Information on the balance sheet

1. Securities financing transactions (assets and liabilities)

in 1,000 CHF

Current year

Previous year

Book value of receivables from cash collateral delivered in connection with securities borrowing and reverse repurchase transactions 1

4,925

231,673

Book value of obligations from cash collateral received in connection with securities lending and repurchase transactions 1

2,925,133

2,200,730

Book value of securities lent in connection with securities lending or delivered as collateral in connection with securities borrowing as well as securities in own portfolio transferred in connection with repurchase agreements

2,944,113

2,106,069

with unrestricted right to resell or pledge

2,944,113

1,848,151

Fair value of securities received and serving as collateral in connection with securities lending or securities borrowed in connection with securities borrowing as well as securities received in connection with reverse repurchase agreements with an unrestricted right to resell or repledge

74,493

368,151

of which, repledged securities

200,453

of which, resold securities

69,530

133,799

1 before netting agreements

2. Collateral for loans/receivables and off-balance- sheet transactions, as well as impaired loans/receivables

in 1,000 CHF

Secured by mortgage

Other collateral

Unsecured

Total

Loans (before netting with value adjustments)

 

 

 

 

Amounts due from customers

2,069,365

940,028

5,268,068

8,277,461

Mortgage loans

179,558,296

113,714

179,672,010

Residential property

165,061,510

57,938

165,119,448

Office and business premises

3,548,357

7,502

3,555,859

Commercial and industrial premises

5,509,346

10,170

5,519,516

Other

5,439,083

38,104

5,477,187

Total loans (before netting with value adjustments)

 

 

 

 

Current year

181,627,661

940,028

5,381,782

187,949,471

Previous year

174,902,793

960,565

4,879,156

180,742,514

Total loans (after netting with value adjustments)

 

 

 

 

Current year

181,627,661

940,028

5,125,859

187,693,548

Previous year

174,902,793

960,565

4,674,320

180,537,678

Off-balance-sheet

 

 

 

 

Contingent liabilities

49,277

80,810

400,689

530,776

Irrevocable commitments

6,822,967

249,670

2,438,248

9,510,885

Obligations to pay up shares and make further contributions

109,234

109,234

Total off-balance-sheet

 

 

 

 

Current year

6,872,244

330,480

2,948,171

10,150,895

Previous year

6,345,205

356,127

2,671,369

9,372,701

in 1,000 CHF

Gross debt amount

Estimated liquidation value of collateral

Net debt amount

Individual value adjustments

Impaired loans

 

 

 

 

Current year 1

863,884

569,271

294,613

258,663

Previous year

805,208

592,506

212,702

207,575

1 Individual value adjustments for default risks increased by CHF 51 million to CHF 259 million in 2018, CHF 45 million of which was due to a more conservative valuation of positions held by KMU Capital AG. The increase in impaired loans is also mainly attributable to this fact.

The difference between the net amount borrowed and the provisions is attributable to the fact that prudent estimates have been made of the amounts Raiffeisen expects to receive based on the creditworthiness of individual borrowers. 

3. Trading portfolios and other financial instruments at fair value (assets and liabilities)

3.1 Assets

in 1,000 CHF

Current year

Previous year

Trading portfolio assets

 

 

Debt securities, money market securities/transactions

2,834,058

3,151,818

stock exchange listed 1

2,698,336

3,151,653

traded on a representative market

135,722

165

Equity securities

57,214

259,603

Precious metals

543,197

444,184

Other trading portfolio assets

20,236

23,478

Other financial instruments at fair value

 

 

Debt securities

Structured products

Other

Total assets

3,454,705

3,879,083

of which, determined using a valuation model

135,722

of which, securities eligible for repo transactions in accordance with liquidity requirements

586,329

871,020

1 stock exchange listed = traded on a recognised stock exchange

3.2 Liabilities

in 1,000 CHF

Current year

Previous year

Trading portfolio assets

 

 

Debt securities, money market securities/transactions 2

69,530

131,457

of which, listed 1

69,530

131,457

Equity securities 2

1,209

Precious metals 2

Other trading portfolio liabilities 2

1,133

Other financial instruments at fair value

 

 

Structured products

2,299,953

2,580,306

Other

Total liabilities

2,369,483

2,714,105

of which, determined using a valuation model

2,299,953

2,580,306

1 stock exchange listed = traded on a recognised stock exchange

2 for short positions (booked using the trade date accounting principle)

4. Derivative financial instruments (assets and liabilities)

4.1 Derivative financial instruments by contract type

 

Trading instruments

Hedging instruments

in 1,000 CHF

Positive replacement values

Negative replacement values

Contract volume

Positive replacement values

Negative replacement values

Contract volume

Interest rate instruments

 

 

 

 

 

 

Forward contracts incl. FRAs

667

1,799

3,500,000

Swaps

339,778

346,264

35,715,031

473,044

644,734

34,729,660

Futures

2,759,728

Options (OTC)

