Notes on the consolidated financial statement

1 Interest income

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Discount income	7,320	7,195	125	1.7
Loan commissions with the character of interest	569	302	267	88.4
Interest income from banks	50,885	66,816	–15,931	–23.8
Interest income from customers	160,718	157,491	3,227	2.0
Interest income from financial instruments measured at amortised cost	42,943	37,051	5,892	15.9
Interest income from financial liabilities	10	0	10	0.0
Total interest income from financial instruments at amortised cost	262,445	268,855	–6,410	–2.4
Interest-rate instruments	239	246	–7	–2.8
Trading derivatives (forward points)	43,641	46,881	–3,240	–6.9
Hedge accounting	5	74	–69	–93.2
Total other interest income	43,885	47,201	–3,316	–7.0
Total interest income	306,330	316,056	–9,726	–3.1
Interest expenses on amounts due to banks	1,337	719	618	86.0
Interest expenses on amounts due to customers	200,375	179,159	21,216	11.8
Interest expenses on medium-term notes	471	421	50	11.9
Interest expenses on debentures issued	1,603	1,777	–174	–9.8
Interest expenses from financial assets	11	65	–54	–83.1
Interest expenses on right-of-use assets	274	276	–2	–0.7
Total interest expenses using the effective interest method	204,071	182,417	21,654	11.9

Total net interest income	102,259	133,639	–31,380	–23.5

Fair-value hedges
Movements arising from hedges	–465	–577	112	19.4
Micro fair-value hedges	–465	–577	112	19.4
Movements in underlying transactions	470	651	–181	–27.8
Micro fair-value hedges	470	651	–181	–27.8
Total hedge accounting¹	5	74	–69	–93.2

1Hedge ineffectiveness, disclosed in the income statement: further details in note 37.

2 Income from commission business and services

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Commission income from credit business	1,412	647	765	118.2
Asset management and investment business	60,361	60,923	–562	–0.9
Brokerage fees	27,661	23,519	4,142	17.6
Securities account fees	17,836	17,739	97	0.5
Fund management fees¹	32,043	56,618	–24,575	–43.4
Fiduciary commissions	2,710	2,465	245	9.9
Other commission and service income	16,947	19,822	–2,875	–14.5
Total income from commission business and services	158,970	181,733	–22,763	–12.5
Brokerage expenses	1,284	1,127	157	13.9
Other commission and services-related expenses¹	20,597	42,710	–22,113	–51.8
Total expenses from commission business and services	21,881	43,837	–21,956	–50.1
Total net income from commission business and services	137,089	137,896	–807	–0.6

1As of 1 January 2024, fees are paid directly to the beneficiaries and are no longer processed via the accounts with the fund companies. In comparison to previous years, this leads to a reduction in both the income and the corresponding expenses.

The following table shows which components are included within the earnings position “Asset management and investment business”.

in CHF 1,000	2024	2023	Variance absolute	Variance in %

Fees for securities settlement	9,415	9,042	373	4.1
Administration commissions	32,305	33,017	–712	–2.2
Management fees	7,371	10,659	–3,288	–30.8
Brokerage fees	18,511	13,802	4,709	34.1
Securities account fees	3,201	4,313	–1,112	–25.8
Administration fees	3,222	4,243	–1,021	–24.1
All-in fees	16,447	16,017	430	2.7
Miscellaneous fees	2,194	2,847	–653	–22.9
Asset management and investment business	60,361	60,923	–562	–0.9

3 Income from trading activities

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Securities trading¹	–1,853	–5,152	3,299	64.0
Foreign currency	81,932	89,844	–7,912	–8.8
Banknotes, precious metals and other	1,277	559	718	128.4
Total income from trading activities	81,356	85,251	–3,895	–4.6

1The income from derivatives for risk minimisation (except for interest rate derivatives) is included in this position.

4 Income from financial instruments

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Income from financial instruments at fair value	4,807	6,206	–1,399	–22.5
Income from financial instruments at amortised cost	261	–168	429	255.4
Total income from financial instruments	5,068	6,038	–970	–16.1

Income from financial instruments at fair value
Income from FVTPL assets	–4,314	–1,234	–3,080	–249.6
Interest income from FVTPL financial instruments	–39	356	–395	–111.0
Dividend income from FVTPL financial instruments	2,869	1,165	1,704	146.3
Dividend income from FVTOCI financial instruments	6,291	5,919	372	6.3
thereof from FVTOCI financial instruments sold	19	0	19	0.0
Total	4,807	6,206	–1,399	–22.5

Income from financial instruments at amortised cost
Realised gains/losses on financial instruments at amortised cost	261	–168	429	255.4
Total	261	–168	429	255.4

5 Other income

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Income from real estate	106	149	–43	–28.9
Income from joint venture companies	–1	–1	0	0.0
Miscellaneous other income¹	5,062	3,611	1,451	40.2
Miscellaneous other expenses²	–405	–2,152	1,747	81.2
Total other income	4,762	1,607	3,155	196.3

1Includes in 2024 CHF 4.4 million from reimbursements and in 2023 CHF 2.4 million from early termination of a lease liability as well as CHF 0.4 million from a reimbursement.

2Includes in 2023 CHF –1.8 million from legal expenses.

6 Personnel expenses

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Salaries and wages	152,494	148,839	3,655	2.5
Social contributions required by law	12,640	13,228	–588	–4.4
Contributions to pension plans / defined-benefit plans	14,125	8,367	5,758	68.8
Contributions to pension plans / defined-contribution plans	2,630	2,839	–209	–7.4
Other personnel expenses	3,960	5,631	–1,671	–29.7
Capitalised personnel expenses¹	–2,515	–3,133	618	19.7
Total personnel expenses²	183,334	175,771	7,563	4.3

1In accordance with IAS 38, a portion of internally generated intangible assets such as software is capitalised. The amount that can be capitalised is reduced accordingly in personnel expenses.

2Includes in 2024 CHF 5.0 million restructuring costs (see Consolidated annual report of VP Bank Group).

7 General and administrative expenses

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Occupancy expenses	3,221	3,883	–662	–17.0
Insurance	901	937	–36	–3.8
Professional fees	21,825	20,637	1,188	5.8
Financial information procurement	9,309	9,207	102	1.1
Telecommunication and postage	1,392	1,384	8	0.6
IT systems	34,078	34,893	–815	–2.3
Marketing and public relations	4,554	4,890	–336	–6.9
Capital taxes	750	811	–61	–7.5
Other general and administrative expenses	9,518	7,887	1,631	20.7
Total general and administrative expenses¹	85,548	84,529	1,019	1.2

Fees invoiced by the audit firm	2,505	2,036	470	23.1
thereof the audit of the annual financial statements	780	673	107	15.8
thereof other audit or assurance services	1,445	872	573	65.7
thereof tax advisory services	52	64	–12	–19.1
thereof other services	228	426	–198	–46.5

1Includes in 2024 CHF 0.4 million restructuring costs (see Consolidated annual report of VP Bank Group.

