Business segment result

The Private Banking business segment achieved gratifying inflows in the strategic growth markets. The net new money inflow stood at CHF 173 million compared with an outflow of CHF 217 million in the previous year. This was also reflected in the rise in client assets under management of 1.2 percent. In total, the segment registered an increase in business volume of 2.1 percent to CHF 14.8 billion. Loans to clients rose substantially by 11.4 percent.

In spite of a difficult investment environment and continuing pressure on margins, the Private Banking segment reported a stable earnings development in deposit-taking business. The uncertainty of clients and the resulting lower client activity as well as higher liquidity holdings led to a decrease in fee and commission income. Revenues from client trading were below the record level of the previous year. Operating expenses rose by 11.4 percent. This was largely attributable to the strategic expansion of personnel by 11.7 percent to 153 (31.12.2015: 137).

The segment result before tax decreased as expected to CHF 32.2 million (2015: CHF 41.1 million).