225

1,963

29,221

Options (exchange traded)

Total interest rate instruments

340,670

350,026

42,003,980

473,044

644,734

34,729,660

Foreign exchange

 

 

 

 

 

 

Forward contracts

166,741

180,888

24,758,365

18,865

53,371

3,392,731

Comb. interest rate/currency swaps

152

23

10,555

Futures

Options (OTC)

17,632

18,461

1,378,246

Options (exchange traded)

Total foreign exchange

184,525

199,372

26,147,166

18,865

53,371

3,392,731

Precious metals

 

 

 

 

 

 

Forward contracts

30,606

24,860

1,688,523

Swaps

Futures

31,178

Options (OTC)

14,088

15,657

1,359,549

Options (exchange traded)

Total precious metals

44,694

40,517

3,079,250

Equity securities/indices

 

 

 

 

 

 

Forward contracts

Swaps

8,226

315,868

1,666,055

Futures

41,767

Options (OTC)

234,257

265,431

3,522,254

5

92,581

Options (exchange traded)

 

 

 

Total equity securities/indices

242,483

581,299

5,230,077

5

92,581

Credit derivatives

 

 

 

 

 

 

Credit default swaps

13,928

33,656

747,287

Total return swaps

First-to-default swaps

Other credit derivatives

Total credit derivatives

13,928

33,656

747,287

Other

 

 

 

 

 

 

Forward contracts

Swaps

3

6,129

35,973

Futures

 

Options (OTC)

18,514

18,882

466,016

Options (exchange traded)

Total other

18,517

25,011

501,989

Total

 

 

 

 

 

 

Current year

844,817

1,229,881

77,709,749

491,908

698,110

38,214,972

of which determined using a valuation model

844,817

1,229,881

491,908

698,110

Previous year

971,593

1,024,753

112,042,396

705,259

666,893

39,231,655

of which determined using a valuation model

971,034

1,024,584

705,122

665,480

4.2 Derivative financial instruments by counterparty and time remaining to maturity

in 1,000 CHF

Positive replacement values

Negative replacement values

Contract volume up to 1 year

Contract volume 1 to 5 years

Contract volume over 5 years

Contract volume total

Banks and securities dealers

908,081

1,705,621

38,320,224

25,121,081

11,016,550

74,457,856

Other customers

238,430

69,745

4,461,009

1,061,742

480,140

6,002,891

Stock exchanges

2,832,673

2,832,673

Central clearing houses

190,215

152,625

7,190,900

11,195,100

14,245,300

32,631,301

Total

 

 

 

 

 

 

Current year

1,336,726

1,927,991

52,804,807

37,377,924

25,741,991

115,924,721

Previous year

1,676,852

1,691,646

90,388,649

38,471,208

22,414,194

151,274,051

No netting contracts are used to report the replacement values.

Quality of counterparties

Banks/securities dealers: Derivative transactions were conducted with counterparties with a very good credit rating. 82.4% of the positive replacement values are open with counterparties with an upper-medium grade or better rating (Moody's) or with a comparable rating.

Clients: In transactions with clients, the required margins were secured by assets or free credit lines.

5. Financial investments

5.1 Breakdown of financial investments

in 1,000 CHF

Book value current year

Book value previous year

Fair value current year

Fair value previous year

Financial investments

 

 

 

 

Debt securities

6,473,740

7,409,737

6,653,739

7,629,048

of which, intended to be held until maturity

6,473,740

7,300,873

6,653,739

7,519,279

of which, not intended to be held to maturity (available for sale)

108,864

109,769

Equity securities

58,387

144,596

96,519

148,956

of which qualified participations 1

12,618

58,771

50,095

58,771

Precious metals

484

484

Real estate

80,706

38,571

85,276

41,895

Total financial investments

6,612,833

7,593,388

6,835,534

7,820,383

of which securities for repo transactions in line with liquidity requirements

6,443,576

7,048,156

1 At least 10% of the capital or the votes

5.2 Breakdown of counterparties by rating

in 1,000 CHF

Book value Very safe investment

Book value Safe investment

Book value Average to good investment

Book value Speculative to highly speculative investment

Book value Highest-risk investment/default

Book value Unrated investment

Debt securities

6,443,576

30,164

Ratings are assigned based on Moody’s rating classes. The Raiffeisen Group uses the ratings of all three major international rating institutions.

