Reports
Net Profit Falls By Quarter At Swiss Cantonal Bank
Swiss-based
St Gallen Cantonal Banking Group reported a net profit of
SFr171 million ($147.1 million) in 2008, down by 25 per cent from
a year before amid volatile markets and the impact of the
purchase of the firm Hyposwiss Geneva.
In a statement, St Gallen said the profit reduction was partly caused by the amortization of goodwill in the Hyposwiss purchase.
Net fee and commission income fell due to the financial crisis,
while net interest income showed steady improvement. The bank
said it logged “exceptional growth in net new money” of almost
SFr4 billion - excluding assets added to the group from the
purchase of Anglo Irish Bank in
Geneva – now named HypoSwiss Private Bank Geneva. It said the
inflows were the highest in its history.
SGKB said it had “recorded an impressive rise in funds under management”.
Loans to customers also grew. Excluding Hyposwiss Geneva, the rise was SFr620.3 million, a gain of 3.6 per cent. This growth was driven mainly by greater lending to small and medium sized enterprises, amounting to SFr468.3 million, a gain of 10 per cent.
Assets under management at the year end stood at SFr37.6 billion, down a fraction from SFr37.8 billion a year earlier.
The board will propose a dividend of SFr20 per share at the April annual general meeting, representing a yield of 5.2 per cent. At this meeting the board will also nominate Kurt Rüegg for election as an additional member. Mr Rüegg has been senior partner at Swiss Capital Group since 1999. In this role he manages the group's corporate finance activities.