Zurich - The Swiss-based private bank EFG International said Wednesday its profit in 2008 was down 33 per cent compared to the previous year. The bank's stock dropped about 20 per cent in morning trading.

The asset manager said its profit for 2008 was 221.9 million Swiss francs (191.6 million dollars) on total revenues of 946.3 million, a slight increase over the previous year. If adjusted for non-recurring items, net profit was 280.9 million.

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 offcer 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 Tuesday at 11.80 francs on the Zurich exchange, but about an hour into trading Wednesday shares had fallen to about 9 francs, 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, due to an ongoing investigation on tax fraud charges in the United States against UBS, the largest Switzerland-based bank. (dpa)