Bank J. Safra Sarasin, the private bank controlled by Brazil's Safra family, improved its profitability last year. Assets under management declined, not least because of currency effects following the decision by the central bank of Switzerland to do away with the peg to the euro.
Bank J. Safra Sarasin increased profit by 12 percent to 230.5 million Swiss francs last year, the institute said in a statement today. The institute allocated the net profit for 2015 to retained earnings, boosting shareholders' equity to 4.1 billion compared with 3.8 billion at the end of 2014.
The Tier 1 ratio set by the Bank for International Settlements (BIS) was 27 percent, up from 25 percent a year earlier, easily in excess of regulatory requirements.
«Pro-Active Consolidator»
«Our financial strength has stood us in good stead over many generations and also enables the group to be a pro-active consolidator in the private banking market,» said Jacob J. Safra, vice chairman of the group, in the statement.
Assets under management declined to 144 billion francs from 146 billion at the end of 2014. Reasons for the decline were the currency effects following the lifting of the peg to the euro in January 2015 and lower valuations due to market conditions. New money mainly in Asia and the Middle East didn't entirely make up for the negative effects.
Lower Cost-Income Ratio
The assets of Bank Leumi Luxembourg ($1.25 billion), acquired in November 2015, haven't been included in the full-year figures.
The cost-income ratio of 59.2 percent (compared with 61 percent) is one of the best among private banks, the Basel-based institute said in the statement.
