EANS-Adhoc: 1H 2010 results of Bank Sarasin & Co. Ltd: Bank Sarasin sustains dynamic pace of growth

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6-month report/1H 2010 results

29.07.2010

Net new money growth strong at CHF 6.4 billion (+14% p. a.) - Total
assets under management CHF 96.2 billion nearing CHF 100 billion
target - Net profit up 11% to CHF 60.1 million - Operating income 6%
higher at CHF 332.6 million - Targets remain unchanged, focus on
ability to generate returns

Successful growth strategy reflected in net new money - assets under
management growth on track Bank Sarasin has succeeded in sustaining
its dynamic pace of growth with net new money inflows of CHF 6.4
billion. This corresponds to an annualised growth rate of 14%.
Boosted by this strong business performance, clients´ assets under
management increased to CHF 96.2 billion on 30 June 2010 from CHF
93.7 billion as of 31 December 2009. The assets managed by the
Sarasin Group according to sustainable investment criteria were 4%
higher than at the end of last year, at CHF 12.4 billion (31.12.2009:
CHF 11.9 billion). Based on this strong result, Sarasin is confident
of being able to achieve the full-year target for 2010 of net new
money growth of 10% or CHF 9.4 billion. The negative impact of market
performance and currency translation effects reduced total assets
under management by CHF 3.2 billion.

Solid earnings level despite lower income from trading operations
During the reporting period the Sarasin Group generated operating
income of CHF 332.6 million, an increase of 6% on the same period
last year (1H 2009: CHF 315.1 million). This increase reflects the
expansion of the business base as part of Sarasin´s continuing growth
strategy: income from commission and service fee activities rose by
28% to CHF 218.9 million, while net interest income increased by 10%
to CHF 74.5 million due to the expansion of the credit business
associated with private banking. Income from trading operations fell
sharply by 63% to CHF 23.2 million (1H 2009: CHF 62.8 million).
Income from ordinary trading operations - both on behalf of clients
and on the Bank's own account - as well as income from the structured
products business remained broadly flat on last year, whereas there
was a sharp drop in income in the Bank's own financial investments
and in the treasury business as a result of hedging transactions
against rising interest rates. Other ordinary income increased by 13%
to CHF 15.8 million thanks to realised capital gains on the Bank´s
own financial investments.

Rise in costs remained moderate, despite success in growth
initiatives During the reporting period operating expenses rose 5%
from CHF 230.3 million to CHF 242.6 million. Personnel expenses rose
4% to CHF 175.6 million (1H 2009: CHF 168.5 million) due to the
increase in headcount and general salary adjustments. General
administrative expenses rose 8% to CHF 67.0 million (1H 2009: CHF
61.8 million). The increase in costs was therefore modest taking into
account the continuing expansion of Sarasin´s team of relationship
managers and its investments in the ongoing growth strategy - notably
the opening of a third location in Germany (Nuremberg) and offices in
Poland (Warsaw), Austria (Vienna) and India (Mumbai and New Delhi) as
well as the preparatory work required for the roll-out of the Avaloq
banking software in Asia. The decision to close down locations in
Spain and to replace unsatisfactory client advisors is evidence of
Sarasin´s commitment to continuously review its business cases and
adjust accordingly.

Net profit improves - capital base still solid The cost income ratio
was virtually unchanged from last year at 77.3% (1H 2009: 77.5%).
Sarasin´s net profit of CHF 60.1 million confirms the strong
first-half result and represents an increase of 11% on the same
period last year (1H 2009: CHF 53.9 million). Shareholders' equity
amounted to CHF 1.2 billion, virtually unchanged from the end of
2009. Due to the growth of the business, the Bank´s equity ratio at
the end of June 2010 dipped to 7.4% (30.12.2009: 8.4%). The BIS Tier
1 ratio, defined as core capital as a percentage of risk-weighted
assets, remained stable at 16.3% at the end of June 2010.

Christoph Ammann, Chairman of the Board of Directors of Bank Sarasin
& Co. Ltd "The first-half results for 2010 show that our strategy is
paying off in the long term and that our management is successfully
targeting our growth initiatives towards the most attractive markets.
Furthermore, the proportion of undeclared assets deposited with the
Bank is negligible, which gives us significant advantages in the
mid-term. No matter what happens on the regulatory front, we are
striving for being rid of any undeclared client assets by the end of
2012."

Joachim H. Straehle, CEO of Bank Sarasin & Co. Ltd "The consistently
high net new money inflows reflect Sarasin´s strong growth dynamic
and testify to the quality of our CRM team and the Bank's excellent
reputation. By selectively expanding our network of locations and our
CRM team, we have steadily strengthened our position in core
international markets. The fact that we also managed to boost our
revenues - despite the drop in income from trading operations - is
very encouraging as well. Despite this improvement in income, we will
focus on a further long-term improvement in both our earnings power
and gross margin."

Outlook for 2H 2010: Targets unchanged - focus remains on ability to
generate returns Bank Sarasin expects the global economy to slow down
in the second half of 2010. Weaker macroeconomic data and the
disappearance of fiscal stimulus measures could act as a curb on
growth. Even so, Bank Sarasin stands by its quantitative targets up
to the end of 2010: net new money growth of 10% and assets under
management totalling CHF 100 billion and should achieve the latter
goal as long as financial markets remain stable. The Bank´s main
priority will be to strengthen its ability to generate returns and
improve its gross margin. Bank Sarasin also intends to expand further
its CRM team as part of its ongoing growth strategy. When
implementing all these initiatives, Bank Sarasin will always take a
selective, profit-oriented approach.

Bank Sarasin is already well diversified in geographical terms and in
the future intends to focus more intensely on core markets that offer
good growth potential. The Bank's focus is on selected individual
markets in European countries such as Germany, and in the growth
markets of the Middle East and Asia. Bank Sarasin is also planning to
boost its presence in the Middle East by opening offices in Bahrain
and Abu Dhabi. The Bank also expects to reap positive benefits from
its recent entry into the Indian market and the banking licence
granted to its Hong Kong branch in the first half of 2010 and plans a
similar upgrade of its banking licence in Singapore.

end of announcement euro adhoc
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ots Originaltext: Bank Sarasin & Cie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Benedikt Gratzl

Head Corporate Communications

T.: +41(61) 277 70 88

Benedikt.Gratzl@sarasin.ch

Branche: Banking
ISIN: CH0038389307
WKN: A0QZL4
Index: SPIEX, SPI ex SLI
Börsen: SIX Swiss Exchange / official dealing/general standard