ordinary income and expenses 3 305 –1 128

Operating expenses

Personnel expenses 13b –54 801 –57 210

Other operating expenses 13c –37 066 –39 201

Operating expenses –91 867 –96 411

Gross loss –12 929 –21 688

Consolidated Net Loss

Notes 2010 2009

Gross loss –12 929 –21 688

Depreciation of fixed assets and intangible assets 4 –3 484 –7 338

Valuation adjustments, provisions and losses –9 805 –1 932

Consolidated loss before extraordinary items and taxes –26 218 –30 958

Extraordinary income 13d 20 851 4 895

Extraordinary expenses –775 –1 298

Taxes 13f –1 443 –1 451

Consolidated net loss –7 585 –28 812

Of which minority interest in net loss 1 033 684

Consolidated proFit and loss aCCount in 1000 CHF


General information

Falcon Private Bank Ltd. (“the Bank”) and its subsidiaries

(“the Group”) primarily provide investment advisory and

asset management services. The head office of both the

Bank and the Group is in Zurich. In addition, the Bank has

branches in Geneva, Hong Kong and Singapore, a represen-

tative office in Dubai and soon also in Abu Dhabi, as well

as various subsidiaries both in Switzerland and abroad. As

of the end of 2010 the Group employed 309 people (2009:

297) expressed in terms of full-time equivalents.

The information below relates to the 2010 financial year.

Principal activities

The Group's main activities comprise the provision of invest-

ment advisory services and asset management for private

clients as well as the trading and lending activities associ-

ated with these activities. The subsidiary IFS Independent

Financial Services Ltd., Zug, also operates in this business

segment.

The Group is also active in asset management for institu-

tional investors, notably through Falcon Fund Management

(Switzerland) Ltd., Dübendorf (foundation and management

of investment funds), Falcon Fund Management, Luxem-

bourg, Falcon Portfolio Management Ltd., Zurich (advisory

services and asset management for institutional investors)

and Falcon Europe AG, Vienna (advisory services for and

sales of financial products to institutional clients). The last

two entities will cease their operations during 2011 and will

be liquidated.

In line with the Group’s business activities, the major por-

tion of its income is derived from commissions and service

fees. Commissions and fees originate primarily from asset

management, the Bank’s brokerage activities and the ad-

ministration of custody accounts. Additional commissions are

earned from fiduciary transactions and other banking opera-

tions (loans, guarantees, money transfers, account keeping,

etc.).

Lending operations are conducted primarily on a collateral

basis (lombard loans), with unsecured loans as an exception.

Mortgages that were granted to staff in the past, have

now been transferred to an outsourcing partner.

Interbank business is generally restricted to the short term.

The Group trades on its own account through the Bank. The

largest positions are in foreign exchange. Derivative financial

instruments are used in trading for the Group’s own account

and on behalf of clients.

All other business segments are of minor importance and

do not significantly impact the Group’s consolidated balance

sheet or profit and loss account.

Risk assessment

The Board of Directors discusses on a regular basis the

critical risks to which the Group is exposed. These include

market and credit risk, as well as operational risk. For

credit risk, the assessment is based on risk rating catego-

ries and underlying collateral. Market risk derived from the

positions held in the trading and banking book is part of

the asset and liability management. For operational risk

the assessment is based on the bank’s internal risk inven-

tory of the key processes with information concerning the

likelihood that risk events will occur and the estimated

impacts. Risk-reducing measures and internal controls are

taken into account in the assessment. The Board of Direc-

tors adapted the risk policy in line with the risk assessment

and set the overall risk limit based on the Risk Weighted

Assets (RWA).

Risk Management

The risk policy approved by the Board of Directors along with

the existing policies which govern the handling, recording

and assessing of latent risks form the basis of risk manage-

ment. Monitoring, identifying, measuring and controlling risk

is an important function for the Group. In order to enable

the Board of Directors to fulfill its responsibilities and carry

out its monitoring function, it regularly receives relevant risk

reports. The internal reports provide appropriate information

on all key risk areas. Maintaining a positive reputation and

strong credit rating form part of the Group’s key goals. The

Group ensures its regulatory capital requirements are met

at all times and has defined its capacity and willingness to

accept risk in such a way that even if a range of negative

events were to occur the required capital adequacy levels

will be maintained.

desCription oF business aCtivities


Credit risks

Credit exposure to clients, banks and brokers arising from

on- and off-balance sheet transactions exists within the nor-

mal course and scope of business. Credit exposure to clients

is strictly limited by means of appropriate collateral require-

ments and by market-oriented monitoring and controls. The

credit approval process is clearly organized and structured on

a hierarchical basis.

As a matter of principle, the Group only works together with

first-class counterparties. In order to manage counterparty

risk in interbank and trading activities the Group applies a

system of limits which is largely based on the counterparty

rating. The assessment also takes into consideration current

market estimations (e. g. CDS premiums) and the capital

base.

Market risks

Market risks from trading are monitored by the Risk Control

department on a daily basis by using delta limits. Financial

investment related market risks as well as interest and for-

eign exchange risks related to the balance sheet are moni-

tored on a monthly basis by making comparisons with the

overall RWA limit. A profit and loss statement is produced

daily to monitor the liquid financial assets of the trading and

banking book. The identified risks and financial results are

communicated to the Asset and Liability Committee and Exe-

cutive Board on a monthly basis and the Risk Committee of

the Board of Directors on a quarterly basis.

Liquidity risks

The Treasury function monitors liquidity risks in line with the

regulatory framework and ensures that the Group is able

to fulfill all of its liquidity requirements. This is done through

diversified refinancing and in matching currencies and matu-

rities.Liquidity Risk: Liquidity management is in the respon-

sibility of the Asset and Liability Committee.

Operational risks

Day-to-day business is regulated by internal policies. The

Reconciliations and Investigations department monitors the

open positions in cash, securities and derivative financial in-

struments. Internal and sub-ledger accounts are monitored

regularly. All identified losses are documented and analyzed.

Moreover, in order to record, monitor and control operational

risk, the Bank has set up a committee to identify and ana-

lyze the Bank’s core processes and ensure that these are

described and controlled via the department heads. The risk

inventory of the key processes is reviewed periodically and

contains information about how likely it is that these events

will occur and their estimated impact. The Internal Audit de-

partment regularly reviews the effectiveness of the internal

controls as part of its normal auditing activities and reports

directly to the Board of Directors.

Compliance and legal risks

The internal Legal & Compliance unit, under the leadership

of the General Counsel, incorporates Legal Services and the

Compliance function. In accordance with FINMA Circular

08/24 the Group maintains a Compliance function which in

the year under review has an established inventory of the

compliance risks and a risk-oriented action plan. The unit

is independent of income-oriented business activities and

has an unlimited right to information, access and scrutiny.

It reports directly to the Chief Operating Officer. The com-

pliance-related activities comprise in particular the provi-

sion of support and advice to the Group in order to ensure

that its business activities are in accordance with regulatory

provisions and the due diligence obligations of a financial

intermediary. This unit is also responsible for monitoring the

requirements and developments coming from the regula-

tory authority, the legislature or other organizations. An IT

application which identifies unusual transactions is used to

ensure compliance with money laundering regulations. The

responsibilities and measures relating to compliance with

money laundering regulations are clearly defined and are

monitored by the Legal & Compliance department. Other

key responsibilities include the provision of relevant training

and information to members of staff at all levels. Legal &

Compliance is also responsible for recording, processing and

monitoring pending legal proceedings.

Outsourcing

Falcon Private Bank Ltd. has outsourced the printing, packag-

ing and mailing of various client documents (e. g. account

statements, tax statements) to external service providers

within Switzerland. This outsourcing is based on contractual

arrangements which comply with the requirements set out


Events after the balance sheet date

The Bank had planned to outsource various back-end func-

tions to an outsourcing provider. The outsourcing partner

was also in charge of customizing an IT banking platform and

to implement various standard systems. The development

costs have been charged to the Bank which were capital-

ized under intangible assets (see note 4). As of March 28,

2011, the Bank and the outsourcing partner mutually agreed

to abandon the project. As of December 31, 2010, CHF 8.6

million was recognized as capitalized project costs. Although

the Bank has legal rights to all intellectual property related

to the project, the Bank needs to determine which piece of

the project has an economic value for the Bank.

in FINMA Circular 08/7. No other essential business sectors

or business activities within the meaning of FINMA Circular

08/7 are outsourced.

