Investec, the UK/South Africa-listed firm, is considering selling its private banking unit in Switzerland, it was quoted by Bloomberg as saying today.

“We’re in the process of looking at selling our Swiss private bank,” a spokesperson was quoted as saying. The move is “in line with the continued efforts to realign” that business, the spokesperson said, who declined to comment further.

The bank hired Fenchurch Advisory Partners to advise it on the sale, according to the Mail on Sunday newspaper. Investec Bank (Switzerland) has £1.95 billion (around $3.1 billion) of assets under management and has offices in Zurich and Geneva.

Investec is moving away from lending to conserve capital while investing in its asset-management and wealth business businesses to boost earnings. The bank, which is traded in both London and Johannesburg, last year bought UK fund manager Rensburg Sheppards to expand the division, which accounts for almost 40 per cent of operating profit.

Profits from private banking at Investec fell precipitously over the last year, from ZAR336 million ($48.7 million) at the end of March 2010 to just ZAR47 million at the end of March 2011 - a drop of 86 per cent.