EANS-Adhoc: Annual results 2010 of Bank Sarasin & Co. Ltd: Assets under management pass the CHF 100 billion mark

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

annual report

24.02.2011

Assets under management climb to CHF 103.4 billion - Strong net new
money growth of CHF 13.4 billion (+14%) - Dynamic growth and improved
quality of earnings in the core business Private Banking - Group
result reaches CHF 124.5 million - Dividend unchanged at CHF 0.90

Growth target beaten: AuM exceed CHF 100 billion thanks to strong net
new money growth The assets under management target of CHF 100
billion, set in 2006 when formulating the Bank's growth strategy, has
been comfortably beaten, at CHF 103.4 billion. This success was
driven mainly by consistently high new money inflows of CHF 13.4
billion, which correspond to an annualised growth rate of 14%.
Sarasin has therefore again comfortably beaten its annual net new
money target set at CHF 9.4 billion (+10%) for 2010. Thanks to a
stable second half of the year the performance was positive at CHF
4.7 billion. The strong Swiss franc during the same period produced a
negative currency translation effect of CHF 7.7 billion.

Better quality of earnings in the core business During the reporting
period the Sarasin Group generated strong operating income of CHF
690.6 million (2009: CHF 673.9 million). This increase is based on an
improvement in the quality of earnings in the core business: there
was a sharp increase in both net interest income, at CHF 146.9
million (+12%), and in income from commission and service fee
activities at CHF 457.5 million (+15%). Income from trading
operations fell sharply by 42% to CHF 59.8 million, with other
ordinary income also dropping 36% to CHF 26.3 million. While order
volumes remained virtually constant in trading activity for clients,
the hedging transactions undertaken by the Bank in the first half of
2010 against rising interest rates had a damaging effect on trading
revenues. Foreign currency effects also had a negative impact on the
result.

Christoph Ammann, Chairman of the Board of Directors of Bank Sarasin
& Co. Ltd "Bank Sarasin continues to pursue its growth strategy.
There are many other areas in which we have established a profile as
sector leader, thereby shaping the future orientation of our business
model: examples include being one of the first banks in Switzerland
to introduce MiFID standards (Markets in Financial Instruments
Directive) for all our Swiss clients, as well as the fact that we
have already met the stringent capital adequacy requirements set by
Basel III. Last year we also decided to focus in future on the
acquisition and management of declared client assets. No matter what
happens on the regulatory front, our goal is to be rid of any
undeclared client assets by the end of 2012."

Joachim H. Straehle, CEO of Bank Sarasin & Co. Ltd "Passing the CHF
100 billion mark in the assets that we manage is an important
milestone, setting a new record in our bank's history and delivering
on the target that we set back in 2006. This success fills us with a
strong sense of pride. In particular, the improved quality of
earnings in our core business shows exactly where we set our
priorities. Further improving our profitability continues to be one
of our key tasks. We continue to vigorously pursue our goal of
establishing Sarasin as a leading Swiss sustainable private bank with
a strong, independent brand in all our target growth markets."
Selective growth initiatives implemented at moderate expense
Operating expenses rose 4% in 2010 to CHF 505.2 million (2009: CHF
486.8 million). Personnel costs increased by 3% to CHF 368.4 million
(2009: CHF 358.8 million). As part of the ongoing growth strategy
pursued by the Sarasin Group, the headcount was increased by 5% to 1
642 (2009: 1 557). In particular, both the mid and back office
functions were strengthened. There was only a small net increase in
the number of client relationship managers (CRMs). The target figure
of around 50 additional CRMs per year was achieved in gross terms in
2010. Sarasin has once again focused on optimising the quality of its
client advisors. General administrative expenses increased by 7% to
CHF 136.8 million due to various additional costs: investments in two
new locations in the Middle East, the rollout of Avaloq successfully
completed in January 2011 at the two Asian locations in Hong Kong and
Singapore, and the expansion of Sarasin's international marketing
activities. The cost income ratio (ratio of operating expenses incl.
depreciation and amortisation to operating income) was virtually
unchanged at 77.6% (2009 adjusted: 77.1%).

Core business of Private Banking gathers momentum The Sarasin Group
continues along its growth path in its core business of Private
Banking. This is reflected in the sharp increase in the 2010 result
for the Private Banking segment: the figure of CHF 94.5 million was
three times higher than the previous year (2009 adjusted: CHF 30.2
million). This increase was mainly down to a substantial
volume-driven increase in revenues to which the locations in every
region contributed. There was also a 20% improvement in the result
reported by the Asset Management, Products & Sales segment, at CHF
60.0 million, while the Trading & Family Offices segment suffered
from falling income from proprietary trading and the Treasury
business. The segment results reported by bank zweiplus ltd fell well
short of expectations: a loss in connection with fraudulent conduct
by a distribution partner in Germany resulted in an extraordinary
impairment loss of CHF 8.0 million, which was a significant drain on
the company's profit. Legal proceedings have been initiated for
suspected fraud.