Disclosure in accordance with capital adequacy

regulations Eligible and required capital of the Group

31.12.2010

CHF million

31.12.2009

CHF million

Gross core capital 178.2 186.7

Components to be deducted from core capital –8.6 –9.1

Eligible core capital 169.6 177.6

Supplementary capital and additional capital 28.1 3.2

Other deductions from total capital –20.4 –21.5

Eligible capital 177.3 159.3

Credit risk (Swiss standardized approach) 29.1 53.7

Of which price risk relating to equity-type securities in the banking book

5.6 8.5

Non-counterparty-related risks (Swiss standardized approach)

3.6 10.2

Market risk (Swiss standardized approach) 6.4 4.7

Operational risk (basic indicator approach) 13.7 22.2

Required capital 52.8 90.8

Capital surplus 124.5 68.5

Capital coverage ratio 335.8 % 175.4 %


Translation of foreign currencies

Transactions in foreign currencies are translated into Swiss

Francs at daily exchange rates. Foreign currency positions,

with the exception of participations, are converted into Swiss

Francs at the average exchange rates prevailing at the year-

end closing date. Resulting conversion profits and losses

are included in the “net result from trading operations”. Par-

ticipations in foreign currencies are valued at the exchange

rates prevailing at the time of purchase. In the event of a de-

cline in the value of such an investment, giving due account

also to the fluctuation of exchange rates, a valuation adjust-

ment is made. Assets, liabilities, costs and revenues of Group

companies maintaining their books in a foreign currency, are

translated into Swiss Francs at the average exchange rate

prevailing at the year-end closing date. Exchange differences

resulting from this translation are either debited or credited

to profit reserves. During the business year under review,

negative exchange differences of CHF 0.3 million were cred-

ited to the profit reserves.

For the foreign exchange conversions the following rates

were applied (major foreign currencies only):

2010 2009

USD 0.9325 1.035

EUR 1.25 1.4825

HKD 0.12 0.1333

SGD 0.7275 0.7375

General valuation principle

Each item stated in the balance sheet is valued individually.

Cash, money market papers, amounts due from and

due to banks, amounts due to customers

Cash, amounts due from and due to banks as well as amounts

due to customers are stated at their nominal value less indi-

vidual valuation adjustments for doubtful receivables. Money

market papers are valued at amortized costs.

Loans (amounts due from clients and mortgage loans)

Overdue receivables and receivables at risk, including off-

balance sheet transactions, are valued on an individual basis

and potential reductions in value are covered by correspond-

ing provisions. Loans are considered overdue when the con-

tractually agreed repayment of capital and/or payment of

Basis

The consolidated financial statements of Falcon Private Bank

Group have been prepared in accordance with the provisions

of the Swiss Federal Code of Obligations, the Federal Law on

Banks and Savings Banks, the Federal Stock Exchange Act

and the related Implementing Ordinances and accounting

rules as defined by the Swiss Financial Market Supervisory

Authority (FINMA). These consolidated financial statements,

which are based on the accounting policies outlined below,

give a true and fair view of the financial position of the

Group and the results of its operations. A statement of cash

flow is not required as the Bank does not actively engage in

significant balance sheet activities.

Scope of consolidation

The consolidated financial statements comprise the financial

statements of the Bank and the subsidiaries which are con-

trolled by the Bank, either directly or indirectly, through the

ownership of more than 50 % of the voting rights or through

other means. In 2010 there were no changes in the scope

of the consolidation.

Method of consolidation

Subsidiaries, which the Group controls either directly or in-

directly, are included in the Group accounts according to the

principle of full consolidation. The consolidation of capital is

based on the purchase method. Participations, where minor-

ity interests exist, are also fully consolidated. The respective

minority interest in the equity and net profit are disclosed

separately. Newly acquired subsidiaries are consolidated as

from the time when control over them passes to the Group.

Subsidiaries which are sold are consolidated until the sales

transaction is finalized, if the revenues and expenses of

these subsidiaries have a significant impact on the Group.

Interim profits and the effects of intra-Group transactions are

eliminated when the Group accounts are being prepared.

Recording of business transactions

All transactions are recorded in the Group’s balance sheet on

a trade date basis, except for forward transactions, which are

reported from the trade date as off-balance sheet items and

from the settlement date in the balance sheet. All transac-

tions are valued from the trade date onward.

aCCountinG poliCies and valuation prinCiples


price and subsequently recovers. If there is no liquid market

for a particular security, the fair value is determined by using

a prudent approach.

Fixed-income instruments which are intended to be held

until maturity are valued according to the accrual method.

Premiums and discounts on these securities are added to the

nominal value and are amortized over the remaining life of

the investment. Realized gains or losses from an early sale

or redemption of such investments are amortized over their

remaining life, i. e. until the original maturity.

Specific provisions are made for identifiable credit risks and

are reflected in the position “valuation adjustments and pro-

visions”.

Non-consolidated participations

Where the Group controls between 20–50 % of the voting

shares of a company and the participation has a significant

impact on the Group’s accounts, it is included in the consoli-

dated financial statements according to the equity method.

Under the equity method, the Group’s share in the equity of

the acquired company is shown under “participations” and

the share in the net profit as “income from participations”.

Where the Group controls less than 20 % of the voting shares

of a company or if the company does not have a significant

impact on the Group’s accounts, the participation is stated in

accordance with the lower of cost or market principle.

Securities lending and borrowing

Borrowed securities or securities which have been received

as collateral are only recorded in the balance sheet if the

Group obtains the economical power over the rights attached

to the securities. Lent securities or securities given as col-

lateral are only removed from the balance sheet if the Group

economically gives up the power over the rights attached to

the securities.

Collateral given for borrowed securities or received for lent

securities is stated in the balance sheet at book value.

Received or paid charges from securities lending and bor-

rowing and repurchase transactions are recorded as “inter-

est income” or “interest expense” in accordance with the

accrual/deferral method.

interest is outstanding for more than 90 days. Overdue in-

terest and interest at risk are not considered in the income

statement. Interest is no longer calculated if the recovery of

the interest is doubtful.

The reduction in value is established as the difference between

the book value of the receivable and the expected recover-

able amount, taking into account counterparty risk and the

possible net proceeds from the liquidation of pledged assets.

If it is likely that the process of liquidation of pledged assets

will take more than one year, the estimated net proceeds are

discounted to the balance sheet date.

Valuation adjustments are reported as liabilities in the balance

sheet position “valuation adjustments and provisions”.

When a loan is considered partly or entirely irrecoverable or

when a waiver of debt repayment has been granted, the debt

is written off against the corresponding provision. Recoveries

on loans which were previously written off are directly credi-

ted to the account “provisions for credit risk”.

Securities and precious metals held for trading purposes

Securities and precious metals held for trading purposes are,

in principle, stated at their fair values. Usually, fair values

equal the market prices at which the securities or precious

metals are traded or offered on a recognized stock exchange

or a representative financial market at the balance sheet

closing date. Exceptionally, if no fair value is available, the

security or precious metal is stated at the lower of cost or

market value.

Valuation differences between the balance sheet date and

the transaction date are credited or debited to “net result

from trading operations”. Interest and dividend income from

trading positions are shown as part of “net result from trad-

ing operations.”

Financial investments

Shares, investment fund units and other equity-related pa-

pers, as well as convertible bonds, and warrant-linked bonds

outside the trading portfolio are stated at the lower of cost

or market value. Valuation adjustments are booked on a

net basis to “other ordinary expenses” or “other ordinary

income”. Valuation increases up to the purchase price are

recognized, if the market price was lower than the purchase


generated intangible assets are only capitalized if the fol-

lowing criteria are met cumulatively:

• The intangible asset is clearly identifiable and in full con-

trol by the entity.

• The costs of the asset can be measured reliably. However,

only external expenses are recognized.

• It is probable that the necessary resources will be avail-

able till completion.

Other intangible assets include consultancy costs relating to

projects which are capitalizable according to the previously

mentioned criteria. Other intangible assets are only capital-

ized when the purchase price exceeds the CHF equivalent

threshold of USD 250 000 per project or purchase. When the

purchase price or the expenses for internally generated in-

tangible assets are below this threshold, the respective in-

tangible asset is recognized as an expense when incurred.