6. Non-consolidated participations

in 1,000 CHF

Acquisition cost

Accumulated value adjust- ments and changes in book values (equity method)

Book value previous year end

Changes to the consolidated Group

Current year reclassifi- cations

Current year additions

Current year disposals

Current year value adjustments

Current year changes in book value in the case of participations valued using the equity method

Book value as at end of current year

Market value

Participations valued using the equity method

250,751

265,608

516,359

36,008

14,821

567,188

 

– with market value

92,655

28,742

121,397

36,008

18,910

176,315

225,127

– without market value

158,096

236,866

394,962

-4,089

390,873

Other non-consolidated participations

152,422

-18,664

133,758

-23,531

10,508

-200

-4,846

0

115,689

 

– with market value

189

-45

144

-3

141

397

– without market value

152,233

-18,619

133,614

-23,531

10,508

-197

-4,846

0

115,548

Total non-consolidated participations

403,173

246,944

650,117

-23,531

46,516

-200

-4,846

14,821

682,877

225,524

7. Companies in which the bank holds a permanent direct or indirect significant participation

Company name/holding in 1,000 CHF

Registered office

Business activity

Capital

Current year equity interest in % 1

Current year voting share in % 1

Previous year equity interest in % 1

Previous year voting share in % 1

7.1 Group companies

 

 

 

 

 

Raiffeisen Switzerland Cooperative 2

St.Gallen

Central bank, association services

1,700,000

100.0

100.0

100.0

100.0

Raiffeisen Unternehmerzentrum AG

Gossau SG

Advisory services for SMEs

5,000

100.0

100.0

100.0

100.0

Raiffeisen Immo Ltd

St.Gallen

Brokering and advisory services

5,000

100.0

100.0

100.0

100.0

Business Broker AG 3

Zurich

Management consulting

100

100.0

100.0

100.0

100.0

RAInetworks (Subsidiary of Raiffeisen Switzerland) Pte. Ltd

Singapore

Trading in goods and services for the Raiffeisen Group

7

100.0

100.0

100.0

100.0

Notenstein Private Bank Ltd

St.Gallen

Private bank

100.0

100.0

Notenstein Finance (Guernsey) Limited 4

Guernsey

Financial services

100.0

100.0

KMU Capital Ltd 5

St.Gallen

Financial services

2,566

100.0

100.0

100.0

100.0

Investnet AG 6

Herisau

Financial services

150

100.0

100.0

KMU Capital Holding Ltd 7

Herisau

Affiliated company

10,000

60.0

60.0

60.0

60.0

ARIZON Sourcing Ltd 8

St.Gallen

Operational and advisory services for banks

10,000

51.0

51.0

51.0

51.0

Raiffeisen Switzerland B.V. Amsterdam

Amsterdam NL

Financial services

1,000

100.0

100.0

100.0

100.0

7.2 Participations valued using the equity method

 

 

 

 

 

Vorsorge Partner AG

St.Gallen

Pension advisory services

100

40.0

40.0

40.0

40.0

Leonteq Ltd 9

Zurich

Financial services

18,934

29.0

29.0

29.0

29.0

Aduno Holding Ltd

Zurich

Financial services

25,000

25.5

25.5

25.5

25.5

Pfandbriefbank schweizerischer Hypothekarinstitute AG 2

Zurich

Pfandbriefbank

900,000

21.7

21.7

21.7

21.7

of which not paid up

 

 

504,000

 

 

 

 

7.3 Other non-consolidated participations 10

 

 

 

 

 

responsAbility Participations AG

Zurich

Financial services

138,877

14.4

14.4

14.4

14.4

Swiss Bankers Prepaid Services Ltd

Grosshöch- stetten

Financial services

10,000

16.5

16.5

16.5

16.5

Cooperative Olma Messen St.Gallen

St.Gallen

Organisation of fairs

23,233

11.5

11.5

11.5

11.5

Twint Ltd

Zurich

Financial services

12,750

4.0

4.0

5.0

5.0

SIX Group Ltd

Zurich

Financial services

19,522

5.5

5.5

6.9

6.9

1 The level of equity capital and voting shares is always stated from the perspective of the directly controlling company.

2 The Raiffeisen banks directly own Raiffeisen Switzerland Cooperative and 18.7% of Pfandbriefbank schweizerischer Hypothekarinstitute AG.

3 Controlled by Raiffeisen Switzerland Cooperative (previous year: controlled by Raiffeisen Unternehmerzentrum AG).

4 Control of Notenstein La Roche Private Bank Ltd. The company was liquidated in 2018.

5 Controlled by KMU Capital Holding AG (change of name in 2018, until the previous year operated as Investnet Holding AG).

6 Investnet AG does not belong to the Raiffeisen Group. It was taken out of the books as of 1 January 2018 and is no longer included in the Raiffeisen Group’s scope of consolidation.

7 In 2018, Raiffeisen Switzerland Cooperative initially terminated the shareholders’ binding agreement for Investnet Holding AG (now KMU Capital Holding AG) for good cause and subsequently, where necessary, rescinded the agreements in the context of “Investnet”. As a result of this rescission, Raiffeisen Switzerland is claiming all the shares in KMU Capital Holding AG, which is controlled totally by KMU Capital AG. The instituted civil proceedings are currently pending. In connection with the rescission of agreements, Raiffeisen Switzerland has also written off liabilities of CHF 30 million and contingent liabilities amounting to CHF 30 million. Raiffeisen Switzerland assumes that there will be no more payments. Should – contrary to the expectations of Raiffeisen Switzerland – neither the rescission of the agreements nor the validity of the termination be confirmed, minority shareholders might, if need be, be entitled to tender shares in KMU Capital Holding AG to Raiffeisen Switzerland Cooperative from 1 July 2020 according to the shareholders’ binding agreement of 2015 based on a contractually agreed valuation method (put option). Since the valuation method would be based on the prevailing underlying values and value appraisals, it is not possible to carry out a corresponding valuation at this time. The above-mentioned written-off liabilities and contingent liabilities could become relevant then.

