ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE…vpr.hkma.gov.hk/pdf/100303/ar_10/ar_10.pdf · ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA Our strength at the service of your future

ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA

Our strength at the service of your future

Joumana Jamhouri’s work takes us on an original journey to the heart of industrial design, revealing unsuspected sensitivity and surprising beauty.

Lebanese-American Joumana Jamhouri, a graduate of New York Institute of Photography, focuses on industrial and architectural photography and also produces landscape and documentary work. She lives in Beirut, where she teaches photography at university. Bringing an original and human touch to the manufactured realism of her subjects, she creates captivating worlds in which mechanics give way to aesthetics. For Joumana Jahmouri, industry holds a store of little-explored treasures. Seeking to highlight the contrasts and paradoxes of a world widely perceived as cold and inhuman, she depicts volumes, perspectives, colours, lighting, shapes and materials with delicate and unexpected emotion. This convergence of contrasts is found throughout her work, inspired by the war years

of her childhood and by the desire to transcend and control chaos in order to achieve peace of mind and serenity. Her photographs have been published in numerous magazines and exhibited in Beirut, Abu Dhabi, Paris, Mexico, Washington and Munich, and at the prestigious Museum of Modern Art (MoMA) in New York.

Joumana Jamhouri’s well-grounded and realistic artistic approach to the world of industry perfectly reflects the strength and stability at the heart of Crédit Agricole (Suisse) SA’s values. Industry, a creator of value and an integral part of our modern environment, also upholds the common sense and real assets that we highlight in our investment policy. Our Bank promotes lasting relationships that ensure our clients’ peace of mind and durability, even in today’s highly contrasted world economy.

This is why we have chosen to illustrate this year’s Annual Report with the photographic work of Joumana Jamhouri.

Shedding new light on industrial aesthetics

ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA 1

Ribeirao Preto

Nassau

Belo HorizonteRio de Janeiro

Sao Paulo

Montevideo

Hong Kong

Singapore

BrusselsFrance

Spain

KarachiDubai

DohaBeirutTel Aviv

Egypt

Switzerland

Monaco

Luxembourg

Abu DhabiBahrain

Miami

Our business: Private Banking Our purpose: advising and serving our clients Our values: common sense, transparency and commitment

CRÉDIT AGRICOLE PRIvATE BANKING’S wORLDwIDE NETwORK

www.ca-privatebanking.com

Crédit Agricole Private Banking, the international network of private banks in the Crédit Agricole Group, is one of the world leaders in its industry.

Drawing on the expertise and dedication of our multicultural teams, we offer a broad range of investment services and solutions tailored specifically to the wealth situation and personal goals of our clients.

With a long-standing presence in Europe, Latin America, Asia and the Middle East, we have cutting-edge, proven skills in the markets we invest in. Our international organisation, coupled with the strong and lasting relationships we build day by day with our clients, are the key to our business and vital to the services we offer.

€ 93.8 bnPRIvATE BANKING ASSETS

UNDER mANAGEmENT

2 650EmPLOyEES wORLDwIDE

No 3fOREIGN BANK IN SwITzERLAND By

TOTAL ASSETS (ABES RANKING, 2010)

ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA2

4CRÉDIT AGRICOLE GROUP

7mESSAGE fROm ThE ChAIRmAN

AND ThE GENERAL mANAGEmENT

8mANAGEmENT BODIES

10ECONOmIC AND fINANCIAL ENvIRONmENT

12CRÉDIT AGRICOLE (SUISSE) SA

BUSINESS UPDATE

18EvOLUTION Of

ThE CRÉDIT AGRICOLE (SUISSE) SA GROUP

19CONSOLIDATED KEy fIGURES

20CONSOlidated

fiNaNCial StatemeNtS

22CONSOLIDATED BALANCE ShEET

AS AT 31 DECEmBER 2010

24CONSOLIDATED INCOmE STATEmENT

fOR ThE yEAR 2010

26CONSOLIDATED CASh fLOw STATEmENT

fOR ThE yEAR 2010

28NOTES TO ThE CONSOLIDATED

fINANCIAL STATEmENTS

53REPORT Of

ThE STATUTORy AUDITOR

54PareNt COmPaNy

fiNaNCial StatemeNtS

56PARENT COmPANy BALANCE ShEET

AS AT 31 DECEmBER 2010

58PARENT COmPANy INCOmE STATEmENT

fOR ThE yEAR 2010

60NOTES TO

ThE fINANCIAL STATEmENTS

68PrOPOSal tO

the aNNual GeNeral

meetiNG

69REPORT Of

ThE STATUTORy AUDITOR

70NetwOrk Of OffiCeS

Contents


The Crédit Agricole Group is market leader in full-service Retail Banking in France and one of the largest banks in Europe.

With operations in 70 countries, the Crédit Agricole Group is a leading partner in supporting clients with their projects in all areas of Retail Banking and associated specialised business lines : day-to-day banking, savings, home and consumer loans, insurance, Private Banking, asset management, leasing and factoring, and Corporate and Investment Banking.

On the strength of its cooperative and mutualist foundations, the Crédit Agricole Group’s expansion is underpinned by balanced growth serving the real economy and respecting the interests of its 54 million customers, 1.2 million shareholders, 6.1 million cooperative shareholders and its 160 000 employees.

Crédit Agricole is included in the three main sustainable development indices : Aspi Eurozone since 2004, FTSE4Good since 2005 and the DJSI since 2008 (Europe and worldwide). It is ranked the eighth most sustainable corporation in the world and No. 1 in France in the 2011 Global 100 List.

www.credit-agricole.com

Profile

3.6BILLION

NET INCOME - GROUP SHARE

71.5BILLION

SHAREHOLDERS’ EQUITY

– GROUP SHARE

10.3 %TIER ONE RATIO

4

• Institutional investors : 30.9 %

•Individual shareholders : 8.2 %

•Employees via employee mutual funds : 4.6 %

Retail Banking

In France– 25 % of share capital in the

Regional Banks (excl. the Regional Bank of Corsica)

– LCL

International Retail Banking– Cariparma FriulAdria Group– Emporiki– Crédit du Maroc– Crédit Agricole Egypt– Lukas Bank

Specialised business lines

Specialised financial services– Consumer finance– Lease finance– Factoring

Savings management– Asset management– Insurance– Private Banking

Corporate and Investment Banking

– Coverage and Investment Banking

– Equity Brokerage and Derivatives

– Fixed Income Markets– Structured Finance

55.9 % Of CRÉDIT AGRICOLE SA’S ShARE CAPITAL IS hELD By ThE 39 REGIONAL BANKS, vIA ThE hOLDING COmPANy SAS RUE LA BOÉTIE.

Listed since December 2001, Crédit Agricole SA ensures the cohesion of the strategic development and financial unity of the Group. Crédit Agricole SA manages and consolidates its subsidiaries in France and abroad.

43.7 % Of CRÉDIT AGRICOLE SA’S ShARE CAPITAL IS hELD By ThE PUBLIC

0.4 % TREASURy ShARES

Organisation of the Group

Other specialised subsidiariesCrédit Agricole Immobilier – Crédit Agricole Private Equity – Idia-Sodica – Uni-Editions.

6.1 million cooperative shareholders form the basis of Crédit Agricole’s cooperative organisational structure.

They hold the capital of the 2 533 Local Banks in the form of shares and select their representatives each year : a total of 32 496 administrators who convey their expectations within the Group.

The Local Banks own the majority of the Regional Banks’ share capital. The Regional Banks are cooperative regional banks that offer their clients a comprehensive range of products and services.

The policy assessment body for the Regional Banks is the Fédération Nationale du Crédit Agricole, where the Group’s main directions are decided.

55.9 %

0.4 %

4.6 %

8.2 %

30.9 %


6

message from the Chairman and the General managementFor developed countries, 2010 was the year marked both by the sovereign debt crisis and an upturn in corporate fortunes, while emerging countries such as China experienced strong growth built on solid economic fundamentals.

These stark global contrasts had very different effects on banks, depending on their geographic and industry exposures.

Against this uncertain and volatile backdrop, Crédit Agricole (Suisse) SA managed to grow its Private Banking and Corporate Banking businesses but saw its Capital Markets activities slow down.

Income for the year came to CHF 656 million, down 7 % on the previous year. Stripping out expenses, which rose 5 % to CHF 411 million, gross operating income was CHF 245 million, a decline of 22 %.

Basically, the Bank was adversely affected by the USD and EUR exchange rates against the CHF, since the bulk of its income is in USD and EUR while the majority of its expenses are in Swiss francs.

However, we considered this to be a temporary setback and continued to invest. In particular, we resumed hiring in order to better serve our clients.

Private Banking performed excellently, attracting CHF 3 billion across its areas of natural growth, including Asia, Africa and the Middle East. It broadened the range of products and services to satisfy clients.

Corporate Banking expanded significantly against a backdrop of rallying commodity prices. Risks were kept firmly under control.

Capital Markets saw a decline in income and earnings from 2009’s record highs. Nonetheless, its results were above forecast and better than those of the pre-crisis years 2006 and 2007.

The Banking Logistics Centre, CA-PBS, not only continued to provide high quality services; it also prepared the migration of Crédit Foncier de Monaco to our IT Platform S2i, a transfer which went ahead smoothly in January 2011. It also completed a number of developments that will enable Crédit Agricole (Suisse) SA to operate a new booking centre in Hong Kong as soon as regulatory approval is given.

The Coverage unit had another excellent year, giving Swiss firms and financial institutions access to the full range of skills available across the Crédit Agricole Group.

The year 2011 is off to a good start for all our businesses, although we shall remain cautious in the coming months in view of the general environment, notably the geopolitical situation.

With the full backing of the Crédit Agricole Group, the Bank intends to speed up development in all its businesses and historic areas of natural growth, building enduring and trust-based relations with clients by delivering a high-performance range of products and services.

Christophe GANCEL

Chief Executive

Officer

Jean BOUYSSET

Chairman of the

Board of Directors


Board of Directors Chairman

Jean BOUYSSET

Deputy Chairmen

Maurice MONBARON Advisor to the Chief Executive Officer

Edmond TAvERNIER * Attorney-at-Law, Geneva, Tavernier Tschanz

Administrators

Jean-François ABADIE Head of France and International Private Banking, Crédit Agricole Group From 16 December 2010, Director delegated, Crédit Agricole Luxembourg

Gilles DE MARGERIE, until 7 December 2010 Head of Private Banking, Private Equity and Real Estate Member of the Crédit Agricole SA Executive Committee

Emmanuel DUCREST * Attorney-at-Law, Geneva, Ducrest, Nerfin, Berta, Spira, Bory villa

Ariberto FASSATI Senior Country Officer for Italy, Crédit Agricole Member of the Crédit Agricole SA Executive Committee

Camille FROIDEvAUx * Attorney-at-Law, Geneva, Budin & Associés

Martin LENz * Attorney-at-Law, Basel, Lenz Caemmerer Bender

Jean-François MARCHAL Head of Structured Finance, Crédit Agricole CIB

Alain MASSIERA Deputy General Manager, Crédit Agricole CIB From 1 December 2010, Head of the Crédit Agricole SA Group Private Banking Business Line, Member of the Crédit Agricole SA Executive Committee

Christoph R. RAMSTEIN * Attorney-at-Law, zurich, Pestalozzi

Fabio SOLDATI * Attorney-at-Law, Lugano, Felder, Riva, Soldati, Marcellini, Generali

Senior managementChristophe GANCEL Chief Executive Officer

Jacques BOURACHOT General Manager, Head of Logistics

Pierre GLAUSER General Manager, Head of Commercial Banking Switzerland, Global Head of Transactional Commodity Finance Business Line

Philip ADLER Head of Capital Markets

Youssef DIB Head of Clientele, Private Banking

Laurent FRIEDLI Head of Coverage

viviane GABARD Head of Risks Management and Permanent Control

Frédéric LAMOTTE Head of Markets and Investment Solutions

Georges zECCHIN Chief Executive of Crédit Agricole Suisse in Asia

Natacha A. POLLI, from 1 February 2010 Head of General Secretariat, Compliance and Legal Affairs, Documentation, Planning and International Organisation

* Independent Members of the Board of Directors as defined in the FINMA circular 2008 / 24

AuditInternal Audit

Darius PUIU

Permanent Control

Stéphane REICHENBACH

Auditors

PricewaterhouseCoopers SA

management bodies

8 ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA

9

Economic climate and markets : How long will money remain cheap ?

Announced in late summer 2010, the details of a second round of quantitative easing, or QE2, in the United States confirmed that the Federal Reserve was concerned about the strength of domestic economic activity and the risk of deflation. And yet we believed that, although a slowdown was possible, the US economy was not headed for a double-dip recession. As it turned out, 2010 – the first post-recession year – was fairly disappointing. Growth in fact failed to rise above 2.8 % between fourth-quarter 2009 and fourth-quarter 2010.

The pace of price growth was sluggish but positive. The Fed found it too slow with regard to its mandate, which consists in keeping the level of employment as high as possible while maintaining price stability. And although job creation picked up again, it was nowhere near strong enough to offset the jobs lost in 2008-09.

