SWIFT The global provider of secure financial
messaging services

 

Annual Report 2005

From the Chairman

The year 2005 was very good for SWIFT with continued strong message growth, a reliable SWIFTNet messaging infrastructure and solid take-up of the business solutions it supports. Financially, the company ended the year with a before-tax profit of EUR 15 million after returning EUR 37 million to customers in rebates and price reductions.

Raising ambitions

During 2005, the Board and Executive made significant progress in developing the SWIFT2010 strategy. SWIFT will continue to focus on being the most secure and efficient messaging network in the global financial arena.

Yet the company and its community should raise their levels of ambition because the cooperative still has tremendous untapped potential. SWIFTNet, which we so successfully delivered in over 200 countries end-2004, provides the platform that can support our ambitions.

We should realise further efficiencies in the traditional areas of cross-border interbank payments and securities processing. SWIFT should strongly support developments for the Single Euro Payments Area, the TARGET2 RTGS system, and the Giovannini protocols. It should step up its presence and efforts in emerging markets, improve corporate connectivity and deliver the Trade Services Utility. Development work is needed in standard setting for processing Alternative Investments and worker remittances. In many of these areas, SWIFT will offer reference data services to improve efficiency further and enhance interoperability in transaction processing.

I am convinced that implementing the SWIFT2010 strategy will fundamentally change the company, in the interest of its members, its users, and their overseers.

Governance

“Implementing the SWIFT2010 strategy will fundamentally change the Company, in the interest of its Members, its users, and their overseers.”
Also in 2005, the Board and Executive have valued their regular contacts with the oversight authorities led by the National Bank of Belgium. We provide full transparency of security and reliability issues. As with key members of our community, overseers are well informed about our strategic focus process.

Governance within SWIFT, your successful cooperative, should also reflect the dynamics of the market place. The Board’s committee structure warrants timely and adequate control over the operational, financial, people and other risks. The Board’s effectiveness should also reflect the requirements of a global and cooperative environment. Board members are now elected by the AGM for terms of three years on the basis of a formal profiling practice and nominations by National Member Groups. This should give the Board added strength to meet the challenges the global community will face.

Acknowledgements

I wish to thank everyone I have had the opportunity to work with, in particular my colleagues on the Board and the Executive.

A heartfelt “thank you” is due to all those individuals in the SWIFT community who serve on our Board Advisory Groups, and are leaders or participants of National Member and User Groups. You make SWIFT a unique cooperative, so visible at Sibos, as well as at regional and national conferences and regular work sessions, where so many of you contribute and add value.

I am glad to say that the solid support of our Chief Executive Officer, Leonard Schrank, his management team and all employees of SWIFT, really provides a basis for the success of SWIFT as it enters a new and challenging phase in serving the global financial community.

Jaap Kamp
Chairman
March 2006