8 Depreciation of property, equipment and intangible assets

in CHF 1,000	Note	2024	2023	Variance absolute	Variance in %
Depreciation and amortisation of property and equipment¹	22	15,278	14,829	449	3.0
Depreciation and amortisation of intangible assets²	23	21,680	31,079	–9,399	–30.2
Total depreciation and amortisation		36,958	45,908	–8,950	–19.5

1Includes in 2024 CHF 1.9 million restructuring costs (see Consolidated annual report of VP Bank Group.

2In 2024 CHF 8.1 million less depreciation due to adjusted estimated useful life (see accounting policies and notes).

9 Valuation allowances, provisions and losses

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Decrease/increase credit allowances¹	724	4,951	–4,227	–85.4
Legal and litigation risks	701	450	251	55.8
Other provisions and losses	1,001	1,919	–918	–47.8
Total valuation allowances, provisions and losses	2,426	7,320	–4,894	–66.9

1Including currency effects.

10a Taxes on income

in CHF 1,000	2024	2023
Domestic
Current taxes	6,289	9,182
Deferred taxes	–3,521	–3,773

Foreign
Current taxes	133	–131
Deferred taxes	896	1,416

Total current taxes	6,422	9,051
Total deferred taxes	–2,625	–2,357
Total taxes on income	3,797	6,694

The Group’s effective payments for domestic and foreign income taxes amounted to CHF 6.6 million in 2024 (previous year: CHF 8.9 million).

Statement of taxes on income

All expected obligations from taxes on income for the reporting period are recognised in the financial statements. They are calculated in accordance with the tax laws applicable in the respective countries. The deferred tax liabilities arising from the different valuations between the financial statements prepared for tax purposes and the values used for consolidation purposes are recognised at the following tax rates:

	2024	2023
Liechtenstein	12.5%	12.5%
Switzerland	19.6%	19.7%
Luxembourg	24.9%	24.9%
British Virgin Islands	0.0%	0.0%
Singapore	17.0%	17.0%
Hong Kong	16.5%	16.5%

The pre-tax net income and the differences between the tax expense in accordance with the income statement and the tax expense based on an assumed average tax rate of 15 per cent (previous year: 15 per cent) are composed as follows:

in CHF 1,000	2024	2023
Income before income tax
Domestic	4,738	18,441
Foreign	17,530	32,462
Taxes on income using an assumed average charge	3,340	7,635

Reasons for increased/decreased taxable income
Effect on tax free income / effect on non taxable expenses	–1,819	–1,265
Difference between actual and assumed tax rates	1,363	2,822
Tax income unrelated to accounting period	68	–1,036
Previously unrecognized tax losses now utilised	845	–1,462
Total income tax	3,797	6,694

10b Deferred tax assets and liabilities

in CHF 1,000	Balance at the beginning of the financial year	Changes affecting the income statement	Changes affecting the other comprehensive income	Changes in scope of consolidation/ acquisitions	Total 2024
Deferred tax assets
Property, equipment and intangible assets	7,013	560	0	0	7,573
Valuation allowances for credit risks	704	–704	0	0	0
Tax loss carry-forwards¹	4,186	1,488	0	0	5,674
Defined-benefit pension plans	1,916	395	–436	0	1,875
Financial instruments	48	–9	0	0	39
Other	484	–85	0	0	399
Total deferred tax assets	14,351	1,645	–436	0	15,560
Offsetting	–2,519	1,397	477	0	–645
Total deferred tax assets after offsetting	11,832	3,042	41	0	14,915

Deferred tax liabilities
Property, equipment and intangible assets	1,017	–541	0	0	476
Financial instruments	59	–9	0	0	50
Financial instruments directly offset within shareholders’ equity	10	0	–73	0	–63
Valuation allowances for credit risks	19	–6	0	0	13
Other	2,916	–424	0	0	2,492
Total deferred tax liabilities	4,021	–980	–73	0	2,968
Offsetting	–2,519	1,397	477	0	–645
Total deferred tax liabilities after offsetting	1,502	417	404	0	2,323

1Where the realisation of tax benefits is considered probable, there is an obligation to capitalise. Offsetting only applies if the deferred tax assets and liabilities relate to the same tax authority.

in CHF 1,000	Balance at the beginning of the financial year	Changes affecting the income statement	Changes affecting the other comprehensive income	Changes in scope of consolidation/ acquisitions	Total 2023
Deferred tax assets
Property, equipment and intangible assets	6,541	472	0	0	7,013
Valuation allowances for credit risks	704	0	0	0	704
Tax loss carry-forwards¹	2,430	1,756	0	0	4,186
Defined-benefit pension plans	1,217	–379	1,078	0	1,916
Financial instruments	167	–13	–106	0	48
Other	670	–186	0	0	484
Total deferred tax assets	11,729	1,650	972	0	14,351
Offsetting	–3,427	849	59	0	–2,519
Total deferred tax assets after offsetting	8,302	2,499	1,031	0	11,832

Deferred tax liabilities
Property, equipment and intangible assets	1,647	–630	0	0	1,017
Financial instruments	59	0	0	0	59
Financial instruments directly offset within shareholders’ equity	24	–10	–4	0	10
Valuation allowances for credit risks	23	–4	0	0	19
Other	2,975	–59	0	0	2,916
Total deferred tax liabilities	4,728	–703	–4	0	4,021
Offsetting	–3,427	849	59	0	–2,519
Total deferred tax liabilities after offsetting	1,301	146	55	0	1,502

The deferred taxes are due to temporary differences resulting from different valuations between the IFRS and statutory financial statements.

in CHF 1,000	2024	2023
Loss carry-forwards not reflected in the balance sheet expire as follows:
Within 1 year	0	0
Within 1 to 5 years	0	0
Within 5 to 10 years	0	0
No expiration	0	0
Total	0	0

10c Tax assets and liabilities

in CHF 1,000	Note	31.12.2024	31.12.2023
Tax assets
Amounts receivable arising on current taxes on income		157	31
Deferred tax assets	10b	14,915	11,832
Total tax assets		15,072	11,863

Tax liabilities
Liabilities arising on current taxes on income		5,251	5,424
Deferred tax liabilities	10b	2,323	1,502
Total tax liabilities		7,574	6,926

10d Tax effects on other comprehensive income

in CHF 1,000			31.12.2024
	Amount before tax	Tax yield / tax expenses	Amount net of tax
Changes in foreign-currency translation differences	5,575	0	5,575
Foreign-currency translation difference transferred to the income statement from shareholders’ equity	0	0	0
Changes in value of FVTOCI financial instruments	11,013	73	11,086
Actuarial gains/losses from defined-benefit pension plans	2,308	–436	1,872
Total comprehensive income in shareholders’ equity	18,896	–363	18,533

			31.12.2023
Changes in foreign-currency translation differences	–6,962	0	–6,962
Foreign-currency translation difference transferred to the income statement from shareholders’ equity	0	0	0
Changes in value of FVTOCI financial instruments	2,724	–102	2,622
Actuarial gains/losses from defined-benefit pension plans	–8,783	1,078	–7,705
Total comprehensive income in shareholders’ equity	–13,021	976	–12,045