In the eurozone, growth also trended downwards despite an extremely dynamic start to the year. The 4 % expansion seen in the second quarter slowed to a quarterly pace of some 0.3 %. Taking 2011 as a whole, the slowdown is likely to continue.

Growth and inflation rates continued to differ sharply from one country to another in 2010. Although, the developed economies experienced only a mild post-recession recovery, emerging economies continued to benefit from a favourable growth differential, accompanied by inflationary pressures in some countries.

Thus China and India registered strong year-on-year growth of some 8-10 %, while Russia’s GDP expanded nearly 6 % between fourth-quarter 2009 and fourth-quarter 2010 on the back of the economic recovery.

Brazil sought to engineer a soft landing. As a result, its growth trajectory crossed Russia’s on the way down : while the latter accelerate,

Brazil’s economy slowed down and the two BRICS ended the year at almost the same pace of growth.

In terms of inflation, rising energy and metals prices combined with bad weather in various parts of the globe to produce different price patterns from country to country. But in every case, inflation was significant owing to the high weights of food and energy in the emerging-market consumer basket. Specifically, measured from December to December, consumer prices rose from 1.9 % to 4.6 % in China and from 4.3 % to 5.9 % in Brazil, declined from 15 % to 9.5 % in India, and remained unchanged at 8.8 % in Russia.

Turning monetary policies around

Central banks did not finish the job in 2010. With the exception of the Bank of Japan and, possibly, the Fed, they must now implement strategies for discarding their extremely expansionary monetary policies. Fears of resurgent inflation are mounting as a result of economic expansion and improving fundamentals.

Emerging countries tightened monetary policy. In the eurozone, the policy pursued by the European Central Bank (ECB) began to return to normal at year’s end. In consequence, 3-month Euribor exceeded 1 %, the same level as the Central Bank’s Repo rate.

By contrast, the issue of policy normalisation was not on the agenda in the United States. The Fed’s main policy rate remained unchanged at its December 2008 level of 0.25 %, and is unlikely to rise for several months owing to the new QE2 liquidity injection.

After ticking up from 3.8 % to 4 % between the end of 2009 and the beginning of second quarter 2010, the yield on 10-year US Treasuries fell sharply, hitting 2.4 % in early October as speculation about the size of the QE2 programme ran rife. It then started to rise again, ending the year at 3.3 %.

In the eurozone, the yield on the 10-year German benchmark bond benefited both from contagion from the announcement of QE2 and from a flight to quality triggered by the fiscal problems of countries on the zone’s periphery. As a result, it softened from 3.4 % at the beginning of the year to 2.1 % in August, then moved in fits and starts towards 3 % but fell just short of that level at the end of the year. Swiss 10-year yields followed the same pattern, slipping from 1.9 % at the beginning of the year to 1 % in August before rebounding to 1.7 %.

The US dollar

Economic agents in Europe focused on the euro / dollar exchange rate. Although that attention was certainly warranted in terms of market liquidity and natural geographical positioning, it has tended to hide the crux of the problem, namely that the dollar is on a path of competitive devaluation. As a result, most Asian currencies have strengthened against the greenback since early 2010. The same is true, by and large, for the BRIC currencies : the Brazilian real gained 5 %, the Chinese yuan 3.3 % and the Indian rupee 4.1 %. Only the Russian ruble bucked the trend, losing 1.6 %. Not only do most emerging countries have solid fundamentals, but the more restrictive monetary policies sought by their authorities are paradoxically making their currencies more attractive because they show a serious determination to fight inflation.

The Swiss franc’s gains corresponded to periods of widespread rises in risk aversion or, vis-à-vis the euro, fears about government finances in some eurozone countries. For the year as a whole, the Swiss franc gained 10.7 % against the dollar and 18.6 % against the euro.

EUR / USD fluctuations may well reflect a battle between two currencies in poor health. From that standpoint, the dollar was in remission in 2010, going from 1.43 to 1.34 against the euro.

Economic and financial environment


Commodity price volatility

Investors have viewed commodities as a rampart against the weakness of the US dollar and renewed inflation. Between early 2010 and June, the Rogers International Commodity index lost nearly 14 % overall before rebounding. By year’s end it had put on more than 17 %.

China once again played a key role in the industrial metals market. Bouts of optimism or concern about the strength of Chinese demand impacted directly on prices. Copper, for example, fluctuated sharply from USD 7 342 / tonne at end 2009, USD 6 259 in early February, USD 7 960 in early April and 6 068 in early June to USD 9 650 at the end of the year, an all-time high.

Oil prices varied significantly in 2010. WTI crude started the year at USD 79 per barrel and subsequently fluctuated between a low of USD 66 and a high of more than USD 91 at year’s end. Gold set new records, starting the year at USD 1 100 per oz and subsequently exceeding USD 1 420.

Equity markets : contrasting performances

The MSCI World index in USD rose 13.9 % in the third quarter 2010, following a fall of 12.4 % in Q2 and a rise of 3.4 % in Q1. For the year as a whole it gained 9.1 %. On the whole, the gains were fairly evenly spread. Expressed in local currencies, however, some markets did not follow the trend: the Nikkei (-1.5 %) and Euro Stoxx 50 (-1.8 %) both remained in negative territory.

By contrast, some markets posted spectacular local-currency gains, including 19.1 % for Mumbai, 49.4 % for Jakarta, 22.2 % for Seoul, 24.7 % for Moscow, 19.4 % for Mexico City, and 54.1 % for Buenos Aires. These gains clearly reflect the significant exposure of index component companies to emerging economies, but they are also due to capital flows into these countries. In addition Germany’s DAx, which is strongly export oriented, put on 16.1 % in 2010 on the back of the robust performance in emerging markets.

11ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA

With 1 405 employees and CHF 48 billion in managed assets, Crédit Agricole (Suisse) SA is one of the Crédit Agricole Group’s largest international units and the chief centre of expertise for its international Private Banking network and Transactional Commodity Finance.

Through successive mergers with several banks long present in Switzerland, the Bank has developed numerous competitive advantages. These include deep roots in the Swiss banking industry, a mixture of cultural backgrounds, a strong international approach, acknowledged expertise in many business lines and a strategy focused firmly on client service.

Crédit Agricole (Suisse) SA is one of the leading foreign banks in Switzerland in terms of total assets, net profit, shareholders’ equity and number

of employees. This reflects its commitment to the Swiss financial market, where it has continued to develop for over 130 years.

Headquartered in Geneva, the Bank employs more than 1 200 staff in Switzerland alone. It has six offices in Basel, Lausanne, Lugano, zurich, Hong Kong and Singapore ; seven subsidiaries in Beirut, Doha, Nassau and Switzerland ; and five representative offices in Dubai, Abu Dhabi (since March 2010), Bahrain, Karachi and Tel Aviv.

Long established in regions with a variety of cul- tures and languages, Crédit Agricole (Suisse) SA has developed a keen sense of awareness and a human touch – essential qualities for understanding clients’ expectations and offering solutions and strategies best suited to their needs.

Drawing on the wide range of expertise available within the Crédit Agricole Group’s offices in over 70 countries, Crédit Agricole (Suisse) SA can offer an extensive range of solutions. With nearly 40 different nationalities, most of the Bank’s relationship managers are multilingual and come from a variety of cultural backgrounds, giving true meaning to the notion of personal relationships.

Constantly developing, especially internationally, the Bank will continue to expand particularly in Asia and the Middle East, with the aim of nearly doubling its headcount and assets under management in Hong Kong and Singapore by 2013. The Group is currently applying for a licence to open a booking centre in Hong Kong in 2011.

Crédit agricole (Suisse) Sa business update


focus on the Bank’s 2010 results Crédit Agricole (Suisse) SA has built its expertise around four major areas that form the foundations of its business : Private Banking, Capital Markets, Corporate Banking and Banking Logistics. This organisation ensures stable results by balancing the Bank’s revenue sources. In 2010 Corporate Banking achieved excellent results.

Despite tough conditions characterised by low interest rates and unfavourable currency impacts, consolidated gross profit, or gross operating income, reached CHF 245.3 million in 2010. Consolidated net profit for the Crédit Agricole (Suisse) SA Group remained stable at CHF 141.8 million in 2010 compared with CHF 142.9 million in 2009. Crédit Agricole (Suisse) SA Group shareholders’ equity, as defined in Article 17 OFR (Tier 1-3), was CHF 2 082.8 million this year after appropriation of earnings.

Crédit Agricole (Suisse) SA, on its own, recorded 2010 gross profit of CHF 261.4 million and net profit of CHF 165.2 million. It had CHF 2 014.1 million of shareholders’ equity after appropriation of earnings, as defined in Article 17 OFR (Tier 1-3). The Bank continued to enjoy strong financial backing from the Crédit Agricole Group and has a high-quality AA-rating from Standard & Poor’s.

The four main banking activities of Crédit Agricole (Suisse) SA

Private BankingPrivate Banking is Crédit Agricole (Suisse) SA’s principal activity, with around CHF 46 billion of client wealth under management in 2010. The Bank offers its clients a full array of bespoke services and an open-architectured range of investment products suited individual expectations :

– discretionary management mandates– investment advisory services– fund selection– estate and financial planning– foreign exchange transactions– precious metals– structured products, advised or under mandate– private equity– property loans– commercial transactions– e-Banking.

From an economic and financial standpoint, 2010 was yet another year of contrasts marked by a persistent disconnect between developed and emerging countries. Europe and the USA had to cope with sizeable budget deficits amid an anaemic economic recovery. Several European countries were hit by serious budgetary crises, leading to sanctions from financial markets and undermining the euro. Meanwhile emerging countries, led by Asia, had yet another year of strong growth based on sound public finances.

Regulatory developments affecting international Private Banking activities continued to weigh on the outlook of some markets, particularly in Europe.

Despite these mixed conditions, net new money reached a record high of CHF 3 billion. This was made possible by the quality and hard work of Crédit Agricole (Suisse) SA’s teams and the wide variety of regions in which the Bank is present, notably emerging markets. These encouraging results bear out the strategy that Crédit Agricole (Suisse) SA has actively pursued since 2008, aimed at strengthening its sales forces in these regions.

Despite these excellent commercial results, client assets under management fell CHF 535 million over the past year due to a weakening of major currencies, particularly the euro and US dollar, against the Swiss franc.

Overall, the Bank continued to take a cautious approach to managing its clients’ investments. The majority of portfolios were invested in cash and bonds, but the share of these asset classes contracted slightly in favour of exposure to equity markets.

Private Banking products and services

In 2010 the Marketing and Investment Division (DMI) became Markets & Investment Solutions (MIS). The idea of the name change was to showcase more clearly the division’s goals : to interface between clients and the various markets in which we have recognised expertise ; focus on long-term investment while continuing to offer trading services to our most experienced clients ; and, last but not least, highlight the bespoke nature of the solutions we devise and implement for our clients rather than a purely product- based approach. This is particularly important given the significant growth in our high net worth clientele.

“ the baNk CONtiNued tO take

a CautiOuS aPPrOaCh tO

maNaGiNG itS ClieNtS’

iNveStmeNtS ”.

Youssef Dib, Head of Clientele, Private Banking

“ fOr Private equity, 2010 waS

aN OutStaNdiNG year, with

a twO-fOld iNCreaSe iN vOlume

COmPared tO 2009 aNd the

lauNCh Of a Private debt Offer ”.

Frédéric Lamotte, Head of Markets and Investment Solutions


Buoyed by renewed volatility in currency markets, the Private Client Forex department experienced a record-breaking level of activity in 2010 in every region and client segment, while diversifying its active client roster. It is worth noting that, thanks to the high quality of the advice provided directly to clients handled by the desk, the vast majority of them were able to escape the effects of the US dollar’s steep fall against the euro and subsequent equally abrupt reversal. In parallel, the CHF continued to appreciate strongly throughout the year.

For the Private Equity business, too, 2010 was a banner year, with a two-fold increase in volumes compared with 2009. Over the period, the department successfully developed and promoted a Private Debt offering (via funds of LBO loans bought from banks at a large discount) and a Private Equity Real Estate offering (closed-end funds investing over the medium term in rental and / or commercial property assets). The department also continued to improve the quality of reporting on all these “ revenue stream assets ”.

After reaching a low in 2009, Structured Products experienced fresh demand in 2010, particularly for fixed income products in the first half-year and equity market products in the second. With the creation in early 2010 of an Investment Committee representing all MIS’ management skills, the volume of assets under “ Structured-Product Discretionary Management ” increased significantly.

Discretionary Portfolio Management, following an exceptional 2009, delivered results generally in line with its targets despite punitive currency impacts, which were partly offset by a very accurate analysis of the markets for risky assets (equities with an emerging market bias and commodities with a metals bias, both of which made strong contributions). International assets management in Swiss francs was hurt by the relative strength of the franc against all other currencies. By contrast, Absolute Return mandates performed in line with their target of LIBOR +1-2 % with a volatility of 2-3 %, and did so for the sixth year running.

