Income Statement in CHF 000s 1. Semester 2016 1. Semester 2015 1. Semester 2014

Operating income 219 359 224 578 221 983

Administrative expenses 125 991 127 163 126 556

Gross profit 93 368 97 415 95 427

Operating profit (interim result) 89 985 84 001 90 505

Group net profit 73 975 84 597 73 227

Balance Sheet in CHF 000s June 30, 2016 June 30, 2015 June 30, 2014

Loans to clients 24 514 228 24 243 362 23 885 996

Client funds 19 754 981 19 899 172 19 378 185

Balance sheet total 31 612 645 31 188 531 30 317 017

Shareholders’ equity 2 067 650 2 074 656 2 026 914

Eligible capital 2 164 756 2 191 035 2 183 553

Managed assets in CHF 000s

Managed assets 36 558 808 36 175 545 36 844 497

Average headcount

Full-time equivalents (in accordance with FINMA; apprentices calculated at 50%) 1 055 1 065 1 102

Number of employees:

– Individuals 1 223 1 234 1 273

– of which trainees 118 119 121

Key Figures 1. Semester 2016 1. Semester 2015 1. Semester 2014

SGKB share in CHF

Earnings per share 13.29 15.22 13.18

Dividend per share1 15.00 15.00 15.00

Market price

– as of December 31 378.00 339.50 349.75

Return on equity

Return on equity, pre-tax (basis: operating profit) 8.9 % 8.5 % 9.4 %

Return on equity, after tax (basis: group net profit) 7.3 % 8.5 % 7.6 %

Cost / income ratio

Cost / income ratio including depreciation on fixed assets 60.1 % 59.4 % 59.6 %

Equity key figures June 30, 2016 June 30, 2015 June 30, 2014

Core capital ratio (Tier 1) 13.9 % 13.9 % 13.8 %

Total capital ratio (Tier 2) 15.2 % 15.4 % 15.6 %

Excess capital ratio (CH standard) 6.5 % 6.7 % 6.7 %

Moody’s Rating June 30, 2016 June 30, 2015 June 30, 2014

Bank deposits Aa1/P-1 Aa1/P-1 Aa1/P-1

Baseline Credit Assessment 2 a3 a3 a2

Group Key Figures

Assets in CHF 000s 1. Semester 2016 in % 1. Semester 2015 in % Change in %

Liquid assets 3 504 331 11.1 3 509 518 11.3 (5 187) (0.1)

Due from banks 734 690 2.3 657 556 2.1 77 134 11.7

Amounts due from securities financing transactions 0 0.0 0 0.0 0 –

Due from clients 2 366 957 7.5 2 424 971 7.8 (58 015) (2.4)

Mortgage loans 22 147 272 70.1 21 818 391 70.0 328 881 1.5

Total loans to clients 24 514 228 77.5 24 243 362 77.7 270 866 1.1

Trading portfolio assets 38 160 0.1 29 998 0.1 8 162 27.2

Positive replacement values of derivative financial instruments 474 139 1.5 359 840 1.2 114 299 31.8

Financial investments 2 041 556 6.5 2 052 661 6.6 (11 105) (0.5)

Accrued income and prepaid expenses 63 009 0.2 63 642 0.2 (632) (1.0)

Non-consolidated participations 46 782 0.1 44 135 0.1 2 648 6.0

Tangible fixed assets 162 856 0.5 166 417 0.5 (3 561) (2.1)

Intangible assets 8 499 0.0 9 705 0.0 (1 206) (12.4)

Other assets 24 395 0.1 51 698 0.2 (27 303) (52.8)

Total assets 31 612 645 100.0 31 188 531 100.0 424 114 1.4

Total subordinated claims 10 392 10 253 139 1.4

– of which subject to mandatory conversion and / or debt waiver 0 0 0 –

Liabilities in CHF 000s

Due to banks 1 172 060 3.7 1 287 171 4.1 (115 111) (8.9)

Liabilities from securities financing transactions 338 317 1.1 211 200 0.7 127 117 60.2

Due in respect of client deposits 19 754 981 62.5 19 899 172 63.8 (144 191) (0.7)