8 The contracting parties Avaloq Group AG and Raiffeisen Switzerland Cooperative have decided to rescind the existing set of agreements with various call and put options for the purchase and sale of ARIZON Sourcing Ltd. Instead, Raiffeisen Switzerland Cooperative will acquire the existing stake of Avaloq in Arizon and therefore become the sole owner of Arizon. The conclusion of the transaction took place at the end of January 2019.

9 Raiffeisen Switzerland Cooperative sold call option on Leonteq founding partner for 2.4% of the share capital in Leonteq AG. The strike price is CHF 210 per share (adjusted for dividend payments) and the term is 10 years (until October 2025).

10 All participations in cooperation partners and joint ventures by the banks are listed here. Other participations are listed if the shareholding represents more than 10% of the voting share and equity and the shareholding is worth either > CHF 2 million of the equity (previous year: > CHF 1 million) or the book value is > CHF 15 million (previous year: > CHF 10 million).

8. Tangible fixed assets

8.1 Tangible fixed assets

in 1,000 CHF

Acquisition cost

Accumulated depreciation

Book value previous year end

Impact of any changes in the scope of consolidation

Current year reclassi- fications

Current year additions

Current year disposals

Current year depreci- ation

Book value as at end of current year

Bank buildings

2,323,397

-533,497

1,789,900

-57,634

-12,049

130,975

-21,663

-38,896

1,790,633

Other real estate

510,897

-132,202

378,695

1,958

63,601

-10,531

-9,896

423,827

Proprietary or separately acquired software

516,005

-113,613

402,392

-55,889

39

156,889

-11,386

492,045

thereof self-developed

363,740

-1,048

362,692

-55,829

108,253 1

-3,135

411,981

Other tangible fixed assets

1,137,465

-905,884

231,581

-432

10,069

66,618

-3,223

-77,733

226,880

Objects in finance leasing

95

-43

52

-17

-4

-16

15

Total tangible assets

4,487,859

-1,685,239

2,802,620

-113,955

418,083

-35,421

-137,927

2,933,400

1 Recognised in the income statement under “Other ordinary income”.

8.2 Operating leases

in 1,000 CHF

Current year

Previous year

Non-recognised lease commitments

 

 

Due within 12 months

2,054

2,579

Due within 1 to 5 years

2,838

3,416

Due after 5 years

Total non-recognised lease commitments

4,892

5,995

of which obligations that can be terminated within one year

4,808

5,927

9. Intangible assets

in 1,000 CHF

Cost value

Accumulated depreciation

Book value previous year end

Changes to the consolidated Group

Current year additions

Current year disposals

Current year amortisation

Book value as at end of current year

Goodwill 1

554,113

-188,882

365,231

-180,389

-30,045

-105,220

49,577

Other intangible assets

12,500

-5,847

6,653

-2,419

4,234

Total intangible assets

566,613

-194,729

371,884

-180,389

0

-30,045

-107,639

53,811

1 The sale of Notenstein La Roche Private Bank Ltd lowered goodwill by CHF 174 million. Owing to the fact that Investnet AG does not belong to the Raiffeisen Group and as a result of a conservative valuation of the KMU Capital Group, a further sum of CHF 55 million was obtained from lowered goodwill, disposals and goodwill depreciation. Mark-to-market accounting for the goodwill on Leonteq Ltd resulted in an extraordinary write-down of CHF 57 million. The remaining depreciation was mainly the result of regular goodwill amortisation.

10. Other assets and other liabilities

in 1,000 CHF

Current year

Previous year

Other assets

 

 

Compensation account

120,099

9,162

Settlement accounts for indirect taxes

588,824

649,385

Other settlement accounts

41,611

57,030

Employer contribution reserves with pension plans

124,728

125,548

Miscellaneous other assets

12,371

11,011

Total other assets

887,633

852,136

Other liabilities

 

 

Due, unredeemed coupons and debt instruments

8,352

12,474

Levies, indirect taxes

48,865

55,093

Other settlement accounts

45,248

77,619

Miscellaneous other liabilities

18,394

14,840

Total other liabilities

120,859

160,026

11. Assets pledged or assigned to secure own commitments and of assets under reservation of ownership1

in 1,000 CHF

Current year book value

Current year effective commitments

Previous year book value

Previous year effective commitments

Amounts due from banks

1,028,007

1,028,007

391,805

376,039

Amounts due from customers

570

570

Mortgage loans

32,236,407

22,468,008

29,535,283

21,660,076

Financial investments

1,249,121

486,213

1,525,745

477,515

Tangible fixed assets/other assets

Total pledged or assigned assets

34,514,105

23,982,798

31,452,833

22,513,630

Total assets under reservation of ownership 2

15

15

52

52

1 Without securities financing transactions (see separate presentation of the securities financing transactions in note 1).