The Investment Fund activity continued to expand with proprietary Crédit Agricole (Suisse) SA investment funds (Bel Air and PB Invest, a Luxembourg specialised investment fund offering investors total transparency). Two new subfunds

14 ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA

were created : “ World equities – Shariah compliant management ” and “ Brazil selected equities ”. One of the highlights of 2010 was the transfer of all pooled fund management business from the Bahamas to Bel Air / PB Invest funds. value dates were not affected and the transfer had no market impact for clients, who can now benefit from a more secure service on an investment that nonetheless retains its special feature, the preponderance of Canadian markets. Lastly, the Investment Fund department helped the Group make progress on formalising its socially responsible investment offering.

The Advisory department continued to garner business from the major accounts delegated to it, as clients increasingly looked for more direct interaction with markets. The Direct Access offering took shape in 2010 and met with strong demand from clients, prompting the creation of dedicated resources.

Low interest rates and the appeal of real assets continued to attract investors to Real Estate activity, generating success for this department. It set up an innovative model for monitoring the value of exceptional properties in order to improve the quality of risk management and thereby sustain this business.

Crédit Agricole Suisse Conseil SA, a subsidiary of Crédit Agricole (Suisse) SA, created a line of life insurance products in 2010 for the Bank’s clients with the aim of promoting our internationally diversified management services via dedicated funds. In addition, to meet the needs of the Bank’s biggest clients, an asset consolidation service in a “ family-office ” configuration was also initiated and put into operation. Throughout the year, the engineering teams made substantial contributions. In particular, the subsidiary structured several aircraft financing deals and crafted ownership strategies for private individuals.

Product departments in Asia consolidated their growth around the two existing centres in Hong Kong and Singapore, with greater emphasis on local management approaches. In 2010 MIS created a Senior Investment Advisor (SIA) position in Beirut to assist relationship managers and clients in the Middle East region. Furthermore, all MIS department heads in Geneva received cross-training on the Bank’s full range of products and services so that they can act as SIA for all the Bank’s relationship managers.

Capital marketsThe Capital Markets department offers a range of innovative products and solutions to Private Banking, institutional and corporate clients. Its activities encompass :

• advisoryandtradingservicesincurrenciesand precious metals

• cashmanagement

• commodity,fixedincome,equityandcurrencyderivatives and structured products.

The most troublesome issue in 2010 was government debt management. The USA continued supporting debt-led growth while Europe opted for austerity, triggering volatility in currency markets.

In this climate of uncertainty and low interest rates, all our businesses managed to turn in fine performances. Our commitments are strictly monitored and, in all cases, respect the risk policies of the Crédit Agricole SA Group.

Revenues beat forecasts but still fell short of last year’s record-setting level. We made substantial investments throughout 2010 to optimise risk management.

Corporate BankingThe Corporate Banking division of Crédit Agricole (Suisse) SA handles all the financing and credit activities dedicated to large multinational groups and international commodity trading firms.

Organised around two main units, it is responsible for developing activities involved in the financing of international commodity trading under a global franchise, as well as for standard corporate financing activities.

The role of Corporate Banking obviously includes offering all the other types of credit available from the Crédit Agricole Group, in particular for aircraft, shipping and project financing.

After treading cautiously in 2009, we chose to ramp up our sales and marketing efforts in 2010, principally in commodities. Commodity prices held firm throughout the year on the back of strong momentum in Asian and South American markets.

Our Bank experienced strong demand from clients in this area, to whom it provided active support by making available its full range of

“ Our COmmerCial aCtivitieS

were buOyed by the dyNamiC

marketS Of aSia aNd SOuth

ameriCa ”.

Pierre Glauser, General Manager, Head of Commercial Banking Switzerland, Global Head of Transactional Commodity Finance Business Line


expertise, from advisory services to loans and credits facilities, and a host of operational resources. This positioning produced a significant improvement in results.

Transactional Commodity Finance is one of the flagship activities of Crédit Agricole (Suisse) SA, built up for over 25 years by our international trade experts with the support of top-notch operational and IT teams.

The department’s portfolio now includes many of the world’s major commodity market participants and is principally specialised in the energy sector, which represents nearly 80 % of its business. The remainder is split between metals, minerals and soft commodities.

Because of Switzerland’s role as a global centre, the department has to coordinate and develop Crédit Agricole SA Group’s worldwide network, which today – with the March 2010 opening of the Shanghai unit – spans all the strategically important sites linked to this activity. With teams in Asia (Singapore, Hong Kong and Shanghai), Europe (Paris, Moscow and Kiev) and the Americas (New York and Sao Paulo), Crédit Agricole (Suisse) SA has the resources to operate globally on behalf of its entire clientele.

The second Corporate Banking activity, Commer- cial Banking, relies on a multi-business, multi-service offering to forge dedicated partnerships with large corporations, middle market companies and private banking clients – all with the full backing of a solid banking group. Taking advantage of the economic recovery and a high-quality portfolio, in 2010 the Commercial Banking arm again demonstrated its ability to help clients grow their business.

With its Trade team based in Geneva, Crédit Agricole (Suisse) SA can offer clients a full range of Export and Trade Finance products and services, such as issuance of international market guarantees and preparation of export financing packages covered by export risk guarantees. The team can also rely on the entire interna-tional network of Crédit Agricole Corporate & Investment Bank.

The Crédit Agricole Private Banking Services Logistics CentreThe Crédit Agricole Private Banking Services Logistics Centre is an invaluable resource for banking activities.

Equipped with first-class administrative resources, it continues to develop cutting-edge IT logistics to carry out its role of services centre in charge of IT, back-office and accounting functions for the international private banking subsidiaries of the Crédit Agricole Group.

Relying on these skills, backed by ISO 9001: 2008 and SAS70 Type II certifications successfully renewed year after year, Crédit Agricole (Suisse) SA has offered banks outside the Group – in Switzer- land and abroad – a complete outsourcing package for IT services, back-office and accounting functions for over a decade. Close to 25 banks, or more than 3 000 total users, have already entrusted these services to the Crédit Agricole Private Banking Services platform, which develops according to their needs and those of their clients. In all more than CHF 110 billion in client wealth is managed using the S2i integrated banking software.

The Logistics Centre is continually improving its services, focusing on three areas : constantly striving to improve the quality of operations, boosting productivity and managing operating risks. In 2010 these efforts led to the completion or launch of numerous projects :

• ongoing enhancement of S2i with newfunctionalities that are increasingly adapted to banking needs,

• renewal of SAS 70 certification, which ensuresrigorous internal control of IT and operating processes and thus reassures client banks – and their auditors – about outsourcing their activities to Crédit Agricole Private Banking Services,

• creation of an S2i banking environment inHong Kong, ready to take on its first clients once it obtains a banking licence, to accelerate the Bank’s growth in Asia,

“ maNaGiNG baCk-OffiCe taSkS

requireS the mOSt advaNCed

SOftware aNd muCh mOre

hiGhly Skilled Staff thaN iN

the PaSt. thiS iS eNCOuraGiNG a

GrOwiNG Number Of baNkS tO

OutSOurCe theSe aCtivitieS. ”

Jacques Bourachot, Managing Director of Crédit Agricole Private Banking Services

Chf110 billiON

iN ClieNtS aSSetS

ON the S2i SyStem

3000

uSerS Of the S2i SyStem


• creation of an S2i banking environment inBelgium, operational in March 2011, to support the development of CA vMC, the brokerage company recently set up by Crédit Agricole Luxembourg,

• completion of the CFM Monaco migrationproject consolidated by the transition to the platform in January 2011, in keeping with the schedule announced in late 2008 ; as a result, the platform will now handle more than 90 % of the client wealth of the Group’s International Private Banking business line from Switzerland,

• signatureofseveralnewoutsourcingcontractscalling for operational start-up in 2011 ; these new contracts testify to the quality of Crédit Agricole (Suisse) SA’s IT and back- office outsourcing services.

Cross-departmental functions of the Bank

CoverageThe Coverage department, which Crédit Agricole (Suisse) SA created in early 2007, is responsible for developing and monitoring relations with corporate clients and Swiss financial institutions across business lines in the Crédit Agricole Group’s Corporate and Investment Banking activities. Coverage initiates and coordinates operations among all the Group’s business lines, but particularly in Investment Banking, Equity Brokerage and Derivatives, Capital Markets, Structured Finance and Corporate Financing.

Two highlights of 2010 were the robust growth in overall revenues generated with corporate clients and continued significant activity with financial institutions. This significant expansion was due to a number of factors, including Investment Banking / Corporate Equity Derivatives transactions ; M&A advisory contracts ; book- runner mandates for syndicated loans ; fixed income, currency and commodity derivative transactions ; a deal to deliver electricity over the medium term ; and export financing transactions.

General SecretariatThe General Secretariat continued to strengthen the internal control system and develop tools for controlling risk, combating money laundering and terrorist financing, and managing related issues such as countries under sanctions or embargos.

The General Secretariat was also kept busy by new regulations on banking secrecy, notably with respect to new double taxation treaties and projects announced by the FINMA, as well as various other foreign government projects involving tax and regulatory issues (cross-border activities).

The General Secretariat coordinated the creation of a new Board Committee, the Compensation Committee, and helped draft a directive issued by the Board on the Bank’s compensation policy.

The Bank was also granted licences to open two representation offices, in Dubai and Abu Dhabi, in March 2010.

human ResourcesFor Human Resources, 2010 was an intense year. It focused on :

• developing the Bank’s number of staff members organically through recruitment efforts, principally in Private Banking and Logistics (CA-PBS), and managing employees’ careers and internal job mobility ;

• strengthening salary guidelines in accordancewith the provisions of local regulators (the FINMA and the HKMA) as well as internal bodies ;

• fine-tuningourtrainingopportunities,especiallyfor the “ Itinéraires Métiers programme ” (creating a curriculum for management assistants), developing the in-house magazine, WE MAG, and pursuing the apprenticeship programme,

• renewing ISO 9001:2008 certification, whichwas validated for the next three years, thus ensuring that all of our HR directives comply with legal and organisational guidelines.

17ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA

evolution of the Crédit agricole (Suisse) Sa Group


Consolidated key figures

Balance sheet

Total assets

Shareholders’ equity as defined in Art. 18 and seq. OFR (Tier 1)

Income statement

Interest income

Commissions

Income from trading

Other ordinary income

Total income (operating income)

Personnel expenses

Other operating expenses

Gross profit

Amortisation and valuation adjustments

Exceptional income and expenses

Taxes

Consolidated net profit

Total client assets

Number of employees (in full-time work equivalents)

Ratios (%)

Equity / Total assets

Expenses / Income

ROE

BIS Tier 1 capital ratio

(in millions of CHF) 2010 2009 % change

27 030 30 926 - 12.6

1 510 1 505 + 0.3

202.6 233.7 - 13.3

282.5 307.8 - 8.2

109.0 103.1 + 5.7

62.0 61.8 + 0.3

656.1 706.4 - 7.1

- 305.0 - 289.5 + 5.4

- 105.8 - 100.5 + 5.3

245.3 316.4 - 22.5

- 51.0 - 125.5 - 59.4

0.2 7.5 –

- 52.7 - 55.5 - 5.0

141.8 142.9 - 0.8

48 090 49 070 - 2.0

1 405 1 324 6.1

5.6 4.9

62.6 55.2

9.4 9.5

12.6 10.7



Consolidated financial statements


Consolidated balance sheet as at 31 december 2010

Assets

Liquid assets

Money-market instruments

Due from banks

Due from clients

Mortgages

Securities and precious metals trading portfolios

Financial investments

Non-consolidated participating interests

Fixed assets

Intangible assets

Accrued income and prepaid expenses

Other assets

Total assets

Total subordinated amounts receivable

Total amounts due from non-consolidated participating interests and holders of qualified participations

(in thousands of CHF) 31.12.2010 31.12.2009

10 056 11 601

1 506 035 2 412 599

14 715 117 17 670 868

8 010 307 8 823 155

418 030 407 767

1 545 470 4 577

6 908 800 167

33 697 38 129

259 467 259 537

8 999 23 142

110 695 88 293

405 248 385 737

27 030 029 30 925 572

– –

14 029 328 14 320 737

Consolidated financial statements ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA22

Liabilities

Off-balance sheet transactions


Due to banks

Due to clients

Accrued expenses and deferred income

Other liabilities

valuation adjustments and provisions

Reserves for general banking risks

Share capital

Capital reserves

Revenue reserves

Group share of net profit

Total liabilities

Total subordinated amounts due

Total amounts due to non-consolidated participating interests and holders of qualified participations

Contingent liabilities

Irrevocable commitments

Confirmed credits

Derivative financial instruments :

Positive replacement values

Negative replacement values

Contract volume

Fiduciary transactions



1 073 969

10 405 132 12 506 416

14 100 365 16 116 483

178 743 167 893

589 584 301 051

70 957 150 836

85 742 85 742

579 371 579 371

414 826 414 826

462 482 459 133

141 754 142 852

27 030 029 30 925 572

590 000 590 000

3 193 210 6 029 089

8 309 491 9 395 384

886 513 745 621

3 324 72 107

414 826 391 777

600 407 310 400

33 339 573 33 585 358

6 754 379 7 600 689

Consolidated financial statementsANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA 23

