Swiss Private Bank Reports Rise In Assets, Small Profit Decline

Osmond Plummer

6 March 2009

Valiant Holding, a Swiss bank based in Bern, has reported its results for 2008 which it describes in a statement as “excellent, despite the difficult environment”.

At SFr148.6 million ($126.4 million), group profit was only slightly below 2007's record result, down by 2.6 per cent year-on-year.

Total assets rose by 9.1 per cent to SFr19.5 billion, while client assets increased by 8.2 per cent to SFr13.6 billion and client loans rose by 4.6 per cent. Overall, the group recorded net new capital inflows of SFr1.4 billion.

These figures represent a significant increase compared with the recent years' performance and underlines the increasing attractiveness of smaller independent banks within the Swiss domestic context.

The cost-income ratio increased slightly to 48.1 per cent from 46.6 per cent in the previous year; the firm has a target figure of 50 per cent. At the annual general assembly of 15 May 2009, the bank’s board will propose an unchanged gross dividend of SFr3.10 per share.

The group plans to continue to expand its market share through its mergers with Bank Jura Laufen, as announced last week, and Obersimmentalischen Volksbank, as announced in October 2008. The bank will open a new branch in Baden in May, and in Bulle at the end of the second quarter of this year. A new branch is planned for Basel at the end of 2009 and Valiant plans to be present in Biel from spring 2010.

Dr Roland von Büren and Daniel Brand will stand down from the board at the AGM due to their age. Dr von Büren has been chairman of the bank for the last 12 years.

At that meeting, the board of directors will propose that Kurt Streit, the bank’s CEO, be elected to the board of directors and probably take on the role of chairman.

Mr Streit has been CEO since Valiant's foundation in 1997 and the board believes that his appointment will guarantee continuity. The board will also propose that Banque Jura Laufon’s chairman, Jean-Baptist Beuret, also be elected to the board subject to the completion of the merger.