Trading portfolio liabilities 8 0.0 2 0.0 6 –

Negative replacement values of derivative financial instruments 321 527 1.0 290 526 0.9 31 000 10.7

Cash bonds 207 236 0.7 255 192 0.8 (47 956) (18.8)

Bond issues and central mortgage institution loans 7 438 380 23.5 6 879 630 22.1 558 750 8.1

Accrued expenses and deferred income 141 599 0.4 117 488 0.4 24 111 20.5

Other liabilities 140 550 0.4 85 434 0.3 55 116 64.5

Provisions 30 337 0.1 88 058 0.3 (57 722) (65.5)

Reserves for general banking risks 0 0.0 0 0.0 0 0.0

Bank’s Capital 390 140 1.2 390 140 1.3 0 0.0

Capital reserve 14 065 0.0 13 993 0.0 72 0.5

– of which tax-exempt capital contribution reserve 2 616 0.0 2 616 0.0 0 0.0

Retained earnings reserve 1 601 299 5.1 1 551 435 5.0 49 864 3.2

Currency translation reserve (9 419) (0.0) (9 443) (0.0) 24 (0.3)

Own shares (negative item) (2 410) (0.0) (4 870) (0.0) 2 460 (50.5)

Consolidated profit 73 975 0.2 133 402 0.4 (59 426) (44.5)

Total shareholders’ equity 2 067 650 6.5 2 074 656 6.7 (7 006) (0.3)

Total liabilities 31 612 645 100.0 31 188 531 100.0 424 114 1.4

Total subordinated liabilities 300 377 302 248 (1 871) (0.6)

– of which subject to mandatory conversion and / or debt waiver 0 0 0 –

Off-balance-sheet transactions in CHF 000s

Contingent liabilities 182 091 185 290 (3 199) (1.7)

Irrevocable commitments 249 743 335 796 (86 053) (25.6)

Liabilities for calls on shares and other equities 51 995 53 318 (1 323) (2.5)

Group Balance Sheet

The interim report ARB can be found on our website www.sgkb.ch (p “About us” p “Financial figures”).

in CHF 000s 1. Semester 2016 1. Semester 2015 Change in %

Interest and discount income 201 526 203 803 (2 277) (1.1)

Interest and dividend income on trading portfolios 298 255 43 16.8

Interest and dividend income on financial investments 10 203 11 436 (1 233) (10.8)

Interest expense 62 123 72 016 (9 893) (13.7)

Gross result from interest operations 149 904 143 478 6 426 4.5

Changes in value adjustments for default risks and losses from interest operations 1 854 154 1 700 –

Net result from interest operations 151 758 143 633 8 126 5.7

Commission income from securities trading and investment activities 46 273 52 225 (5 953) (11.4)

Commission income from lending activities 1 276 1 185 91 7.7

Commission income from other services 9 355 10 371 (1 016) (9.8)

Commission expense 6 166 7 093 (927) (13.1)

Result from commission business and services 50 737 56 688 (5 951) (10.5)

Result from trading activities 13 021 20 162 (7 141) (35.4)

Other result from ordinary activities 3 842 4 095 (253) (6.2)

Operating income 219 359 224 578 (5 219) (2.3)

Personnel expenses 78 139 76 954 1 185 1.5

General and administrative expenses 47 852 50 209 (2 356) (4.7)

Operating expenses 125 991 127 163 (1 172) (0.9)

Gross profit 93 368 97 415 (4 048) (4.2)

Value adjustments on participations and depreciation and amortisation of tangible fixed assets and intangible assets 6 982 7 862 (881) (11.2)

Changes to provisions and other value adjustments, and losses (3 599) 5 552 (9 151) –

Operating result 89 985 84 001 5 984 7.1

Extraordinary income 201 19 596 (19 394) (99.0)

Extraordinary expenses 51 2 322 (2 272) (97.8)

Changes in reserves for general banking risks 0 0 0 –

Consolidated profit before taxes 90 136 101 275 (11 139) (11.0)

Taxes 16 161 16 678 (517) (3.1)

Consolidated profit 73 975 84 597 (10 622) (12.6)