Income and expenses from ordinary banking operations

Consolidated income statement for the year 2010

Interest income and expenses

Interest and discount income

Interest and dividend income from trading portfolios

Interest and dividend income from financial investments

Interest expenses

Net interest income (subtotal)

Commission income and service fees

Commission income on loans

Commission income from securities trading and investments

Commission income from other services

Commission expenses

Net income from commissions and service fees (subtotal)

Trading income


Income from sale of financial investments

Total income from participating interests

– including participating interests accounted for using the equity method

– including other non-consolidated participating interests

Income from buildings


Other ordinary expenses

Other ordinary income (subtotal)

Operating expenses

Personnel expenses


Operating expenses (subtotal)

Gross profit

(in thousands of CHF) Year 2010 Year 2009

271 562 429 113

74 36

137 236

- 69 208 - 195 711

202 565 233 674

78 713 78 829

213 092 231 350

55 167 52 773

- 64 510 - 55 153

282 462 307 799

109 028 103 081

1 084 395

738 1 542

– 503

738 1 039

1 448 1 407

58 949 58 765

- 215 - 257

62 004 61 852

- 304 997 - 289 479

- 105 755 - 100 525

- 410 752 - 390 004

245 307 316 402



Gross profit

Depreciation of fixed assets

valuation adjustments, provisions and losses

Result before extraordinary items and taxes

Extraordinary income

Extraordinary expenses

Taxes



245 307 316 402

- 24 962 - 25 493

- 26 048 - 100 040

194 297 190 869

246 7 540

- 109 - 11

- 52 680 - 55 546

141 754 142 852


Consolidated cash flow statement for the year 2010

Cash flow from operations (internal sources)




Net income from participating interests (equity method)



Other assets

Other liabilities

Current taxes

Subtotal

Balance

Cash flow from shareholders’ equity transactions

Prior year’s dividend

Effect of exchange rate changes

Subtotal

Balance

Source of funds

Use of funds

Source of funds

Use of funds(in thousands of CHF)

Year 2010 Year 2009

141 754 142 852

24 962 25 493

14 486 94 921

506

5 307 93 857

67 536 1 554

19 511 736 828

288 533 726 795

84 395 87 272

542 578 103 906 1 096 011 814 067

438 672 – 281 944 –

134 700 153 800

4 803 891

– 139 503 – 154 691

– 139 503 – 154 691


Source of funds

Use of funds

Source of funds

Use of funds

Cash flow from investment activities

Long-term financial investments


Buildings used by the Bank

Other fixed assets

Subtotal

Balance

Cash flow from banking transactions

Medium- and long-term transactions (>1 year)

Due to banks

Due to clients

Due from banks

Due from clients

Mortgage loans

Short-term transactions

Due on money-market instruments

Due to banks

Due to clients

Due from money-market instruments

Due from banks

Due from clients

Mortgage loans


Subtotal

Balance

Liquidity position

Net change in cash during the year

(in thousands of CHF)

Year 2010 Year 2009

793 259 782 171

4 220 4 178

1 695 7 474

9 054 9 854

797 479 10 749 4 178 799 499

786 730 – – 795 321

11 730 17 500

1 753 2 056

11 459 39 337

160 585 73 167

57 560 52 012

104 491

2 089 554 9 680 562

2 014 365 161 689

906 564 2 086 602

2 967 210 10 058 187

879 280 1 929 821

47 297 74 996

1 540 893 2 285

4 800 455 5 887 899 12 422 867 11 755 838

– 1 087 444 667 029 –

1 545 1 039


1. Comments on the Group’s operations and workforceCrédit Agricole (Suisse) SA is the parent company of Groupe Crédit Agricole (Suisse) SA (hereinafter “ the Group ”). It has branches in Basel, Lausanne, Lugano, zurich, Hong Kong and Singapore, subsidiaries in Switzerland, the Bahamas, Lebanon and Qatar, and representative offices in the United Arab Emirates, Bahrain, Israel and Pakistan.

The Group is active in Private Banking, Commercial Banking and Transactional Commodity Finance, as well as spot and forward trading in money market instruments, currencies and precious metals, both as an intermediary and on a proprietary basis. In addition, the Group’s Logistics Centre acts as a service centre in charge of IT, back-office and outsourcing accounting activities.

In 2010 the Group sold 4 % of the share capital of Crédit Agricole Financements (Suisse) SA, an equity affiliate. The company is now 16 % owned and is therefore no longer consolidated.

At 31 December 2010, the Group employed 1 405 people on a full-time equivalent basis, compared with 1 324 at 31 December 2009.

Risk managementGeneral risk policy

The Board of Directors establishes the risk policy on the basis of statutory requirements and head-office directives. Responsibility for implementing the policy lies with General Management.

The Group is active in several business areas, which expose it primarily to counterparty risk, market risk, operational risk, legal risk and reputation risk.

Risk assessment

The Board of Directors regularly examines the main operational risks to which the Group is exposed ; these are described below. The assessment takes account of measures which aim to limit the risks as well as internal controls planned for this purpose. The Board of Directors

ensures that measures are in place to carry out continuous control within the business lines and that the parameters influencing the risk profile are assessed and taken into account in the preparation of the financial statements.

Counterparty risk

Counterparty risk, or credit risk, represents the loss borne by the Group in the event of default by a counterparty.

Loans are granted according to a system of delegation of authority and are subject to a rating system.

A Credit Committee examines loan applications, granting authorisations on the basis of the aforementioned delegation and policy. This policy encompasses the commitments of the Group’s clients and correspondents that result from lending activities, issuance of guarantees, and trading in currencies, derivatives and securities. Risks are regularly monitored by the Credit and Risk division according to stringent procedures. General Management and the Board of Directors are kept informed on a regular basis.

Market risk

Market risk reflects the potential loss on the Group’s portfolio caused by fluctuations in exchange rates, interest rates and the prices of securities.

Managing market risk involves identifying, mea- suring and monitoring open positions. The trading portfolio is valued and compliance with assigned limits is monitored on a daily basis. These positions are followed on the basis of a value-at-risk model. Moreover, they are subject to sensitivity limits, which are also checked on a daily basis.

The main market risks faced by the Group are :

•Foreignexchangerisk

Foreign exchange risk relates to changes in the value of positions denominated in foreign currencies as a result of fluctuations in the exchange rates of the said currencies against the Swiss franc.

Positions in foreign currencies are adjusted as soon as the transaction is initiated. They are revalued several times a day at regular intervals. In

addition, limits are set for each currency in order to limit the risk.

With the exception of some strictly identified covering positions, all foreign exchange risk is included in the Group’s trading positions.

•Interestraterisk

Interest rate risk assesses the loss of value on the overall positions of the Group, both in the trading portfolio or resulting from the structure of the Group’s balance sheet.

The Group’s portfolio positions essentially cover the capital loans and acceptances business (net outstanding loans to clients and banks). The Group assesses this risk using asset-liability management (ALM) techniques in order to evaluate maturity structures and the impact of possible interest rate movements affecting on-balance sheet and off-balance sheet positions.

Within the framework of asset-liability management and on the basis of empirical statistical analyses, the Group then staggers certain positions with undetermined interest rate constraints.

•Liquidityrisk

The system put in place by the Group to manage liquidity risk ensures compliance with the relevant regulatory requirements at all times.

Securities received under repurchase and reverse repurchase agreements and those that the Group can dispose of freely are included in the liquidity ratio. The market value of the securities received or remitted is checked on a daily basis so that additional collateral may be put up or demanded.

Operational risk

Operational risk is defined as the risk resulting from inadequacies in the design, procurement or implementation of procedures for recording data relating to Group operations in information systems in general, and in accounting systems in particular.

This risk is limited through the use of highly automated processes and internal control measures. In addition, the Group has an Internal Control unit that ensures procedural compliance and analyses data flows. A database has been created to cater for the collection and analysis of any incidents which may occur.

Notes to the consolidated financial statements

ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA28 Consolidated financial statements

Compliance and legal risk

Compliance and legal risk relates to the loss, whether financial or in terms of reputation, that could result from failing to comply with regulations or with due diligence duties specific to financial intermediaries.

The Group has a Compliance and Legal Affairs department whose role is to monitor compliance with regulations, notably in relation to the prevention of money laundering, the financing of terrorism and the prevention of fraudulent acts. This department also ensures that in-house directives are consistent with new legislation and regulations.

Regulatory ratio (Basel II)

In accordance with ref. No. 5 of the FINMA circular 2008 / 22, Crédit Agricole (Suisse) SA does not disclose information about its capital insofar as comparable information is published on an annual basis at the level of the Crédit Agricole Corporate & Investment Bank Group (see 2010 Annual Report, – Chapter : Pillar 3, available at www.ca-cib.fr) and on a half-yearly basis at the level of the Crédit Agricole SA Group (available at http://finance.credit-agricole.com).

Business policy when using derivative financial instruments

Transactions for the Group itself are carried out within the framework of internal directives applying to the management of market risk and interest rate risk.

Transactions carried out on behalf of clients include foreign exchange transactions (forward and options), stock options, stock exchange rates, interest rates, precious metals and futures.

The Group calculates an equivalent risk on these transactions to determine the amount of collateral required. This equivalent risk corresponds to the replacement value of the instruments plus an add-on or the usual margin calculated by the market. Margin calls are effected as soon as the value of the assets given as guarantee is no longer sufficient to hedge the risk run.

Outsourcing of activities

The Group does not outsource any of its activities as defined by the FINMA circular 2008 / 7.

2. accounting and valuation principles2.1 PriNCiPleS fOr PreParatiON Of the GrOuP’S fiNaNCial StatemeNtS

General principles

The Group’s accounting and valuation principles comply with the requirements of the Swiss Code of Obligations, the Swiss Federal Banking Act and the corresponding Implementing Ordi- nance, and also with the FINMA circular 2008 / 02 “ Accounting – Banks ”.

In accordance with the above, the consolidated financial statements of the Group are presented in accordance with the principle of presenting a true and fair view of the Group’s assets, liabilities, financial position and profit or loss.

Consolidation scope

The list of fully consolidated participating interests, participating interests accounted for using the equity method, non-consolidated participating interests and changes in the consolidation scope, is provided in note 3.3.

Year-end date of the consolidated financial statements

The consolidation period corresponds to the calendar year. The year end for all the compa-nies included within the consolidation scope is 31 December.

Consolidation method

Companies in the banking and financial sector in which the Group directly or indirectly holds the majority of the voting rights are consolidated according to the purchase method ; the acquisition

cost of the participating interest is offset by the amount of the shareholders’ equity at the time the Group took over control.

Participating interests of 20 % to 50 % in the banking and financial sectors are accounted for using the equity method. They are stated in the balance sheet at the proportional value of their net assets, including earnings.

However, participating interests that have no material impact on the objectives of the Group’s financial statements are not consolidated.

Depending on its nature, negative goodwill is attributed either to revenue reserves or to provisions. Positive goodwill is carried in the balance sheet and amortised over its economic life estimated to 5 years.

Conversion for consolidation purposes of individual company accounts expressed in a foreign currency

The balance sheets of companies domiciled outside Switzerland and drawn up in foreign currency are converted into Swiss francs at the year-end exchange rate. The income statements of these companies are converted at the average rate for the year. The currency gains and losses arising from this conversion are directly accounted for in Group shareholders’ equity.

2.2 aCCOuNtiNG PriNCiPleS

General principles

Assets, liabilities and off-balance sheet items reported under the same heading are always valued individually.

Recording of transactions and presentation in the balance sheet

Transactions are recorded in the books on their execution date and are valued thereafter according to the principles set out below. Until their settlement date, executed transactions are presented as off-balance sheet transactions, except for spot Forex and money-market transactions, which are directly accounted for in the balance sheet.

ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA 29Consolidated financial statements

Conversion of foreign currency items

The Group uses a multi-currency accounting system and balance sheet items denominated in foreign currency are converted at the closing exchange rate.

Interest on fixed-term transactions and commissions on fiduciary operations in foreign currency are recorded in the income statement on a daily basis, at the exchange rate prevailing on that day. All other income and expenses are recorded on the day they occur, using the rate prevailing at the time of the transaction.

The exchange rates against the Swiss franc used for converting foreign currency items are as follows :

When a receivable is deemed to be wholly or partially irrecoverable, it is written down by debit- ing the corresponding valuation adjustment.

A receivable is no longer deemed to be doubtful when the arrears (principal plus interest) have been settled, servicing of the debt has returned to normal and other solvency criteria have been met.


Securities acquired in the course of trading activities are marked to market.

Gains and losses made on purchases and sales, as well as unrealised gains and losses arising from fair-value changes, are reported under “ Net income from trading ”. If it has a material influence on the accounts, the cost of refinancing securities in trading portfolios is set off against interest and dividend income from those portfolios and is reported under “ Net income from trading ”.

Long-term financial investments

Fixed-income debt instruments to be held until maturity are valued according to the accrual method. The corresponding premiums and discounts are apportioned over the residual period to maturity. These adjustments are recorded as additions to or deductions from book value.

Gains and losses arising on interest alienated before maturity or repaid early are spread over the remaining life of the transaction, i.e. until the initial expected maturity.