2 These are primarily finance leasing objects that are recognised as assets.

12. Social insurance institutions

Most employees of the Raiffeisen Group are covered by the Raiffeisen Pension Fund Cooperative. The normal retirement age is set at 65. Members have the option of taking early retirement from the age of 58 with a corresponding reduction in benefits. The Raiffeisen Pension Fund Cooperative covers at least the mandatory benefits under Swiss occupational pension law. 

The Raiffeisen Employer Foundation manages the individual employer contribution reserves of the Raiffeisen banks and the companies of the Raiffeisen Group. Eight Raiffeisen banks (prior year: eight) and Quichet AG are insured outside the pension plans of the Raiffeisen Group (other collective foundations, collective insurance contracts, etc.).

12.1 Liabilities to own social insurance institutions

in 1,000 CHF

Current year

Previous year

Amounts due in respect of customer deposits

136,257

186,678

Negative replacement values of derivative financial instruments

2,421

4,345

Bonds

40,000

40,000

Accrued expenses and deferred income

411

543

Total liabilities to own social insurance institutions

179,089

231,566

12.2 Employer contribution reserves

Employer contribution reserves arise for the Raiffeisen Employer Foundation (Raiffeisen) and for pension plans outside the Raiffeisen Group (Others). 

in 1,000 CHF

Current year Raiffeisen

Others

Total

Previous year Raiffeisen

Others

Total

As at 1 January

123,949

1,599

125,548

118,897

4,336

123,233

+ Deposits

15,506

295

15,801

19,756

100

19,856

– Withdrawals

-16,600

-220

-16,820

-14,937

-2,837

-17,774

+ Interest paid 1

199

199

233

233

As at 31 December

123,054

1,674

124,728

123,949

1,599

125,548

1 Interest paid on the employer contribution reserves is recorded as interest income.

The employer contribution reserves correspond to the nominal value as calculated by the pension plan. The individual employer contribution reserves of the affiliated companies cannot be offset against each other. The balance of the employer contribution reserves is recorded in the balance sheet under "Other assets". The employer contribution reserves are subject neither to waiver of use (conditional or unconditional) nor to other necessary value adjustments. Any discounting effect is not considered. 

12.3 Economic benefit/obligation and retirement benefit expenditure

According to the latest audited annual reports (in accordance with Swiss GAAP FER 26) of the pension plans of the Raiffeisen Group, the coverage ratio is:

in %

as at 31.12.2018

as at 31.12.2017

Raiffeisen Pension Fund Cooperative

108.4

116.1

Katharinen Pension Fund I 1

n.a.

117.6

Katharinen Pension Fund II 1

n.a.

126.0

1 Sale of Notenstein La Roche Privatbank Ltd. on 2 July 2018

The fluctuation reserve of the Raiffeisen Pension Fund Cooperative fell below the 115% target set out in the regulations as of 31 December 2018. The Assembly of Delegates of the Raiffeisen Pension Fund Cooperative decides how any uncommitted funds will be used. In this decision, the Assembly generally follows the "Principles on the appropriation of uncommitted funds (profit participation)" that it has adopted. The Board of Directors of Raiffeisen Switzerland assumes that, even if uncommitted funds are available, no economic benefits will accrue to the employer until further notice; uncommitted funds are to be used to benefit pension plan members.

The affiliated employers have no economic benefits or economic obligations for which allowance would have to be made in the balance sheet and income statement.

Pension expenditure with significant influencing factors

in 1,000 CHF

Current year

Previous year

Pension expenditure according to separate financial statements

120,666

128,056

Deposits/withdrawals employer contribution reserves (excl. interest paid)

1,019

-4,394

Employer contributions reported on an accruals basis

121,685

123,662

Change in economic benefit/obligation as a result of surplus/insufficient cover in the pension plan

Pension expenses of the Raiffeisen Group (see note 26 “Personnel expenses”)

121,685

123,662

13. Issued structured products

 

Book value

 

 

Valued as a whole

Valued separately

 

in 1,000 CHF

Booked in trading portfolio

Booked in other financial instruments at fair value

Value of the host instrument

Value of the derivative

Total

Underlying risk of the embedded derivative

 

 

 

 

 

Interest rate instruments

28,047

1,034

-18

29,063

With own debenture component (oDC)

28,047

1,034

-18

29,063

Without oDC

Equity securities

2,008,729

1,452,847

-154,334

3,307,242

With own debenture component (oDC)

2,008,597

1,452,847

-155,136

3,306,308

Without oDC

132

 

