Falcon Group concludes financial restructuring
At the end of January 2017, Falcon Group had a consolidated capital adequacy ratio of over 20 percent and a solid liquidity cushion with a liquidity coverage ratio (LCR) of around 140 percent. Over the last few months, the company has focused on de-risking and fostering its business, and took action to address remaining legacy issues.
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. Its management has decided to de-risk the group’s client-book, recognizing cautious valuation adjustments as unrealized 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 CHF128 million ($129 million) for the financial year 2016.
Together with the group’s shareholder, Aabar Investments, which has granted Falcon a capital contribution to compensate for the loss and to strengthen the group’s capital base, the company has concluded its financial restructuring.
Exceeding regulatory requirements, the company had a consolidated capital adequacy ratio of over 20 percent and a solid liquidity cushion (LCR) of around 140 percent at the end of January 2017. These solid capital and liquidity positions provide security for the company’s clients and counterparties, and underline its ability to meet all obligations at any time. Falcon Group has also taken action to address remaining legacy issues and has made progress in strengthening its compliance and risk framework to meet Swiss Financial Market Supervisory Authority (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. The board is now composed as follows: Christian Wenger, new chairman and member since 2005; Murtadha M. Al-Hashmi, vice chairman and member since 2011; Khaled Balama Al-Tameemi, member since 2016; and new members Marc P. Bernegger, Martin Keller, and Dominik Schärer.