With the sale of HYPOSWISS, UBS is streamlining its private banking activities in Zurich. The pre-tax profit of approximately CHF 165 million generated by the sale will be reported in the income statement for the first quarter of 2002.
UBS will sell the private bank HYPOSWISS, a wholly owned subsidiary, to Cantonal Bank of Saint Gall. The sale, for an undisclosed price, will bring UBS a pre-tax profit of approximately CHF 165 million. This profit will be reported in the income statement for the first quarter of 2002.
The transaction, which requires the approval of the relevant supervisory authorities, is expected to be completed in the first quarter of this year and will be valid retroactively from 1 January 2002.
With the sale of HYPOSWISS, UBS is streamlining its private banking activities in Zurich, where it is already represented by UBS Private Banking and the private bank Cantrade. At the same time, continuity in HYPOSWISS’s independent culture and service offering will be ensured through the acquisition of the private bank by the Cantonal Bank of Saint Gall. UBS will continue to manage its remaining private banks – Cantrade Private Bank Ltd. (Zurich), BDL Banco di Lugano (Lugano), Ferrier Lullin & Cie. S.A. (Geneva), Bank Ehinger & Co Ltd (Basel), Armand von Ernst & Cie AG (Berne) – as separate independent units.
HYPOSWISS specializes in investment advice and asset management and has built up considerable expertise in serving a global private client base. In the 2001 financial year, the private bank recorded a operating profit of CHF 38.4 million. Invested assets totalled CHF 6.4 billion at year end. HYPOSWISS, which is domiciled in Zurich and has a branch in Jersey, employed a total of 133 members of staff at year-end 2001.