802

934

Foreign currencies

4,691

1

-1

4,691

With own debenture component (oDC)

4,691

1

-1

4,691

Without oDC

Commodities/precious metals

63,384

101,489

-8,957

155,916

With own debenture component (oDC)

63,384

101,489

-8,957

155,916

Without oDC

Credit derivatives

195,102

143,849

-1,258

337,693

With own debenture component (oDC)

195,102

143,849

-1,258

337,693

Without oDC

Total

2,299,953

1,699,221

-164,568

3,834,606

Structured products Raiffeisen Switzerland Cooperative

In the case of issued structured products that include a debt security, the derivative is split from the underlying contract and valued and presented separately. Underlying instruments are recognised at their nominal value in "Bond issues and central mortgage institution loans". The derivative components of the products are recognised at market value in "Positive replacement values of derivative financial instruments" and "Negative replacement values of derivative financial instruments".

Structured products of Raiffeisen Switzerland B.V. Amsterdam

Issued structured products are carried at market value and included in "Liabilities from other financial instruments at fair value".

14. Outstanding bond issues and central mortgage institution loans

in 1,000 CHF

Year of issue

Interest rate

 

Maturity

Early redemption possibility

Bond principal

 

Bonds of Raiffeisen Switzerland – non subordinated

2010

2.000

 

21.09.2023

 

245,805

 

 

2011

2.125

 

04.02.2019

 

250,000

 

 

2011

2.625

 

04.02.2026

 

145,095

 

 

2014

1.625

 

07.02.2022

 

100,000

 

 

2016

0.000

 

17.09.2020

 

50,000

 

 

2016

0.300

 

22.04.2025

 

364,850

 

 

2016

0.750

 

22.04.2031

 

73,500

 

 

2018

0.350

 

16.02.2024

 

378,550

 

 

2018

0.000

 

19.06.2020

 

175,000

1

 

2018

0.000

 

11.09.2020

 

60,000

1

Bonds of Raiffeisen Switzerland – subordinated without PONV clause 2

2011

3.875

 

21.12.2021

 

535,000

 

Bonds of Raiffeisen Switzerland – subordinated with PONV clause 2

2015

3.000

 

Perpetual

02.10.2020

574,210

3

 

2018

2.000

 

Perpetual

02.05.2023

399,220

3

Underlying instruments from issued structured products 4

div.

-0.179

5

2019

 

1,138,063

 

 

 

0.603

5

2020

 

128,291

 

 

 

0.745

5

2021

 

80,549

 

 

 

-0.511

5

2022

 

148,077

 

 

 

-0.075

5

2023

 

28,967

 

 

 

0.131

5

after 2023

 

175,275

 

Total bonds of Raiffeisen Switzerland

 

 

 

 

 

5,050,451

 

Loans from Pfandbriefbank schweizerischer Hypothekarinstitute AG

 

 

 

 

 

 

 

 

div.

1.145

5

div.

 

21,813,600

 

Total loans from Pfandbriefbank schweizerischer Hypothekarinstitute AG

 

 

 

 

 

21,813,600

 

Total outstanding bond issues and central mortgage institution loans

 

 

 

 

 

26,864,051

 

1 Variable coupon, basis CHF Libor three months and spread

2 PONV clause = point of non-viability/time of imminent insolvency

3 Subordinated perpetual Additional Tier 1 bond with contingent write-down. With FINMA’s consent, the bond can be terminated on a unilateral basis by Raiffeisen Switzerland (no earlier than five years following issue).

4 In the case of issued structured products that include a debt security, the derivative is split from the underlying contract and valued and presented separately. Underlying instruments are recognised at their nominal value in “Bond issues and central mortgage institution loans”. The derivative components of the products are recognised at market value in “Positive replacement values of derivative financial instruments” and “Negative replacement values of derivative financial instruments”.

5 Average weighted interest rate (volume-weighted)

15. Value adjustments and provisions

in 1,000 CHF

Previous year end

Changes to the consolidated Group

Use in conformity with designated purpose

Reclassi- fications

Currency differences

Past due interest, recoveries

New creations charged to income

Releases to income

Balance at current year end

Provisions

 

 

 

 

 

 

 

 

 

Provisions for deferred taxes

907,398

-14,135

893,263

Provisions for default risks

14,066

-30

3,303

1,396

-2,966

15,769

Provisions for other business risks 1

19,584

-15,946

-396

77,293

-1,328

79,207

Provisions for restructuring 2

500

-6,638

22,501

16,363

Other provisions 3

7,085

-2,051

25,805

-7

30,832

Total provisions

948,633

-15,946

-9,115

3,303

126,995

-18,436

1,035,435

Reserves for general banking risks

80,000

120,000

200,000

Value adjustments for default and country risks

 

 

 

 

 

 

 

 

 

Value adjustments for default risks in respect of impaired loans/receivables

207,575

-1,626

-15,924

-3,303

-24

9,950

106,619

-44,604

258,663

Value adjustments for latent risks

Total value adjustments for default and country risks

207,575

-1,626

-15,924

-3,303

-24

9,950

106,619

-44,604

258,663

1 The agreed repurchase of Arizon Sourcing Ltd drove up the provisions for other business risks by CHF 69 million.

2 CHF 8.1 million were formed under personnel expenses. Reorganisation provisions went up CHF 16 million, chiefly due to the sale of Notenstein La Roche Private Bank Ltd. CHF 19 million of new provisions were formed in this connection and were charged to the income statement.