Securities relating to participating interests and other debt instruments are valued, according to which is the lower, the acquisition cost or the market value. Adjustments to the value resulting from solvency conditions are not treated separately. The net impact of changes in value is reported as ordinary income or expenses.

Repurchase and reverse repurchase

Sales of securities with a repurchase obligation (repurchase) and acquisitions of securities with an obligation to resell (reverse repurchase) are similar to guaranteed financial transactions. The

total value of liquid assets received or given as a guarantee for repurchase and reverse repurchase agreements is carried in the balance sheet, including accrued interest.

Interest income from reverse repurchases and the interest expense from repurchases are apportioned over the underlying transaction period.


The non-consolidated participating interests are recorded in the balance sheet at their acquisition cost, less required value adjustments.

Tangible fixed assets

Fixed assets are recognised at their acquisition cost and depreciated on a straight-line basis over their estimated useful life as follows :

•vehiclesandITequipment 3years

• fixturesandfittings 5years

•mainframeITsystem 5years

• fitting-outofpremisesoccupied

under a long-term lease 10 years

•buildingsusedbytheBank (1.5 % per annum) 66.5 years

Upon subsequent revaluation, tangible fixed assets are carried in the balance sheet at their acquisition cost, less cumulative depreciation. The depreciation calculation is based on the asset’s entire estimated useful life. Depreciation is calculated from the time the item is first used. The accounting value is reviewed on each balance sheet date. If necessary, the impairment charges not included in the plans are accounted for in the current period.

Intangible assets

When the total cost of an acquisition is higher than the net assets acquired, valued in accordance with Group principles, the difference is treated as goodwill acquired and is capitalised. Intangible assets are amortised on a straight-line basis over five years. The accounting value is reviewed regularly at each balance sheet date. Extraordinary depreciation is taken into account when the situation so requires.

Cash, receivables relating to money- market instruments and commitments

These items are carried in the balance sheet at their nominal value. Specific provisions are raised for any receivables deemed doubtful and are charged directly against the assets concerned. Discounts on money-market instruments are allocated to the income statement on an accruals basis through adjustment accounts.

Amounts due from banks and clients, mortgages

Doubtful receivables, i.e. receivables for which it is unlikely that the debtor will be able to meet his commitments, are valued individually and the write-down is covered by valuation adjustments.

Currency Closing Average rate rate for the year

EUR 1.2425 1.3678

USD 0.9365 1.0357

JPY 0.01145 0.01189

Currency Closing Average rate rate for the year

EUR 1.4870 1.5070

USD 1.0380 1.0813

JPY 0.01122 0.01157

2010

2009

ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA30 Consolidated financial statements

Accrued income and expenses

Cut-off is applied to interest income and expenses, lending commissions considered as a component of interest, personnel and other operating expenses, safe-keeping fees, commissions on fiduciary transactions and asset management commissions.

Taxes

•Ordinarytaxes

Ordinary taxes on the income and the determining capital for the corresponding period are calculated in accordance with the relevant fiscal requirements. Direct taxes which are still due at the end of the financial year are recorded in the liabilities section of the balance sheet under the heading “ Accrued income and expenses ”.

•Deferredtaxes

The tax impact of temporary differences between the balance sheet value and the tax value of assets and liabilities is recorded in the “ valuation adjustments and provisions ” section of the balance sheet if the amounts are taxable and under “ Other assets ” if they are tax-deductible.

Claims resulting from deferred tax assets on temporary differences or on tax losses carried forward are only recorded if they are likely to be realised in the future through the existence of sufficient taxable profits.

Deferred taxes are determined annually on the basis of genuinely expected tax rates or, if they are not already known, on those in force at the time when the balance sheet is drawn up.

Deferred tax income and expenses are recorded in the income statement.

Valuation adjustments and provisions

The Group’s credit activity is limited mainly to Lombard loans and Transactional Commodity Finance. The particularity of these transactions is that repayment capacity is linked to the collateral put up during the transactions (self-liquidating transactions) as well as to the solvency of the debtor concerned.

When there is doubt as to a debtor’s ability to honour his commitments, the Group raises adequate provisions for the principal and interest, taking into account existing guarantees and collateral, as well as the economic environment. These valuation adjustments, which are made on an individual basis for each position, are charged directly against the balance sheet assets concerned. Interest deemed doubtful under this rule is provisioned from the date on which serious doubts first arise.

In accordance with the prudence principle, other identifiable risks are covered by provisions recognised in the balance sheet under “ valuation adjustments and provisions ”.


Free provisions, included in valuation adjustments and provisions in the individual accounts, are transferred to the reserves for general banking risks after deduction of a tax provision.

Pension commitments

The benefits provided for under the Crédit Agricole (Suisse) SA pension fund are determined in accordance with the Swiss recommendations for the presentation of accounts No. 16 GAAP (RPC 16). The majority of the staff of the Crédit Agricole (Suisse) SA Group are covered by the pension fund. Employee pension contributions are deducted from salaries from the date that the employee joins the Group or from 1 January following his or her 24th birthday, whichever is the later. Employee contributions amount to 6.2 % of the guaranteed salary. The employer’s contribution varies from 8.8 % to 18.8 % of the guaranteed salary and depends on the employee’s age. Employees are entitled to a pension or lump sum payment upon reaching the retirement age conferring entitlement to the Swiss State pension scheme. Employees can opt to take early retirement as from 58 years of age, in which case the pension amount is reduced. The pension plan also provides for payment of a pension to the employee’s spouse and children in the event of the death of the employee.

The pension commitments and the assets covering these commitments are held by a legally independent foundation. Contributions which have been adjusted to the period are presented as personnel expenses in the income statement. Furthermore, the foundation manages its assets through the Group, hence the related positions are recorded in the latter’s balance sheet.

Contingent commitments, irrevocable commitments, commitments to discharge and make supplementary payments, and confirmed credits

Off-balance sheet items are stated at their nominal value. A provision is made for identifiable risks and recorded under liabilities in the balance sheet.

Derivative financial instruments

The Group uses derivative financial instruments to manage its balance sheet structure, and also for trading purposes on behalf of its clients.

The positive or negative replacement values of all derivative instruments outstanding at the balance-sheet date are recorded gross in the balance sheet under “ Other assets ” and “ Other liabilities ” respectively.

Trading transactions are marked to market, whereas balance sheet management transactions are valued in the same way as the hedged positions.

valuation adjustments that are not recognised in the income statement at the closing date are recorded in a netting account, which is included in “ Other assets ” or “ Other liabilities ” depending on the balance on the account.

Layout of the notes to the consolidated financial statements

The numbering of the notes follows the layout stipulated by the FINMA in its directives governing the preparation of financial statements, except for note 3.5.


3.1.2 Data relating to doubtful receivables

3. balance sheet information

3.1 Summary Of COllateral fOr lOaNS aNd Off-balaNCe Sheet traNSaCtiONS

3.1.1 Summary of collateral

Loans

Due from clients

Mortgages

Residential buildings

Total loans

Reference year

Previous year

Off-balance sheet



Confirmed credits

Total off-balance sheet

Reference year

Previous year

Impaired loans / receivables

Reference year

Previous year

The reduction in impaired loans / receivables results from the positive risks development in transactional commodity

finance activity.

Gross amount

Estimated liquidation

value of collateral Net amount

Individual valuation

ajustments

Mortgage guarantees

Secured by collateral

Unsecured

Total



Type of collateral

81 351 5 029 120 2 899 836 8 010 307

418 030 – – 418 030

499 381 5 029 120 2 899 836 8 428 337

447 525 4 909 018 3 874 379 9 230 922

37 250 1 758 905 6 513 336 8 309 491

15 014 236 587 634 912 886 513

– 317 3 007 3 324

52 264 1 995 809 7 151 255 9 199 328

– 2 022 848 8 190 264 10 213 112

234 422 27 921 206 501 206 501

385 742 162 720 223 022 223 022


3.2 tradiNG POrtfOliOS Of SeCuritieS aNd PreCiOuS metalS, fiNaNCial iNveStmeNtS aNd PartiCiPatiNG iNtereStS



Book value Fair value

Ref

eren

ce

year

Pre

vio

us

year

Ref

eren

ce

year

Ref

eren

ce

year

Pre

vio

us

year

Pre

vio

us

year

(in thousands of CHF) Ref

eren

ce

year

Pre

vio

us

year


– Interest-bearing securities

including held-to-maturity

including carried at the lower of either cost or market value

– Participating interests

including qualified participating interests

Total financial investments

including securities held under repurchase agreements in accordance with liquidity requirements

Participating interests

– Unlisted

Total participating interests

* listed = admitted to trading on a recognised stock exchange


– Interest-bearing securities and rights

listed *

unlisted

– Securities relating to participating interests

Total securities and precious metals trading portfolios

including securities held under repurchase agreements in accordance with liquidity requirements

1 542 418 4 577

– –

1 542 418 4 577

3 052 –

1 545 470 4 577

1 542 418 –

33 697 38 129

33 697 38 129

3 430 776 400 3 444 776 623

– – – –

3 430 776 400 3 444 776 623

3 478 23 767 6 218 27 932

– – – –

6 908 800 167 9 662 804 555

638 773 188 646 773 407


Main changes in 2010 :SI La Coasta SA, already in liquidation, was wound up.

Following the sale of 4 % of the share capital of Crédit Agricole Financements (Suisse) SA, an equity affiliate, this company is now 16 % owned and is therefore no longer consolidated.

3.3 iNfOrmatiON relatiNG tO the maiN PartiCiPatiNG iNtereStS

Company name Registered office Activity Currency Sha

re c

apit

al(in

tho

usan

ds)

Voti

ng

rig

hts

%

Ho

ldin

g %

Reference year

Fully consolidated participating interests :

Crédit Agricole Suisse (Bahamas) Ltd, Nassau Bahamas Banking USD

Crédit Agricole Suisse Conseil SA, Geneva Switzerland Advisory and entities management CHF

Finanziaria Indosuez Investment and International SA, Lugano Switzerland asset management CHF

Safec, Société Anonyme d’Entreprises Financières Investments, commercial et Commerciales, Lausanne Switzerland operations and representation CHF

Sogea, Société de Gestion et d’Administration SA, Information technology service Lausanne Switzerland provider for the banking industry CHF

Other non-consolidated participating interests :

Crédit Agricole Financements (Suisse) SA, Geneva Switzerland Banking – Mortgage lending CHF

BFO (Ex-Banque Française de l’Orient), Paris France Banking EUR

Crédit Agricole Suisse (Liban) Financial Services SAL, Beirut Lebanon Financial institution LBP

Crédit Agricole Suisse (Qatar) LLC, Doha Qatar Financial company USD

Indosuez Trust Company Cayman Ltd, Georgetown Cayman Islands Fiduciary operations USD

Indosuez Trust (Switzerland) SA, Geneva * Switzerland Fiduciary operations CHF

* Formerly Société Financière d’Administration de Patrimoines, SFAP SA, Geneva – Investment and asset management.

10 000 100.0 100.0

1 000 100.0 100.0

1 800 100.0 100.0

650 100.0 100.0

50 100.0 100.0

177 778 16.0 16.0

21 442 1.1 1.1

2 000 000 100.0 100.0

500 100.0 100.0

500 100.0 100.0

100 100.0 100.0


3.4 aNalySiS Of CaPital aSSetS


Reference year

Participating interests (equity method)

Other participating interests

Total participating interests

Buildings used by the Bank

Other fixed assets

Total fixed assets

Goodwill

Total intangible assets

Fire insurance value of buildings

Fire insurance value of other fixed assets

Commitments : future leasing terms

arising from operating leases

Vari

atio

n /

fore

ign

ex

chan

ge

diff

eren

ce

Bo

ok

valu

e as

at

end

of

pre

vio

us

year

Cu

mu

lati

ve d

epre

ciat

ion

and

val

uat

ion

ad

just

men

ts

(eq

uit

y m

eth

od

)

Acq

uis

itio

n c

ost

Acq

uisi

tio

ns

Dis

po

sals

Wri

te-o

ffs

Bo

ok

valu

e as

at

end

of

finan

cial

yea

r

32 000 2 381 34 381 – – - 34 381 – –

3 748 – 3 748 - 187 30 136 – – 33 697

35 748 2 381 38 129 - 187 30 136 - 34 381 – 33 697

274 198 - 31 968 242 230 – 1 695 - - 3 791 240 134

59 574 - 42 267 17 307 - 66 9 159 - 39 - 7 028 19 333

333 772 - 74 235 259 537 - 66 10 854 - 39 - 10 819 259 467

44 271 - 21 129 23 142 – – – - 14 143 8 999

44 271 - 21 129 23 142 – – – - 14 143 8 999

165 987 170 658

92 765 92 765

71 –


3.5 Other aSSetS aNd Other liabilitieS

Previous yearReference year


Replacement values of derivative financial instruments

– Trading portfolio

– Balance sheet management

Indirect taxes

Offset account

Other assets and other liabilities

Total

Other assets Other liabilities


287 311 249 917 213 297 180 933

103 182 326 145 151 862 102 836

596 9 805 19 14 654

– 1 671 16 265 –

14 159 2 046 4 294 2 628

405 248 589 584 385 737 301 051

36

leNdiNG aNd rePurChaSe traNSaCtiONS iNvOlviNG SeCuritieS

3.6 aSSetS PledGed Or aSSiGNed aNd aSSetS SubjeCt tO reServatiON Of title ClauSeS, exCludiNG SeCuritieS bOrrOwiNG / leNdiNG aNd rePurChaSe / reverSe rePurChaSe traNSaCtiONS

Financial assets

Other assets

Total

Claims arising from pledging cash when securities are borrowed or on conclusion of a reverse repurchase agreement

Amounts due from cash when securities are lent or when a repurchase agreement is completed

Securities held for own account, lent or transferred as collateral within the framework of borrowing securities as well as repurchase transactions

including securities for which the right to proceed to subsequent disposal or pledging has been granted without restriction

Securities received as guarantee within the framework of a securities loan as well as securities received within the framework of borrowing securities and by a reverse repurchase agreement, for which the right to proceed to subsequent disposal or pledging as collateral has been granted without restriction

including securities disposed of above or given to a third party as guarantee

Book value or amount of pledged

assets

Effectiveliabilities

Book value or amount of pledged

assets

Effectiveliabilities

Reference year

Previous year




2 792 – 3 212 –

631 – 141 –

3 423 – 3 353 –

3 411 930 7 125 075

2 469 943 3 673 760

– –

– –

3 404 018 6 879 179

2 610 397 3 463 726

37Consolidated financial statements 37

1. Liabilities to own pension funds

2. Pension funds

2.1 Reserves for employer contributions

There is a CHF 10 million employer contribution reserve with the pension fund for the reference year, as well for the previous year. This amount is not reported as an asset on the balance sheet.

