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March 29, 2012updated 04 Apr 2017 3:42pm

Swiss franc strength hits profits at BSI

BSI Group, the private bank belonging to the Generali insurance group, saw net new money inflows rise by 8.8% to CHF6.7bn ($7.41bn) last year, although profits dropped substantially. The bank said the strength of the Swiss franc, low interest rates and global economic uncertainty had caused gross profit to fall to CHF165.6m from CHF203.8m in 2010, a drop of 18.7%

By Thomas McMahon

BSI Group, the private bank belonging to the Generali insurance group, saw net new money inflows rise by 8.8% to CHF6.7bn ($7.41bn) last year, although profits dropped substantially.

The bank said the strength of the Swiss franc, low interest rates and global economic uncertainty had caused gross profit to fall to CHF165.6m from CHF203.8m in 2010, a drop of 18.7%. Net profit was up 1.7% however, at CHF 58.1m

AuM were up 1.9% at CHF77.7bn, and CEO Stefano Coduri said the bank was satisfied with the results, particularly given the strength of the Swiss franc.

The bank said its clients had shown little inclination to invest, with the total assets of the group rising 63.4% to CHF32.2bn, primarily due to an increase in client deposits.

The year also saw the group migrate to a new IT platform based on Avaloq, but despite investment to achieve this operating costs were reduced by 2.7%.

 

Global and domestic expansion

BSI Group said it successfully continued its expansion in the fast-growing markets of Asia, Latin America, Eastern Europe, Russia and the Middle East and saw a growth in its Swiss client base.

Last December, BSI received a banking licence in Hong Kong, and since March of this year it has been fully operational in the location.

In its traditional markets, particularly Switzerland, the group has been following a multi-channel strategy, through private banking, the external asset managers segment, and through the use of the Genera product range developed in partnership with Generali Switzerland.

 

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