Retail and Commercial Banking (RCB)

Private Banking(PB)

Corporate Functions(CF) Group

Income Statement in CHF 000s 1. Sem. 16 1. Sem. 15 1. Sem. 16 1. Sem. 15 1. Sem. 16 1. Sem. 15 1. Sem. 16 1. Sem. 15

Operating income1 131 928 132 980 53 924 63 543 33 506 28 055 219 359 224 578

Administrative expenses 66 039 63 373 37 690 39 859 22 262 23 931 125 991 127 163

Gross profit 65 889 69 607 16 234 23 684 11 244 4 125 93 368 97 415

Depreciation and write-offs on fixed assets and intangibles 0 0 102 63 6 880 7 799 6 982 7 862

Provisions, other valuation adjustments and losses 52 3 684 92 1 675 (3 744) 193 (3 599) 5 552

Operating result 65 837 65 923 16 040 21 946 8 108 (3 867) 89 985 84 001

Extraordinary income, net 5 0 160 (1 869) (15) 19 142 151 17 273

Taxes 11 417 9 997 3 366 4 318 1 377 2 363 16 161 16 678

Group net profit 54 424 55 926 12 834 15 760 6 716 12 912 73 975 84 597

Other data in CHF 000s June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Loans to clients 22 339 665 22 082 644 2 174 564 2 160 718 0 0 24 514 228 24 243 362

Due in respect of client deposits 12 001 808 12 053 024 7 753 173 7 846 148 0 0 19 754 981 19 899 172

Managed assets 2 14 869 472 14 894 603 21 953 537 21 549 618 (264 201) (268 675) 36 558 808 36 175 545

Full-time equivalents (average) 529 527 232 235 294 302 1 055 1 065

Cost / income ratio (including depreciationon fixed assets and licences) 50.1 % 47.7 % 70.1 % 62.8 % n /a n /a 60.1 % 59.4 %

1 Financial statements based on funds transfer pricing method: Term transformation and result from interest rate hedging reported in the Corporate Functions. From 2016 a new calculation model with adjustment for the previous year.

2 The Funds which are issued by the SGKB Group are fully disclosed in the Private Banking. The values in the Corporate Center represent the part of the SGKB Group’s own funds for which the Retail and Commercial Banking acts as client advisor. These funds therefore must be eliminated as double countings from the group perspective.

Group Income Statement

Divisional Accounts

2.1

8.2

8.9

25.9

54.8

0.1

Vol

Jan Mrz Apr Mai JunFeb

390

420

450

330

360

270

300

240

0

2

4

6

0

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Jan Mrz Apr Mai JunFeb

390

420

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in CHF

Jan Feb Mar MayApr Jun2016

SGKB Share

Figures and Data June 30, 2016

Earnings per share 13.29

Dividend per share CHF 15.001

Total shares issued 5 573 426

Time-weighted number of dividend-bearing shares 5 565 123

Number of shares held by SGKB (average) 8 303

Shareholders 33 464

Issue price (IPO) CHF 160.00

Market price CHF 378.00

Market capitalization CHF 2 106.8 Mio.

Ratio of market capitalization / shareholders’ equity 101.9 %

Return on equity (basis: operating result) 8.9 %

Reported shareholders’ equity CHF 2 067.7 Mio.

Dividend yield 4.0 %

Price-earnings ratio 14.2

1 For the financial year ended on December 31, 2015.

The value of the SGKB stock was CHF 361.00 at the beginning of 2016 and CHF 378.00

at June 30, 2016. This corresponds to a performance of 4.7 %.

Shareholder Structure (as of June 30, 2016)

Ticker symbol: SGKN, Swiss security no.: 1148406, ISIN: CH0011484067, listed on: SIX Swiss Exchange, issued: April 2, 2001

Canton of St. Gallen Individuals

SGKB employees Registration of transfer pending

Corporates Treasury shares

Vol

Jan Mrz Apr Mai JunFeb

390

420

450

330

360

270

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0

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0

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6.0

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SGKB

SPI

SPI banks

in CHF and trading volume (in 1000s)

5.6 mio.shares