Vontobel Holding AG (VONN), the Swiss bank and brokerage that specializes in derivatives, reported a 1.5 percent decline in full-year profit after one-time charges at its private-banking unit.
Net income fell to 122.3 million Swiss francs ($136 million) from 124.1 million francs a year earlier, the Zurich-based company said in an e-mailed statement today. That missed an average estimate of 139 million francs by six analysts surveyed by Bloomberg.
“The challenge we face is to strike the right balance between implementing growth initiatives and exercising cost discipline,” Chief Executive Officer Zeno Staub said in the statement.
Vontobel, majority owned by a shareholder pool including the founding family, generates revenue from investment banking, institutional asset management and private banking. The stock has gained 18 percent in the last 12 months, exceeding a 16 percent advance in the 43-member Bloomberg Europe Banks and Financial Services Index.
The firm reported one-time costs of 20.7 million francs for reorganizing its cross-border private banking business, making a payment related to a U.K.-Swiss tax agreement and participating in a Department of Justice disclosure program in a category for banks that haven’t violated U.S. law.
Vontobel is searching for acquisitions as the bank targets total client assets, including those held in custody and invested in structured products, of 175 billion francs this year. The assets totaled 163.1 billion francs as of Dec. 31.
The company reported net inflows of 9.1 billion francs, bringing managed client assets to 109.6 billion francs at the end of December, compared with 108.1 billion francs six months earlier.
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