Liechtenstein-based VP Bank Group has logged consolidated net income for 2013 of SFr38.7 million ($44.3 million); compared to 2012, net operating income rose 1.8 per cent to SFr239.4 million.

Liechtenstein-based VP Bank Group has logged consolidated net income for 2013 of SFr38.7 million ($44.3 million); compared to 2012, net operating income rose 1.8 per cent to SFr239.4 million.

Total income from commission businesses and services for the year increased by 5.6 per cent to SFr114.1 million as a result of the improved sentiment in the financial markets, while income from trading activities fell from SFr21.1 million to SFr19.5 million.

Adjusted for one-time effects attributable to the change of the pension fund from a defined benefit to a defined contribution scheme in 2012, as well as early adoption of the revised IAS 19 standard, operating expenses witnessed a year-on-year decline of 1.5 per cent to SFr168.0 million.

The cost/income ratio increased in 2013 to 70.2 per cent (previous year: 62.8 per cent). VP Bank said the ratio for 2012 must be viewed in light of the one-time effects: adjusted for those effects, the 2013 reading is 2.3 per cent below that of the previous year.

At the end of last year, the bank had a tier 1 capital ratio of 20.4 per cent (previous year: 21.5 per cent).

Client assets under management at VP Bank Group stood at SFr30.6 billion at the end of 2013, compared to the prior-year figure of SFr28.5 billion, a 7.4 per cent increase. Included in that total is a performance-related gain of SFr1.1 billion as a result of positive financial market developments. The bank recorded a net new money inflow of SFr965 million, a 3.4 per cent increase. The acquisition of the private banking activities of HSBC Trinkaus & Burkhardt in Luxembourg resulted in an inflow of client assets totalling SFr2.0 billion.

Assets held in custody increased to SFr9.0 billion (previous year: SFr8.8 billion). Consequently, total client assets stood at SFr39.6 billion on 31 December 2013 (previous year: SFr37.3 billion).