VP Bank posts significant profit increase
The VP Bank Group increased Group net income by just over a third to 73.5 million Swiss francs in 2019. Client assets under management also rose further year on year. At the same time, the cost-income ratio improved notably.
According to a press release issued by the VP Bank Group, the Vaduz-based banking group generated operating income of 327.8 million Swiss francs overall in financial year 2019. In comparison with the prior year, this equates to growth of 12.7 percent. This increase can above all be attributed to commission business and services as well as trading activities. Here, earnings rose by 10.4 percent and 10.9 percent respectively.
Operating income in the reporting year was offset by a 5.4 percent year-on-year rise in operating expenses to 244.8 million Swiss francs in total. As income therefore grew more strongly than expenses, the cost-income ratio improved from 75.8 percent to 67.7 percent. Group net income of 73.5 million Swiss francs was posted, which equates to an increase of 34.4 percent versus 2018.
In comparison with December 31, 2018, client assets under management at the VP Bank Group rose by 14.7 percent to 47.6 billion Swiss francs as at the reference date of year-end 2019. The VP Bank Group recorded net new money totaling 2.3 billion Swiss francs in 2019. The net inflow of new money taking into account the acquisition of Catella Bank’s private banking activities amounted to 3.2 billion Swiss francs, the press release states.
For the current year, the banking group is expecting a clear slowdown on the financial markets as a result of the coronavirus outbreak in particular. It will therefore be difficult for the bank to achieve its defined profit target of 80 million Swiss francs, the press release explains further.