EANS-Adhoc: Bank Sarasin + Cie AG / Half year results 2011 of Bank Sarasin & Co. Ltd: Bank Sarasin on track despite the adverse climate

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6-month report

28.07.2011

Group result up 13% to CHF 67.8 million - Operating income 10% higher
at CHF 364.5 million - Net new money growth still strong at CHF 3.9
billion (+8% p.a.) - Total assets under management CHF 101.6 billion
- Gross margin slightly improved in Private Banking

Net new money growth on target - Assets under management above the
CHF 100 billion mark The Sarasin Group once again produced a strong
acquisition performance, with net new money growth of CHF 3.9
billion. Despite the negative effects of market performance, these
new money inflows allowed the bank to keep its assets under
management above the CHF 100 billion mark during the entire reporting
period. Total assets under management stood at CHF 101.6 billion on
30 June 2011 (31.12.2010: CHF 103.4 billion). The geopolitical unrest
and the tragic events in Japan, along with the accentuation of the
euro crisis and the fall of the US dollar combined with concerns
about America's budget deficit, impacted heavily on international
stock markets, currency exchange rates and investor sentiment. Client
assets managed by the Sarasin Group were therefore negatively
affected not only by market performance (CHF -1.8 billion) but also
by currency translation effects (CHF -3.9 billion).

Revenues increased despite the adverse climate Sarasin Group
increased its operating income by 10% to CHF 364.5 million compared
to the same period last year (1H 2010: CHF 332.6 million). The
performance of the individual revenue streams varied: net interest
income was slightly up on the previous year (+1%) at CHF 75.0
million. Income from commission and service fee activities benefited
from the higher asset base and was 6% higher than in 1H 2010 at CHF
232.0 million. The strong impact of equity markets and exchange rate
movements during the reporting period explains the 3% decrease in
income from commission and service fee activities when compared with
the second half of 2010. Income from trading operations, which came
under pressure this time last year as a result of hedging
transactions, doubled to CHF 51.1 million (1H 2010: CHF 23.2
million), reverting to its normal level. Other ordinary income was
lower than the first half of 2010 at CHF 6.4 million, due to lower
returns on the bank's own investments (1H 2010: CHF 15.8 million).

Christoph Ammann, Chairman of the Board of Directors of Bank Sarasin
& Co. Ltd "No matter what the macroeconomic conditions, our Group is
intent on consistently following its highly focused business
strategy. This concentrates on our core business of Private Banking,
on selected international core markets and on bespoke investment
solutions. The combination of our two strategic core values,
Sustainability and Swiss Private Banking, differentiates our bank
clearly from the competition."

Joachim H. Straehle, CEO of Bank Sarasin & Co. Ltd "In an environment
overshadowed by momentous events, we have nonetheless managed to
produce a solid result: we are pleased with our consistently strong
net new money growth, the higher level of income and the slight
improvement in the gross margin of the core business. But we will
strive to achieve an even greater improvement. Our focus is also on
implementing farsighted initiatives for the future - particularly our
strategy for avoiding non tax-compliant assets. By consistently
applying this policy, we intend to achieve our goal of being rid of
all non tax-compliant client assets by the end of 2012."

Investments in growth initiatives continue, with only moderate impact
on costs During the reporting period the Sarasin Group´s operating
expenses rose 8% to CHF 261.8 million (1H 2010: CHF 242.6 million).
This rise was due to higher personnel expenses, which increased by
11% to CHF 194.2 million (1H 2010: CHF 175.6 million) in response to
a 7% rise in the average headcount as well as regular salary
adjustments and higher provisions for bonuses. A comparison to the
second half of 2010 shows a much smaller increase (+1%).

Despite the expansion of existing locations and the opening of two
new offices - one in Switzerland (Lucerne) and one in Germany
(Cologne) - general administrative expenses were only 1% higher than
the previous year, finishing at CHF 67.6 million (1H 2010: CHF 67.0
million). The defining elements of the bank's cost management are
clear control and a focus on the essentials. General and
administrative expenses were in fact 3% lower than in H2 2010. There
was a rise of 16% in depreciation & amortisation due to investments
in the Avaloq platform for Asia and additional IT investments in
important bank projects.