11 Earnings per share

	31.12.2024	31.12.2023
Consolidated earnings per share of VP Bank Ltd, Vaduz
Group net income (in CHF 1,000)¹	18,471	44,209
Weighted average of registered shares A issued	6,015,000	6,015,000
Weighted average of registered shares B issued	6,004,167	6,004,167
Less weighted average number of treasury shares A	391,173	432,185
Less weighted average number of treasury shares B	352,784	351,084
Weighted average number of registered shares A (undiluted)	5,623,827	5,582,815
Weighted average number of registered shares B (undiluted)	5,651,383	5,653,083
Total weighted average number of shares (registered shares A)	6,188,965	6,148,124
Undiluted consolidated earnings per registered share A	2.98	7.19
Undiluted consolidated earnings per registered share B	0.30	0.72

Diluted consolidated earnings per share of VP Bank Ltd, Vaduz
Group net income (in CHF 1,000)¹	18,471	44,209
Dilution effect number of registered shares A²	24,178	26,107
Number of shares used to compute the fully diluted consolidated net income	6,213,143	6,174,231
Diluted consolidated earnings per registered share A	2.97	7.16
Diluted consolidated earnings per registered share B	0.30	0.72

1Based on the group net income attributable to shareholders of VP Bank Ltd, Vaduz.

2The dilution effect results from outstanding management stock-ownership plans (Note 43).

12 Dividend

	2024	2023
Approved and paid dividend of VP Bank Ltd, Vaduz
Dividend (in CHF 1,000) for the financial year 2023 (2022)	33,077	33,077
Dividend per registered share A	5.00	5.00
Dividend per registered share B	0.50	0.50
Payout ratio (in %)	69.5	76.1

Proposed dividend to be approved by the annual general meeting of VP Bank Ltd, Vaduz (not reflected as a liability as of 31 December)
Dividend (in CHF 1,000) for the financial year 2024	26,462
Dividend per registered share A	4.00
Dividend per registered share B	0.40
Payout ratio (in %)¹	134.0

1Dividend per registered share A / group net income per registered share A.

13 Cash and cash equivalents

in CHF 1,000	31.12.2024	31.12.2023
Cash on hand	13,330	19,508
At-sight balances with national and central banks	891,888	1,591,475
Expected credit loss	–19	–24
Total cash and cash equivalents	905,199	1,610,959

14 Receivables arising from money market papers

in CHF 1,000	31.12.2024	31.12.2023
Money market paper (qualifying for refinancing purposes)	171,755	170,902
Expected credit loss	–6	–8
Total receivables arising from money market papers	171,749	170,894

15 Due from banks and customers

in CHF 1,000	Note	31.12.2024	31.12.2023
By type of exposure
Due from banks – at-sight balances		394,894	549,599
Due from banks – term balances		455,815	804,271
Valuation allowances for credit risks	16	–28	–87
Due from banks		850,681	1,353,783

Mortgage receivables		3,727,549	3,288,612
Other receivables		2,238,711	2,200,778
Valuation allowances for credit risks	16	–25,008	–21,872
Due from customers		5,941,252	5,467,518

Total due from banks and customers		6,791,933	6,821,301

Due from customers by type of collateral
Mortgage collateral		3,732,694	3,305,469
Other collateral		2,148,981	1,911,437
Without collateral		84,585	272,484
Subtotal		5,966,260	5,489,390
Valuation allowances for credit risks		–25,008	–21,872
Total due from customers		5,941,252	5,467,518

16 Allowances for credit risk

The detailed information on credit risk is disclosed in the section Risk Management of VP Bank Group.

17 Trading portfolios

in CHF 1,000	31.12.2024	31.12.2023
Debt securities valued at fair value
Total	0	0

Equity securities / investment-fund units valued at fair value
Total	0	0
Other	372	213
Total trading portfolios	372	213

18 Derivative financial instruments

in CHF 1,000	Positive replacement values	Negative replacement values	Contract volumes
Interest-rate instruments
Swaps		413	22,000
Total interest-rate instruments 31.12.2024	0	413	22,000

Foreign currencies
Forward contracts	10,341	1,214	353,867
Combined interest-rate/currency swaps	69,211	10,038	3,561,846
Options (OTC)	5,898	5,901	508,250
Total foreign currencies 31.12.2024	85,450	17,153	4,423,963

Equity securities/indices
Options (OTC)	734	723	98,802
Total equity securities/indices 31.12.2024	734	723	98,802

Precious metals
Forward contracts	308	70	16,600
Options (OTC)	356	356	24,917
Total precious metals 31.12.2024	664	426	41,517

Total derivative financial instruments 31.12.2024	86,848	18,715	4,586,282

The fair value for derivative financial instruments without market value is determined using recognised models. These valuation models take account of the relevant parameters such as contract specifications, the market price of the underlying security, the yield curve and volatility.

in CHF 1,000	Positive replacement values	Negative replacement values	Contract volumes
Interest-rate instruments
Swaps	24	353	32,000
Total interest-rate instruments 31.12.2023	24	353	32,000

Foreign currencies
Forward contracts	6,423	10,719	611,286
Combined interest-rate/currency swaps	13,882	71,148	3,551,399
Options (OTC)	20,588	20,612	959,641
Total foreign currencies 31.12.2023	40,893	102,479	5,122,326

Equity securities/indices
Options (OTC)	491		567,374
Options (Exchange-traded)		904	3,197
Total equity securities/indices 31.12.2023	491	904	570,571

Precious metals
Forward contracts	5	5	2,732
Options (OTC)	547	547	19,083
Total precious metals 31.12.2023	552	552	21,815

Total derivative financial instruments 31.12.2023	41,960	104,288	5,746,712

19 Financial instruments at fair value

in CHF 1,000	31.12.2024	31.12.2023
Debt instruments
Exchange-listed	0	4,182
Non-exchange-listed	1	1
Total	1	4,183

Equity shares / investment fund units
Exchange-listed	7,826	6,004
Non-exchange-listed	44,102	42,591
Total	51,928	48,595

Equity shares, through other comprehensive income (FVTOCI)
Exchange-listed	138,830	127,074
Non-exchange-listed	1,915	2,341
Total	140,745	129,415

Structured products
Exchange-listed	316	391
Total	316	391

Total financial instruments at fair value	192,990	182,584

The fair value of non-exchange-listed financial instruments is determined only on the basis of external traders’ quotes or pricing models which are based on prices and interest rates in an observable, active and liquid market. Management is satisfied that the prices determined on the basis of these techniques represent the best value calculated at the date of the financial statements for the balance sheet as well as the valuation entries in the income statement that depend on them.

