Swiss banking group Valartis is planning to merge or divest its private banking business in the coming months as the company reported a decline in its profit to CHF0.1 million for the first half of 2013.
The profit was CHF3.9 million in the first half of 2012 and the company said the profit was negatively impacted by CHF -2.2 million in market value adjustments on the bond portfolio.
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Valartis said it will continue to develop its focus on private client business at a slower pace due to the further restructuring of its front-office organisation.
Net new money inflows for the first half of 2013 were CHF 125 million, when compared to CHF 491 million for the same period last year.
The net new money inflows came entirely from the private clients segment and client assets increased 1.3% to CHF 7.9 billion in H1.
Valartis said apart from increasing client assets in the private clients segment, strict cost controls will be part of the strategy going forward for its strategic focus on the wealth management business for wealthy private clients and institutional investors.
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By GlobalDataThe company introduced Private Banking Plus strategy in 2008 to focus on its wealth management business for wealthy private clients and institutional investors.
