Page 13 - Maerki Baumann & Co. AG | Annual Report 2020
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Headcount adjusted for part-time employees declined by five full-time equivalents, and stood at 66 persons at the end of the reporting year. Nonetheless, the propor- tion of client-facing employees rose due to the estab- lishment of the Private Banking Germany department. Overall, personnel expenses declined by around CHF 0.20 million to CHF 20.45 million as a result of effi- ciency increases in internal processes and the defer- ment of new appointments. The vacant positions are expected to be filled this year, which will take the bank’s headcount back to around 70 persons. General and administrative expenses were also down by a sub- stantial CHF 0.85 million, thereby mitigating the nega- tive consequences of the coronavirus crisis. In keeping with these developments, operating expenses worked out at CHF 30.16 million, a year-on-year decline of CHF 1.03 million. Finally, no further depreciation on the bank building was required, and investment activity was streamlined. Accordingly, depreciation was some CHF 0.48 million lower than in the prior year.
Assets under management rose by CHF 82 million in 2020 to CHF 8.60 billion, equivalent to a year-on-year rise of around 1%. This rise in the asset base is primar- ily attributable to positive performance of CHF 298 million. Net new assets were affected by the depar- ture of a major institutional Swiss client in the “indi-
rect real estate” business area involving assets of more than CHF 330 million. Although inflows compensated for some of this shortfall, net new assets nonetheless declined by CHF 216 million in 2020. On the positive side, it should be noted that the bank booked positive net new assets in each of the last five months of the reporting year. We view the asset inflows from German clients as confirmation of our growth potential in Ger- many. Of total assets under management at the year- end, 82.4% related to the Swiss market and 9.1% to the German market.
Maerki Baumann has well-established systems in place for identifying, limiting and monitoring its key risks. The Board of Directors and Executive Board regularly engage with the relevant market, credit and liquidity risks, as well as the applicable operational risks. This conservative risk and business policy is reflected in the bank’s excellent liquidity and capital adequacy ratios. The liquidity coverage ratio averaged 268.5% in 2020, well in excess of the requirement of 110% that applies under the small banks regime. In addition, at the end of 2020 Maerki Baumann had increased its BIS core capi- tal ratio (tier 1 ratio) by a further 0.8 percentage points to 24.2%, as against the regulatory minimum of 10.5%. This very solid capital base is testimony to our private bank's stable balance sheet structure.
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