Swiss Life’s Banca del Gottardo registered a first-half 2007 net profit of SFr85 million compared with SFr83 million in the same period last year. But the bank, which celebrates its 50th anniversary in 2007, recorded a net assets outflow of SFr875 million citing staff departures last autumn. The net profit includes one-off factors of SFr27 million after taxes, the most important position being the release of provisions. Net income not including the one-off factors was SFr58 million, compared to SFr51 million in the previous year. Net revenues increased 5 per cent to SFr243 million over the first half of 2006. Income from trading operations improved 9 per cent, benefitting in particular from the favourable market conditions. Interest income rose by 5 per cent, and commission and service fee activities also posted an increase of 5 per cent despite the lower asset base. Operating expenses fell during the period by 3 per cent to SFr156 million. Administrative and general expenses fell by 12 per cent due to reduced project costs, while personnel costs rose by 4 per cent due to additions to the front office and to training programmes. The cost/income ratio fell from 69 per cent to 65 per cent. The net outflow of client money from private banking in the amount of SFr875 million compared to a net inflow in 2006 of SFr399 million was primarily due to the departure of client advisor teams in Lugano and Luxembourg last autumn. Excluding the assets managed by these teams, nearly every location of the bank posted a further increase in net new money compared with the first half of 2006. The gross new money from private banking amounted to over SFr900 million in the first half of 2007. Since the end of 2006 there had been no more departures of client advisor teams, said the bank, and the outflows from the portfolios involved had mostly been stopped. Client assets under management was SFr36 billion as at 30 June 2007 compared to SFr34 billion at the end of June 2006. The volume of custody business increased during the same period from SFr42 billion to SFr68 billion. Total assets under control thus amounted to SFr104 billion as at 30 June. Chief executive officer Rolf Aeberli said: “The trend in net income shows that we are on the right path. But I am disappointed about the considerable outflow of client funds due to the staff departures last autumn. Nevertheless, we were able to increase revenues despite the lower asset base, which I view as positive. The trend in net new inflows in the regions and segments that were not affected by the staff departures, and the increase in confidence among our staff are strong signals.” Banca del Gottardo is headquartered in Lugano and has subsidiaries, branches and representative offices in Zurich, Geneva, Lausanne, Bellinzona, Chiasso, Locarno, Bergamo, Milan, Rome, Treviso, Turin, Athens, Luxembourg, Madrid, Paris, Hong Kong and Nassau. In June, Swiss Life denied it had plans to sell Banca del Gottardo in response to persistent rumours. The denial followed a broker note that said it had "a strong impression" that Swiss Life planned to sell the business in 2008.