3 In the case of other provisions, in particular the uncertainties in the legal disputes in the context of «Investnet» resulted in an increase of CHF 25 million affecting net income (see also footnote in note 7).

16. Cooperative capital

 

Number of members

Nominal amount per share

in 1,000 CHF

Cooperative capital at the beginning of the current year

 

 

 

Cooperative capital

1,890,126

 

401,933

Cooperative capital (additional cooperative shares) 1

 

 

1,555,463

Total cooperative capital at the beginning of the current year

1,890,126

 

1,957,396

+ Payments from new cooperative members

64,818

200

12,964

 

149

300

45

 

138

400

55

 

2,794

500

1,397

+ Payments of cooperative shares (additional cooperative shares)

 

 

255,716

Total payments from new cooperative members

67,899

 

270,177

– Repayments to departing cooperative members

-58,225

200

-11,645

 

-126

300

-38

 

-136

400

-54

 

-2,169

500

-1,085

– Repayments of cooperative shares (additional cooperative shares)

 

 

-42,174

– Repayments through decrease in nominal capital

 

 

-307

Total repayments to departing cooperative members

-60,656

 

-55,303

Total cooperative capital at the end of the current year

 

 

 

of which cooperative capital

1,814,172

200

362,834

 

2,988

300

896

 

5,702

400

2,281

 

74,507

500

37,253

of which cooperative capital (additional cooperative shares)

 

 

1,769,006

Total cooperative capital at the end of the current year

1,897,369

 

2,172,270

1 To avoid double counting, the number of members is shown only under the position “Cooperative capital”.

Number of cooperative shares, number of shares: Current year 10,522,809, previous year 9,519,365  

Interest-bearing cooperative capital: Current year CHF 2,172,270,000, previous year CHF 1,957,395,500

Paid-up cooperative capital: Current year CHF 2,172,270,000, previous year CHF 1,957,395,500

Non-distributable statutory or legal reserves based on individual financial statements as at 31 December 2018: CHF 3,994,596,000 (previous year CHF 3,816,513,000).

No cooperative member holds more than 5% of voting rights.

17. Related parties

 

Amounts due from

Amounts due to

in 1,000 CHF

Current year

Previous year

Current year

Previous year

Members of the Board of Directors of Raiffeisen Switzerland and associated persons and companies

8,870

20,051

4,483

4,949

Members of the Executive Board and Head of internal Auditing of Raiffeisen Switzerland and associated persons and companies 1

13,492

41,068

2,924

9,807

Other related parties 2

5,165,240

4,687,348

22,747,582

21,673,490

Total amounts due from/to related parties

5,187,602

4,748,467

22,754,989

21,688,246

1 In the previous year, the members of the Extended Executive Board, which was abolished as of 1 January 2018, were included.

2 Includes particularly receivables from and liabilities to non-consolidated participations with a participating interest between 20% and 50%, or a participating interest of less than 20% if significant influence can be exercised otherwise.

Material off-balance-sheet transactions with related parties

Contingent liabilities exist vis-a-vis related parties amounting to CHF 99.8 million (previous year CHF 28.5 million), irrevocable commitments amounting to CHF 187.7 million (previous year CHF 269.1 million) and call-in obligations amounting to CHF 109.2 million (previous year CHF 109.2 million).

Transactions with related parties

On- and off-balance-sheet transactions with related parties are allowed at arm's length terms, with the following exceptions:

  • Standard preferential terms apply to the Executive Board, the Extended Executive Board and to the Head of Internal Auditing of Raiffeisen Switzerland.
  • Liabilities to other related parties include CHF current account balances in the amount of CHF 4.3 million for which the credit balance exceeding the allowance is subject to a negative interest rate of 0.4%. Furthermore, a credit balance in the amount of CHF 7.8 million is included, which bears 2.75% interest.

Special provisions apply to the processing and monitoring of loans to executive bodies to ensure that staff remain independent at all times.

