Vontobel Holding AG said Wednesday first-half net profit shrank by nearly half because the bank couldn't cut costs as quickly as fees from wealthy clients fell.

The Zurich-based bank's net profit for the six months was 63 million Swiss francs ($58.3 million), down from CHF114.7 million in the year-ago period. Vontobel beat analyst expectations for the profit, which averaged CHF53.3 million.