Net income rose from SFr97 million ($88.5 million) in 2006 to SFr129 million in 2007at Banca del Gottardo, but the Lugano-based bank said net outflow of client money increased since mid-2007 from SFr0.9 billion to SFr1.0 billion.

Consolidated net income was SFr129 million in 2007, SFr17 million of which is attributable to special factors, namely the release of SFr34 million in provisions and one-off costs related to early retirement cases and projects amounting to SFr17 million.

This net income was 32 per cent higher than the SFr97 million posted in 2006. If these factors are not taken into account, net profit is SFr111 million, which represents a year-on-year increase of 16 per cent.

The Swiss Life-owned bank, which celebrates its fiftieth anniversary this year, is being acquired by BSI, a transaction which is scheduled to complete this March.

The net outflow of client assets from private banking due to previous staff departures increased by SFr0.1 billion between 30 June and 31 December 2007.

As at 31 December 2007, client assets not including the custody business, had risen from SFr35.8 billion in 2006 to SFr36.0 billion.