Swiss private bank Pictet has reported a 9% fall in consolidated net profit to CHF539m ($553m) in 2019.

The decrease is said to be driven by the addition of a net 374 employees last year and investment in infrastructure.

Pictet 2019 Highlights

The private bank’s operating income in 2019 dipped 2% year-on-year to CHF2.63bn.

Its core tier 1 capital ratio at the end of December 2019 stood at 7.8%. This was way above the minimum regulatory requirement of 20.5%.

The liquidity coverage ratio of 156% also exceeded the minimum regulatory requirement of 100%.

Assets under management or custody as of 31 December 2019 were CHF576bn, a 16% increase from the previous year.

The bank attributed the growth to net inflows of CHF25bn in asset management, wealth management and asset services as well as favourable market conditions.

Ending exposure to fossil fuel

Meanwhile, the bank said that it will scrap exposure to fossil fuel from its balance sheet.

This would include fossil fuel production and extraction, covering oil, gas and thermal coal.

The move would eliminate CHF250m from Pictet’s balance sheet by the end of this year.

Pictet senior managing partner Renaud de Planta said: “We believe that, irrespective of collective public sector action on moving to a carbon-neutral economy, companies in the private sector should also advance this objective independently.

“As we have full control of our balance sheet, this is one undertaking that we can make now.”