euro adhoc: Bank Sarasin + Cie AG / Financial Figures/Balance Sheet / Bank Sarasin´s 1H 2008 results: Growth path maintained, profitability impaired by adverse market conditions (E)

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19.08.2008

Strong acquisition performance reflected in net new money growth of CHF 7.2
billion
Net new money growth of CHF 7.2 billion builds on the acquisition success of
last year (1H 2007: CHF 6.0 billion; 2H 2007: CHF 5.1 billion). Even excluding
the additional client deposits of CHF 2.0 billion transferred by AIG Private
Bank into Bank Zweiplus, Sarasin´s net new money growth on the operational side
still came in above target. Assets under management reduced by 2% overall to CHF
81.4 billion (31.12.2007: CHF 83.0 billion) due to a negative market performance
and currency translation effects.

Expansion plans consistently pursued - Bank Sarasin maintains its growth path
Despite the tricky market conditions, Sarasin continues to invest in new
branches and the expansion of existing locations, as well as the recruitment of
high-calibre client relationship managers (CRMs). 92 new CRMs signed up to the
Bank by the end of June 2008. Most of them will not start working until the
final quarter of 2008, and will therefore only make an impact on revenue flows
from 2009 onwards.

Despite investments in growth, expenses reduced to CHF 210.0 million (1H 2007:
CHF 211.2 million)
Despite all the investments in expansion projects, the Bank´s operating expenses
eased 1% to CHF 210.0 million. General administrative expenses rose 14% due to
intensified marketing initiatives and advance services rendered in the
back-office domain for Bank Zweiplus. Despite a higher headcount, personnel
costs fell 6% thanks to lower bonus accruals.

Net profit down to CHF 75.3 million (1H 2007 adjusted: CHF 97.3 million)
Total income dropped 12% to CHF 307.5 million because of the adverse market
environment. Net profit for the Sarasin Group fell 23% to CHF 75.3 million, and
the cost income ratio moved from 60.7% up to 68.3%.

Christoph Ammann, Chairman of the Board of Directors of Bank Sarasin & Co. Ltd
"Bank Sarasin is progressing well along its growth path. Our strategy, along
with the associated investments, is geared to the long term. By pushing ahead
with the expansion of our locations and client advisor teams, we are
consistently pursuing our growth strategy and investing in the long-term future
of the Sarasin Group, rather than simply trying to maximise our profits in the
short term."

Joachim Straehle, CEO of Bank Sarasin & Co. Ltd
"For us, there are two facets to the results reported for the first half of
2008: first, our lower income and profit reflects the very challenging market
environment. At the same time we were able to build on last year´s acquisition
success, improve our cost efficiency and push ahead with our growth initiatives
- especially the launch of Bank Zweiplus. The expansion of our offices in
Switzerland, as well as the obtaining of licenses in Germany, Bahrain, Qatar and
Oman, show that we are making good progress at all our locations. We are well
equipped for the future."

Challenging market conditions influence business performance and reduce earnings
power
Market conditions remained volatile and inevitably affected the Bank´s business
performance. Clients´ reluctance to invest their money resulted in lower
transaction-based income and a further rise in the level of cash as a proportion
of assets. Despite respectable net new money growth, total assets under
management (AuM) finished lower than the end of 2007 as a result of negative
performance and exchange rate movements, dropping CHF 1.6 billion to CHF 81.4
billion (31.12.2007: CHF 83.0 billion).

Operating income came to CHF 307.5 million during the reporting period, a fall
of 12% (1H 2007 adjusted: CHF 348.0 million). Net interest income rose 31% to
CHF 64.3 million, thanks to higher business volumes. The Bank´s two other main
sources of revenue experienced a decline: income from commission and service fee
activities suffered from lower transaction volumes and decreased 11% to CHF
202.3 million. The 27% reduction in income from trading operations (CHF 41.6
million) was due to lower client trading volumes and reduced values in our own
trading positions. The loss of CHF 0.8 million in ordinary income also stems
mainly from losses realised on the Bank´s own financial investments.

Net new money growth strengthens our market position
The strong net new money (NNM) growth of CHF 7.2 billion reflects the consistent
performance of Sarasin's CRM teams. This figure includes client assets worth CHF
2.0 billion transferred by AIG Private Bank into the new Bank Zweiplus. "Even
without this contribution," comments Joachim H. Straehle, "our acquisition
performance of CHF 5.2 billion on the operating side is higher than our original
expectations and the target we set ourselves. Thus, we are building on last
year´s success."

