Business segment result

The segment profit before tax climbed to a new record, gaining over 20 percent to reach CHF 56 million. Operating income improved, especially due to the good result achieved with interest differential business. This benefitted from higher revenues from investments in foreign currencies. Income from fees and commissions as well as trading business exceeded the previous year’s figure thanks to active marketing measures and increased client activity. Allowances for credit losses included the release of a position amounting to CHF 7.5 million. Operating expenses increased – although general and administrative expenses remained the same – on account of the expansion of personnel in line with the bank’s strategy and higher internal settlements.

Client assets under management rose by 11.3 percent to a new record level of CHF 27.5 billion. Positive inflows with custodian bank funds contributed in particular to the gratifying net new money inflows totalling around CHF 400 million. In spite of an extremely competitive environment the segment was able to maintain its gross margin.