The Swiss Syz banking group last year increased client assets but suffered a sharp decline in profit, with various tax-amnesty programs weighing on the earnings.
The Geneva-based bank posted a net profit of 3.4 million Swiss francs ($3.5 million) last year, down sharply from 9 million francs in the previous reporting period, it said in a statement on Wednesday. Managed assets edged up to 37.2 billion francs by the end of last year, from 36.3 billion francs a year earlier.
The results were impacted largely by two factors: Syz acquired the Royal Bank of Canada's activities in Switzerland three years ago, although not all of RBC’s customers moved across to Syz. Secondly, several foreign tax-amnesty programs undermined earnings.
New Deputy
Against this background, group consolidated earnings fell 1 percent to 215 million francs, while business costs rose to 193 million francs from 189 million francs in 2016, it said. «This small increase resulted from higher costs for regulatory projects, investments designed to improve service quality for external
operational activities and strengthening client-focused teams in private banking division,» said bank founder Eric Syz.
Syz also named Yvan Gaillaird, a former executive of Swiss private bank Pictet, as deputy CEO. Gaillaird held several senior roles at Pictet before joining Syz two years ago.
New Headquarters
Syz also achieved a milestone last year when, 20 years after its founding, it occupied new premises at Quai des Bergues, which will house all business and administrative functions. The building has been totally renovated, and designed like a contemporary art museum.
Syz Asset Management also last year opened a new office in Madrid, strengthened its Swiss business teams and expanded its European customer advisor team.