20 Financial instruments at amortised cost

in CHF 1,000	31.12.2024	31.12.2023
Debt instruments
Exchange-listed	2,228,165	2,372,730
Expected credit loss	–911	–1,047
Total financial instruments at amortised cost	2,227,254	2,371,683

21 Joint venture

in CHF 1,000	2024	2023
Balance on 01.01.2024	23	24
Share of profit/loss	–1	–1
Balance on 31.12.2024	22	23


Details of companies reflected in the consolidation using the equity method
Name	Registered office	Activity	Share capital	Capital held in %
				31.12.2024	31.12.2023
Data Info Services AG	Vaduz	Procurement, trade and exchange of goods and services	CHF 50,000	50	50

22 Property and equipment

in CHF 1,000	Right of use assets¹	Bank buildings	Other real estate	Furniture and equipment	IT systems	Total 2024
Acquisition cost
Balance on 01.01.2024	35,073	198,155	3,366	23,458	11,037	271,088
Additions	945	1,441	34	480	93	2,993
Disposals/derecognitions²	–1,367			–102	–1,490	–2,959
Foreign-currency translation	510			311	47	868
Balance on 31.12.2024	35,161	199,596	3,400	24,147	9,687	271,990

Accumulated depreciation and amortisation
Balance on 01.01.2024	–18,309	–148,299	–31	–17,827	–8,166	–192,631
Depreciation and amortisation	–4,592	–5,590	–8	–1,680	–1,516	–13,386
Valuation allowances³	–592		–841	–459		–1,892
Disposals/derecognitions²	1,367			102	1,490	2,959
Foreign-currency translation	–237			–219	–41	–497
Other adjustments	0			–34		–34
Balance on 31.12.2024	–22,363	–153,889	–880	–20,117	–8,233	–205,481

Net book values on 31.12.2024	12,798	45,707	2,520	4,030	1,454	66,509

1Total in accordance with the table below.

2Includes derecognitions of fully depreciated property, plant and equipment.

3CHF 1.9 million restructuring costs (see Consolidated annual report of VP Bank Group.

in CHF 1,000	Right of use assets¹	Bank buildings	Other real estate	Furniture and equipment	IT systems	Total 2023
Acquisition cost
Balance on 01.01.2023	38,375	197,617	3,177	22,314	22,905	284,387
Additions	6,210	653	189	1,642	1,038	9,732
Disposals/derecognitions²	–8,815	–115		–144	–12,844	–21,918
Foreign-currency translation	–612			–354	–62	–1,028
Other adjustments	–85					–85
Balance on 31.12.2023	35,073	198,155	3,366	23,458	11,037	271,088

Accumulated depreciation and amortisation
Balance on 01.01.2023	–22,159	–142,783	–25	–16,315	–18,788	–200,069
Depreciation and amortisation	–5,241	–5,631	–6	–1,857	–2,269	–15,004
Valuation allowances	0					0
Disposals/derecognitions²	8,815	115		144	12,844	21,918
Foreign-currency translation	276			201	47	524
Balance on 31.12.2023	–18,309	–148,299	–31	–17,827	–8,166	–192,631

Net book values on 31.12.2023	16,764	49,856	3,335	5,631	2,871	78,457

1Total in accordance with the table below.

2Includes derecognitions of fully depreciated property, plant and equipment.

Right of use assets

in CHF 1,000	Buildings and premises	Motor vehicles	Total 2024
Acquisition cost
Balance on 01.01.2024	33,136	1,937	35,073
Additions	727	218	945
Disposals/derecognitions	–1,327	–40	–1,367
Foreign-currency translation	510	0	510
Other adjustments	0	0	0
Balance on 31.12.2024	33,046	2,115	35,161

Accumulated depreciation and amortisation
Balance on 01.01.2024	–16,831	–1,478	–18,309
Depreciation and amortisation	–4,353	–239	–4,592
Valuation allowances	–592	0	–592
Disposals/derecognitions	1,327	40	1,367
Foreign-currency translation	–239	2	–237
Balance on 31.12.2024	–20,688	–1,675	–22,363

Net book values on 31.12.2024	12,358	440	12,798

in CHF 1,000	Buildings and premises	Motor vehicles	Total 2023
Acquisition cost
Balance on 01.01.2023	36,461	1,914	38,375
Additions	6,007	203	6,210
Disposals/derecognitions	–8,728	–87	–8,815
Foreign-currency translation	–604	–8	–612
Other adjustments	0	–85	–85
Balance on 31.12.2023	33,136	1,937	35,073

Accumulated depreciation and amortisation
Balance on 01.01.2023	–20,913	–1,246	–22,159
Depreciation and amortisation	–4,922	–319	–5,241
Valuation allowances	0	0	0
Disposals/derecognitions	8,728	87	8,815
Foreign-currency translation	276	0	276
Balance on 31.12.2023	–16,831	–1,478	–18,309

Net book values on 31.12.2023	16,305	459	16,764

Additional information regarding property and equipment

in CHF 1,000	2024	2023
Fire insurance value of real estate	176,500	167,565
Fire insurance value of other property and equipment	26,450	43,588
Fair value of other real estate	2,520	3,335

There is no property, plant and equipment from financial leasing.

23 Goodwill and other intangible assets

in CHF 1,000	Software	Customer relationships	Goodwill	Total 2024
Acquisition cost
Balance on 01.01.2024	236,095	56,720	53,670	346,485
Additions	13,132			13,132
Disposals/derecognitions	–8,224			–8,224
Foreign-currency translation	311			311
Balance on 31.12.2024	241,314	56,720	53,670	351,704

Accumulated amortisation
Balance on 01.01.2024	–186,483	–46,514	–35,302	–268,299
Depreciation and amortisation	–17,071	–4,609		–21,680
Impairment				0
Disposals/derecognitions	8,224			8,224
Foreign-currency translation	–309			–309
Balance on 31.12.2024	–195,639	–51,123	–35,302	–282,064

Net book values on 31.12.2024	45,675	5,597	18,368	69,640

in CHF 1,000	Software	Customer relationships	Goodwill	Total 2023
Acquisition cost
Balance on 01.01.2023	235,803	56,720	53,670	346,193
Additions	18,625			18,625
Disposals/derecognitions	–17,938			–17,938
Foreign-currency translation	–395			–395
Balance on 31.12.2023	236,095	56,720	53,670	346,485

Accumulated amortisation
Balance on 01.01.2023	–178,334	–41,905	–35,302	–255,541
Depreciation and amortisation	–26,470	–4,609		–31,079
Impairment				0
Disposals/derecognitions	17,938			17,938
Foreign-currency translation	383			383
Balance on 31.12.2023	–186,483	–46,514	–35,302	–268,299

Net book values on 31.12.2023	49,612	10,206	18,368	78,186

No other intangible assets with an indefinite useful life are capitalised in the consolidated balance sheet of VP Bank Group.

Goodwill impairment test

The goodwill of CHF 18.4 million results from the existing goodwill of CHF 10.8 million from the acquisition of VP Bank (Luxembourg) SA in 2001, which is allocated to the cash-generating unit (CGU) VP Bank (Luxembourg) SA. This goodwill has not been amortised since 1 January 2005, but is subject to an annual impairment test. Since 2019, there has been further goodwill of CHF 6.8 million from the acquisition of the Luxembourg private banking activities of Catella Bank by VP Bank (Luxembourg) SA. Further goodwill of CHF 0.8 million was added in the 2021 financial year from the acquisition of the client business of Öhman Bank S.A., which has its registered office in Luxembourg. Both instances of goodwill are also allocated to the CGU VP Bank (Luxembourg) SA.