Other intangible assets are valued at purchase price and are

depreciated over their estimated useful lives, with a maximum

of 10 years, through the income statement, using the straight-

line method. Internally generated intangible assets start de-

preciation once they start generating economic benefits.

An annual evaluation for signs of impairment is carried out.

In the event that this evaluation results in a reduction of the

estimated useful life or a decline in value, the residual book

value is depreciated over the reduced estimated useful life

or an impairment is booked.

Liabilities from pension plans

Falcon Private Bank Group maintains pension plans for its

staff, in accordance with the requirements of local laws. The

Group bears the cost of the pension plans for its staff and, in

the event of death, its legal successors, in compliance with

local requirements and laws. The underlying liabilities with

the pension plans as well as the assets providing coverage

are outsourced to legally independent foundations. Organi-

zation, funding and management of the pension plans con-

form with the local legal requirements, the deeds of the

foundations, and the governing regulations of the pension

plans. All pension plans of Falcon Private Bank are contribu-

tion-oriented. The employer’s contributions to these pension

plans are accrued under “personnel expenses”.

Tangible fixed assets

Tangible fixed assets are initially reported at cost and depre-

ciated using the straight-line method over their estimated

useful lives. Minor acquisitions that do not constitute added

value for the Group are charged directly to operating expens-

es. An annual evaluation for signs of impairment is carried

out. In the event that this evaluation results in a reduction of

the estimated useful life of the asset or a decline in value,

the residual book value is depreciated over the reduced es-

timated useful life or an extraordinary amortization for im-

pairment is booked. All depreciation is booked through the

income statement. Should the asset subsequently recover its

value, a corresponding appreciation is booked.

The estimated useful life for the following categories of tan-

gible fixed assets is:

Buildings (excluding land) 67 years

Improvements to rented buildings duration of rental contract

Software 4 years

Other fixed assets:

Furniture, cars 4 years

Hardware and communication devices 4 years

Realized profits or losses on the sale of fixed assets are

booked as extraordinary profits or losses.

Intangible assets

Goodwill

Goodwill represents the excess of the cost of the acquired net

assets of a company or part of a company over their value at

the date of purchase, according to the Group’s valuation princi-

ples. The purchase of client assets from an institution also falls

under this definition. Goodwill is recognized as an asset and is

amortized through the income statement over its estimated

useful life. If the useful life cannot be clearly determined, the

amortization is usually carried out over a period of five years.

An annual evaluation for signs of impairment is carried out.

In the event that this evaluation results in a reduction of the

estimated useful life or a decline in value, the residual book

value is depreciated over the reduced estimated useful life or

an extraordinary amortization is booked.

Other intangible assets (incl. capitalized project costs)

Other intangible assets are capitalized if they will bring an

identifiable future economic benefit to the Bank. Internally


Deferred taxes

The tax impact deriving from timing differences between

the values of assets and liabilities reported in the Group’s

balance sheet and their tax values is taken into account by

reflecting this deferred tax liability under “provisions and

valuation adjustments”.

Potential tax receivables resulting from timing differences or

losses carried forward are capitalized when it is likely that

sufficient future taxable profits can be offset against these

timing differences or losses carried forward. Potential tax

liabilities and receivables are only set off against each other

if they relate to the same tax subject and the same tax juris-

diction and the offset is enforceable by law. Changes to the

provision for deferred taxes are booked to “taxes” (increase)

or “extraordinary income” (decrease) on the profit and loss

statement.

The calculation is based on an adequate, estimated average

tax rate, which is disclosed in the notes.

Valuation adjustments and provisions

Provisions and valuation adjustments are made for all rec-

ognizable risks at the balance sheet date. Country risks are

provided for in accordance with the Group’s approved coun-

try risk policy. A provision for operational risks is reflected in

the position “valuation adjustments and provisions for other

business risks”. Provisions which are no longer required are

released through “extraordinary income” on the profit and

loss statement.

Contingent liabilities and irrevocable commitments

Contingent liabilities and irrevocable commitments are re-

ported at nominal value as off-balance sheet items. Spe-

cific provisions are made for identifiable loss risks and are

reflected in the position “valuation adjustments and provi-

sions.”


Trading transactions

Positive and negative replacement values arising from de-

rivative instruments are stated at their fair value and are

recorded under “other assets” and “other liabilities” respec-

tively. The fair value is primarily based on market prices. If no

Falcon Private Bank Group applies the principles of FER 16.

Annual revaluations and recalculations are performed to

ascertain whether there are economic benefits or liabilities

for the Group resulting from pension plans. The basis for

this assessment includes contracts, annual financial state-

ments of the pension plans, prepared according to FER 26,

and other calculations which reflect the financial situation

as well as the existing excess or shortage for each pension

plan. Falcon Private Bank in Switzerland engages a pension

expert in order to assess whether economic benefits or liabi-

lities exist.

The resulting economic benefits and/or liabilities are re-

corded in the balance sheet. Changes in value versus the

previous year are recognized in the income statement under

“personnel expenses”.


Income and expenses from commission and fee activities are

in principle reported on a gross basis. As an exception, retro-

cessions and consulting fees payable which were agreed in

advance in writing and are calculated on the same basis as

the commissions receivable are reported on a net basis.

The difference between the issue price and the price of struc-

tured products charged to the client is reported under results

from commission and fee activities. This is done on condition

that all products subscribed by Falcon Private Bank Group are

sold to clients on the same day. Any position remaining at

the end of the day forms part of the trading portfolio and is

valued and booked accordingly.

Taxes

Recurring taxes

Recurring taxes are generally annual taxes payable on the

profit and the capital. These taxes are based on the net profit,

calculated in accordance with the local tax regulations, and

reported as an expense in the profit and loss statement in

the period for which the corresponding profit has occurred.

Tax liabilities due, based on the current net profit and the

capital as per balance sheet date, are reflected under “ac-

crued expenses”. If the sum of prepaid taxes exceeds the

sum of the calculated tax liabilities, the surplus amount is

reflected under “prepaid expenses”.


Changes in accounting and valuation principles

The accounting and valuation principles have changed since

last year:

An estimated useful life of 4 years will be applied to all

software, furniture, motor vehicles, hardware and commu-

nication devices. In prior years the estimated useful life was

between 3 and 5 years.

The premiums and discounts on financial investments held

to maturity will no longer be disclosed under accrued in-

come or expense, but will be reflected in the balance sheet

under financial investments.

market prices are available, the value is determined through

discounted cash-flow or option pricing models.

Positive and negative replacement values are not set off

against each other. Traded options and warrants bought for

clients on a commission basis are not included in the finan-

cial statements.

Realized and unrealized profits and losses from trading acti-

vity are reflected under “result from trading operations”.

Hedging transactions

Hedging transactions are subject to the same valuation prin-

ciples as the underlying transactions which they hedge. The

profit due to hedging is attributed to the same profit and loss

account as the corresponding profit or loss from the underly-

ing hedged transaction. Unrealized profits and losses from

such transactions are booked to a compensation account on

the balance sheet. Realized profits or losses due to the early

disposal of or closing of hedging positions are amortized over

the period from when the disposal or closing occurred until

the maturity date of the hedged underlying transaction.

Hedging relations, targets and strategies of hedging activi-

ties are documented by the Group at the time when such

transactions are made. The effectiveness of hedging rela-

tions is monitored on a regular basis. Hedging transactions

are fully or partially treated as trading transactions the mo-

ment the hedging relations are no longer entirely or partially

effective.


