The bank, which operates in a number of countries, said recent stress tests don't point to problems with its overall loans portfolio.

Liechtenstein-based VP Bank Group warned yesterday that it will have to adjust one of its loan portfolio holdings by about SFr20 million ($20.9 million) because of the virus pandemic. 

The bank said that followimg stress tests done in recent days on outstanding loans it does not need to put more money aside.

“Thanks to its very healthy equity base, comfortable liquidity situation and operational strength, VP Bank Group is in a good position to cope with the current crisis. At the moment, however, the coronavirus crisis is leaving a mark on the loan portfolio of VP Bank Group, requiring a larger valuation adjustment to one individual position of approximately SFr20 million,” he said.

The bank, which holds its annual shareholder meeting towards the end of April, said that it cannot predict in full how the global economic disruption will affect its financial results. 

“The extent of the impact that the coronavirus is having on society and the economy, and thus on the financial markets as well, is becoming increasingly clear. High market losses over a very short period of time and extremely high volatility that has never been witnessed before are causing a strain not only on the financial market as a whole but also on VP Bank Group,” it said.  

VP Bank Group added: “We can today state that apart from this larger valuation adjustment on one individual position in the first quarter of 2020, VP Bank Group posted results that on the whole are satisfactory. We are particularly pleased that because of the essentially defensive orientation of the portfolios, asset management has to date performed well compared with the rest of the sector.”