2.2 Information regarding pension funds

The benefits provided for under the Crédit Agricole (Suisse) SA pension fund are determined in accordance with the Swiss recommendations for the presentation of accounts No.16 GAAP (RPC 16). The majority of the staff of the Crédit Agricole (Suisse) SA Group are covered by the pension fund. Employee pension plan contributions are deducted from salaries from the date the employee joins the Group, however not earlier than 1 January following his or her 24th birthday. Employee contributions amount to 6.2 % of the guaranteed salary. The employer’s contribution varies from 8.8 % to 18.8 % of the guaranteed salary and depends on the employee’s age. Employees are entitled to a pension or lump sum payment upon reaching the retirement age conferring entitlement to the Swiss State pension scheme. Employees can opt to take early retirement as from 58 years of age, in which case the pension amount is reduced. The pension plan also provides for payment of a pension to the employee’s spouse and children in the event of the death of the employee.

2.3 Financial benefits / commitments arising from funding excess / deficit

The pension fund’s audited annual financial statements, prepared under Swiss GAAP RPC 26, show the following level of funding :

Based on provisional figures, the level of funding was in excess of 100 % at 31 December 2010. As long as these reserves do not reach the regulatory level, there is no funding excess under Swiss GAAP RPC 16.

3.7 liabilitieS tO OwN PeNSiON fuNdS

31.12.2010 31.12.2009

31.12.2009 31.12.2008

Other liabilities to clients 23 303 16 856

Other liabilities 695 561

Total liabilities to own pension funds 23 998 17 417

The Crédit Agricole (Suisse) SA pension fund 108.7 % 102.8 %

The Crédit Agricole (Suisse) SA pension fund

Adjusted contributions for the period

200920102010

Pension expenses included in

“ Personnel expenses ”



22 282 21 489 21 466


3.9 valuatiON adjuStmeNtS aNd PrOviSiONS, reServe fOr fluCtuatiONS iN Credit riSkS, reServeS fOr GeNeral baNkiNG riSkS

Provisions for deferred taxes

valuation adjustments and provisions for default risks and other risks

– valuation adjustments and provisions for loan losses (credit risk and country risk)

– valuation adjustments for other operating risks

Total valuation adjustments and provisions

Less : valuation adjustments directly netted against assets

Total valuation adjustments and provisions as per balance sheet


(in thousands of CHF) Bal

ance

as

at

end

of

pre

vio

us

fi

nan

cial

yea

r

Sp

ecif

ic u

sag

e

Rec

ove

ries

, ove

rdue

in

tere

st, c

urr

ency

d

iffe

ren

ces

New

pro

visi

on

s ch

arg

ed t

o in

com

e st

atem

ent

Rev

ersa

ls c

red

ited

to

inco

me

stat

emen

t

Bal

ance

as

at

end

of

refe

ren

ce

fin

anci

al y

ear

25 164 – – – – 25 164

223 022 - 884 - 22 313 11 814 - 5 138 206 501

31 266 - 2 901 - 1 591 25 403 - 6 638 45 539

279 452 - 3 785 - 23 904 37 217 - 11 776 277 204

- 128 616 - 206 247

150 836 70 957

85 742 – – – – 85 742


3.10 Share CaPital aNd SharehOlderS hOldiNG mOre thaN 5 % Of all vOtiNG riGhtS

Total nominal value in thousands of CHF

Number of shares in thousands

Dividend-bearing capital in thousands of CHF

With voting rights

Crédit Agricole CIB SA, Paris

(subsidiary of Crédit Agricole SA) 579 371 100 579 371 100

Share capital

Total share capital

Share capital

Total share capital

Nominal in thousands

of CHF

Holding %


of CHF

Holding %

Previous year

Previous year

Reference year

Reference year

Significant shareholders and groups of shareholders bound by voting agreements

579 371 579 371 579 371 579 371

579 579 579 579

579 371 579 371 579 371 579 371


3.11 PrOOf Of equity

Shareholders’ equity at the start of the reference financial year

Share capital

Capital reserves

Revenue reserves



- Effect of exchange rate differences

Total shareholders’ equity at the start of the reference financial year

(before dividend distribution)

- Dividend distribution

+ Group share of net profit for the reference financial year

- Exchange rate differences

Total shareholders’ equity at the end of the reference financial year

(before profit appropriation)

of which Share capital

Capital reserves

Revenue reserves


Group net profit

- Effect of exchange rate differences


579 371

414 826

460 024

85 742

142 852

- 891

1 681 924

- 134 700

141 754

- 4 803

1 684 175

579 371

414 826

468 176

85 742

141 754

- 5 694


3.12 maturity StruCture Of CurreNt aSSetS, fiNaNCial iNveStmeNtS aNd bOrrOwed fuNdS

Current assets

Liquid assets


Due from banks

Due from clients

Mortgage loans



Total current assets Reference year

Previous year

Borrowed funds


Due to banks

Other amounts due to clients

Total borrowed funds Reference year

Previous year


Residual term

At

sig

ht

Red

eem

able

on

no

tice

Up

to

3 m

on

ths

3 to

12

mo

nth

s

1 to

5 y

ears

Ove

r 5

year

s

To

tal

10 056 – – – – – 10 056

– – 1 400 108 105 927 – – 1 506 035

1 605 229 – 10 318 326 867 892 1 061 472 862 198 14 715 117

– 2 172 126 5 020 704 513 219 276 329 27 929 8 010 307

– – 41 423 48 073 115 910 212 624 418 030

1 545 470 – – – – – 1 545 470

6 271 – 100 – 537 – 6 908

3 167 026 2 172 126 16 780 661 1 535 111 1 454 248 1 102 751 26 211 923

1 144 164 3 239 595 21 059 124 2 360 342 1 414 612 912 897 30 130 734

1 073 – – – – – 1 073

1 969 244 – 7 389 932 343 186 57 770 645 000 10 405 132

10 767 423 – 2 828 759 481 040 23 143 – 14 100 365

12 737 740 – 10 218 691 824 226 80 913 645 000 24 506 570

14 617 389 – 11 995 312 1 271 771 80 996 658 400 28 623 868


3.13 reCeivableS aNd PayableS tO affiliated COmPaNieS aNd lOaNS tO the GrOuP’S GOverNiNG bOdieS

Transactions with affiliated companiesThese refer to transactions with affiliated companies carried out under normal market conditions.

Loans to the Group’s governing bodiesThese are chiefly composed of mortgages and Lombard loans.

Reference year

Previous year(in thousands of CHF)

Receivables from affiliated companies

Due to affiliated companies

Loans to the Group’s governing bodies

331 420 182 871

1 644 915 56 134

6 874 5 760


3.14 breakdOwN Of dOmeStiC aNd fOreiGN aSSetS aNd liabilitieS (baSed ON dOmiCile)

Assets

Liquid assets


Due from banks

Due from clients

Mortgages





Intangible assets


Other assets

Total assets

Liabilities


Due to banks



Other liabilities



Share capital

Capital reserves

Revenue reserves

Group profit

Total liabilities

Switzerland Abroad Total Switzerland Abroad Total(in thousands of CHF)

Reference year Previous year

4 298 5 758 10 056 6 135 5 466 11 601

673 144 832 891 1 506 035 360 586 2 052 013 2 412 599

4 274 232 10 440 885 14 715 117 4 455 155 13 215 713 17 670 868

3 379 266 4 631 041 8 010 307 4 529 378 4 293 777 8 823 155

201 446 216 584 418 030 158 387 249 380 407 767

1 542 418 3 052 1 545 470 4 577 – 4 577

3 793 3 115 6 908 525 996 274 171 800 167

30 196 3 501 33 697 34 442 3 687 38 129

258 124 1 343 259 467 241 655 17 882 259 537

– 8 999 8 999 – 23 142 23 142

104 770 5 925 110 695 78 294 9 999 88 293

384 648 20 600 405 248 366 224 19 513 385 737

10 856 335 16 173 694 27 030 029 10 760 829 20 164 743 30 925 572

1 072 1 1 073 961 8 969

3 678 563 6 726 569 10 405 132 3 903 812 8 602 604 12 506 416

2 444 717 11 655 648 14 100 365 2 665 466 13 451 017 16 116 483

165 773 12 970 178 743 155 726 12 167 167 893

562 601 26 983 589 584 289 513 11 538 301 051

66 274 4 683 70 957 150 836 – 150 836

85 742 – 85 742 85 742 – 85 742

579 371 – 579 371 579 371 – 579 371

414 826 – 414 826 414 826 – 414 826

462 482 – 462 482 459 133 – 459 133

141 754 – 141 754 142 852 – 142 852

8 603 175 18 426 854 27 030 029 8 848 238 22 077 334 30 925 572


3.15 tOtal aSSetS by COuNtry Or reGiON

Assets

Europe

o / w : Switzerland

France

Great Britain

The Netherlands

Africa

North America

South America

Asia

o / w : Singapore

Hong Kong

Saudi Arabia

Japan

Caribbean

Oceania

Total assets



Amount % Amount %

22 630 777 83.7 26 048 094 84.2

10 856 335 40.2 10 760 829 34.8

8 285 314 30.7 12 716 829 41.1

1 106 857 4.1 484 276 1.6

576 407 2.1 581 682 1.9

275 266 1.0 394 808 1.3

54 446 0.2 425 426 1.4

198 799 0.8 176 508 0.6

3 567 664 13.2 3 723 802 12.0

1 576 083 5.8 1 454 923 4.7

372 636 1.4 375 030 1.2

325 941 1.2 173 213 0.6

275 177 1.0 801 670 2.6

269 483 1.0 134 596 0.4

33 594 0.1 22 338 0.1

27 030 029 100.0 30 925 572 100.0


46

3.16 aSSetS aNd liabilitieS by CurreNCy

Assets

Liquid assets


Due from banks

Due from clients

Mortgages





Intangible fixed assets


Other assets

Total balance sheet assets

Delivery claims from spot exchange deals, forward exchange deals and currency options transactions

Total assets

Liabilities


Due to banks



Other liabilities



Share capital

Capital reserves

Revenue reserves

Group profit

Total balance sheet assets

Delivery claims from spot exchange deals, forward exchange deals and currency options transactions

Total liabilities

Net positions by currency

CHF EUR USD Others Total(in thousands of CHF)

Currencies converted to CHF

4 299 4 247 1 078 432 10 056

429 785 127 662 706 568 242 020 1 506 035

5 586 560 6 475 877 1 183 628 1 469 052 14 715 117

1 111 915 995 767 4 846 365 1 056 260 8 010 307

308 221 97 785 5 627 6 397 418 030

1 542 486 2 112 872 – 1 545 470

3 502 2 027 1 379 – 6 908

30 196 1 022 2 479 – 33 697

258 124 – 378 965 259 467

– – 8 999 – 8 999

64 208 11 674 24 144 10 669 110 695

352 061 27 734 5 680 19 773 405 248

9 691 357 7 745 907 6 787 197 2 805 568 27 030 029

1 965 254 5 042 517 11 136 583 5 151 539 23 295 893

11 656 611 12 788 424 17 923 780 7 957 107 50 325 922

74 910 56 33 1 073

2 667 325 3 419 379 3 939 534 378 894 10 405 132

927 579 3 902 320 7 259 446 2 011 020 14 100 365

157 733 2 691 5 618 12 701 178 743

553 417 15 048 1 441 19 678 589 584

58 570 3 782 8 555 50 70 957

85 742 – – – 85 742

579 371 – – – 579 371

406 041 – 8 785 – 414 826

471 428 – - 8 946 – 462 482

139 584 – - 5 080 7 250 141 754

6 046 864 7 344 130 11 209 409 2 429 626 27 030 029

5 606 949 5 442 666 6 719 812 5 526 445 23 295 872

11 653 813 12 786 796 17 929 221 7 956 071 50 325 901

2 798 1 628 - 5 441 1 036 21

47Consolidated financial statements 47ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA

4. information regarding off-balance sheet transactions

4.1 CONtiNGeNt liabilitieS

4.2 CONfirmed CreditS

Reference year

Previous year

Reference year

Previous year



Irrevocable and similar guarantees

Back-up and similar guarantees


Total

Commitments arising from acceptances

Total

6 461 311 6 724 136

494 606 610 818

1 353 574 2 060 430

8 309 491 9 395 384

3 324 72 107

3 324 72 107


4.3 OutStaNdiNG derivative iNStrumeNtS

Interest-rate derivatives

– Swaps

including external counterparties

including internal counterparties

– Options (OTC)

Currencies / Precious metals

– Forward contracts

– Futures

– Options (OTC)

Participating interests / Indices

– Options (OTC)

Total before impact of netting contracts

Reference year

Previous year

Total after impact of netting contracts

Reference year 390 493 576 062

Previous year 365 159 283 769

Balance of offset account

Reference year – 1 671

Previous year 16 265 –

Internal operations consist of transactions between the Group’s various trading desks to cover their financing and hedging needs. These transactions are offset in the balance sheet.



