Switzerland's Vontobel Logs Record New Money In 2013; Profit Steady

Tom Burroughes

7 February 2014

Swiss bank said today it has logged record new money of SFr9.1 billion ($10.1 billion) in 2013, helping to drive up total assets under management to SFr163.1 billion at the end of December last year, up 9 per cent from a year before.

The bank reported a net profit of SFr122.3 million, which was in line with 2012; the figure “represents a very respectable result”, the bank said, because profits were hit by significant one-off costs of SFr20.7 stemming from an adjustment to its cross-border business model, a tax agreement with the UK, and measures to take part in the Swiss-US tax co-operation programme. (For more on the US-Swiss programme, see here.)

As assets rose, net commission income rose by SFr101.2 million to SFr596.3 million, or up by 20 per cent. This compares to a volume-driven decline of 5 per cent in trading income - which is mainly influenced by the issuing, hedging and market making of structured products – to SFr198.9 million.

Operating expense rose by 11 per cent in 2013 – almost at the same rate as income – to SFr695.9 million. This includes one-off costs of SFr20.7 million in connection with the implementation of cross-border activities in private banking, as well as the tax agreement with the UK and the bank’s participation in the US programme. The adjusted cost/income ratio rose marginally from 78 per cent to 79 per cent.

With a net inflow of new money totalling CHF 9.1 billion, Vontobel achieved a new record in the financial year 2013. The growth in new money corresponds to 9.2 per cent of the asset base. All business units – especially asset management – attracted “substantial new money”.