Neue Aargauer Bank
Origin of Neue Aargauer Bank
The history of NAB goes back to 1812 when the “interest-bearing savings fund for the inhabitants of the canton of Aargau” was founded. NAB, as it exists today, was established in 1989 when “Aargauische Hypotheken und Handelsbank” and “Allgemeine Aagauische Ersparniskasse” were merged.
Neue Aargauer Bank is headquartered in Aarau and is the leading regional bank in the canton of Aargau and the adjacent areas. NAB belongs to the Credit Suisse Group. As a universal bank NAB covers the needs of private and corporate clients. High net-worth individuals are exclusively served by the private banking department.
Philosophy and Strategy
Day by day Neue Aargauer Bank is carefully cultivating their values and thus ensures a great deal of confidence. Concrete solutions for their clients are at the center. NAB has a high level of advisory expertise, an attractive online solution, and a modern branch network. The bank is firmly anchored in the canton of Aargau.
Digitization and new customer behavior are fundamentally changing the business model of the banks. Services must be available anytime, anywhere, and at the same time, competent and personal advice is expected at a fair price. Those banks which can combine easy-to-use solutions with convincing consulting models will succeed in the market.
NAB is from its origin regionally anchored. The bank strives to provide its clients with the highest quality advice and the best service regardless of time and place. NAB is a regional bank with the possibilities of a big bank. The committed employees are familiar with the local conditions and are flexible partners to their customers.
The values of NAB are:
- Customer focused – the customer’s concern is the bank’s concern, the customers success in the bank’s success
- Familiar – NAB is familiar with the region and the needs of their clients
- Integer – integrity cannot be prescribed or enforced by regulations. Integrity is a deep-rooted conviction that shapes all of us and is the guideline to the daily actions
- Optimistic – optimism and a positive attitude characterize NAB’s self-conception. The bank is actively tackling new challenges
- Involved – NAB’s commitment reflects the enthusiasm to the bank’s business and the deep bonding to the region.
Services and Solutions
The personal needs and wishes are very different, especially when it comes to financial security and personal assets. Neue Aargauer Bank is advising their clients individually and comprehensively in all financial affairs. First, it has to be determined what the client wants and what kind of risk he is willing to take, then a strategy is implemented.
The process is like follows:
- Analysis of the needs
- Financial concept
- Client profile
Exclusive asset management
Neue Aargauer Bank pursues a structured investment decision process. This process forms the basis for the investments made in the mandate. The following are the important steps:
- Research – Analysis of the financial markets, expectations for future developments, investment assessment reports
- Investment decision – research results, preferences of the customer regarding return target and risk tolerance
- Portfolio creation – the selection of investment instruments, buying or selling the selected instruments, safekeeping of the instruments
- Investment controlling – internal and external compliance guidelines, process monitoring, risk-return analysis
The following products are mainly used:
- Liquid instruments – cash, money market instruments with a maturity of less than one year
- Bonds – corporate bonds, government bonds, emerging market bonds, convertible bonds, inflation-protected bonds, asset-backed securities, covered bonds, high-yield bonds
- Alternative investments – raw materials, real-estate investments, hedge-funds
Investments can either be direct investments or investments in investment funds, fund of funds, derivatives or structured products.
Neue Aargauer Bank does not conduct proprietary trading and focuses on its core business with customers.
Risk management includes the identification, evaluation, monitoring, measuring, controlling and reporting of risks. A central element of risk management is a comprehensive and transparent disclosure of risks to the Board of Directors, the executive management and the supervisory authorities.
The Board of Directors is responsible for the overall risk management and approves yearly the risk principles, the risk policy, and the risk limits. For the implementation the executive management is responsible. The Risk Management Committee (RMC) is monitoring and managing the individual risk categories. To each risk category, separate limits are applied which are monitored regularly as part of the ordinary risk control process. The monitoring and control of the operational risks are very important to Neue Aargauer Bank.
Risks are inherent in the financial business and can not be completely excluded. NAB endeavors to manage the risks within the set limits in a transparent and timely manner. Neue Aargauer Bank avoids risk concentrations through sound risk management and an independent risk monitoring.
The main risks NAB is exposed are the credit risk, the interest rate risk, the liquidity risk, the market risk, and the operational risk.
Neue Aargauer Bank’s trading income increased by 26.2 million in 2017. This is an increase of 3.4 million (+ 14.9%) compared to 2016. The good result was attributed to the increased foreign exchange transactions by private and corporate clients.
Neue Aargauer Bank remains firmly anchored locally and continues to expand its digital services and is modernizing its branches.
The net profit of 119.8 million CHF is 6.6% lower than in 2016. In 2016 the bank could record an extraordinary profit of 15.1 million CHF from the sale of properties.
New money inflow in 2017 was 605.4 million CHF an increase of 323.9 million CHF compared to 2016. The increase is widely spread between private and institutional clients.
For the seventh time in a row, NAB was awarded by the magazine “Bilanz” as excellent “universal bank regional.”
The investment solution MyNAB was in great demand. Over 5,200 solutions were finalized. The volume increased by 319% to total 2.2 billion CHF. Assets under management increased by 14% to 3.9 billion CHF.
Neue Aargauer Bank is the partner for mortgages to private clients. The mortgages increased by 161.5 million CHF in 2017. Outside the canton of Aargau, the bank is very conservative in lending. The overall mortgages decreased slightly by 1.5 % to 18.7 billion CHF. The strategy of NAB is to support the local clients and companies in the canton of Aargau.
Neue Aargauer Bank – Facts & Figures
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|Phone||+41 56 462 71 00|
|Year of foundation||1812|
|No. of employees||544|
|Shareholder’s equity||1.48 bn CHF|
|Assets under Management||18.4 bn CHF|
|Assets under Management / Employees||33.823 mm CHF|
|Net profit||119.8 mm CHF|
|Net Profit / Employees||220’220 CHF|
|Tier 1 Ratio||16.6 %|
|Cost / Income Cost Ratio (CIR)||53.9 %|
Source: Annual Report 2017