Vaduz - Lichtenstein's VP Bank Group said Monday it lost 80.3 million Swiss francs during 2008, after being forced to take writedowns due to the financial crisis.

The group said it would reduce operating expenses in 2009 by at least 10 per cent.

In a statement the bank said it had to write down 117 million francs in the income statement and 55.3 million of shareholders' equity.

The financial crisis pushed the bank to offer capital protection for clients invested in VP Bank's cash and money market funds, adding some 68.1 million francs to the 2009 financial statement.

Also, dividends to shareholders were likely to drop compared to last year.

Lichtenstein's financial markets have also been hit by questions about the future of its bank secrecy laws, and Germany launched investigations last year into tax evasion accusations.

The tiny alpine principality is economically dependant on its financial sector.

VP Bank was expected to release a full report next month. (dpa)