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DJ EANS-Adhoc: Bank Sarasin + Cie AG / Annual results 2009 of Bank Sarasin & Co. Ltd: Bank Sarasin´s growth strategy still successful

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02.03.2010 

Assets under management climb to new peak of CHF 93.7 billion (+34%) - Net new
money growth CHF 12.5 billion (+18%) - Operating income improves 8% to CHF 673.9
million - Adjustment to the valuation of Sarasin´s financial interest in NZB
Holding - Adjusted net profit of CHF 121.7 million improved by 6% - Dividend
increased from CHF 0.65 to CHF 0.90 

Strong acquisition performance - assets under management climb to a record high
The strong acquisition performance led to net new asset inflows of CHF 12.5
billion in the financial year 2009, an increase of 18% based on the assets at 31
December 2008. Sarasin therefore managed to comfortably beat the net new money
target of +10% or CHF 7 billion originally set for 2009. The increase in assets
under management was boosted by market performance and currency translation
effects totalling CHF 11.9 billion. The expert appraisal of financial markets by
Bank Sarasin´s Research team, which ensured a timely and significant expansion
of the equities quota, resulted in a stronger than average performance in the
Bank´s mandates. During the reporting period, the total assets under management
of the Sarasin Group reached a new record, rising from CHF 69.7 billion to CHF
93.7 billion on 31 December 2009. 

Stronger operating performance in 2H 2009
Sarasin Group´s operating income increased 8% to CHF 673.9 million (2008
adjusted: CHF 626.5 million). After a difficult start to 2009, with stock
markets remaining depressed in the first quarter, Bank Sarasin´s earnings
performance improved significantly over the rest of the year. Income from
commission and service fee activities, which accounts for approximately 60% of
the Bank´s total revenues, rose sharply in the second half of the year to CHF
228.0 million (1H 2009: CHF 170.5 million) and finished the full financial year
at CHF 398.5 million, roughly the same level as 2008 (CHF 399.0 million). 

Christoph Ammann, Chairman of the Board of Directors of Bank Sarasin & Co. Ltd
"Our solid performance in 2009 was driven by our low-risk business model as well
as the systematic implementation of our growth strategy. The backing of our
AAA-rated majority shareholder Rabobank, our own capital strength and Sarasin´s
sustainable business strategy inspire great confidence in our clients and
shareholders. This winning combination is invaluable in uncertain times such as
these." 

Joachim H. Straehle, CEO of Bank Sarasin & Co. Ltd
"The impressive rate of growth we have achieved over the past two years makes me
confident of managing client assets in excess of CHF 100 billion as early as the
second half of 2010, as long as markets remain relatively stable. Given this
backdrop, our main focus in 2010 is not to further accelerate our pace of
growth, but to achieve a sustainable improvement in profitability." 

Successful cost management
Thanks to strict cost management, total operating expenses during the reporting
period only rose by 5% to CHF 486.8 million (2008: CHF 464.7 million). Stringent
cost discipline helped to reduce general administrative expenses by 9% to CHF
128.0 million (2008: CHF 140.6 million). Personnel expenses were 11% higher at
CHF 358.8 million (2008: CHF 324.2 million), which was less than the 14%
increase in the average headcount. The cost income ratio (ratio of operating
expenses including depreciation and amortisation to operating income) was
virtually unchanged at 77.1% (2008 adjusted: 77.9%). 

Adjustment to the valuation of the financial interest in NZB Holding
As part of its restructuring and reorientation, NZB Holding intends to continue
to pursue the existing entrepreneurial model with a 60% shareholder pool made up
of new shareholders from the circle of both existing and new employees and
members of its Board of Directors. As a result, Bank Sarasin no longer plans to
increase its shareholding in NZB to a majority stake. Bank Sarasin will retain
its 40% financial investment in NZB Holding. Both banks will continue to operate
totally independent of one another. In accordance with the principle of
prudence, Bank Sarasin has adjusted the value of its 40% financial interest in
NZB Holding and written down its value by CHF 70.2 million. To facilitate a
comparison of Bank Sarasin´s operating performance, the annual figures have been
adjusted to allow for this non-recurring effect. 

