|
|
GENERAL CONSIDERATIONS
The world economy in 2007 managed to sustain the multiple shocks that affected it, notably the US sub prime credit crisis, of which the first devastating effects during the 3rd quarter destabilized specific large financial institutions. Nevertheless, even though world-wide expansion continued to benefit from the vigor of the emerging countries (+ 8%), thus compensating for the temporary weakening of the developed nations (+ 2.7%), the economic horizon on the US side is bound to slow down driven primarily by the housing market crisis.
On the banking scene, 2007 will be marked as a year of extreme turbulence marking the beginning of a rough path for the world-wide financial system. The decline of stock markets, the difficulties in money markets, the decline in banking developments, the credit crunch despite the intervention of central banks, anticipates a very difficult period for the financial sector.
In this context, 2007 was nevertheless for our bank a record year from the standpoint of our results.
CREDIT GROWTH
The adoption of a rigorous credit policy has always been an observed principle since the bank's establishment. Based on simple principles, this strategy consists of granting credits that shelter easily negotiable safeties and formed of convertible values. Moreover, substancial margins are imposed as a requirement.
Building on this policy, our bank succeeded in increasing the volume of credits by 39% (+ 22.2 millions CHF) to 79.4 millions, of which only 1.5% of credits are considered doubtful.
FINANCIAL BASE AND REINFORCED CAPITAL
Traditionally, the bank's accumulated results over the years constitute the basis of capital and provides a reassuring foundation to develop the bank in good conditions.
In 2007, capital increased 7.10% to 85.6 millions CHF against 78.5 millions in 2006. Compared to the final results, this important level of capital (46.7%) is a further proof of the bank's solidity.
RESULTS AGAIN IN PROGRESSION
Historically, the performance of 2007 has been the best that the bank has realized in its 30 years history. The 6.38% growth in net profits to CHF 7,031,939 from the previous year is a clear indication of this success.
|
