VP Bank growth in line with strategy
The VP Bank Group has reported operational successes for financial year 2018. Its long-term growth strategy has been reflected in a considerable net inflow of new money. However, higher investment caused Group net income to decline on the previous year.
One of the cornerstones of the VP Bank Group’s growth strategy is to increase client assets – whether through organic growth or through acquisitions, the Vaduz banking group explained in a press release. In the past financial year, the VP Bank Group recorded an inflow of net new assets amounting to 3.2 billion Swiss francs. Client assets under management at the banking group were up 2.8 percent on the previous year and totaled 41.5 billion francs. “The renewed rise in net new assets beat expectations and underscores the effectiveness of our growth strategy,” stated Dr Urs Monstein, Chief Executive Officer ad interim of VP Bank Group. “We are confident that we will be able to generate additional income from our numerous investments over the coming years.”
The press release cites these investments as the reason for the decline in Group net income. When compared with financial year 2017, this fell 16.8 percent to 54.7 million francs. However, the VP Bank Group was able to post growth for the operating result. Earnings from interest income rose by 6.3 percent in year-on-year terms to reach 111.0 million francs. Income from commission business and services increased 0.3 percent in 2018 to reach 124.3 million francs, while earnings from trading activities rose by an impressive 9.4 percent to reach 55.0 million francs. In the area of financial assets, caused a decline in operating income of 3.1 percent year on year to 290.8 million francs.