Hyposwiss Privatbank AG, Zurich, the business of which was sold to various banks in 2013, participated in category 2 of the DOJ's Swiss Bank Program to resolve its tax issues in relation to U.S. clients. Since the sale of its business in 2013, HSZH Verwaltungs AG (previously Hyposwiss Privatbank AG, Zurich) has been winding down its residual operations; it surrendered its banking licence in 2014 and it no longer carries out any banking operations. After a review of its client portfolio and cooperation with the DOJ, HSZH Verwaltungs AG signed a Non-Prosecution Agreement (NPA) to reach a final resolution. Under the terms of the NPA, HSZH Verwaltungs AG has to pay a penalty of USD 49.7 million.

With this agreement, St.Galler Kantonalbank group, including the previous subsidiaries Hyposwiss Zurich and Hyposwiss Geneva, has completed its participation in the DOJ's Swiss Bank Program. The costs asscociated with participation in the program and the penalties for all three companies are included in the financial statements of the year 2015. The group net profit is expected to be about CHF 133 Mio. As in the previous year, a dividend payment of CHF 15 per share will be proposed to the Annual General Meeting of 27 April 2016.

Media contact St.Galler Kantonalbank

Simon Netzle
Medienstelle St.Galler Kantonalbank AG
St. Leonhardstrasse 25
9001 St. Gallen
071 231 32 18
simon.netzle@sgkb.ch

Contact for analysts and investors

Adrian Kunz
Generalsekretariat St.Galler Kantonalbank AG
St. Leonhardstrasse 25
9001 St.Gallen
071 231 32 04
adrian.kunz@sgkb.ch

SGKB - St. Galler Kantonalbank AG issued this content on 27 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 January 2016 18:10:04 UTC

Original Document: https://www.sgkb.ch/en/about-us/news/hszh-verwaltungs-ag-completes-swiss-bank-program