Zurich - The Swiss-based private bank EFG International said Wednesday its profit in 2008 dropped 33 per cent compared to the previous year. The bank's stock closed down about 35 per cent.

Meanwhile, the Pictet and Cie private bank based in Geneva said it would expand its wealth management business, in a move against the current of the global economic downturn.

"The objective is to double the size of the bank's wealth management operations in Zurich over the course of the coming economic cycle," said Pictet and Cie, one the largest private banks with 312 billion Swiss francs (268.1 billion dollars) under management.

EFG said its profit for 2008 was 221.9 million francs on total revenues of 946.3 million. The results were below expectations.

At the end of last year, clients' assets under management stood at 77.2 billion francs, down from 98.3 billion at the end of 2007. EFG attributed this in part to a strong franc compared to other currencies and the general market conditions, which also affected clients' wealth.

In its report, EFG said 2008 "was one of the most challenging years in living memory. The backdrop was far from conducive for private banking.

Company chief executive officer Lonnie Howell commented: "The results under the circumstances are acceptable, not delighted."

The bank, he said, managed to avoid certain pitfalls that have hit other banks, such as heavy investments in Lehman Brothers and sub- prime mortgages, and EFG remained "well capitalized."

The company had a conservative outlook for 2009 but it would still seek expansion.

EFG stock closed Wednesday at 7.60 francs on the Zurich exchange, an all time low. A year ago the stock was at 41 francs.

The Swiss banking sector has taken hits in the last week, as secrecy laws have been thrown into question lately amid an ongoing investigation on tax fraud charges in the United States against UBS, the largest Switzerland-based bank.

After dropping to a record low on Tuesday, UBS's stock bounced back slightly on Wednesday reaching a high of 10.93 francs during intraday trading, but closed at 10.1 francs, a 2.45 per cent gain.

Credit Suisse, the second largest Swiss bank, also had large early rally but closed at 25.56, up just 1.67 per cent above where it started.

The early rally and the cessation of the previous days' declines were attributed to the gains on Wall Street Tuesday and across Europe in the morning, following the announcement by Federal Reserve Chairman Ben Bernanke that bank nationalisation was not likely in the near future. (dpa)