The determination of the realisable amount in connection with the impairment test in the 2024 financial year was based on the fair value (Level 3) less costs to sell. The carrying value of existing goodwill as well as intangible assets is tested using the market multiples method from comparable listed enterprises or from comparable transactions. The multiple used is the so-called goodwill multiple, which is defined as the ratio of the difference between the market capitalisation and the carrying value of equity capital to the existing assets under management and is used for the valuation of companies in the wealth management sector. The realisable amount exceeded the carrying value (posted equity capital plus carrying value of acquired intangible assets after deferred taxes plus carrying value of goodwill) of the CGU to such an extent that an impairment of goodwill could be considered unlikely. An additional calculation of the realisable amount, based on the value in use, as well as a sensitivity analysis was therefore waived.

24 Other assets

in CHF 1,000	31.12.2024	31.12.2023
Value-added taxes and other tax receivables	7,696	6,241
Settlement accounts	56,454	16,363
Miscellaneous other assets¹	1,976	1,884
Total other assets	66,126	24,488

1Adjustment accounts, other miscellaneous assets.

25 Medium-term notes

in CHF 1,000 Maturity	0–0.9999 % Interest rate	1–1.9999 % Interest rate	2–2.9999 % Interest rate	3–3.9999 % Interest rate	4–4.9999 % Interest rate	Total
2025	3,544	4,270	891	1,027	49	9,781
2026	13,289	1,914	47	10	15	15,276
2027	4,992	937	47	906	0	6,882
2028	938	4,396	202	0	0	5,536
2029	286	10,153	0	0	0	10,439
2030	142	269	0	0	0	411
2031	106	40	94	0	0	240
2032	117	790	0	0	0	907
2033	0	0	0	0	0	0
2034	0	20	0	0	0	20
Total 31.12.2024	23,414	22,789	1,280	1,943	64	49,491
Total 31.12.2023	26,246	22,783	2,126	1,805	45	53,005

The average payment of interest as at 31 December 2024 was 0.9 per cent (previous year: 0.9 per cent).

26 Debentures, VP Bank Ltd, Vaduz

					in CHF 1,000
Year of issue	ISIN	Interest rate in %	Currency	Maturity	Nominal amount	Total 31.12.2024	Total 31.12.2023
2015	CH0262888941	0.875	CHF	07.10.2024	100,000	0	100,043
2019	CH0461238880	0.600	CHF	29.11.2029	155,000	154,987	154,985
Total					255,000	154,987	255,028

Issued debt instruments are recorded at fair value plus transaction costs upon initial recognition. Fair value corresponds to the consideration received. They are subsequently accounted for at amortised cost. In this process, the market yield method (0.82 per cent debenture 2024; 0.60 per cent debenture 2029) is applied in order to amortise the difference between the issuance price and redemption value over the duration of the debentures.

27 Other liabilities

in CHF 1,000	31.12.2024	31.12.2023
Value-added taxes and other tax receivables	10,322	8,314
Accrued retirement pension contributions¹	13,617	13,047
Other long-term employee benefits¹	3,193	3,065
Settlement accounts	67,453	25,346
Miscellaneous other liabilities²	17,967	15,846
Total other liabilities	112,552	65,618

1Note 40.

2Adjustment accounts, other miscellaneous liabilities.

28 Provisions

in CHF 1,000	Default risk	Legal and litigation risks	Other provisions	Restructuring- provisions	Total 2024
Carrying value at the beginning of the financial year	252	357	1,770	0	2,379
Utilisation in accordance with purpose		–365	–19	–1,182	–1,566
New provisions charged to income statement	578	701	5	5,453	6,737
Provisions releases to income statement	–414		–100	–249	–763
Foreign-currency translation differences and other adjustments	18		17	119	154
Carrying value at the end of the financial year	434	693	1,673	4,141	6,941

Maturity of provisions
within one year					3,872
over one year					3,069

in CHF 1,000	Default risk	Legal and litigation risks	Other provisions	Restructuring- provisions	Total 2023
Carrying value at the beginning of the financial year	303	1,000	719	0	2,022
Utilisation in accordance with purpose		–93	–19		–112
New provisions charged to income statement	485	450	262		1,197
Provisions releases to income statement	–504		–152		–656
Reclassification		–1,000	1,000		0
Foreign-currency translation differences and other adjustments	–32		–40		–72
Carrying value at the end of the financial year	252	357	1,770	0	2,379

Maturity of provisions
within one year					2,155
over one year					224

29 Share capital

	31.12.2024		31.12.2023
	No. of shares	Nominal CHF	No. of shares	Nominal CHF
Registered shares A of CHF 10.00 nominal value	6,015,000	60,150,000	6,015,000	60,150,000
Registered shares B of CHF 1.00 nominal value	6,004,167	6,004,167	6,004,167	6,004,167
Total share capital		66,154,167		66,154,167

All shares are fully paid up.

30 Treasury shares

	31.12.2024		31.12.2023
	No. of shares	in CHF 1,000	No. of shares	in CHF 1,000
Registered shares A at the beginning of the financial year	416,615	43,755	454,784	47,763
Purchases	0	0	2	0
Sales	–41,155	–4,323	–38,171	–4,008
Balance of registered shares A as of balance sheet date	375,460	39,432	416,615	43,755

Registered shares B at the beginning of the financial year	352,169	5,469	350,769	5,457
Purchases	1,000	8	1,500	13
Sales	0	0	–100	–1
Balance of registered shares B as of balance sheet date	353,169	5,477	352,169	5,469

31 Assets pledged or assigned to secure own liabilities and assets subject to retention of title

	31.12.2024		31.12.2023
in CHF 1,000	Market value	Actual liability	Market value	Actual liability
Securities	753,095	0	736,825	0
Money market papers	0	0	0	0
Other	4,024	1,578	4,032	1,911
Total pledged assets	757,119	1,578	740,857	1,911

The assets are pledged for repo limits with national and central banks, for stock exchange deposits and to secure the business activities of the foreign organisations in accordance with local legal requirements. Assets pledged or assigned as part of lending or repo transactions are not included in the above list. They are shown in the table “Lending transactions and repurchase agreements with securities” (Note 44).

32 Leasing

The Group rents various office and warehouse buildings, as well as vehicles. Rental agreements are usually concluded for fixed periods of two to eight years, but options to extend may be included.

