The report about Raiffeisen’s business activities during the tenure of Pierin Vincenz as CEO has unearthed serious shortcomings. The findings lead to changes of personnel at the top of the bank.

Bruno Gehrig, economics professor and former central banker, didn’t find anything in the documents about Raiffeisen’s investment business that would draw criminal sanctions. But the acquisitions and management of investments in 2012 to 2015 were beset by serious shortcomings, Switzerland’s third-largest banks said in a statement on Tuesday.

The supervisory board has looked into the findings and decided on a number of consequences. Gabriele Burn, Beat Hodel and Paulo Bruegger will leave the board, all three members who joined before the year 2015.

Lower Full-Year Profit 2018

Raiffeisen also gave a heads-up on its business in 2018. The bank expects operating profit in line with a year earlier. Given the complications in connection with its investments, the bank had to reevaluate the value of its stakes. Therefore, Raiffeisen expects profit to be substantially lower than a year ago.

The one-off effects will amount to a maximum of 300 million Swiss francs ($300 million). The company’s profitability and strong equity ratio isn’t affected and the bank retains a formidable equity base.

Release Deferred

Raiffeisen won’t table the release of the board at the annual general meeting until the responsibility of members has been fully resolved.