The Swiss-Brazilian private bank's net profit rose 9.5 percent to 380.2 million Swiss francs ($391.3 million) last year, boosted by the release of 316 million francs in reserves, according to its annual report released on Friday. Safra Sarasin said it increased and stepped up the pace of amortizing goodwill, for which it then released the funds it had been stowing.

The wealth manager is coming off several major changes including the entrance of 35-year UBS veteran Juerg Haller as its chairman and a new CEO in former trader Daniel Belfer. Formed by the 2011 acquisition of Basel's Sarasin by Brazil's Safra family, the bank is among the Swiss firms ensnared in the Brazilian «lava jato» money laundering scandal.

Lean Vs Swiss Peers

In 2019, the wealth manager's spending edged 2.5 percent higher to 688.8 million francs – while revenue slid nearly five percent as income from interest-based products collapsed. This was partly due to ultra-low and negative rates, but also because the bank upped its default and loan losses. Trading, normally a booster for Safra Sarasin's results, was steady on the year.

The bank's cost-income ratio – normally one of the fittest in Switzerland – surged to 59.6 percent as a result of the mismatch between spending and revenue. Safra Sarasin last week hired a veteran Asia wealth manager to boost its fortunes in the fast-growing region, while promoting a prominent female banker to its board.

Wealth Inflows

The wealth manager's assets ballooned 13 percent to 185.8 billion francs – in part due to favorable market swings, but also 5.6 billion francs in fresh money won off clients by its private bankers.

Led by Geneva-based octogenarian Joseph Safra, the family controls banks in Brazil and the U.S. as well as the Swiss bank, and a number of other investments including Chiquita, the banana distributor controlled, and real estate like the «Gherkin,» one of London's most distinctive skyscrapers.