St.Galler Kantonalbank AG (SWX:SGKN) said that it is planning to sell some parts of Hyposwiss Privatbank AG. Kantonalbank said, "The strategic review is being conducted on the backdrop of the current fundamental changes in the cross-border asset management business."

The Board of the Directors of St.Galler Kantonalbank AG is proposing a dividend of CHF 15 per share at the Annual General Meeting on 24 April 2013. The dividend of CHF 15 is equivalent to a payout ratio of 55.2% and a dividend yield of 4.0% - based on the closing price of 376 francs as of 31 December 2012. St.Galler Kantonalbank confirms its dividend policy with a payout ratio of 50 to 70% of its Group net profit. This guarantees a balance between a further strengthening of its capital base and an attractive dividend yield.

St.Galler Kantonalbank AG reported group earnings results for the year ended December 30, 2012. For the year, the company achieved a gross profit of CHF 222.1 million which is CHF 32.4 million or 17.1% over the previous year. A higher operating income of CHF 23.6 million or 4.9% and lower administrative expenses of CHF 8.8 million or 3.1% to CHF 279.5 million have contributed to this result. As a consequence, group net profit was CHF 151.4 million above the previous year (CHF 15.6 million, +11.5%). Net interest income in 2012 amounted to CHF 313.3 million and is CHF 24.2 million or 8.4% well above the previous year. Net trading income is CHF 45.4 million (+ 17.5%, + CHF 6.8 million), thus contributing also to the improved operating income. The reason for this increase lies in higher gains on securities held on own account. Operating profit was CHF 181.3 million against CHF 155.0 million a year ago. This significant increase in net profit is due to the higher operating income and sustainable cost reductions. For the current year 2013, the company anticipates a development of revenues at current levels. In sum, the Bank therefore expects group net profit at the level of the year 2012.