Po

siti

ve

rep

lace

men

t va

lues

(a

gg

reg

ate)

Oth

er

asse

ts

Neg

ativ

e re

pla

cem

ent

valu

es

(ag

gre

gat

e)O

ther

lia

bili

ties

Hedging instruments

Un

der

lyin

gam

ou

nt

Neg

ativ

ere

pla

cem

ent

valu

es

Po

siti

vere

pla

cem

ent

valu

es

Un

der

lyin

gam

ou

nt

Neg

ativ

ere

pla

cem

ent

valu

es

Po

siti

vere

pla

cem

ent

valu

es

Trading instruments

30 101 29 432 1 484 920 89 599 93 779 7 893 498

29 884 5 302 1 198 419 65 484 93 562 7 606 997

217 24 130 286 501 24 115 217 286 501

5 268 5 268 175 579 – – –

141 410 128 604 8 875 712 37 699 232 582 7 986 133

– – 1 259 – – –

93 894 93 887 6 434 048 – – –

16 855 16 855 488 424 – – –

287 528 274 046 17 459 942 127 298 326 361 15 879 631

213 605 207 256 18 286 150 178 172 103 144 15 299 208


The criteria used to determine “ more-than-custody-only ” other assets are defined by the link existing between the end-client and the Group. As a result, the assets held by the Group as part of its global custodian services provided to other financial institutions are not indicated in the above figures.

The subheading “ Net new money ” does not include items relating to the return on assets. Items such as interest are thus excluded from this heading.

4.4 fiduCiary iNveStmeNtS

4.5 ClieNt aSSetS

Reference year

Previous year

Reference year

Previous year


(in millions of CHF)

Fiduciary investments with third-party banks

Fiduciary investments with Group banks or affiliates

Fiduciary loans and other fiduciary transactions

Total

Type of client assets

Assets held by funds under own administration

Assets held under management mandates

Other client assets

Total client assets (including double-counted assets)

of which double counted assets

Net new money inflow (outflow)

– Private Banking

– Commercial Banking

664 168 837 263

6 039 741 6 685 650

50 470 77 776

6 754 379 7 600 689

36 77

3 540 3 594

44 550 45 476

48 126 49 147

36 77

2 564 - 6 262

2 968 - 1 911

- 404 - 4 351


5.3 PerSONNel exPeNSeS

5. information regarding the income statement

5.2 Net iNCOme frOm tradiNG

Reference year

Previous year

Reference year

Previous year



Salaries and indemnities

Social security contributions (AvS, AI, APG and other contributions required by law)

Contributions to pension funds

Other personnel expenses

Total

Securities

Currencies

Other

Total

249 392 234 782

27 842 26 558

21 489 21 466

6 274 6 673

304 997 289 479

783 –

108 063 102 830

182 251

109 028 103 081


5.7 iNCOme aNd exPeNSeS frOm OrdiNary baNkiNG aCtivity – breakdOwN betweeN SwitzerlaNd aNd Other COuNtrieS baSed ON the PriNCiPle Of dOmiCile Of OPeratiON

5.4 Other OPeratiNG exPeNSeS

Income

Interest income

Commission income

Trading income


Total income

Expenses

Personnel expenses


Total expenses

The geographical distribution of income and expenses is assessed via consolidated branches and subsidiaries based in Switzerland and abroad respectively.

Switzerland Other Total Switzerland Other Total(in thousands of CHF)

Reference year Previous year

Reference year


Expenses relating to premises, light and heating

Expenses relating to IT, office equipment and furniture, vehicles and other equipment

Postal and telecommunication expenses

Travel and entertainment expenses

Fees


Total

190 905 11 660 202 565 212 116 21 558 233 674

236 700 45 762 282 462 271 435 36 364 307 799

100 754 8 274 109 028 95 376 7 705 103 081

62 004 – 62 004 61 386 466 61 852

590 363 65 696 656 059 640 313 66 093 706 406

- 267 623 - 37 374 - 304 997 - 261 040 - 28 439 - 289 479

- 93 333 - 12 422 - 105 755 - 87 215 - 13 310 - 100 525

- 360 956 - 49 796 - 410 752 - 348 255 - 41 749 - 390 004

17 338 17 371

23 229 24 089

5 151 4 966

10 743 9 016

4 512 4 848

44 782 40 235

105 755 100 525


Report of the statutory auditor on the consolidated financial statements to the Annual General Meeting of Crédit Agricole (Suisse) SA, Geneva

As statutory auditor, we have audited the conso-lidated financial statements of Crédit Agricole (Suisse) SA, which comprise the balance sheet, income statement, statement of cash flows and notes (pages 22 to 52) for the year ended 31 December 2010.

Board of Directors’ responsibility

The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting rules for banks and the requirements of Swiss law. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. These standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making these risk assessments the auditor considers the internal control system relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on

the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements for the year ended 31 December 2010 give a true and fair view of the assets, the financial position, the results of operations and the cash flows, are in accordance with accounting rules for banks and comply with Swiss law.

Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (Article 728 CO and Article 11 AOA) and that there are no circumstances incompatible with our independence.

In accordance with Article 728a paragraph 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

Geneva, 28 April 2011


Patrick Fritz Josée Mercier Audit expert Auditor in charge

report of the statutory auditor



Parent company financial statements


Parent company balance sheet as at 31 december 2010

Assets

Liquid assets


Due from banks

Due from clients

Mortgages




Fixed assets


Other assets

Total assets

Total subordinated amounts receivable

Total amounts due from Group companies and significant shareholders


9 982 11 559

1 506 035 2 412 599

14 704 682 17 638 810

8 006 736 8 811 289

418 030 407 767

1 545 470 4 577

6 908 800 167

98 557 111 942

259 032 258 777

108 128 87 078

402 974 383 119

27 066 534 30 927 684

– –

14 024 452 18 407 441

Parent company financial statements ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA56

Off-balance sheet transactions

Liabilities


Due to banks

Due to clients


Other liabilities



Share capital

General legal reserve

Retained earnings brought forward

Net profit for the year

Total liabilities

Total subordinated amounts due

Total amounts due to Group companies and significant shareholders



Confirmed credits

Derivative financial instruments :

Positive replacement values

Negative replacement values

Contract volume

Fiduciary transactions



1 073 969

10 669 097 12 906 802

13 893 248 15 767 528

173 275 162 091

588 737 300 093

136 058 215 656

19 400 19 400

579 371 579 371

490 205 479 632

350 869 350 860

165 201 145 282

27 066 534 30 927 684

590 000 590 000

3 471 237 6 701 313

8 302 436 9 387 384

886 513 745 621

3 324 72 107

414 826 391 776

600 407 310 401

33 339 573 33 585 357

6 762 379 7 625 572

Parent company financial statementsANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA 57

Parent company income statement for the year 2010

Income and expenses from ordinary banking activity

Interest income and expenses

Interest and discount income

Interest and dividend income from trading portfolios

Interest and dividend income from financial investments

Interest expenses

Net interest income (subtotal)

Commission income and service fees

Commission income on loans

Commission income on securities trading and investments

Commission income on other services

Commission expenses

Commission income and service fees (subtotal)

Results from trading operations


Income from sale of financial investments

Income from participating interests

Income from buildings


Other ordinary expenses

Other ordinary income (subtotal)

Operating expenses

Personnel expenses


Total operating expenses (subtotal)

Gross profit


271 449 428 994

74 36

149 214

- 69 950 - 196 550

201 722 232 694

78 656 78 779

206 649 226 106

50 578 48 056

- 66 781 - 58 881

269 102 294 060

108 765 101 665

1 084 395

26 824 6 509

1 448 1 407

52 282 50 741

- 36 - 257

81 602 58 795

- 298 767 - 282 758

- 101 003 - 96 551

- 399 770 - 379 309

261 421 307 905


Profit for the year

Appropriation of profit

Gross profit


valuation adjustments, provisions and losses

Result before extraordinary items and taxes

Extraordinary income

Extraordinary expenses

Taxes




Retained earnings


Dividend

Attribution to general legal reserve




261 421 307 905

- 20 110 - 12 911

- 26 020 - 99 314

215 291 195 680

728 321

- 108 - 10

- 50 710 - 50 709

165 201 145 282

165 201 145 282

350 869 350 860

516 070 496 142

- 148 700 - 134 700

– - 10 573

367 370 350 869


1. Comments on the bank’s operations and workforceCrédit Agricole (Suisse) SA (hereinafter “ the Bank ”) is active in Private Banking, Commercial Banking and Transactional Commodity Finance, as well as spot and forward trading in money-market instruments, currencies and precious metals, both as an intermediary and on a proprietary basis. In addition, the Group’s Logistics Centre acts as a service centre in charge of IT, back-office and outsourcing accounting activities.

The Bank has branches in Basel, Lausanne, Lugano, zurich, Hong Kong and Singapore, subsidiaries in Switzerland, the Bahamas, Lebanon and Qatar, and representative offices in the United Arab Emirates, Bahrain, Israel and Pakistan.

In 2010 the Bank sold 4 % of the share capital of Crédit Agricole Financements (Suisse) SA, an equity affiliate. This company is now 16 % owned and is therefore no longer consolidated.

As at 31 December 2010, the Bank employed 1 336 people compared with 1 259 as at 31 December 2009.

Compulsory disclosure on Hong Kong Branch Remuneration System

The Board of Directors sets and enforces the remuneration policy. It appoints a remuneration committee which is composed of at least three members of the Board of Directors.

The structure and amount of total remuneration is aligned on business strategy, objectives, values and long-term interests, such as sustainable growth prospects as well as financial results and risk policy. It is consistent with the principles governing client and investor protection.

The remuneration is structured to ensure that the fixed and variable components are fairly balanced. The fixed component accounts for a sufficiently important share of the total remuneration and makes it possible to operate a fully flexible bonus policy. If a substantial bonus is granted, payment of an important portion can be deferred.

In reference to financial year 2010 for senior management and key personnel of Crédit Agricole (Suisse) Hong Kong Branch (six persons), the

fixed remuneration was HKD 14 140 000 in total. variable remuneration totaled HKD 6 779 000, split between (i) HKD 5 256 000 for cash bonus, (ii) HKD 431 000 for premiums, and (iii) HKD 1 092 000 for deferred cash bonus payable in February 2014 under condition of presence. In the same personnel category, no sign-on or severance payments were awarded in 2010.

Risk managementPlease refer to the consolidated financial state-ments (pages 28 and 29).

2. accounting and valuation principlesThe financial statements of the Bank are presented in accordance with the Group’s principles, except for specific restatements made in accordance with the principle of presenting a true and fair view of the consolidated financial statements. These restatements apply in particular to the following :


Participating interests are recorded in the balance sheet at their acquisition cost, less required value adjustments.

The Bank regularly assesses the value of its participating interests and may make exceptional provisions for diminution in value where necessary.

Taxes

Ordinary taxes on the income and the determining capital for the corresponding period are calculated in accordance with the relevant fiscal requirements. Direct taxes which are still due at the end of the financial year are recorded as liabilities in the balance sheet under “ Accrued income and expenses ”.


Reserves for general banking risks are set aside as a preventive measure with the aim of covering underlying risks relating to overall banking activity. These reserves are considered as forming part of shareholders’ equity under Swiss banking law (CAO). Amounts allocated to or written back from the reserves are recognised as exceptional items.