Note 1 – Consolidated Participations and Significant Participations

Company name, domicile Business activity Capital

in 1000

Share 2010

in %

Share 2009

in %

Fully consolidated subsidiaries

Falcon Europe Ltd., Vienna Financial services 1 750 EUR 100 100

Falcon Fund Management (Switzerland) Ltd., Dübendorf Fund management 5 000 CHF 100 100

Falcon Fund Management (Luxembourg), Luxembourg Fund management 411 EUR 100 100

Falcon Portfolio Management Ltd., Zurich Asset management 1 500 CHF 100 100

IFS Independent Financial Services Ltd., Zug Asset management 500 CHF 70 70

Minority interests

bank zweiplus ag, Zurich (valued according to equity method) Bank 35 000 CHF 43 43

With regard to the change in significant participations we refer to the description of business activities and the accounting policies and valuation principles.

subsidiaries and siGniFiCant partiCipations


Note 2 – Collateral for Loans and Off-Balance Sheet Items

in 1000 CHF Secured by

mortgages

Secured by

other collateral

Unsecured Total

Loans and advances

Due from customers 0 899 782 91 669 991 451

Mortgage loans 25 021 0 0 25 021

Total loans and advances 2010 25 021 899 782 91 669 1 016 472

Total loans and advances 2009 57 592 510 174 69 725 637 491

Off-balance sheet items

Contingent liabilities 0 20 528 13 954 34 482

Irrevocable commitments 700 0 2 450 3 150

Total off-balance sheet items 2010 700 20 528 16 404 37 632

Total off-balance sheet items 2009 1 768 14 647 2 368 18 783

in 1000 CHF

Gross amount due

Estimated

liquidation

proceeds from

collateral

Net amount due

Individual

valuation

adjustments

Receivables at risk 2010 12 877 0 12 822 12 964

Receivables at risk 2009 5 241 444 4 797 4 822

Note 3a – Securities and Precious Metals Held for Trading Purposes

in 1000 CHF 2010 2009

Quoted interest bearing securities 105 627 20 340

Non-quoted interest bearing securities 0 0

Equities and mutual funds 9 891 3 531

Precious metals 1 063 548

Total securities and precious metals held for trading purposes 116 581 24 419

thereof, securities which are rediscountable with the Central Bank 84 639 0

Note 3b – Financial Investments

in 1000 CHF Book value Fair Value

2010 2009 2010 2009

Interest bearing securities held to maturity 216 431 272 401 221 104 279 938

Debt securities reported at the lower of cost or market 0 0 0 0

Equities and mutual funds 27 733 33 672 29 289 34 919

Total financial investments 244 164 306 073 250 393 314 857

thereof, securities which are rediscountable with the Central Bank 116 450 200 850 119 411 206 611

Consolidated balanCe sheet inFormation


Note 3c – Participations

in 1000 CHF 2010 2009

Quoted 0 0

Non-quoted 19 217 21 458

Total participations 19 217 21 458

Note 4 – Movements in Non-Consolidated Participations, Tangible Fixed Assets and Intangible Assets

in 1000 CHF

Historical

costs

Accumulated

depreciation

Net book

value as of

31.12.09

Transfers*

2010

Additions

2010

Disposals

2010

Depreciation

2010

Valuation

adjustment

of parti-

cipations

valued by

the equity

method

Net book

value

as of

31.12.10

Participations

Valued according to the equity method

20 572 0 20 572 0 0 0 0 –2 241 18 331

Other 1 089 –203 886 0 0 0 0 0 886

Total participations 21 661 –203 21 458 0 0 0 0 –2 241 19 217

Tangible fixed assets

Leasehold improvements 17 277 –13 007 4 270 21 930 –70 –1 261 0 3 890

Owned property in Zurich 42 327 –4 674 37 653 0 0 –37 241 –412 0 0

Software 7 899 –7 268 631 673 112 0 –300 0 1 116

Other fixed assets 36 068 –33 130 2 938 –5 797 –58 –1 381 0 2 291

Total tangible fixed assets 103 571 –58 079 45 492 689 1 839 –37 369 –3 354 0 7 297

Intangible assets

Goodwill 0 0 0 0 0 0 0 0 0

Capitalized project costs 33 897 –24 837 9 060 –688 326 0 –130 0 8 568

Total intangible assets 33 897 –24 837 9 060 –688 326 0 –130 0 8 568

* Mainly reclassifications from capitalized projects costs to software related to the implementation of the SAP system.

Fire insurance value of owned property 0

Fire insurance value for fixed assets 10 450

Commitments from future leasing payments 692


Note 5 – Loans and Advances to Affiliated Entities and to Members of the Bank’s Statutory Bodies and Significant Shareholders

in 1000 CHF 2010 2009

Due from Due to Due from Due to

Affiliated companies 0 0 0 0

Members of the bank’s statutory bodies and significant shareholders 46 725 0 3 118 0

Related Party Transactions The amounts due to non-consolidated Group companies and significant shareholders of TCHF 93 421 essentially comprises a current account of the parent company, Aabar Investments PJS.

The subordinated loan from the parent company of CHF 3.2 million in 2009 was increased to CHF 28.2 million in 2010.

As of 31.12.2010 there were no amounts due from or due to affiliated companies.

The loans to the members of the bank’s statutory bodies and significant shareholders of CHF 46.7 million are mainly secured by mortgages or diversified securities portfolios. The loan-to-value ratios are within customary banking limits. The interest rates reflect preferential staff conditions.

All transactions with related parties, with the exception of loans to members of the Bank’s statutory bodies and significant shareholders, were executed on the same conditions as would apply for third parties.

Note 6a – Assets Pledged or Assigned as Collateral for own Liabilities and Assets under Reservation of Title

in 1000 CHF 2010 2009

Book value of

assets

Actual

commitments

Book value

of assets

Actual

commitments


Securities and precious metals held for trading purposes 0 0 0 0

Financial investments 68 072 10 248 71 711 3 022

Total pledged assets 68 072 10 248 71 711 3 022

As of December 31, 2010 there are no assets subject to reservation of title.

Note 6b – Liabilities to Own Pension and Welfare Plans

in 1000 CHF 2010 2009

Other amounts due to customers 2 297 3 716

Total commitments to own pension and welfare plans 2 297 3 716


Note 6c – Information about Own Pension Plans

in 1000 CHF

Nominal value

as of 31.12.10

Balance as of

31.12.10

Balance as of

31.12.09

Result in

personnel

expenses 2010

Result in

personnel

expenses 2009

Employer contribution reserves

BVG foundation of Falcon Private Bank, Zurich 9 231 9 231 8 734 497 4 514

in 1000 CHF

Excess/

shortage as of

31.12.10

Benefit to the

bank as of

31.12.10

Benefit to the

bank as of

31.12.09

Impact on

income

statement as

of 31.12.10

Accrued

expenses as of

31.12.10

Cost of

retirement

benefits

2010

Cost of

retirement

benefits

2009

Economic benefit

BVG foundation of Falcon Private Bank, Zurich 0 0 0 0 0 –1 074 –1 002

All employees of the Falcon Private Bank Group who work in Switzerland and have completed their 17th year of age are insured with the BVG foundation of Falcon Private Bank. Employees with fixed term contracts not exceeding 3 months are not included. The pension fund is contribution-oriented.

Employer contribution reservesThe employer contribution reserves equal the nominal value shown in the financial statements of the pension fund. They are reported under “other assets”. There is a valuation adjustment of CHF 1.6 million for the case of a possible waiver of usage (see note 7), which was created in 2008 due to the under-coverage of the pension fund. CHF 0.1 million were utilized. Any discount effect is disregarded and no interest is applied.

Economic benefit/liability arising from excess/shortageAs of 31.12.2010, the pension fund has a coverage ratio of 98.6 %; the bank itself, however, has no economic obligation.

Foreign pension plansIn view of their size, the foreign pension plans are negligible for the Group as a whole. They have neither a shortage nor a surplus.

Note 6d – Securities Lending and Repurchase Transactions

in 1000 CHF 2010 2009

Claims from cash deposits relating to securities borrowing and reverse repurchase transactions 0 0

Obligations from cash deposits relating to securities lending and repurchase transactions 0 0

Securities in own possession relating to securities lent out (securities lending) or securities deposited as collateral (securities borrowing) and securities transferred (repurchase transactions)

0 0

Of which securities for which unrestricted rights to sell or pledge have been granted 0 0

Securities received as collateral (securities lending) or securities borrowed (securities borrowing) or securities received (reverse repurchase transactions) for which unrestricted rights to sell or pledge have been granted

25 400 391

Of which sold or pledged 25 400 391


Note 7 – Valuation Adjustments, Provisions and Reserves for General Banking Risks

in 1000 CHF

Balance as of

31.12.09

Used as

intended

Recoveries,

doubtful

interests and

forex

differences

New creation

charged to

profit and loss

account

Reversals

credited to

profit and loss

account

Change in

scope of

consolidation

Balance

as of 31.12.10

Valuation adjustments and provisions for identifiable loan losses and other risks

Valuation adjustments and provisions for identifiable loan losses (credit and country risks)

4 822 –934 –427 9 503 0 0 12 964

Valuation adjustments and provisions for other business risks

1 919 –380 –25 100 0 0 1 614

Restructuring provisions 1 544 –944 0 1 531 –600 0 1 531

Valuation adjustment employer contribution reserves

1 693 0 0 0 –138 0 1 555

Total valuation adjustments and provisions as per consolidated balance sheet

9 978 –2 258 –452 11 134 –738 0 17 664

Reserves for general banking risks (taxed) 3 000 0 0 0 0 0 3 000

The valuation adjustments and provisions for identifiable loan losses include individual valuation adjustments on credit positions of TCHF 12 964 which were established in accordance with the accounting policies and valuation principles.

