The Swiss private banking group, which operates in multiple jurisdictions, this week released its unaudited financial results for 2023, ahead of publication of its annual report in April.

Net profits at Geneva-headquartered Pictet were down 25 per cent in 2023 on a year earlier, after the firm paid out $123 million to the US Department of Justice.

The consolidated net profit stood at SFr577 million ($659 million), following the settlement with the US Department of Justice. The Swiss firm was found to have hidden $5.6 billion of client’s money from tax between 2008 to 2014. Taxes worth $50 million were avoided through these hidden accounts over the period, the US authorities said.

Without this one-off payment, Pictet said net profit would have only been 9 per cent lower than 2022.

Pictet’s operating income was also down by 1 per cent in 2023 on a year earlier, reaching SFr3.162 billion. The Swiss firm put this down to the strengthening of the Swiss franc, which adversely impacted assets under management and operating income.

Assets under management or custody stood at SFr633 billion in 2023, 4 per cent higher than 2022, whilst net new money amounted to SFr16 billion in 2023.

The group said its equity and regulatory liquidity and capital ratios also remained solid in 2023, with total equity standing at SFr4.104 billion. The liquidity coverage ratio was 198 per cent, compared with the 100 per cent required by Basel III and the total capital ratio was 29 per cent, above the 12 per cent requirement set by Pictet’s Swiss regulator FINMA.

Renaud de Planta, senior managing partner at Pictet, highlighted how 2023 was a challenging year for the financial industry, accompanied by turmoil in some parts of the banking sector. “Against this backdrop, Pictet confirmed its stability and commitment to quality,” he said.

“Clients recognise the benefit of our long-term business model, which is reflected in our solid net new money. Our operating income was stable in 2023, despite the turbulent market conditions,” de Planta added.

The Swiss firm has offices worldwide, in Amsterdam, Barcelona, Basel, Brussels, Dubai, Frankfurt, Geneva, Hong Kong, Lausanne, London, Luxembourg, Madrid, Milan, Monaco, Montreal, Munich, Nassau, New York, Osaka, Paris, Rome, Shanghai, Singapore, Stuttgart, Taipei, Tel Aviv, Tokyo, Turin, Verona and Zurich.