Notes to the financial statements


3. balance sheet information

3.5 Other aSSetS aNd Other liabilitieS



Replacement values of derivative instruments

– Trading portfolio

– Balance sheet management

Indirect taxes

Offset account

Other assets and liabilities

Total



287 311 249 917 213 297 180 934

103 182 326 145 151 862 102 836

587 9 809 13 14 485

- 1 671 16 265 -

11 894 1 195 1 682 1 838

402 974 588 737 383 119 300 093

61

leNdiNG aNd rePurChaSe traNSaCtiONS iNvOlviNG SeCuritieS

3.6 aSSetS PledGed Or aSSiGNed aNd aSSetS SubjeCt tO reServatiON Of title ClauSeS, exCludiNG SeCuritieS bOrrOwiNG / leNdiNG aNd rePurChaSe / reverSe traNSaCtiONS


Other assets

Total

Claims from pledging cash when securities are borrowed or on conclusion of a reverse repurchase agreement

Amounts due from cash received when securities are lent or when a repurchase agreement is completed

Securities held for own account, lent or transferred as collateral within the framework of securities borrowing as well as repurchase transactions

including securities for which the right to proceed to subsequent disposal or pledging has been granted without restriction

Securities received as a guarantee within the framework of securities lending and borrowing and by a reverse repurchase agreement, for which the right to proceed to subsequent disposal or pledging as collateral has been granted without restriction

including securities disposed of above or given to a third party as guarantee

Reference year

Previous year

Book valueor amount of

pledged assetsEffectiveliabilities

Book valueor amount of

pledged assetsEffectiveliabilities




2 792 – 3 212 –

631 – 141 –

3 423 – 3 353 –

3 411 930 7 125 075

2 469 943 3 673 760

– –

– –

3 404 018 6 879 179

2 610 397 3 463 726


2. Pension funds

2.1 Reserves for employer contributions

There is a CHF 10 million employer contribution reserve with the pension fund for the reference year, as well for the previous year. This amount is not reported as an asset on the balance sheet.

2.2 Information regarding the pension fund

The benefits provided for under the Crédit Agricole (Suisse) SA pension fund are determined in accordance with the Swiss recommendations for the presentation of accounts No.16 GAAP (RPC 16). The majority of the staff of Crédit Agricole (Suisse) SA are covered by the pension fund. Employee pension plan contributions are deducted from salaries from the date that the employee joins the Bank or from 1 January following his or her 24th birthday, whichever is the later. Employee contributions amount to 6.2 % of the guaranteed salary. The employer’s contribution varies from 8.8 % to 18.8 % of the guaranteed salary and depends on the employee’s age. Employees are entitled to a pension or lump sum payment upon reaching the retirement age conferring entitlement to the Swiss State pension scheme. Employees can opt to take early retirement as from 58 years of age, in which case the pension amount is reduced. The pension plan also provides for payment of a pension to the employee’s spouse and children in the event of the death of the employee.

2.3 Financial benefits / commitments arising from funding excess / deficit

The pension fund’s audited annual financial statements, prepared under Swiss GAAP RPC 26, show the following level of funding :

1. Liabilities to own pension funds

Based on provisional figures, the level of funding was in excess of 100 % at 31 December 2010. As long as these reserves do not reach the regulatory level, there is no funding excess under Swiss GAAP RPC 16.

3.7 liabilitieS tO OwN PeNSiON fuNdS

The Crédit Agricole (Suisse) SA pension fund 108.7 % 102.8 %

The Crédit Agricole (Suisse) SA pension fund

Adjusted contributions for the period

200920102010

Pension expenses included in

“ Personnel expenses ”


Other liabilities to clients 23 303 16 856

Other liabilities 695 561

Total liabilities to own pension funds 23 998 17 417


31.12.2009 31.12.2008

22 282 21 179 21 125


3.9 valuatiON adjuStmeNtS aNd PrOviSiONS, reServe fOr fluCtuatiONS iN Credit riSkS, reServeS fOr GeNeral baNkiNG riSkS


valuation adjustments and provisions for default risks and other risks

– valuation adjustments and provisions for loan loss (credit risk and country risk)

– valuation adjustments for other operating risks

– Other provisions

Total valuation adjustments and provisions

Less : valuation adjustments directly netted against assets

Total valuation adjustments and provisions as per balance sheet


The reserves for general banking risks have been disclosed to the fiscal authorities.

Bal

ance

as

at e

nd

o

f p

revi

ou

s

fin

anci

al y

ear

Sp

ecif

ic u

sag

e

Rec

ove

ries

, o

verd

ue

inte

rest

cu

rren

cy

dif

fere

nce

s

New

pro

visi

on

s ch

arg

ed t

o in

com

e st

atem

ent

Rev

ersa

ls c

red

ited

to

in

com

e st

atem

ent

Bal

ance

as

at e

nd

o

f re

fere

nce

fi

nan

cial

yea

r

223 022 - 884 - 22 313 11 814 - 5 138 206 501

29 744 - 2 566 - 1 520 25 278 - 6 638 44 298

91 506 91 506

344 272 - 3 450 - 23 833 37 092 - 11 776 342 305

- 128 616 - 206 247

215 656 136 058

19 400 – – – – 19 400


3.10 Share CaPital aNd SharehOlderS hOldiNG mOre thaN 5 % Of all vOtiNG riGhtS

Total nominal value in thousands of CHF

Number of shares in thousands

Dividend-bearing capital in thousands of CHF

With voting rights

Crédit Agricole CIB SA, Paris

(subsidiary of Crédit Agricole SA) 579 371 100 579 371 100

Share capital

Total share capital

Share capital

Total share capital


of CHF

Holding %


of CHF

Holding %

Previous year

Previous year

Reference year

Reference year

Significant shareholders and groups of shareholders bound by voting agreements

579 371 579 371 579 371 579 371

579 579 579 579

579 371 579 371 579 371 579 371


3.13 reCeivableS aNd PayableS tO affiliated COmPaNieS aNd lOaNS tO GOverNiNG bOdieS

3.11 PrOOf Of equity

Reference year


Receivables from affiliated companies

Due to affiliated companies

Loans to the Group’s governing bodies

Transactions with affiliated companiesThese refer to transactions with affiliated companies carried out under normal market conditions.

Loans to the Group’s governing bodiesThese are chiefly composed of mortgages and Lombard loans.

Shareholders’ equity at the start of the reference financial year

Share capital



Retained earnings

Total shareholders’ equity at the start of the reference financial year

(before dividend distribution)

- Dividend distribution

+ Share of net profit for the reference financial year

Total shareholders’ equity at the end of the reference financial year

(before profit appropriation)

of which Share capital



Retained earnings


331 420 182 871

1 644 915 56 134

6 874 5 760

579 371

479 632

19 400

496 142

1 574 545

- 134 700

165 201

1 605 046

579 371

490 205

19 400

516 070


4. information regarding off-balance sheet transactions

4.4 fiduCiary iNveStmeNtS

5. information regarding the income statement

5.2 Net iNCOme frOm tradiNG

Reference year


Fiduciary investments with third-party banks

Fiduciary investments with Group banks or affiliates

Fiduciary loans and other fiduciary transactions

Total

Reference year


Securities

Currencies

Other

Total

664 168 837 263

6 047 741 6 710 533

50 470 77 776

6 762 379 7 625 572

783 -

107 800 101 414

182 251

108 765 101 665


Proposal of the Board of Directors to the Ordinary Annual General meeting(with previous year comparison)

Appropriation of available earnings (in thousands of CHF)

The Board of Directors proposes to the Ordinary Annual General Meeting held on 28 April 2011 that available earnings for 2010 be appropriated as follows :

Proposal to the annual General meeting

Since the legal reserve has reached 50% of the share capital, it is recommended that no further attributions be made.

Year 2010 Year 2009



Retained earnings


Dividend

Attribution to the general legal reserve


165 201 145 282

350 869 350 860

516 070 496 142

- 148 700 - 134 700

– - 10 573

367 370 350 869

516 070 496 142


Report of the statutory auditor on the financial statements to the Annual General Meeting of Crédit Agricole (Suisse) SA, Geneva

As statutory auditor, we have audited the financial statements of Crédit Agricole (Suisse) SA, which comprise the balance sheet, income statement and notes (pages 56 to 68) for the year ended 31 December 2010.

Board of Directors’ responsibility

The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with the requirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making these risk assessments the auditor considers the internal control system relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control

system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion the financial statements for the year ended 31 December 2010 are in accordance with Swiss law and the company’s articles of incorporation.

Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (Article 728 CO and Article 11 AOA) and that there are no circumstances incompatible with our independence.

In accordance with Article 728a paragraph 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of financial statements according to the instructions of the Board of Directors.

We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.

Geneva, 28 April 2011


Patrick Fritz Josée Mercier Audit expert Auditor in charge

report of the statutory auditor


Quai Général-Guisan 41204 GenevaSwitzerlandTel. + 41 58 321 90 00Fax + 41 58 321 91 00

Basel

Aeschengraben 124051 BaselSwitzerlandTel. + 41 58 321 20 00Fax + 41 58 321 21 00

Lausanne

Rue du Grand-Chêne 1-31003 LausanneSwitzerlandTel. + 41 58 321 70 00Fax + 41 58 321 71 00

Hong Kong

Suite 2918Two Pacific Place88 QueenswayHong KongTel. + 852 37 63 68 88Fax + 852 37 63 68 68

Lugano

via F. Pelli 36901 LuganoSwitzerlandTel. + 41 58 321 30 00Fax + 41 58 321 31 00

Zurich

Lintheschergasse 158001 zurichSwitzerlandTel. + 41 58 321 40 00Fax + 41 58 321 41 00

Singapore

168 Robinson Road#23-03 Capital TowerSingapore 068912Tel. + 65 6423 03 25Fax + 65 6423 14 77

Beirut

Al Borj An Nahar Bldg, 2nd FloorMartyrs’ Square1107-2070 BeirutLebanonTel. + 961 1 96 63 00Fax + 961 1 96 63 20

Doha

QFC Tower, 5th Floor Diplomatic Area PO Box 16639West BayDoha Qatar Tel. + 974 496 78 01Fax + 974 496 78 05

Nassau

Goodman’s Bay Corporate CentrePO Box N 3015West Bay StreetNassauBahamasTel. + 1 242 502 81 00Fax + 1 242 502 81 66

head office

International subsidiaries

Branches

Network of offices

www.ca-suisse.com

Little Lead Soldiers IX, rows of transformers, Matelec (power plant), Gharfine, Lebanon.

Fire and Metal, paint booth, Sidem plant (aluminium), Lebanon.

Gold Nuggets, Bolts, Matelec plant, Egypt.

Light at the End of the Tunnel, stacked pillars, Pikasso (outdoor advertiser), Lebanon.


Karachi

D-118/2, Kehkashan 5CliftonKarachiPakistanTel. + 92 21 358 786 97Fax + 92 21 358 708 90

Tel Aviv

Millenium Building, 20th Floor17 Ha’arbaa Street64739 Tel-Aviv IsraelTel. + 972 3 68 69 000Fax + 972 3 68 69 111

Lausanne

Chemin de Bérée 46-481010 LausanneSwitzerlandTel. + 41 58 321 50 00Fax + 41 58 321 51 00

Crédit Agricole Suisse

Conseil SA

Rue du Marché 11PO Box 52591211 Geneva 11SwitzerlandTel. + 41 22 700 29 25Fax + 41 22 700 29 33

Finanziaria Indosuez

International SA

via F. Pelli 13APO Box 56406900 LuganoSwitzerlandTel. + 41 91 910 79 70Fax + 41 91 910 79 80

Sogea

Société de Gestion et

d’Administration SA

Chemin de Bérée 46-481010 LausanneSwitzerlandTel. + 41 58 321 50 00Fax + 41 58 321 51 00

Abu Dhabi

zahed The 1st Street – Al Muhairy Center, Office Tower, 4th FloorPO Box 44836Abu DhabiUnited Arab EmiratesTel. + 971 2 631 1515Fax. + 971 2 631 2500

Bahrain

Addax Tower, 14th Floor Seef DistrictPO Box 5410Manama BahrainTel. + 973 17 56 27 51Fax + 973 17 56 27 50

DubaiDubai World Trade Center 32nd FloorPO Box 9243DubaiUnited Arab EmiratesTel. + 971 4 332 1300Fax. + 971 4 331 0199

Representative offices

Logistics Centre Other main subsidiaries in Switzerland

Emeralds I, empty 7-Up bottles just inflated, Pepsi plant, Lebanon.

Cupid, paper drier, Sicomo plant (paper recylcing), Bekaa, Lebanon.

Lipstick I, fire extinguisher covers lined against a wall, Electric substation, Solidaire, Lebanon.

Little Lead Soldiers IV, rows of transformers, Matelec (power plant), Gharfine, Lebanon.

Roundabout III, reels, Matelec (power plant), Gharfine, Lebanon.

Skyscrapers I, transformer tanks, Matelec (power plant), Gharfine, Lebanon.


This Annual Report is published in French and English. In the event of a difference between the two versions, the French text shall prevail.

This report is printed on Forest Stewardship Council-accredited environmentally sustainable paper.

Photos : Joumana Jamhouri

Designed and produced by : WGR, Lausanne Reference No. 302

72

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Documents

ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE…vpr.hkma.gov.hk/pdf/100303/ar_10/ar_10.pdf · ANNUAL REPORT 2010 CRÉDIT AGRICOLE (SUISSE) SA Our strength at the service of your future