Leases in the balance sheet

in CHF 1,000	31.12.2024	31.12.2023	Variance absolute	Variance in %
Property and equipment
Right of use – buildings and premises	12,358	16,305	–3,947	–24.2
Right of use – motor vehicles	440	459	–19	–4.1
Total assets	12,798	16,764	–3,966	–23.7

Remaining duration of up to 1 year	4,998	4,884	114	2.3
Remaining duration of 1 to 5 years	9,858	13,550	–3,692	–27.2
Remaining duration of over 5 years	0	0	0	0.0
Total lease liabilities	14,856	18,434	–3,578	–19.4

Leases in the income statement

in CHF 1,000	2024	2023	Variance absolute	Variance in %
Net interest income
Interest expense on lease liabilities	274	276	–2	–0.7

Expenses relating to leases of low-value assets	694	488	206	42.2
Depreciation of property and equipment
Depreciation and impairment on right-of-use assets	5,184	5,241	–57	–1.1

33 Litigation

As part of its ordinary banking activities, VP Bank Group is involved in various legal proceedings. The legal and regulatory environment in which VP Bank Group operates involves significant litigation, compliance, reputational and other risks in connection with legal disputes and regulatory proceedings. The impact of these proceedings on the financial strength and/or profitability of VP Bank Group is dependent on the status of the proceedings and their outcome. VP Bank Group employs the relevant processes, reports and committees to monitor and manage these risks. It also establishes provisions for ongoing and threatened proceedings if the probability that such proceedings will entail a financial loss is judged to be greater than the probability of this not being the case. In isolated cases in which the amount cannot be reliably estimated, for instance because of the early stage or the complexity of the proceedings or other factors, no provision is established, but contingent liabilities may be created. The risks described below are not necessarily the only ones to which VP Bank Group is exposed. Additional risks which are presently unknown or risks and proceedings which are currently considered insignificant may equally impact the future course of business, operating results and the outlook of VP Bank Group.

In the case before the High Court of Justice in London, the court served a civil suit on VP Bank (Switzerland) Ltd at the beginning of 2020. VP Bank Ltd is also named as a defendant and was notified of the action in March 2020. The main defendant is a former governing body of a foreign pension fund. The latter is said to have acted unlawfully in its role by accepting distribution remunerations for investment funds. The action names more than 40 defendants, among them various other banks and individuals that processed payments or paid distribution remunerations. VP Bank Ltd and VP Bank (Switzerland) Ltd are accused of a violation of due diligence obligations. They are also accused of involvement in the processing of questionable third-party fees and commissions of at least USD 46 million, meaning they would have to assume non-contractual collective liability for the damages incurred. VP Bank Group is disputing the accusations and the place of jurisdiction. Two defendant banks in Switzerland successfully challenged the UK jurisdiction.

VP Bank Group considers the risk of outflow of funds to be small in the above case, which is why no provision has been formed.

34 Balance sheet per currency

in CHF 1,000	CHF	USD	EUR	Other	Total 2024
Assets
Cash and cash equivalents	734,046	506	166,612	4,035	905,199
Receivables arising from money market papers		72,944		98,805	171,749
Due from banks	133,570	318,832	167,562	230,717	850,681
Due from customers	4,575,615	585,194	511,303	269,140	5,941,252
Trading portfolios				372	372
Derivative financial instruments	74,606	9,934	102	2,206	86,848
Financial instruments at fair value	81,518	13,758	92,941	4,773	192,990
Financial instruments at amortised cost	545,089	976,892	679,215	26,058	2,227,254
Joint venture companies	22				22
Property and equipment	61,478	5,031			66,509
Intangible assets	69,434	206			69,640
Tax receivables			157		157
Deferred tax assets	14,866			49	14,915
Accrued liabilities and deferred items	18,850	13,225	7,918	1,890	41,883
Other assets	28,880	32,774	3,994	478	66,126
Total assets 31.12.2024	6,337,974	2,029,296	1,629,804	638,523	10,635,597

Liabilities and shareholders’ equity
Due to banks	120,255	16,775	6,547	33,275	176,852
Due to customers – savings and deposits	379,486		724		380,210
Due to customers – other liabilities	2,344,933	3,397,969	1,890,105	935,277	8,568,284
Derivative financial instruments	9,370	6,396	100	2,849	18,715
Medium-term notes	45,496	2,139	1,856		49,491
Debenture issues	154,987				154,987
Tax liabilities	5,187			64	5,251
Deferred tax liabilities	2,323				2,323
Accrued liabilities and deferred items	24,611	11,971	3,085	3,530	43,197
Other liabilities	38,372	54,658	17,447	2,075	112,552
Provisions	4,446	346	288	1,861	6,941
Total liabilities	3,129,466	3,490,254	1,920,152	978,931	9,518,803
Total shareholders’ equity	1,039,494	71,380	0	5,920	1,116,794
Total liabilities and shareholders’ equity 31.12.2024	4,168,960	3,561,634	1,920,152	984,851	10,635,597

in CHF 1,000	CHF	USD	EUR	Other	Total 2023
Assets
Cash and cash equivalents	1,343,392	497	263,143	3,927	1,610,959
Receivables arising from money market papers		66,821		104,073	170,894
Due from banks	250,015	434,353	193,655	475,760	1,353,783
Due from customers	4,125,394	591,137	503,352	247,635	5,467,518
Trading portfolios				213	213
Derivative financial instruments	18,852	4,484	4,315	14,309	41,960
Financial instruments at fair value	75,844	10,020	91,139	5,581	182,584
Financial instruments at amortised cost	609,983	941,790	790,597	29,313	2,371,683
Joint venture companies	23				23
Property and equipment	72,007	5,585		865	78,457
Intangible assets	78,021	165			78,186
Tax receivables			31		31
Deferred tax assets	11,823			9	11,832
Accrued liabilities and deferred items	30,730	14,003	10,709	1,840	57,282
Other assets	18,036	1,275	2,372	2,805	24,488
Total assets 31.12.2023	6,634,120	2,070,130	1,859,313	886,330	11,449,893

Liabilities and shareholders’ equity
Due to banks	225,805	12,703	34,533	20,202	293,243
Due to customers – savings and deposits	421,576		719		422,295
Due to customers – other liabilities	2,438,351	3,527,226	2,035,054	1,082,139	9,082,770
Derivative financial instruments	81,525	3,836	4,596	14,331	104,288
Medium-term notes	48,406	2,002	2,597		53,005
Debenture issues	255,028				255,028
Tax liabilities	4,461			963	5,424
Deferred tax liabilities	1,502				1,502
Accrued liabilities and deferred items	35,357	12,427	4,371	5,034	57,189
Other liabilities	35,605	19,142	9,744	1,127	65,618
Provisions	1,751	241	164	223	2,379
Total liabilities	3,549,367	3,577,577	2,091,778	1,124,019	10,342,741
Total shareholders’ equity	1,030,682	71,396	0	5,074	1,107,152
Total liabilities and shareholders’ equity 31.12.2023	4,580,049	3,648,973	2,091,778	1,129,093	11,449,893

35 Maturity structure of assets and liabilities

				Due within
in CHF 1,000	At sight	Callable	1 year	1 to 5 years	Over 5 years	Total 2024
Assets
Cash and cash equivalents	903,621	1,578				905,199
Receivables arising from money market papers			171,749			171,749
Due from banks	394,894		455,787			850,681
Due from customers	317,959	17,467	4,185,438	1,122,294	298,094	5,941,252
Trading portfolios	372					372
Derivative financial instruments	86,848					86,848
Financial instruments at fair value	192,990					192,990
Financial instruments at amortised cost			345,132	1,407,858	474,264	2,227,254
Joint venture companies					22	22
Property and equipment	66,509					66,509
Intangible assets	69,640					69,640
Tax receivables	157					157
Deferred tax assets	49			14,866		14,915
Accrued liabilities and deferred items	41,883					41,883
Other assets	65,017	1,109				66,126
Total assets 31.12.2024	2,139,939	20,154	5,158,106	2,545,018	772,380	10,635,597

