Record Profits at Vontobel

Paul Adams

16 March 2007

Vontobel Group, the only independent listed Swiss private bank, has reported a net profit of SFr256.1 million ($202 million) for 2006, a 40 per cent improvement on the previous year driven by double-digit growth in profit in all business units. Private Banking reported a 12 per cent rise in pre-tax profit to SFr73.9 million compared to the previous year. Income rose by 17 per cent to SFr234.7 million. Operating expenses rose by 21 per cent to SFr158.4 million. Strong inflows of new money and a good investment performance resulted in a 15.2 per cent increase in assets under management to SFr26.1 billion. The new money was acquired mainly in Central and Eastern Europe, as well as in Switzerland and Germany. At a group level, assets totaled SFr108.3 billion at the end of 2006, up from SFr88.9 billion in 2005. Assets under management grew by approximately 24 per cent to SFr71.2 billion. Net new money increased significantly to SFr4.5 billion, compared to SFr1.4 billion in 2005, of which SFr1.1 billion was contributed by Private Banking and SFr3.8 billion by Asset Management & Investment Funds. "We are continuing to make targeted investments in the business and want to achieve strong growth in Spain as well as in Central and Eastern Europe in the future. The Vontobel brand has the necessary appeal to attract new clients as well as experienced and motivated employees. With our three business units, we have a broad-based positioning and are thus able to effectively absorb any variations in income in the individual areas. At the same time, we are focusing on our strengths and specialities within the business units," said Herbert Scheidt, Vontobel chief executive officer.