VP Bank once again increases corporate earnings and remains on track in terms of strategy implementation
The key financial results for the first half of 2023 in overview
- VP Bank demonstrated a great deal of resilience in a market environment that is challenging for banks and posted a semi-annual profit of CHF 25.5 million. This represents an increase of 19 per cent compared to the previous-year period, and an increase of 35 per cent compared to the second half of 2022.
- Operating income increased by 17 per cent compared to the previous-year period to CHF 188.3 million.
- The positive market environment in the first half of the year resulted in a 2 per cent increase in client assets under management to CHF 47.2 billion.
- Continued positive new money inflows were impacted by forced outflows due to adjustments to client portfolios, including a new money outflow of CHF 0.3 billion from clients with a connection to Russia. Net new money inflow was CHF 0.1 billion.
- Compared to the previous-year period, operating expenses increased by 14 per cent to CHF 158.2 million. As announced, the reasons for this were depreciation and amortisation on investments made, credit provisions that were created against the backdrop of the current economic environment, and a general inflation-related increase in costs.
- The cost / income ratio improved from 85.7 per cent to 84.0 per cent.
- VP Bank has a very strong capitalisation and high liquidity. The tier 1 ratio was 23.4 per cent, and the liquidity coverage ratio was 202.2 per cent.
- VP Bank is on track in terms of the implementation of its Strategy 2026 and confirms the financial targets with an annual income growth of 4 to 6 per cent, annual net new money growth of at least 4 per cent, a tier 1 ratio of over 20 per cent, and a cost / income ratio of under 75 per cent, all of which will be achieved by 2026.
VP Bank has once again demonstrated that it can increase its profitability amidst a market environment that continues to be challenging.Paul Arni Group CEO
Paul H. Arni, Group CEO of VP Bank: “VP Bank has once again demonstrated that it can increase its profitability amidst a market environment that continues to be challenging. We have the necessary means, financial strength and anchor shareholders with a long-term focus, all of which allow us to plan and act with foresight. The technical transformation is complete. We now have a scalable, flexible foundation that will allow us to exploit the future opportunities that the market will offer us, in line with our strategic plans, and to create added value that is profitable over the long term for our clients and shareholders alike.”