Liabilities
Due to banks	176,852					176,852
Due to customers – savings and deposits		380,210				380,210
Due to customers – other liabilities	3,546,841	2,138,191	2,883,252			8,568,284
Derivative financial instruments	18,715					18,715
Medium-term notes			9,781	38,133	1,577	49,491
Debenture issues				154,987		154,987
Tax liabilities	5,251					5,251
Deferred tax liabilities				2,323		2,323
Accrued liabilities and deferred items	43,197					43,197
Other liabilities	111,988		297	267		112,552
Provisions	3,872			3,069		6,941
Total liabilities 31.12.2024	3,906,716	2,518,401	2,893,330	198,779	1,577	9,518,803

				Due within
in CHF 1,000	At sight	Callable	1 year	1 to 5 years	Over 5 years	Total 2023
Assets
Cash and cash equivalents	1,609,048	1,911				1,610,959
Receivables arising from money market papers			170,894			170,894
Due from banks	549,599		783,144	21,040		1,353,783
Due from customers	185,477	107,804	3,944,842	895,634	333,761	5,467,518
Trading portfolios	213					213
Derivative financial instruments	41,960					41,960
Financial instruments at fair value	53,145				129,439	182,584
Financial instruments at amortised cost			371,860	1,380,553	619,270	2,371,683
Joint venture companies					23	23
Property and equipment	77,592			865		78,457
Intangible assets	78,186					78,186
Tax receivables	31					31
Deferred tax assets	486			11,346		11,832
Accrued liabilities and deferred items	57,282					57,282
Other assets	23,741	747				24,488
Total assets 31.12.2023	2,676,760	110,462	5,270,740	2,309,438	1,082,493	11,449,893

Liabilities
Due to banks	293,243					293,243
Due to customers – savings and deposits		422,295				422,295
Due to customers – other liabilities	4,086,816	2,435,511	2,559,665	778		9,082,770
Derivative financial instruments	104,288					104,288
Medium-term notes			4,862	36,719	11,424	53,005
Debenture issues				100,043	154,985	255,028
Tax liabilities	5,424					5,424
Deferred tax liabilities				1,502		1,502
Accrued liabilities and deferred items	57,189					57,189
Other liabilities	65,300		318			65,618
Provisions	2,155			224		2,379
Total liabilities 31.12.2023	4,614,415	2,857,806	2,564,845	139,266	166,409	10,342,741

36 Classification of assets by country or groups of countries

	31.12.2024		31.12.2023
	in CHF 1,000	Proportion in %	in CHF 1,000	Proportion in %
Liechtenstein and Switzerland	6,147,398	57.8	6,840,801	59.7
Rest of Europe	2,008,668	18.9	2,188,439	19.1
North America	1,120,701	10.5	902,365	7.9
Other countries	1,358,830	12.8	1,518,288	13.3
Total assets	10,635,597	100.0	11,449,893	100.0

The breakdown is based on the domicile principle of the counterparties. The diversified collateral mainly in connection with lombard loans is not taken into account.

37 Financial instruments

Fair value of financial instruments

The following table shows the fair values of financial instruments based on the valuation methods and assumptions set out below. This table is presented because not all financial instruments are disclosed at their fair values in the consolidated financial statements. The fair value equates to the price at the date of measurement which could be realised from the sale of the asset, or which must be settled for the transfer of the liability, in an orderly transaction between market participants.

in CHF million	Carrying value 31.12.2024	Fair Value 31.12.2024	Variance	Carrying value 31.12.2023	Fair Value 31.12.2023	Variance
Assets
Cash and cash equivalents	905	905	0	1,611	1,611	0
Receivables arising from money market papers	172	172	0	171	171	0
Due from banks	851	851	0	1,354	1,354	0
Due from customers	5,941	6,020	79	5,468	5,499	31
Trading portfolios	0	0	0	0	0	0
Derivative financial instruments	87	87	0	42	42	0
Financial instruments at fair value	193	193	0	183	183	0
of which designated on initial recognition	0	0	0	0	0	0
of which mandatory under IFRS 9	52	52	0	53	53	0
of which recognised in other comprehensive income with no effect on net income	141	141	0	129	129	0
Financial instruments at amortised cost	2,227	2,182	–45	2,372	2,290	–82
Subtotal			34			–51

Liabilities
Due to banks	177	177	0	293	293	0
Due to customers	8,948	8,905	43	9,505	9,442	63
Derivative financial instruments	19	19	0	104	104	0
Medium-term notes	49	50	–1	53	53	0
Debentures issued	155	150	5	255	243	12
Subtotal			47			75

Total variance			81			24

The following valuation methods are used to determine the fair value of on-balance-sheet financial instruments:

Cash and cash equivalents, money market papers

For the balance sheet items “Cash and cash equivalents” and “Receivables arising from money market papers”, which do not have a published market value on a recognised stock exchange or on a representative market, the fair value corresponds to the amount payable at the balance sheet date.

Due from/to banks and customers, medium-term notes, bonds

In determining the fair value of amounts due from banks, due from customers (including mortgage receivables and due to customers in the form of savings and deposits), as well as of medium-term notes and bonds with a fixed maturity or a refinancing profile, the net present value method is applied (discounting of cash flows with swap rates corresponding to the respective term). For products whose interest or payment flows cannot be determined in advance, replicating portfolios are used.

Trading portfolios, trading portfolios pledged as collateral, financial instruments at fair value

Fair value corresponds to market value for the majority of these financial instruments. The fair value of non-exchange-listed financial instruments (in particular for structured credit notes) is determined only on the basis of external traders’ quotes or pricing models which are based on prices and interest rates in an observable, active and liquid market.

Derivative financial instruments

For the majority of the positive and negative replacement values (see Note 18), the fair value equates to the market value. The fair value for derivative instruments without market value is determined using uniform models. These valuation models take account of the relevant parameters such as contract specifications, the market price of the underlying security, the yield curve and volatility.