The valuation adjustments and provisions for other business risks contain provisions for legal risks of TCHF 200 and provisions for operational risks of TCHF 1 414. Each case is assessed individually, as it is the case for identifiable loan losses. The amount of the provisions is based on the maximum presumed loss which would arise, taking into consideration the probability of occurrence, for each event.

Note 8 – Statement of Changes in Shareholders’ Equity

in 1000 CHF

Shareholders’ equity as of 1.1.2010

Share capital 120 000

Profit reserve 92 086

Reserves for general banking risks 3 000

Minority interest 420

Consolidated net loss –28 812

Total shareholders’ equity as of 1.1.2010 (before appropriation of profit) 186 694

Non-cash dividend payment 0

Dividend payment to minority shareholders –661

Deconsolidation 0

Share capital increase 0

Consolidated net loss 2010 –7 585

Foreign currency translation adjustment –274


thereof

– Share capital 120 000

– Profit reserve 62 343

– Reserves for general banking risks 3 000

– Minority interest 416

– Consolidated net loss –7 585

The profit reserve contains non-distributable legal reserves of TCHF 21 010.


Note 9a – Maturity Structure of Current Assets and Liabilities

in 1000 CHF

On demand

Subject to

notice

Due within 3

months

Due from 3

months up to

12 months

Due from 12

months up to

5 years

Due from 5

years

Total

Current assets

Cash 88 303 0 0 0 0 0 88 303

Money market papers 23 014 0 0 0 0 0 23 014

Due from banks 111 781 0 38 900 0 0 0 150 681

Due from customers 0 45 933 627 989 314 794 2 735 0 991 451

Mortgage loans 0 12 103 1 205 3 441 8 272 0 25 021

Securities and precious metals held for trading purposes

116 581 0 0 0 0 0 116 581

Financial investments 28 405 0 24 729 82 822 108 208 0 244 164

Total current assets 2010 368 084 58 036 692 823 401 057 119 215 0 1 639 215

Total current assets 2009 264 080 35 173 393 770 327 557 223 179 2 865 1 246 624

Liabilities

Money market papers 0 0 7 0 0 0 7

Due to banks 72 671 0 104 109 18 643 40 098 0 235 521

Due to customers with savings and deposit accounts

0 0 0 0 0 0 0

Other amounts due to customers 714 808 0 266 767 259 025 428 0 1 241 028

Total liabilities 2010 787 479 0 370 883 277 668 40 526 0 1 476 556

Total liabilities 2009 586 414 0 324 582 148 168 74 505 0 1 133 669


Note 9b – Assets and Liabilities by Domestic and Foreign Origin

in 1000 CHF 2010 2009

Domestic Foreign Domestic Foreign

Assets

Cash 83 515 4 788 78 480 4 719

Money market papers 1 205 21 809 52 5 819

Due from banks 44 288 106 393 20 630 168 941

Due from customers 61 755 929 696 121 783 458 116

Mortgage loans 23 671 1 350 56 192 1 400

Securities and precious metals held for trading purposes 10 935 105 646 590 23 829


Participations 19 199 18 21 440 18

Tangible fixed assets 6 806 491 44 516 976

Intangible assets 8 568 0 9 060 0

Accrued income and prepaid expenses 6 423 7 290 14 764 9 620

Other assets 71 261 12 486 39 440 2 443

Total assets 368 749 1 403 008 430 853 958 048

Liabilities and shareholders’ equity


Due to banks 41 583 193 938 80 023 127 674

Due to customers with savings and deposit accounts 0 0 0 0

Other amounts due to customers 563 727 677 301 408 595 517 028

Accrued expenses and deferred income 22 524 1 245 25 524 4 704

Other liabilities 64 547 11 047 26 356 1 976

Valuation adjustments and provisions 17 134 530 9 978 0

Reserves for general banking risks 3 000 0 3 000 0

Share capital 120 000 0 120 000 0

Profit reserve 61 366 977 90 903 1 183

Minority interest in shareholders’ equity 416 0 420 0

Consolidated net loss –7 822 237 –28 088 –724

of which minority interest 1 033 0 684 0

Total liabilities and shareholders’ equity 886 482 885 275 737 060 651 841


Note 9c – Assets by Country and Region

in 1000 CHF 2010 2009

Amount Share in % Amount Share in %

Europe

– Switzerland 368 749 21 430 853 31

– Germany 89 533 5 76 442 6

– France 30 548 2 27 562 2

– Great Britain 43 930 2 27 917 2

– Italy 9 133 1 5 072 0

– Spain 12 204 1 1 0

– Luxembourg 48 332 3 46 579 3

– Netherlands 117 594 7 66 959 5

– Belgium 582 0 717 0

– Austria 14 927 1 30 941 2

– Other 159 789 9 104 571 8

North America 251 079 14 198 376 14

South America 7 090 0 12 377 1

Oceania 23 476 1 17 402 1

Asia 586 167 33 340 864 25

Africa 8 624 0 2 268 0

Total assets 1 771 757 100 1 388 901 100


Note 9d – Assets and Liabilities by Major Currencies

Umgerechnet in 1000 CHF CHF EUR USD Other Total

Assets

Cash 82 513 2 906 107 2 777 88 303

Money market papers 0 0 1 205 21 809 23 014

Due from banks 29 752 35 758 33 397 51 774 150 681

Due from customers 135 253 141 431 586 669 128 098 991 451

Mortgage loans 25 021 0 0 0 25 021

Securities and precious metals held for trading purposes 73 067 12 117 30 308 1 089 116 581

Financial investments 181 270 24 166 13 965 24 763 244 164

Participations 19 217 0 0 0 19 217

Tangible fixed assets 6 806 0 0 491 7 297

Intangible assets 8 568 0 0 0 8 568

Accrued income and prepaid expenses 8 360 1 240 3 697 416 13 713

Other assets 73 086 4 0 10 657 83 747

Total on-balance sheet assets 642 913 217 622 669 348 241 874 1 771 757

Delivery claims from foreign exchange spot, forward and option transactions (net)

52 714 5 515 1 795 6 554 66 578

Total assets 695 627 223 137 671 143 248 428 1 838 335


Money market papers 2 5 0 0 7

Due to banks 15 759 24 389 151 690 43 683 235 521

Due to customers with savings and deposit accounts 0 0 0 0 0

Other amounts due to customers 332 694 155 050 580 758 172 526 1 241 028

Accrued expenses and deferred income 22 348 102 1 051 268 23 769

Other liabilities 64 791 25 39 10 739 75 594

Valuation adjustments and provisions 14 522 969 2 173 0 17 664

Reserves for general banking risks 3 000 0 0 0 3 000

Share capital 120 000 0 0 0 120 000

Profit reserve 62 343 0 0 0 62 343

Minority interest in shareholders’ equity 416 0 0 0 416

Consolidated net loss –7 585 0 0 0 –7 585

of which minority interest 1 033 0 0 0 1 033

Total on-balance sheet liabilities and shareholders’ equity 628 290 180 540 735 711 227 216 1 771 757

Delivery obligations from foreign exchange spot, forward and option transactions (net)

56 950 5 853 1 686 3 046 67 535

Total liabilities and shareholders’ equity 685 240 186 393 737 397 230 262 1 839 292