The Sarasin Group´s adjusted operating profit increased 6% to CHF 121.7 million
(2008 adjusted: CHF 114.4 million). Sarasin therefore exceeded its target of
equalling last year´s adjusted operating result. Taking into account the one-off
write-down, Bank Sarasin´s group result comes to CHF 51.5 million (2008: CHF
106.8 million). 

Assets managed according to sustainable principles double to CHF 11.9 billion
Apart from investing in future growth, another key element of Sarasin´s strategy
is sustainability. There is enormous demand for sustainable investments and for
portfolio management mandates based on sustainable criteria. The financial
crisis has clearly demonstrated to private and institutional clients the added
value that sustainability insights can produce. The capital market is sending
out a strong signal that sustainable companies are considered to be more
creditworthy. Around an eighth of Sarasin´s assets under management are
currently invested according to sustainable principles. In the space of just a
year they have doubled to CHF 11.9 billion (2008: CHF 6.0 billion). Their strong
growth is partly attributable to the decision to switch the asset management
mandates of Swiss private clients to a sustainable investment style, and was
also boosted by newly acquired mandates and inflows to Sarasin sustainable
investment funds. 

Sarasin Asset Management: focus, discipline and prudence once again recognised
in 2009
In addition to sustainable investments, the other two investment styles which
Sarasin specialises in - thematic and quantitative asset management - also
reached a new peak in their business growth in 2009. This momentum reflects the
strength of Sarasin´s position, which was highlighted in three ways: through
high net asset inflows, superior investment performance and international
recognition in the form of a series of industry awards. Sarasin´s flagship
investment funds and discretionary mandates returned impressive absolute and
relative performances. 99% of all Sarasin´s investment products delivered
positive returns and more than half of them generated double-digit returns. 

Capital base still solid
Thanks to the exercising of Cash or Title Options and the net profit in 2009,
shareholders´ equity rose CHF 98.5 million (8%), from CHF 1,193.2 million at the
end of 2008 to CHF 1,291.7 million on 31 December 2009. Because of the sharp
increase on the customer side of the balance sheet, the equity ratio dropped to
8.4% on 31 December 2009 (2008: 9.4%). The BIS Tier 1 ratio, defined as core
capital as a percentage of risk-weighted assets, improved from 15.2% in 2008 to
16.3% at year-end 2009. Confidence in Bank Sarasin is also strengthened by the
backing of its majority shareholder Rabobank with its AAA-rating from the
leading international credit rating agencies Moody's and Standard & Poor's. 

Proposals to the Annual General Meeting
The terms of office of the directors Christoph Ammann, Hubertus Heemskerk and
Sipko N. Schat are due to end at the Annual General Meeting of 27 April 2010.
Christoph Ammann and the two members delegated by the majority shareholders
Rabobank, Hubertus Heemskerk and Sipko N. Schat, will be proposed for
re-election to the Board of Directors. The Board of Directors is proposing a
dividend of CHF 0.90 per class B registered share. 

Outlook: assets under management of CHF 100 billion is achievable in 2010
In the 2009 financial year, Bank Sarasin slightly curbed investment in future
growth. In 2010 the Bank plans to return to its previous mid-term level of
investment and continue to further expand its team of client relationship
managers. In the financial year 2010, Bank Sarasin intends to maintain its pace
of growth with net new money inflows of 10%. When it comes to the new standards
governing mutual international assistance in tax matters in accordance with the
new double taxation agreements which Switzerland intends to sign with numerous
foreign countries, Sarasin enjoys an excellent position: not only does the Bank
have a strong degree of international diversification, but any outflows of
client deposits are likely to be very small. Thanks to the revenue boost
provided by an increase in the average level of client assets, Sarasin expects a
further improvement in the operating result. The Bank´s top priority in 2010 is
to achieve a lasting improvement in profitability. 

Bank Sarasin intends to strengthen its business base in the Asian growth markets
over the next 18 months: the Hong Kong office has recently received a banking
licence and will soon be upgraded to Bank Sarasin´s first international branch.
In addition, Sarasin plans to roll out its IT banking system Avaloq, which has
been successfully used in Switzerland since July 2003, in its Hong Kong and
Singapore locations. 

New mid-term goals 2015
Bank Sarasin´s Board of Directors has set the following mid-term goals for 2015:
To increase assets under management to CHF 150 billion (performance-adjusted) by

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