Gross margin improved in Private Banking - repositioning of bank
zweiplus initiated Despite the challenging investment environment and
significant exchange rate effects, the gross margin in the core
business of Private Banking improved slightly. The gross margin at
Group level was unchanged. The contribution to earnings made by bank
zweiplus was much lower than in the same period last year. Apart from
negative currency translation effects, there was also a steep decline
in new business with distribution products in Germany. bank zweiplus
is repositioning its business with direct clients as of 2012 under
the "Cash" brand name, as part of a joint venture with Ringier. This
should enable the direct client business to revert to a growth path.

Group result increases - capital base is still strong The cost income
ratio was slightly better than last year at 76.4% (1H 2010: 77.3%).
The Sarasin Group's net profit rose to CHF 67.8 million, a 13%
increase on the same period last year (1H 2010: CHF 60.1 million).
This reflects a solid business performance in the first half of 2011.
Shareholders' equity amounted to CHF 1.3 billion, unchanged from the
level at the end of 2010. Due to the growth of the business and
exchange rate movements, the bank's equity ratio at the end of June
2011 fell to 6.9% (31.12.2010: 7.3%). The BIS Tier 1 ratio, defined
as core capital as a percentage of risk-weighted assets, eased
slightly to 14.5% on 30 June 2011.

The Sarasin Group holds no Greek, Irish or Portuguese sovereign bonds
on its books, and only minimal amounts of Italian and Spanish
sovereign bonds. Furthermore, it has no loans outstanding to Greek,
Portuguese or Spanish banks and only has a very small credit exposure
to Italian and Irish banks.

Outlook for 2H 2011: Targets unchanged - focus on future-oriented
initiatives Despite the distinct and persistent uncertainty pervading
the stock markets, the Sarasin Group remains cautiously optimistic
for the second half of 2011. The targets set have not changed: the
bank wants to continue to increase its revenues and improve cost
efficiency. At the same time the Sarasin Group will concentrate on
implementing various projects and initiatives to ensure its future
direction. This includes first and foremost the implementation of the
Sarasin Group's strategy of avoiding non tax-compliant assets: by the
end of 2012, the bank wants to be free of all non tax-compliant
client assets. In order to implement this policy across the entire
group, the bank has set up appropriate processes designed to clarify
the tax status of international clients who use Switzerland as a
booking centre. This does not affect Swiss private clients, because
of the duty of self-declaration for all Swiss taxpayers and
Switzerland's system of withholding tax.

The Sarasin Group will continue to take full advantage of the broad
geographical diversification of its business across international
growth markets and pursue a selective marketing approach: apart from
Switzerland, the Sarasin Group also targets selected markets in
Europe, the Middle East and Asia. As part of its focused growth
strategy, a sixth Swiss location was opened in Lucerne in July 2011
and a fourth German office in Cologne. There are currently no plans
to break into new markets in the medium-term. Instead, the bank
intends to exploit its full potential in existing markets and thus
ensure a cost-efficient approach. Depending on the market in
question, the Sarasin Group delivers its investment solutions either
on an onshore and/or cross-border basis. Cross-border business
requirements, along with its strategy for avoiding non tax-compliant
assets, allow the Sarasin Group to operate in markets where it is
permitted to do so subject to local regulations and legal conditions.

The Half Year Report 2011 of Bank Sarasin & Co. Ltd can be downloaded
as of today, 28 July 2011, 7.00 a.m. from www.sarasin.com.

Further inquiry note:
Dr. Benedikt Gratzl
Head Corporate Communications
T.: +41(61) 277 70 88
Benedikt.Gratzl@sarasin.ch

end of announcement euro adhoc
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issuer: Bank Sarasin + Cie AG
Elisabethenstr. 62
CH-4002 Basel
phone: +41(61)277 77 77
FAX: +41(61) 272 02 05
mail: info@sarasin.ch
WWW: http://www.sarasin.ch
sector: Banking
ISIN: CH0038389307
indexes: SPIEX, SPI ex SLI
stockmarkets: official dealing/general standard: SIX Swiss Exchange
language: English