Excellent performance in terms of average NNM per client advisor
When averaged out across the entire Sarasin Group, each CRM in the private
client segment is now responsible for managing client assets of around CHF 205.9
million. The average acquisition performance came to CHF 19.5 million in 1H 2008
(+9%). In the Institutional Clients business, the average NNM growth per CRM
came to CHF 45.6 million (1H 2007: CHF 46.8 million). The average assets under
management in the Institutional Clients business came to CHF 599.6 million.

Expansion of CRM teams: consistently pursuing our growth strategy
The recruitment of 92 new high-calibre client advisors is part of Sarasin´s
stated intention to intensify investment in its future growth. "Although these
new advisors have already signed contracts with us," explains Joachim H.
Straehle, "most of them will only start work in the final quarter of 2008 and
will not therefore make a positive impact on revenues until 2009 onwards." The
number of CRMs (incl. assistants) therefore only rose initially to 336 at the
end of June. Recruitment levels were higher than last year, assisted by a
favourable market environment for attracting highly qualified CRMs and by the
competitive advantages enjoyed by Bank Sarasin as a highly focused private bank.

Costs well under control
Despite substantial investments in our growth initiatives, operating expenses
were 1% lower than last year, at CHF 210.0 million (1H 2007 adjusted: CHF 211.2
million). Although the headcount (adjusted for part-time working) increased by
12% from 1 176 (1H 2007) to 1 312 (1H 2008), personnel expenses fell to CHF
148.7 million (1H 2007: CHF 157.5 million) thanks to lower bonus accruals as a
result of the weaker business performance. The relationship between capacities
in the front and back office also improved, providing the desired economies of
scale. The 14% increase in general administrative expenses to CHF 61.3 million
can be explained by the intensification of the Bank´s marketing initiatives and
expansion projects. Investments have also been made in a standard IT platform
across the entire Sarasin Group and in the repositioning of the Sarasin brand in
a bid to optimise our marketing activities. As the future service provider for
Bank Zweiplus, Sarasin also incurred advance one-off general administrative
expenses in the areas of IT and logistics. In the second half of the year, these
will produce cost savings thanks to lower unit costs in the back office.

Sustainable Swiss Private Banking since 1841
Bank Sarasin has also redefined its market position in the light of its growth
strategy. The slogan "Sustainable Swiss Private Banking since 1841" succinctly
sums up what we stand for, what we do and how we act. For 167 years, Bank
Sarasin has been the most highly regarded and exclusive address for top-quality
professional investment and asset management. Sustainability is a key element of
our corporate philosophy and management. We have also been pioneering
sustainable investment and asset management concepts for the past 20 years. The
total assets managed by the Bank in accordance with sustainable principles were
16% higher than last year, at CHF 7.8 billion (1H 2007: CHF 6.7 billion).

Outlook 2008: Consistent implementation of growth initiatives boosts future
earnings power
As far as acquisition performance and the expansion of locations are concerned,
Bank Sarasin stands by the targets it has set itself for 2008. It is confident
that is will be able to achieve its full-year target of NNM growth of CHF 8.3
billion and adding 100 highly qualified advisors to its sales force. "At the
same time we need to take action to improve our profitability", says Joachim H.
Straehle. "On the one hand the investments in initiatives to assure our
long-term success will start to bear fruit in the next few years and have a
positive impact on our results. On the other hand, we have taken measures to
further improve our cost efficiency, such as the launch of Bank Zweiplus or
improving the ratio between front and back office capacities. We are well
equipped for the future."

Further inquiry note:
Benedikt Gratzl
Head of Corporate Communications
Tel +41 61 277 7088
[email protected]

end of announcement euro adhoc
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emitter: Bank Sarasin + Cie AG
Elisabethenstr. 62
CH-4002 Basel
phone: +41(61)277 77 77
FAX: +41(61) 272 02 05
mail: [email protected]
WWW: http://www.Sarasin.ch
sector: Banking
ISIN: CH0002267737
indexes: SPI
stockmarkets: regulated dealing: SWX Swiss Exchange
language: English

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