Net position per currency 10 387 36 744 –66 254 18 166


Note 10 – Other Assets and Liabilities

in 1000 CHF 2010 2009

Other assets Other liabilities Other assets Other liabilities

Replacement values of derivatives

Contracts as principal

– proprietary positions relating to trading 63 902 62 888 26 501 20 240

– proprietary positions relating to hedges 0 1 970 0 0

Contracts with clients on a bank-to-bank basis 2 676 2 676 2 824 2 824

Compensation account 0 0 0 0

Employer contribution reserves to pension funds 9 231 0 8 734 0

Other assets and liabilities 7 938 8 060 3 824 5 268

Total other assets and liabilities 83 747 75 594 41 883 28 332


Consolidated oFF-balanCe sheet items

Note 11a – Classification of Contingent Liabilities

in 1000 CHF 2010 2009

Credit guarantees 27 985 5 685

Performance guarantees 3 884 5 352

Guarantees for fund subscriptions 2 613 3 712

Total contingent liabilities 34 482 14 749

Note 11b – Classification of Outstanding Derivative Instruments

in 1000 CHF Trading instruments Hedging instruments

Positive

replacement

value

Negative

replacement

value

Contract

volume

Positive

replacement

value

Negative

replacement

value

Contract

volume

Interest rate instruments

Forward contracts incl. FRAs 0 0 0 0 0 0

Swaps 0 0 0 0 1 970 50 000

Futures 0 0 0 0 0 0

Options (OTC) 0 0 0 0 0 0

Foreign exchange instruments

Forward contracts 63 449 62 432 3 439 906 0 0 0

Futures 60 63 5 862 0 0 0

Options (OTC) 393 393 67 706 0 0 0

Precious metal instruments

Forward contracts 0 0 0 0 0 0

Futures 0 0 0 0 0 0

Options (OTC) 0 0 0 0 0 0

Equities and indices instruments

Forwards (OTC) 0 0 0 0 0 0

Futures 0 0 0 0 0 0

Options (traded) 0 0 0 0 0 0

Options (OTC) 2 676 2 676 125 269 0 0 0

Other

Futures 0 0 0 0 0 0

Total before consideration of netting agreements 2010 66 578 65 564 3 638 743 0 1 970 50 000

Total before consideration of netting agreements 2009 29 325 23 064 2 760 391 0 0 0

in 1000 CHF Accumulated positive

replacement values

Accumulated negative

replacement values

Total after consideration of netting agreements 2010 66 578 67 534

Total after consideration of netting agreements 2009 29 325 23 064


Note 11c – Classification of Outstanding Derivative Instruments by Counterparties

in 1000 CHF 2010 2009

Positive

replacement

value

Negative

replacement

value

Contract

volume

Positive

replacement

value

Negative

replacement

value

Contract

volume

Banks and brokers 49 464 20 732 2 061 274 7 149 15 907 1 418 229

Customers 17 114 46 802 1 627 469 22 176 7 157 1 342 162

Total outstanding derivative instruments by counterparties 66 578 67 534 3 688 743 29 325 23 064 2 760 391

Note 11d – Fiduciary Items

in 1000 CHF CHF USD EUR Other Total

Fiduciary placements with third parties 38 063 103 883 26 758 615 245 783 949

Fiduciary loans 0 2 798 43 750 56 746 103 294

Total fiduciary items 2010 38 063 106 681 70 508 671 991 887 243


Note 12 – Client Assets

in 1 000 000 CHF 2010 2009

Own managed mutual funds 1 976 2 173

Third party managed private label funds (the bank is custodian and fund administrator) 439 664

Assets with discretionary mandates 672 843

Other client assets 8 773 7 488

Total client assets (double counting incl.) 11 860 11 168

thereof

– double counting 451 576

– net new assets inflow/outflow 1 200 –1 735

The Group has no client assets which are held for custody only. For all of the assets listed above, additional services are provided, which go beyond pure custody ser-vices.

For the evaluation of the net new assets inflow/outflow all types of transactions are coded in the core banking system in such a way that it can be determined for every transaction if they represent a cash in- or outflow.

The total net inflow or outflow is determined on the basis of reports from the core banking system. Interests, commissions and fees charged to clients are a component of the performance and are not considered as outflow.

The net in- or outflow from assets which are not under custody with the Group are not included in the net outflow of CHF 1 200 million reported in 2010.

Of the assets which are under custody with third parties, CHF 2 429 million (previous year CHF 2 637 million) are related to client assets held by bank zweiplus, of which Falcon Private Bank holds a participation of 42.5 %. The client assets considered in this note equal 42.5 % of the total clients assets reported by bank zweiplus.

Earnings from these client assets are not included in the Bank’s result from commissions and fee activities but in the income from participations.


Consolidated proFit and loss aCCount inFormation

Note 13a – Net Result from Trading Operations

in 1000 CHF 2010 2009

Net income from debt securities and interest futures –2 479 500

Net income from foreign currency trading 12 041 9 347

Net income from precious metal trading 48 1 167

Net income from shares and other equity related instruments –98 –1 744

Total net result from trading operations 9 512 9 270

Note 13b – Personnel Expenses

in 1000 CHF 2010 2009

Salaries –42 750 –49 715

Social security contributions –6 227 –2 492

Other personnel expenses –5 824 –5 003

Total personnel expenses –54 801 –57 210

Note 13c – Other Operating Expenses

in 1000 CHF 2010 2009

Occupancy expenses –5 216 –5 935

Information technology, furniture, vehicles, and other equipment –7 152 –8 445

Travel and entertainment –2 125 –2 699

Consulting and service fees –12 126 –10 656

Other expenses –10 447 –11 466

Total other operating expenses –37 066 –39 201

Note 13d – Extraordinary Income and ExpensesThe extraordinary income of CHF 20.9 million essentially includes the gains from the sale of a building of CHF 19.6 million, the release of unredeemed checks of CHF 0.3 million and the release of no longer needed valuation adjustments of CHF 0.8 million.

The extraordinary expense of CHF 0.7 million essentially represents a non-recurring settlement with bank zweiplus of CHF 0.6 million.


Note 13e – Income and Expenses from Ordinary Banking Activities

in 1000 CHF 2010 2009

Domestic Foreign Domestic Foreign


Interest and discount income 16 672 7 889 18 594 4 095

Interest and dividend income on financial investments 5 432 1 394 8 142 459

Interest expenses –3 848 –4 643 –11 232 –2 786

Net result from interest activities 18 256 4 640 15 504 1 768


Commission and fee income from lending activities 2 665 1 1 111 0

Commission and fee income from securities and investment activities 44 651 5 326 55 113 4 572

Commission and fee income from other services rendered 1 137 194 484 0

Commission expenses –10 195 –554 –11 861 –110

Net result from commission and fee activities 38 258 4 967 44 847 4 462

Net result from trading operations 9 030 482 8 882 388


Profit on sales of financial investments –435 0 367 0

Income from equity participations according to the equity method 672 0 3 288 0

Income from other non-consolidated participations 166 0 0 0

Rental income 601 0 544 0

Other ordinary income 2 241 777 2 286 691

Other ordinary expenses –573 –144 –4 327 –3 977

Other ordinary income and expenses 2 672 633 2 158 –3 286

Operating expenses

Personnel expenses –46 438 –8 363 –48 389 –8 821

Other operating expenses –31 530 –5 536 –36 849 –2 352

Operating expenses –77 968 –13 899 –85 238 –11 173

Gross loss –9 752 –3 177 –13 847 –7 841

Note 13f – Taxes

in 1000 CHF 2010 2009

Increase of provisions for deferred taxes 0 0

Release of provisions for deferred taxes 0 0

Current income and capital taxes –1 443 –1 451

Total taxes –1 443 –1 451

Non considered tax reductions on losses carried forward and for precautionary reasons non activated tax credits 3 100 2 700


report oF the auditor

nancial statements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis

for our audit opinion.

Opinion

In our opinion, the consolidated financial statements for the

year ended December 31, 2010 give a true and fair view

of the financial position, the results of operations and the

cash flows in accordance with accounting rules for banks and

comply with Swiss law.

Report on other legal requirements

We confirm that we meet the legal requirements on licens-

ing according to the Auditor Oversight Act (AOA) and inde-

pendence (article 728 CO and article 11 AOA) and that there

are no circumstances incompatible with our independence.

In accordance with article 728a paragraph 1 item 3 CO and

Swiss Auditing Standard 890, we confirm that an internal

control system exists which has been designed for the prep-

aration of consolidated financial statements according to the

instructions of the Board of Directors.

We recommend that the consolidated financial statements

submitted to you be approved.