Sarasin Group´s operating profit increased to CHF 124.5 million (2009
adjusted: CHF 121.7 million). Sarasin therefore slightly exceeded its
goal of equalling last year´s operating profit.

Quota of sustainably managed assets reaches 30% During the reporting
period the value of assets managed sustainably by the Sarasin Group
amounted to CHF 13.4 billion on 31 December 2010. The proportion of
sustainably managed funds and asset management mandates (including
in-house funds) as a percentage of the total client assets managed by
the Sarasin Group came to 30% at the end of 2010.

Since the onset of the financial crisis in particular, Bank Sarasin´s
broadly based research and the transparency of its investment process
is proving increasingly popular. This is reflected in the 23%
increase in the number of asset management mandates for private
clients in Switzerland during the reporting period. The associated
volumes increased virtually in parallel. Bank Sarasin introduced
sustainability as an additional decision-making criterion for all
asset management mandates for private clients in Switzerland with
effect from 2009. By consistently orienting portfolio management to
its expertise as market leader in sustainable asset management, Bank
Sarasin is catering for customer demand for this type of investment
style. The trend in our in-house sustainability funds also
demonstrates that investors have a particularly high level of
confidence in this investment approach: in 2010, total net inflows of
CHF 386 million were recorded for the investment funds, structured
products and funds-related investment products in the Sarasin
Investment Foundation (SAST) under the Swiss pension system´s second
and third pillar.

Capital base still solid Equity capital at the end of December 2010
remained unchanged at CHF 1.3 billion. The equity ratio improved
slightly from last year to reach 9.7%. Because of the further
increase on the customer side of the balance sheet, the equity ratio
dropped to 7.3% on 31 December 2010 (31.12.2009: 8.4%). The BIS Tier
1 ratio, defined as core capital as a percentage of risk-weighted
assets, came to 15.3% at year-end 2010 (31.12.2009: 16.3%),
confirming the Bank's solid capital base.

Annual General Meeting: Board of Directors' proposals The terms of
office of the directors Christian Brueckner, Hans-Rudolf Hufschmid
and Peter Derendinger are due to end at the forthcoming AGM. While
Christian Brueckner is not putting himself forward for re-election on
grounds of age, Hans-Rudolf Hufschmid and Peter Derendinger will be
proposed for re-election at the AGM. The Board of Directors also
intends to submit a proposal to the AGM to keep the dividend
unchanged at CHF 0.90 per class B registered share.

Exploiting potential in existing markets As a sustainable bank,
Sarasin will continue to pursue long-term profitable growth which is
built on quality and can be achieved without running up excessive
costs. The key is to find the right balance between geographical
diversification and focused attention on core markets. Bank Sarasin
already has a broad geographic footprint and is present in a number
of markets that promise excellent growth prospects. The focus is on
selected European countries such as Germany, where Bank Sarasin is
the first foreign financial institution to have already broken even
in just the third year of trading, along with the very promising
markets of the future in the Middle East and Asia. During the
reporting period Bank Sarasin further optimised its regional presence
by opening new locations in Bahrain and Abu Dhabi as well as
obtaining a banking licence for its Hong Kong operations. The licence
for Singapore is due to be upgraded soon. During 2011 Sarasin will be
augmenting its Swiss network with a new office in Lucerne in a move
to further strengthen its position in its home market. There are
currently no plans to break into new national markets in the
mid-term. The priority is to exploit the available potential in
existing markets.

Outlook 2015: AuM of CHF 150 billion and improved profitability Bank
Sarasin is cautiously optimistic about the 2011 financial year and,
despite the uncertainties in the global political arena and the
macroeconomic imbalances, it expects the economic recovery to
continue and 2011 to be a positive year for investments. Sarasin
plans to temper the speed of its growth in order to meet its AuM
target of CHF 150 billion (performance-adjusted) by 2015. The top
priority is to increase the operating result and improve
profitability. Sarasin plans to significantly increase its gross
margin and cut the cost income ratio by making further improvements
in efficiency.

end of ad-hoc-announcement ==========================================
====================================== The Annual Report 2010 of Bank
Sarasin & Co. Ltd is available as of today, 24 February 2011, 7.00
a.m. at www.sarasin.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Bank Sarasin & Cie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Benedikt Gratzl
Head of 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