Societa Bancaria Ticinese
Origin of Societa Bancaria Ticinese
Societa Bancaria Ticinese was established 1903 in Lugano and relocated the following year to Bellinzona where the bank is ever since. Societa Bancaria Ticinese is the only typical private bank in Ticino. The current headquarter is located at Piazza Collegiata. The building was renovated in 1960 by architect Augusto Jaeggli and is considered one of the fascinating architectural post-war work in the canton of Ticino.
Societa Bancaria Ticinese is independent and the management is actively involved in the day-to-day business of the bank. The shareholders of the Bank are predominantly from Bellinzona and the major shareholders belong to the Resinelli family.
Philosophy and Strategy
Societa Bancaria’s decision-making process is very prompt and the bank has a high level of operational autonomy. The management is prudent and clear-sighted. Societa Bancaria Ticinese is committed to the local community and is supporting the local economy and culture since the beginning.
Societa Bancaria’s philosophy is not to bind itself to a large financial institution. The customers are treated in a discreet, personal and direct way. The aim is to build a long-lasting relationship based on trust and personal contact. Societa Bancaria offers customized products and services to their clients. The clients trust the bank and the excellent performance over the years shows that Societa Bancaria is on the right track. The relationship is based on tradition and experience.
Societa Bancaria offers high-end products and services tailor-made to the needs of their clients. The services and products offered are chosen from a wide range of investment spectrum. The portfolio managers have a great experience and they know what the clients want. The sustainable offer of services is constantly adjusted to the new circumstances and new technologies and solutions help to satisfy the demand of the clients. Innovations regarding investment solutions, risk assessment or management create new opportunities. The goal is to preserve and grow the assets of the clients over the medium to long-term.
Services and Solutions
Societa Bancaria Ticinese is a universal bank, specialized in private banking and asset management.
The services for private clients are:
- Accounts and services
- Mortgages and loans
- Miscellaneous products
The client has an individual and personal relationship with the investment advisor. The investment advice will help the client to choose the right investments. The client is making his own decisions but with the support of the experts.
The specialists are managing the assets. They select the best opportunities for the medium to long-term. Good timing and reliable information are the keys to success.
It all starts with a meeting with the client where the investment objectives are discussed and analyzed. The management profile which meets the client’s requirements is chosen.
The investment profiles are:
- Reinvestment – the assets are reinvested at final maturity
- Conservative – the aim is to preserve the assets and generate returns from interest payments
- Yield – the aim is to generate real growth of the assets through interest, dividend and capital gains
- Balanced – a significant increase of the assets is achieved through investments in equities and bonds
- Dynamic – investments are more on shares and long-term growth is achieved
- Growth – the investments are made in equities and a medium to long-term growth is achieved
Derivative financial instrument and forward exchange rates are traded primarily on behalf of the customers. The Bank is not engaged in derivatives for their account. Forward exchange transactions are carried out for the customers and the Bank is using them for hedging purposes.
The Board of Directors is responsible for overall risk management. The Board has carried out an analysis of the main risk the Bank is exposed. The aim is to manage and reduce risks.
Risk management is constantly monitored by the Management which has the necessary expertise to handle the risk. The Bank has its own risk management regulations which define the maximum credit limits per debtor.
Risk management is preserving the Bank’s resources and increase the profitability and therefore the value of the company.
- Credit risk – Societa Bancaria Ticinese mainly grants mortgages, Lombard Loans and to a lesser extent trade receivables. The solvency of the debtors is very important to the Bank.
- Market risk – includes the interest rate riks and the exchange rate risk. Prices are monitored daily.
- Price risk – Trading positions of the Bank are controlled by stop-loss orders.
- Liquidity and refinancing risk – liquidity is monitored in compliance with the legal provisions and the refinancing is done with own funds and with customer assets deposited with the Bank. Societa Bancaria has a high liquidity ratio.
- Operational risk – The Bank has severe internal controls to reduce the risk.
- Legal risk – the activities are regulated in line with the banking sector rules.
- Reputation and compliance risk – the Bank knows their customers personally and the staff is well trained to be sensitive at all times. The investment advisors inform their clients about the risks involved.
New rules for the financial sector have forced the bank to invest significantly in new human and technical resources. Administrative costs increased sharply.
The quality of the loan portfolio has been adjusted due to certain satiation of the real estate market and the more and more difficult commercial activities.
Some of the payment transactions are outsourced to D + H Switzerland GmbH in Baden. The bank has also concluded an outsourcing contract for their IT platform with the Lugano branch of Best Vision Solutions.
Societa Bancaria Ticinese – Facts & Figures
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|Address||Piazza Collegiata 3
|Phone||+41 91 821 51 21|
|Year of foundation||1903|
|No. of employees||15|
|Chairman||Avv. Mario Molo|
|Shareholder’s equity||26.010 mm CHF|
|Assets under Management||420.915 mm CHF|
|Assets under Management / Employees||28.061 mm CHF|
|Net profit||1.430 mm CHF|
|Net Profit / Employees||95’354 CHF|
|Tier 1 Ratio||20.5 %|
|Cost / Income Cost Ratio (CIR)||67.7 %|
Source: Annual Report 2017