PricewaterhouseCoopers AG

Thomas Romer Tobias Schüle

Audit expert Audit expert

Auditor in charge

Zurich, April 18, 2011

Report of the statutory auditor to the general meeting

of Falcon Private Bank Ltd., Zurich

As statutory auditor, we have audited the consolidated finan-

cial statements of Falcon Private Bank Ltd., which comprise

the balance sheet, income statement, and notes (pages 10

to 34), for the year ended December 31, 2010.

Board of Directors’ Responsibility

The Board of Directors is responsible for the preparation and

fair presentation of the consolidated financial statements in

accordance with accounting rules for banks and the require-

ments of Swiss law. This responsibility includes designing,

implementing and maintaining an internal control system

relevant to the preparation and fair presentation of con-

solidated financial statements that are free from material

misstatement, whether due to fraud or error. The Board of

Directors is further responsible for selecting and applying

appropriate accounting policies and making accounting esti-

mates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consoli-

dated financial statements based on our audit. We conduct-

ed our audit in accordance with Swiss law and Swiss Au-

diting Standards. Those standards require that we plan and

perform the audit to obtain reasonable assurance whether

the consolidated financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evi-

dence about the amounts and disclosures in the consolidated

financial statements. The procedures selected depend on the

auditor’s judgment, including the assessment of the risks of

material misstatement of the financial statements, whether

due to fraud or error. In making those risk assessments, the

auditor considers the internal control system relevant to the

entity’s preparation and fair presentation of the consolidated

financial statements in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the entity’s

internal control system. An audit also includes evaluating

the appropriateness of the accounting policies used and the

reasonableness of accounting estimates made, as well as

evaluating the overall presentation of the consolidated fi-

FinanCial statements FALCON PRIVATE BANK LTD.


Notes 2010 2009

Assets

Cash 88 303 83 198


Due from banks 149 729 189 326

Due from customers 991 451 579 899

Mortgage loans 25 021 57 592

Securities and precious metals held for trading purposes 116 581 24 419

Financial investments 237 043 298 073

Participations 1 22 613 22 752

Tangible fixed assets 15 845 54 503

Accrued income and prepaid expenses 14 968 14 660

Other assets 8 80 354 41 883

Total assets 1 764 922 1 372 176

Total subordinated assets 9 197 0

Total due from group entities and significant shareholders 1 235 962


Money market papers 7 349

Due to banks 235 521 207 697

Due to customers with savings and deposit accounts 0 0

Other amounts due to customers 1 254 174 937 262

Accrued expenses and deferred income 20 904 17 080

Other liabilities 8 73 551 28 317

Valuation adjustments and provisions 5 16 133 9 378

Reserves for general banking risks 7 3 000 3 000

Share capital 7 120 000 120 000

General legal reserve 7 21 010 21 010

Other reserves 7 108 915 108 915

Retained earnings 7 –80 832 –43 331

Net loss 7 –7 461 –37 501

Total liabilities and shareholders’ equity 1 764 922 1 372 176

Total subordinated liabilities 28 150 3 150

Total due to group entities and significant shareholders 109 437 13 121

Off-Balance Sheet Items as of December 31

Notes 2010 2009

Contingent liabilities 34 495 14 761

Irrevocable commitments 3 150 4 034

Liabilities for calls on shares 0 0


– positive replacement values 66 578 29 325

– negative replacement values 67 534 23 064

– contract volume 3 688 743 2 760 391

Fiduciary items 9 891 922 887 038

balanCe sheet as oF deCember 31in 1000 CHF


Income and Expenses from Ordinary Banking Activities

Notes 2010 2009


Interest and discount income 22 354 21 030

Interest and dividend income on financial investments 6 650 8 340

Interest expenses –8 491 –13 995

Net result from interest activities 20 513 15 375


Commission and fee income from lending activities 2 663 1 111

Commission and fee income from securities and investment activities 40 730 46 539

Commission and fee income from other services rendered 1 320 445

Commission expenses –10 749 –11 172

Net result from commissions and fees 33 964 36 923

Net result from trading operations 10 5 907 6 952


Profit on sales of financial investments –435 367

Income from participations 5 255 4 492

Rental income 579 526

Other ordinary income 4 369 3 160

Other ordinary expenses –229 –7 224

Other ordinary income and expenses 9 539 1 321

Operating expenses

Personnel expenses –49 646 –50 487

Other operating expenses –31 881 –35 045

Operating expenses –81 527 –85 532

Gross loss –11 604 –24 961

Net Loss

Notes 2010 2009

Gross loss –11 604 –24 961

Depreciation of fixed assets and intangible assets –5 270 –7 100

Valuation adjustments, provisions and losses –9 805 –5 781

Consolidated loss before extraordinary items and taxes –26 679 –37 842

Extraordinary income 11 20 236 1 919

Extraordinary expenses –703 –1 282

Taxes –315 –296

Net loss –7 461 –37 501

proFit and loss aCCountin 1000 CHF


2010 2009

Net loss –7 461 –37 501

Accumulated deficit/retained earnings –80 832 –43 331

Available for distribution –88 293 –80 832

For the Shareholders’ Meeting the following appropriation is proposed:

Allocation to general legal reserves 0 0

Allocation to other reserves 0 0

Ordinary dividend 0 0

Losses carried forward –88 293 –80 832

Total –88 293 –80 832

resolution oF the shareholders’ meetinGin 1000 CHF


The business activities of Falcon Private Bank Ltd. (“the

Bank”) are described in the notes to the consolidated finan-

cial statements of Falcon Private Bank Group.

At the close of the 2010 fiscal year, the Bank had 292

employees (expressed in full-time equivalents), compared

with 277 in the year 2009.

desCription oF business aCtivities


In general, the Bank’s financial statements are based on the

same accounting policies and valuation principles used for

the consolidated annual accounts (“the consolidated finan-

cial statements”). Unlike the consolidated financial state-

ments of the Falcon Private Bank Group, which present a

“true and fair view” of the actual financial position and the

results of operations, the Bank’s financial statements may be

impacted by undisclosed reserves.

The reserves for general banking risks have been taxed.

The financial statements of Falcon Private Bank Ltd. (“the

Bank”) have been prepared in accordance with the provi-

sions of the Swiss Federal Code of Obligations, the Federal

Law on Banks and Savings Banks, the Federal Stock Exchange

Act, and the related Implementing Ordinances as well as the

guidelines issued by FINMA.

aCCountinG poliCies and valuation prinCiples


Note 1 – Participations

in 1000 CHF 2010 2009

Quoted 0 0

Non-quoted 22 613 22 752

Total participations 22 613 22 752

Note 2 – Loans and Advances to Affiliated Entities and to Members of the Bank’s Statutory Bodies

and Significant Shareholders

in 1000 CHF 2010 2009

Due from Due to Due from Due to

Affiliated companies 0 0 0 0

Members of the bank’s statutory bodies and significant shareholders 46 725 0 3 118 0

Related Party TransactionsEssentially, we refer to the information provided in the notes to the consolidated financial statements.

The amounts due from and due to Group companies and qualified participations additionally include amounts due from and due to consolidated subsidiaries of Falcon Private Bank.

Note 3 – Assets Pledged or Assigned under Reservation of Title

in 1000 CHF 2010 2009

Book value Actual

commitments

Book value Actual

commitments


Total pledged assets 68 072 10 248 71 711 3 022

There are no assets subject to reservation of title.

Note 4 – Liabilities to Own Pension and Welfare Plans

in 1000 CHF 2010 2009

Other amounts due to customers 2 297 3 716

Total commitments to own pension and welfare plans 2 297 3 716

Information regarding pension funds is included in the notes to the consolidated financial statements.

balanCe sheet inFormation


Note 5 – Valuation Adjustments, Provisions and Reserves for General Banking Risks

in 1000 CHF

Balance

as of 31.12.09

Used as

intended

Recoveries,

doubtful

interests and

forex

differences

New creation

charged to

profit and loss

account

Reversals

credited to

profit and loss

account

Balance

as of 31.12.10

Valuation adjustments and provisions for identifiable loan losses (credit and country risks)

4 822 –934 –427 9 503 0 12 964

Valuation adjustments and provisions for other business risks 1 919 –380 –25 100 0 1 614

Restructuring provisions 944 –944 0 0 0 0

Valuation adjustment employer contribution reserves 1 693 0 0 0 –138 1 555

Other provisions 0 0 0 0 0 0

Total valuation adjustments and provisions as per balance sheet

9 378 –2 258 –452 9 603 –138 16 133

Reserves for general banking risks 3 000 0 0 0 0 3 000

The valuation adjustments and provisions for identifiable loan losses include individual valuation adjustments on credit positions of TCHF 12 964 which were established in accordance with the accounting policies and valuation principles.

