Reports

Vontobel Reports Rise In 2016 Profits, AuM

Tom Burroughes, Group Editor, 9 February 2017

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The Swiss firm, which this week unveiled a booking centre deal with Bank of Singapore, has reported robust results for 2016.

Vontobel, the Swiss private bank and investment house that this week inked a partnership deal with Bank of Singapore, yesterday reported a 47 per cent year-on-year surge in IFRS group net profit to SFR62.9 million, including one-off items. On an adjusted basis, the Zurich-listed firm said profit rose 12 per cent over the year to SFr201.5 million. 

The firm said its dividend, including a special dividend, will rise 8 per cent to SFr2.0 per share.

At the end of last year, client assets reached a record of SFr195.4 billion, up 4 per cent. In wealth management, there was a 5.3 per cent rise in net new money, beating its target. Asset management continued to be the main driver of Vontobel’s earnings. Financial products increased in transaction volume terms by more than 20 per cent to SFr18.2 billion.

Vontobel’s capital ratio rose 1.1 percentage points to 19.0 per cent. Return on equity rose to 18 per cent from 12.4 per cent. 

The firm has almost 200 relationship managers working worldwide. Last year, Vontobel added to its regional footprint with new sales activities in Taiwan, Scandinavia and the Netherlands. 

Measured in terms of turnover, Vontobel has a market share of 26 per cent in its Swiss home market, 6.8 per cent in Germany and a total market share of 8.8 per cent in key European markets.

Vontobel said it is driving a “buyer’s market” for structured products with the rollout of a smart app in Switzerland and Germany this year, and has already entered the French and Dutch markets this year, intending to enter the Hong Kong market also in 2017.

As reported earlier this week, Bank of Singapore has entered into a strategic cooperation agreement with Vontobel so that the former's Asian ultra-high and high net worth clients can open accounts with Vontobel in Zurich, a move BoS said was a groundbreaking step. The clients can get access to Vontobel's suite of European financial products and services; they can choose Vontobel or Bank of Singapore to manage their assets booked in Zurich.

 

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