A high level of investments has caused a year-on-year decline in the net profit of Neue Bank AG in the 2019 financial year. In contrast, customer assets under management increased. The core capital ratio is above the industry average, at 36.9%.

“Financial year 2019 was a year of renewal and further development in the history of Neue Bank AG”, comments Karlheinz Ospelt, President of the Supervisory Board, in a press release issued by the bank to accompany the publishing of its annual financial statements. He adds: “The bank focused on the further digitalization of its processes, expanding consultancy services by way of comprehensive financial planning as well as the establishment of a Family Office”.
Against the background of the investments required for these measures, net profit at Neue Bank AG came in at 8.9 million Swiss francs in 2019. This represents a decline of 14.8 percent year on year. In the future, the Vaduz-based private bank is, however, expecting its investments to have a positive impact on its annual financial statements.
The individual business segments developed in varied fashion. According to the key metrics in the interest business, income of just under 10.4 million Swiss francs was posted. This equates to a decline of 3.1 percent versus 2018. The commission and service business generated income of nearly 16.0 million Swiss francs. In 2018, the equivalent value was 7.7 percent higher. Income in financial business, in contrast, improved by 9.6 percent to a total of 6.1 million Francs.
In the year under review, income was offset by expenses in the amount of 16.7 million Swiss francs. In comparison with the previous year, this equates to an increase of 6.8 percent. The cost-income ratio deteriorated year on year from 54.6 percent to 61.1 percent.
In terms of customer assets under management, however, an increase of 6.9 percent year on year was posted. In specific terms, customer assets under management at Neue Bank AG as at the reference date of year-end 2019 totaled just under 5.7 billion Swiss francs. With a core capital ratio (Tier 1 ratio) of 36.9 percent and equity in the amount of 139.2 million Swiss francs, Neue Bank AG has an above-average capital basis.

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