The group profit of SFr70 million in 2011 included one-off costs of SFr50 million associated with exiting the private banking business in Germany. Taking this into account, profits increased by 80 per cent in 2012.

The bank had a Tier 1 capital ratio of 21.5 per cent at the end of last year.

“The company has made a good start to the current year and remains confident about the further development of its business. 2012 was once again characterised by an unsettled economic climate and low interest rates for the whole financial services industry. In this challenging environment, LGT Group made considerable progress in the implementation of its strategy in all of its business areas and markets,” the firm said in a statement.

Income from services increased by 15 per cent in 2012, while net interest and similar income increased by 4 per cent. Income from trading activities and other income was up by almost 150 per cent, reflecting valuation adjustments on high-quality bonds held in LGT’s securities portfolio to maintain liquidity, as well as hedging transactions.

Overall, the bank logged a total operating income of SFr957 million, up 35 per cent on the prior year. Total operating expenses increased by 9 per cent to SFr615 million.

LGT’s cost-income ratio fell to 64 per cent, compared to 75 per cent in the prior year.