• wblogo
  • wblogo
  • wblogo

Operating Income Rises At VP Bank, AuM Dips

Tom Burroughes, Group Editor , 19 August 2020

articleimage

There was SFr1.0 billion in net new money inflow, aided by a rising number of client advisors and “intensive market development”, it said.

Liechtenstein-based VP Bank, which operates in a number of regions including Asia, increased its operating income by 2.5 per cent year-on-year to SFr166.8 million ($184.796 million) in the six months to the end of June, driven by commission business and services, as well as trading activity.

Group net income for the first half of 2020 amounted to SFr14.4 million (previous-year period: SFr35.3 million). The decline was caused by a valuation adjustment in the first half of the year.

The bank said that it intends to stick to its group net income target of SFr100 million but will postpone this until the end of 2026 given the “difficult framework conditions prompted by the coronavirus situation”.

Net interest income rose by 5.1 per cent year-on-year to SFr57.4 million, VP Bank said in a statement yesterday.

There was SFr1.0 billion in net new money inflow, aided by a rising number of client advisors and “intensive market development”, it said. Client assets under management totalled SFr45.6 billion as of 30 June, falling by 4.2 per cent from 31 December 2019.

As of 30 June, custody assets amounted to SFr6.4 billion, falling by SFr500 million from the end of September. Total custody assets stood at SFr52 billion.

In the first half of 2020, VP Bank stabilised its operating costs to a “good level”, and its cost/income ratio stood at 66.1 per cent, narrowing from 68.1 per cent from a year before.

Operating costs rose by SFr23.6 million from SFr122.7 million in the previous-year period to SFr146.2 million, rising by 19.2 per cent. 

VP Bank referred to its new strategy targets for growth - (net new money inflow of at least 4 per cent), profitability (profit margin of more than 15 basis points and cost/income ratio of 70 per cent) and stability (tier 1 ratio greater than 20 per cent) - saying that they would remain in place in spite of the changed market environment.

A year ago, Hywin Wealth Management Co and VP Bank signed a memorandum of understanding to collaborate, building a wealth proposition for the Chinese high net worth and ultra-HNW market at home and overseas.

The bank announced a number of C-suite moves recently. 

Latest Comment and Analysis

Latest News