At Zurich-headquartered Vontobel Group, the private banking business unit has reported first-half pre-tax profit growth of 13 per cent to SF...

At Zurich-headquartered Vontobel Group, the private banking business unit has reported first-half pre-tax profit growth of 13 per cent to SFr40 million ($32 million), as compared with the same period in 2005.

Favourable market conditions and a small increase in client volumes pushed operating income up by 17 per cent, but owing to front office strengthening and higher bonus accruals, costs were up 23 per cent.

Net assets under management rose by SFr 300 million in the period, with Central, Eastern European, Swiss and German markets all making a contribution. The group sees Central and Eastern Europe as offering strong potential and has targeted them for growth via the creation of a new division reporting to the head of private banking.

The group also states that it will focus on the Latin European area from Geneva and will make “targeted investments” in this market.