The valuation adjustments and provisions for other business risks contain provisions for legal risks of TCHF 200 and provisions for operational risks of TCHF 1 414. Each case is assessed individually, as it is the case for identifiable loan losses. The amount of the provisions is based on the maximum presumed loss which would arise, taking into consideration the probability of occurrence, for each event.

Note 6 – Share Capital and Shareholders Controlling More Than 5 % of all Voting Rights

in 1000 CHF 2010 2009

Total

nominal value

Number

of units

Dividend

bearing capital

Total

nominal value

Number

of units

Dividend

bearing capital

Capital structure

Share capital 120 000 30 000 120 000 120 000 30 000 120 000

2010

Nominal value

2010

Equity in %

2009

Nominal value

2009

Equity in %

Significant shareholders having voting rights

Aabar Investments PJS, Abu Dhabi, of which indirectly qualifying ownership of approximately 71 %: International Petroleum Investment Company (IPIC), Abu Dhabi

120 000 100 120 000 100


Note 7 – Statement of Changes in Shareholders’ Equity

in 1000 CHF

Shareholders’ equity as of 1.1.2010

Share capital 120 000

General legal reserve 21 010

Other reserves 108 915

Reserves for general banking risks 3 000

Accumulated deficit –80 832


Non-cash dividend payment 0

Share capital increase 0

Net loss 2010 –7 461


thereof

– Share capital 120 000

– General legal reserve 21 010

– Other reserves 108 915

– Reserves for general banking risks 3 000

– Accumulated deficit –88 293

Note 8 – Other Assets and Liabilities

in 1000 CHF 2010 2009

Other assets Other liabilities Other assets Other liabilities

Replacement values of derivatives

Contracts as principal

– proprietary positions relating to trading 63 902 62 888 26 501 20 240

– proprietary positions relating to hedges 0 1 970 0 0

Contracts with clients on a bank-to-bank basis 2 676 2 676 2 824 2 824

Compensation account 0 0 0 0

Employer contribution reserves for pension funds 9 231 0 8 734 0

Other assets and liabilities 4 545 6 017 3 824 5 253

Total other assets and liabilities 80 354 73 551 41 883 28 317


oFF-balanCe sheet items and proFit and loss aCCount inFormation

Note 9 – Fiduciary Items

in 1000 CHF CHF USD EUR Other Total

Fiduciary placements with third parties 38 063 103 883 26 758 619 924 788 628

Fiduciary loans 0 2 798 43 750 56 746 103 294



Note 10 – Net Result from Trading Operations

in 1000 CHF 2010 2009

Net income from debt securities and interest futures –2 479 500

Net income from foreign currency trading 8 436 7 029

Net income from precious metal trading 48 1 167

Net income from shares and other equity related instruments –98 –1 744

Total net result from trading operations 5 907 6 952

Note 11 – Extraordinary Income and ExpensesThe extraordinary income of CHF 20.2 million essentially includes the gains from the sale of a building of CHF 19.6 million, the release of unredeemed checks of CHF 0.3 million and the release of no longer needed valuation adjustments of CHF 0.2 million.

The extraordinary expense of CHF 0.7 million essentially represents a non-recurring settlement with bank zweiplus of CHF 0.6 million.


Opinion

In our opinion, the financial statements for the year ended

December 31, 2010 comply with Swiss law and the com-

pany’s articles of incorporation.

Report on other legal requirements

We confirm that we meet the legal requirements on licens-

ing according to the Auditor Oversight Act (AOA) and inde-

pendence (article 728 CO and article 11 AOA) and that there

are no circumstances incompatible with our independence.

In accordance with article 728a paragraph 1 item 3 CO and

Swiss Auditing Standard 890, we confirm that an internal

control system exists which has been designed for the prep-

aration of financial statements according to the instructions

of the Board of Directors.

We recommend that the financial statements submitted to

you be approved.

PricewaterhouseCoopers AG

Thomas Romer Tobias Schüle

Audit expert Audit expert

Auditor in charge

Zurich, April 18, 2011

report oF the auditor

Report of the statutory auditor to the general meeting

of Falcon Private Bank Ltd., Zurich

As statutory auditor, we have audited the financial state-

ments of Falcon Private Bank Ltd., which comprise the bal-

ance sheet, income statement and notes (pages 38 to 46),

for the year ended December 31, 2010.

Board of Directors’ Responsibility

The Board of Directors is responsible for the preparation of

the financial statements in accordance with the requirements

of Swiss law and the company’s articles of incorporation. This

responsibility includes designing, implementing and main-

taining an internal control system relevant to the preparation

of financial statements that are free from material misstate-

ment, whether due to fraud or error. The Board of Directors

is further responsible for selecting and applying appropriate

accounting policies and making accounting estimates that

are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these finan-

cial statements based on our audit. We conducted our audit

in accordance with Swiss law and Swiss Auditing Standards.

Those standards require that we plan and perform the audit

to obtain reasonable assurance whether the financial state-

ments are free from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of mate-

rial misstatement of the financial statements, whether due

to fraud or error. In making those risk assessments, the au-

ditor considers the internal control system relevant to the

entity’s preparation of the financial statements in order to

design audit procedures that are appropriate in the circum-

stances, but not for the purpose of expressing an opinion on

the effectiveness of the entity’s internal control system. An

audit also includes evaluating the appropriateness of the ac-

counting policies used and the reasonableness of accounting

estimates made, as well as evaluating the overall presenta-

tion of the financial statements. We believe that the audit

evidence we have obtained is sufficient and appropriate to

provide a basis for our audit opinion.


addresses

ZuriCh headQuarters

Falcon Private Bank Ltd.

Zurich Headquarters

Pelikanstrasse 37

P.O. Box 1376

8021 Zurich, Switzerland

Phone +41 44 227 55 55

Fax +41 44 211 55 11

ZuriCh operations Center


Operations Center

Hochbordstrasse 1

8600 Dubendorf, Switzerland

Phone +41 44 227 55 55

Fax +41 44 824 66 56

Geneva branCh


Geneva Branch

Rue du Prince 9-11

P.O. Box 3756

1211 Geneva 3, Switzerland

Phone +41 22 318 44 44

Fax +41 22 318 44 45

honG konG branCh


Hong Kong Branch

Suite 501, 5/F, One IFC

1 Harbour View Street

Hong Kong

Phone +852 2114 6300

Fax +852 2116 0575

sinGapore branCh


Singapore Branch

#26-01, Centennial Tower

3 Temasek Avenue

Singapore 039190

Phone +65 6494 1200

Fax +65 6538 8131

dubai representative oFFiCe


Dubai Representative Office

Emaar Square

Suite 407, Building 4

P.O. Box 72816

Dubai, United Arab Emirates

Phone +971 4 448 63 00

Fax +971 4 425 79 54


subsidiaries

Falcon Fund Management (Switzerland) Ltd.

Hochbordstrasse 3

CH-8600 Dubendorf, Switzerland

Phone +41 44 882 13 21

Fax +41 44 882 13 24

Falcon Fund Management (Luxembourg)

69, route d’Esch

L-1470 Luxembourg

Falcon Portfolio Management Ltd.

Pelikanstrasse 37

P.O. Box 1376

CH-8021 Zurich, Switzerland

Phone +41 44 227 52 00

Fax +41 44 227 52 01

IFS Independent Financial Services Ltd.

Grafenauweg 8

CH-6300 Zug, Switzerland

Phone +41 41 724 68 00

Fax +41 41 724 68 01

imprint

This annual report is available in English and German.

Published by

Falcon Private Bank Ltd., Zurich, Switzerland

Concept/Design

House of Communication Inc., Zollikon-Zurich, Switzerland

www.falconprivatebank.com

Documents

Falcon Private Bank Annual Report 2010 - …vpr.hkma.gov.hk/pdf/100274/ar_10/ar_10.pdfFalCon private bank report ... lize our recruitment targets. These components form the basis to