18. Maturity structure of financial instruments

in 1,000 CHF

At sight

Cancellable

Due within 3 months

Due within 3 to 12 months

Due within 1 to 5 years

Due after 5 years

Total

Assets/financial instruments

 

 

 

 

 

 

 

Liquid assets

19,188,528

19,188,528

Amounts due from banks

1,169,706

1,005,024

50,000

2,224,730

Amounts due from securities financing transactions

4,920

4,920

Amounts due from customers

79,754

1,889,569

1,767,628

847,724

2,261,000

1,289,441

8,135,116

Mortgage loans

148,468

5,823,788

8,006,565

20,602,149

100,169,293

44,808,169

179,558,432

Trading portfolio assets

3,454,705

3,454,705

Positive replacement values of derivative financial instruments

1,336,726

1,336,726

Financial investments 1

45,769

110,044

305,075

2,365,846

3,786,099

6,612,833

Total

 

 

 

 

 

 

 

Current year

25,423,656

7,713,357

10,894,181

21,804,948

104,796,139

49,883,709

220,515,990

Previous year

26,655,003

9,212,003

16,458,758

18,564,311

103,160,494

48,722,815

222,773,384

Debt capital/financial instruments

 

 

 

 

 

 

 

Amounts due to banks

1,121,058

4,298

3,365,262

1,744,664

228,000

6,463,282

Liabilities from securities financing transactions

2,919,232

5,904

2,925,136

Amounts due in respect of customer deposits

60,080,976

91,084,752

3,868,650

3,530,054

5,672,778

1,464,166

165,701,376

Trading portfolio liabilities

69,530

69,530

Negative replacement values of derivative financial instruments

1,927,991

1,927,991

Liabilities from other financial instruments at fair value

78,929

1,062,192

992,989

165,843

2,299,953

Cash bonds

45,344

159,678

337,331

48,388

590,741

Bond issues and central mortgage institution loans

1,173,291

1,495,872

7,964,818

16,230,070

26,864,051

Total

 

 

 

 

 

 

 

Current year

63,199,555

91,089,050

11,450,708

7,998,364

15,195,916

17,908,467

206,842,060

Previous year

61,178,877

94,252,432

16,038,667

6,883,303

14,779,289

16,936,091

210,068,659

1 Financial assets include CHF 80,706,000 of real estate (previous year: CHF 38,571,000).

19. Balance sheet by currency

in 1,000 CHF

CHF

EUR

USD

Other

Total

Assets

 

 

 

 

 

Liquid assets

18,089,674

961,290

22,565

114,999

19,188,528

Amounts due from banks

1,088,441

617,268

313,528

205,493

2,224,730

Amounts due from securities financing transactions

4,920

4,920

Amounts due from customers

7,717,864

254,108

136,053

27,091

8,135,116

Mortgage loans

179,558,432

179,558,432

Trading portfolio assets

821,994

806,506

1,086,530

739,675

3,454,705

Positive replacement values of derivative financial instruments

1,336,726

1,336,726

Financial investments

6,593,731

9,050

10,045

7

6,612,833

Accrued income and prepaid expenses

254,190

2,183

2,534

341

259,248

Non-consolidated participations

682,877

682,877

Tangible fixed assets

2,933,400

2,933,400

Intangible assets

53,811

53,811

Other assets

887,580

17

36

887,633

Total assets reflected in the balance sheet

220,018,720

2,650,422

1,576,175

1,087,642

225,332,959

Delivery claims under spot exchange, forward exchange and currency option contracts

11,178,782

5,136,247

10,588,904

3,033,838

29,937,771

Total assets

231,197,502

7,786,669

12,165,079

4,121,480

255,270,730

Liabilities

 

 

 

 

 

Amounts due to banks

4,726,115

205,130

1,111,280

420,757

6,463,282

Liabilities from securities financing transactions

1,905,001

316,518

662,232

41,385

2,925,136

Amounts due in respect of customer deposits

162,022,869

2,446,196

875,126

357,185

165,701,376

Trading portfolio liabilities

69,530

69,530

Negative replacement values of derivative financial instruments

1,927,991

1,927,991

Liabilities from other financial instruments at fair value

464,169

701,738

942,616

191,430

2,299,953

Cash bonds

590,741

590,741

Bond issues and central mortgage institution loans

26,697,076

58,790

99,108

9,077

26,864,051

Accrued expenses and deferred income

849,396

481

4,742

163

854,782

Other liabilities

120,401

457

1

120,859

Provisions

1,035,400

35

1,035,435

Reserves for general banking risks

200,000

200,000

Cooperative capital

2,172,270

2,172,270

Retained earnings reserve

13,610,949

18

13,610,967

Currency translation reserve

5

5

Group profit

540,875

-55

540,820

Minority interests in equity

-44,239

-44,239

– of which minority interests in group profit

-43,882

-43,882

Total liabilities reflected in the balance sheet

216,888,544

3,729,345

3,695,104

1,019,966

225,332,959

Delivery entitlements from spot exchange, forward exchange and currency option contracts

14,657,036

4,040,142

8,349,846

2,931,440

29,978,464

Total liabilities

231,545,580

7,769,487

12,044,950

3,951,406

255,311,423

Net position per currency

-348,078

17,182

120,129

170,074

-40,693

 

31.12.2018

31.12.2017

Foreign currency conversion rates

 

 

EUR

1.126

1.171

USD

0.984

0.975