LGT Group, the Liechtenstein private bank which acquired a Swiss private banking business from Commerzbank last year, said its group profit was SFr106 million (around $100 million) in 2009, a 35 per cent fall from a year before. Assets under management rose by 14 per cent to SFr89 billion.

Last year, LGT – which had been the victim of a theft of client data in 2002 – said that while its overall assets under management had increased, funds based in Liechtenstein declined, with a net outflow of SFr3.7 billion for the group as a whole. The bank noted that there have been outflows from international financial centres around the world.

Banks in Liechtenstein and other centres have been affected to varying degrees by a vociferous campaign by major Western powers against so-called tax havens. Defenders of such places argue that efforts to shut them down are a form of economic and financial protectionism.

The bank acquired Dresdner Bank (Switzerland) last year, which was sold by Frankfurt-listed Commerzbank as the German bank was forced to dispose of non-domestic assets as part of a condition of receiving tax bailout cash from the German state.

LGT said it had a strong Tier 1 capital ratio of 18.5 per cent.

“LGT Group’s earnings reflected a year-on-year decline in client assets coupled with a clear shift into lower-margin interest-bearing products. As a result, net interest income increased by 36 per cent, while income from services declined 25 per cent,” it said.

Total operating expenses rose by 8 per cent to SFr578 million in 2009.

In the second half of 2009, provisions were made in connection with the integration of Dresdner Bank (Switzerland) and general cost-reduction initiatives.

The bank said cost-cutting measures and other efficiencies will result in savings of about SFr46 million a year.

“Our priorities for 2010 are clear: we will continue to invest in building international business in our onshore and growth markets and asset management, while at the same time making careful use of our resources and keeping a firm grip on costs,” said HSH Prince Max von und zu Liechtenstein, CEO of LGT Group.