Private banking boutique Falcon Group – involved in Malaysia’s 1MDB state investment fund scandal – has reported a loss of CHF128m for the financial year 2016.
To compensate for the loss, the company’s Abu Dhabi owner Aabar Investments announced a cash infusion.
“Clearly exceeding regulatory requirements, we had a consolidated Capital Adequacy Ratio of over 20% and a solid liquidity cushion (LCR) of around 140% at the end of January 2017. These solid capital and liquidity positions provide security for our clients and counterparties and underline our ability to meet all obligations at any time,” the group said in a statement.
The group further said that it took “relentless action” to address legacy issues and made good progress to boost its compliance and risk framework as per Finma standards.
Last year, Monetary Authority of Singapore (MAS) withdrew the license of Falcon's Singapore branch in relation to the 1MDB scandal. The bank was stripped of its merchant bank status in the region for serious failures in anti-money laundering controls and improper conduct by senior management.
Additionally, the bank also appointed Christian Wenger as its new chairman, replacing Murtadha Al Hashmi who will now become vice-chairman.
"I am confident that Falcon will develop positively on its way to achieving long-term growth. Aabar Investments, our shareholder, remains fully committed to supporting the Group on its future path," Wenger said.
The bank also appointed fintech expert Marc Bernegger, along with asset management executives Martin Keller and Dominik Schaerer to its board.