Reports
VP Bank Reports Rise In Net Income, AuM

The bank operates in multiple regions, including Asia, and reported that all of its international locations made a positive contribution to its income in 2021.
VP Bank, the
Liechtenstein-based private banking house, yesterday reported net
income of SFr50.6 million ($54.4 million) in 2021, rising 21.7
per cent on a year earlier.
Continuing positive inflows of new money, the acquisition of the
client business of Öhman Bank SA and positive market performance
led to an increase in client assets under management of 8.1 per
cent to SFr51.3 billion, the bank said. VP Bank’s core business
received SFr2.1 billion of new money.
The group, which operates in a number of regions, including Asia,
proposed a 25 per cent year-on-year rise in its dividend, to SFr5
per share.
All international locations made a positive contribution to net
income and posted profitable growth, VP Bank said.
Income from commission business and services rose by 11.8 per
cent to SFr156.5 million; operating income increased year-on-year
by 3.4 per cent to SFr329.9 million despite the “persistently
difficult interest rate environment,” the bank said.
As a result of the investments related to Strategy 2026, which
were made mainly in staff and IT, operating costs rose by 1.0 per
cent to SFr272.1 million.
The cost/income ratio narrowed from 84.5 per cent to 82.5 per
cent. The cost/income ratio, excluding depreciation and
amortisation, provisions, valuation adjustments and losses, stood
at 71.7 per cent. The bank’s Tier 1 ratio – its measure of
capital strength – was 22.4 per cent.
In 2021, VP Bank disclosed good progress in meeting its financial objectives.
In 2021, the bank and its sister businesses signed a
cooperation pact with Hywin Wealth Management and associated
entities to build an offshore platform pitched at wealthy Chinese
clients.
Looking forward
VP Bank is aming to achieve group net income of SFr100
million by the end of the 2026 strategy cycle, with a profit
margin of more than 15 basis points (bps) and a cost/income ratio
of at most 70 per cent. Over the entire strategy cycle, the group
said it wants a Tier 1 ratio in excess of 20 per cent and net new
money growth of more than 4 per cent per year.
“We are on track with the implementation of our Strategy 2026 and
the achievement of our financial objectives. The result after the
first year of implementation is confirmation to me and my
management team that the combination of our traditional business
with the advantages of digital ecosystems provides us with
attractive opportunities for profitable and sustainable growth,”
Paul H Arni, CEO of VP Bank, said.
The bank’s board of directors proposed to re-elect Ursula Lang,
whose term of office is due to expire, for a further three years
as a member of the board. In addition, subject to regulatory
approval, the board is nominating Dr Mauro Pedrazzini for
election to the board of directors. Dr Pedrazzini was Minister of
Health and Social Affairs of the Government of the Principality
of Liechtenstein from 2013 to 2021.
Markus Thomas Hilti has declared that he does not intend to seek
re-election.
“For thirty years, I have helped to shape VP Bank as
representative of the U.M.M. Hilti-Stiftung foundation. My
decision not to stand for re-election does not change the
foundation’s long-term commitment as anchor shareholder of VP
Bank. We are also enthusiastic about the bank’s new strategic
orientation,” Hilti said. Dr Gabriela Maria Payer also declared
that she does not intend to seek re-election.