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Falcon Group concludes financial restructuring and announces new Board composition PDF Print E-mail
Thursday, 23 March 2017
At the end of January 2017, Falcon Group had a consolidated capital adequacy ratio of over 20% and a solid liquidity cushion with an LCR of around 140%. Over the last few months, we focused on de-risking and fostering our business, and took relentless action to address remaining legacy issues. The Annual General Meeting 2017 has approved a new composition of the Board of Directors with Christian Wenger as the new Chairman and three new Swiss Board members.

Against the backdrop of a challenging year in 2016, Falcon has taken decisive steps to build a solid and sustainable basis for its future growth. Management decided to rigorously de-risk the Group's client-book and thus recognised cautious valuation adjustments as unrealised losses on certain illiquid positions from legacy businesses. Including these valuation adjustments, as well as all expenses related to the closing of the Singapore branch, the Group recorded a loss of CHF 128 million for the financial year 2016. Together with our committed shareholder, Aabar Investments, which has granted Falcon Group a capital contribution to compensate for the loss and to strengthen the Group's capital base, we have concluded our financial restructuring. Clearly exceeding regulatory requirements, we had a consolidated Capital Adequacy Ratio of over 20% and a solid liquidity cushion (LCR) of around 140% at the end of January 2017. These solid capital and liquidity positions provide security for our clients and counterparties and underline our ability to meet all obligations at any time. We have also taken relentless action to address remaining legacy issues and have made good progress in strengthening our compliance and risk framework to meet Finma requirements.

Furthermore, the Annual General Meeting 2017 has elected a new Chairman and three new Swiss members to the Board. After almost 13 years on the Board, Lennart Blecher has decided to step down from this role and we would like to thank him for his valuable contribution over these years. The Board is now composed as follows:

Christian Wenger (new Chairman, member since 2005)
Murtadha M. Al Hashmi (Vice-Chairman, member since 2011)
H.E. Khaled Balama AlTameemi (member since 2016)
Marc P. Bernegger (new member)
Martin Keller (new member)
Dominik Schärer (new member)

Marc P. Bernegger (1979) is a Fintech expert, founder of various online platforms and investor in start-ups. His last company "amiando" was awarded "Global Technology Pioneer" in 2010 by the World Economic Forum. Martin Keller (1967) has extensive leadership experience in building and running global finance businesses with focus on asset management, private wealth management and capital markets. Dominik Schärer (1965) has more than 30 years of experience in the financial industry, especially in the institutional area. Between 2007 and 2016 he was Chairman of Merrill Lynch Capital Markets in Zurich. We are convinced that the newly formed Board of Directors will bring together the necessary financial industry and Swiss banking knowledge as well as the expertise in new technologies required to drive our future growth.

Walter Berchtold, Chief Executive Officer of Falcon Group: "Our reputation and our financial stability are of utmost importance. With the completion of our financial restructuring and the de-risking of our client-book we have laid the foundation for long-term success. We are highly confident of our capabilities to create sustainable value for clients, employees and our shareholder alike."

Christian Wenger, Chairman of the Board of Directors, added: "I am confident that Falcon will develop positively on its way to achieving long-term growth. Aabar Investments, our shareholder, remains fully committed to supporting the Group on its future path."
 
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