The private bank's cost/income ratio widened quite sharply in 2018.

Liechtenstein-based VP Bank announced that it had logged net new money of SFr3.2 billion ($3.2 billion) for 2018, lifting assets under management to SFr41.5 billion, up by 2.8 per cent over 2017’s level, it said yesterday but it announced that group net income slid by 16.8 per cent to SFr54.7 million.

The bank said it is not proposing to change its dividend when it holds its annual meeting on 26 April.

The cost/income ratio rose to 75.8 per cent, widening from 64.2 per cent.

On the earnings side, interest income (+ 6.3 per cent) as well as trading activities (+9.4 per cent) performed “particularly well”, VP Bank said. Commission business and services rose only slightly (+ 0.3 per cent).

Operating expenses rose to SFR232.3 million from SFr229.8 million in 2017.

VP Bank said that financial assets produced a loss of SFr1.6 million, which contrasts with the profit of SFr19.2 million recorded in 2017. The SFr20.9 million cut was caused by non-realisable valuation losses on financial instruments.

The tier 1 ratio amounted to 20.9 per cent and the leverage ratio to 7.3 per cent.

“Even though the past financial year was difficult due to the persistently low interest rate environment and weak performance on international financial markets: in operating terms VP Bank performed well, particularly on the earnings side,” the lender said.

“The renewed rise in net new assets beat expectations and underscores the effectiveness of our growth strategy. We are confident that we will be able to generate additional income from our numerous investments over the coming years,” Dr Urs Monstein, interim chief executive of VP Bank Group, said.

Last year the bank changed its management structure: On 1 March, Dr Felix Brill joined VP Bank as the new chief investment officer and head of the “Investment Solutions” unit formed the previous year. With Brill, the number of members of the group executive management rose to a total of six.

Dr Urs Monstein joined the group executive management on 1 May in the capacity of chief operating officer. After the group announced the departure of Alfred W Moeckli as CEO, Urs Monstein was also made interim head of group executive management.