VP Bank doubles Group net income
At just under 30 million Swiss francs, the VP Bank Group has doubled its Group net income in the first half of 2021. The cost-income ratio improved to 79.4 percent. Client assets under management also rose significantly during the reporting period.
According to a press release issued by the VP Bank Group , the international banking group generated operating income of 166.6 million Swiss francs, which represents a stable result in comparison with the previous year. Income from commission business and services rose by 9.1 percent versus the prior-year period to now stand at 78.0 million Swiss francs. However, declines were recorded for both interest income (down to 55.9 million Swiss francs) and income from trading activities (down to 24.1 million Swiss francs) in comparison with the previous year. The banking group attributes these developments to central bank interest rate cuts for the US dollar and euro.
Operating income stands against a 9.6 percent decline in operating expenses to 132.2 million Swiss francs. In the same period of the previous year, a provision for a pandemic-related write-down on an individual item in the amount of 20 million Swiss francs drove up expenses. In the reporting period, the cost-income ratio improved by 8.3 percentage points versus the first six months of 2020 to come in at 79.4 percent.
Overall, Group net income of 29.9 million Swiss francs was posted for the first half of 2021. This equates to a rise of 108.3 percent versus the same period in the previous year. Client assets under management increased by 10.8 percent to 52.6 billion Swiss francs versus the end of 2020.
“The progress and milestones achieved in the first half of the year confirm the viability of our strategy”, comments Paul H. Arni, CEO of VP Bank, in the press release. In his view, the half-year result and equity base provide a “solid foundation for the further development of the VP Bank Group”. In terms of the 2026 strategy cycle, Arni takes the view that the business remains “well on the way” to achieving the defined objectives.
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