Fair value hedges (Interest rate hedges)

in CHF 1,000 31.12.2024	Nominal value of hedging instruments		Book value of hedging instruments		Balance sheet position under which hedging instruments are disclosed
			Assets	Liabilities
Interest-rate swaps		22,000	0	301	Derivative financial instruments

Change in value of the hedging instrument used as the basis for recognising hedge ineffectiveness for the period¹					–465

1Ineffectiveness mainly results from variations in duration, such as due to different interest rates, interest payment dates or due dates of transactions.

in CHF 1,000 31.12.2023	Nominal value of hedging instruments		Book value of hedging instruments		Balance sheet position under which hedging instruments are disclosed
			Assets	Liabilities
Interest-rate swaps		32,000	0	289	Derivative financial instruments

Change in value of the hedging instrument used as the basis for recognising hedge ineffectiveness for the period¹					–577

1Ineffectiveness mainly results from variations in duration, such as due to different interest rates, interest payment dates or due dates of transactions.

in CHF 1,000 31.12.2024	Book value of underlying transactions		Accumulated valuation adjustments, included in the book value of the underlying transactions		Balance sheet position under which underlying transactions are disclosed
	Assets	Liabilities	Assets	Liabilities
Client receivables	22,111	0	111	0	Due from customers
of which active hedge relationships	22,111	0	111	0	Due from customers
of which closed hedge relationships (client receivables)	0	0	0	0	Due from customers

in CHF 1,000 31.12.2023	Book value of underlying transactions		Accumulated valuation adjustments, included in the book value of the underlying transactions		Balance sheet position under which underlying transactions are disclosed
	Assets	Liabilities	Assets	Liabilities
Client receivables	33,444	0	–356	0	Due from customers
of which active hedge relationships	31,641	0	–359	0	Due from customers
of which closed hedge relationships (client receivables)	1,803	0	3	0	Due from customers

Maturity profile of interest rate swaps

	Due within
in CHF million	1 year	1 to 5 years	Over 5 years	Total 2024
Fair value hedges
Hedging of interest-rate risk
Interest-rate swaps	15	7	0	22

in CHF million	Due within
	1 year	1 to 5 years	Over 5 years	Total 2023
Fair value hedges
Hedging of interest-rate risk
Interest-rate swaps	10	22	0	32

Valuation methods for financial instruments

The fair value of listed securities held in trading portfolios or as financial instruments, as well as that of listed derivatives and other financial instruments with quotes established in an active market, is determined on the basis of current market value (Level 1). Valuation methods or pricing models are used to determine the fair value of financial instruments if no direct market prices are available. If possible, the underlying assumptions are based on observed market prices or other market indicators as at the balance sheet date (Level 2). For most of the derivatives traded over the counter, as well as for other financial instruments that are not traded in an active market, fair value is determined by means of valuation methods or pricing models. Among the most frequently applied of those methods and models are discounted-cash-flow-based forward pricing and swap models, as well as options pricing models such as the Black-Scholes model or derivations thereof. The fair values arrived at on the basis of these methods and models are influenced to a significant degree by the choice of the specific valuation model and the underlying assumptions applied, for example the amounts and time sequence of future cash flows, discount rates, volatilities and/or credit risks.

If neither current market prices nor valuation methods/models based on observable market data can be drawn on for the purpose of determining fair value, then valuation methods or pricing models supported by realistic assumptions derived from actual market data are used (Level 3). Level 3 principally includes investment funds or items for which a reliable net asset value is not published at least on a quarterly basis. The fair value of these positions is, as a rule, computed on the basis of external estimates by experts in relation to the level of the future payout of the fund units, or equates to the acquisition cost of the securities less any applicable valuation haircuts.

Valuation methods for financial instruments

in CHF million at fair value	Quoted market prices, Level 1	Valuation methods based on market data, Level 2	Valuation methods with assumptions based on market data, Level 3	Total 31.12.2024
Assets
Cash and cash equivalents	905			905
Receivables arising from money market papers	172			172
Due from banks		851		851
Due from customers		6,020		6,020
Trading portfolios	0			0
Derivative financial instruments		87		87
Financial instruments at fair value	141	52		193
Financial instruments at amortised cost	2,182			2,182

Liabilities
Due to banks		177		177
Due to customers		8,905		8,905
Derivative financial instruments		19		19
Medium-term notes		50		50
Debentures issued	150			150

There were no reclassifications in the 2024 financial year.

in CHF million at fair value	Quoted market prices, Level 1	Valuation methods based on market data, Level 2	Valuation methods with assumptions based on market data, Level 3	Total 31.12.2023
Assets
Cash and cash equivalents	1,611			1,611
Receivables arising from money market papers	171			171
Due from banks		1,354		1,354
Due from customers		5,499		5,499
Trading portfolios	0			0
Derivative financial instruments		42		42
Financial instruments at fair value	129	49	4	183
Financial instruments at amortised cost	2,290			2,290

Liabilities
Due to banks		293		293
Due to customers		9,442		9,442
Derivative financial instruments		104		104
Medium-term notes		53		53
Debentures issued	243			243

Level 3 financial instruments in CHF million	2024	2023
Balance sheet
Holdings at the beginning of the year	4.4	6.9
Investments	0.0	0.0
Disposals	0.0	–0.1
Losses recognised in the income statement	–4.4	–2.4
Total book value at balance sheet date	0.0	4.4

Income on holdings at balance sheet date
Unrealised losses recognised in income from financial instruments	–4.4	–2.4
Unrealised losses recognised as other comprehensive income	0.0	0.0
Unrealised gains recognised in income from financial instruments	0.0	0.0
Unrealised gains recognised as other comprehensive income	0.0	0.0

No deferred day 1 profit or loss (difference between the transaction price and the fair value calculated on the transaction day) was reported for Level 3 positions as of 31 December 2024 or 31 December 2023.

Sensitivity of fair values of Level 3 financial instruments

Changes in the net asset values of investment funds lead to corresponding changes in the fair values of these financial instruments. A realistic change in the basic assumptions or estimated values has no material impact on the statement of income, other comprehensive income or the shareholders’ equity of VP Bank Group.

Netting agreements

In order to reduce the credit risks in connection with financial derivatives, repurchase and reverse repurchase agreements as well as securities lending and borrowing transactions, VP Bank Group enters into global offsetting agreements or similar arrangements (netting agreements) with its counterparties. These include ISDA Master Netting Agreements, Global Master Securities Lending Agreements and Global Master Repurchasing Agreements. Using netting agreements, VP Bank Group can protect itself against losses arising from possible insolvency proceedings or other circumstances in which the counterparty is unable to meet its obligations. In such cases, netting agreements stipulate the immediate offsetting and/or settlement of all financial instruments falling under the related agreement. In principle, the entitlement to offsetting exists only when a default in payment or other circumstances occur which are not expected in the ordinary course of business. Financial instruments falling under a netting agreement do not meet the set-off requirements for balance sheet purposes, which is why the carrying values of the related financial instruments are not netted in the balance sheet.

Netting agreements

31.12.2024	Balance sheet netting			Netting potential
in CHF 1,000	Amount prior to balance sheet netting	Balance sheet netting	Carrying value	Financial liabilities	Collateral received	Assets after taking account of netting potential
Financial assets
Reverse repurchase transactions			0			0
Positive replacement values	86,848		86,848	11,348		75,500
Collateral deposited for transactions with derivatives	7,019		7,019	5,580		1,439
Total assets	93,867	0	93,867	16,928	0	76,939

31.12.2024	Balance sheet netting			Netting potential
in CHF 1,000	Amount prior to balance sheet netting	Balance sheet netting	Carrying value	Financial assets	Collateral provided	Liabilities after taking account of netting potential
Financial liabilities
Repurchase transactions			0			0
Negative replacement values	18,715		18,715	11,348	3,511	3,856
Collateral received from transactions with derivatives	2,750		2,750	2,325		425
Total liabilities	21,465	0	21,465	13,673	3,511	4,281

31.12.2023	Balance sheet netting			Netting potential
in CHF 1,000	Amount prior to balance sheet netting	Balance sheet netting	Carrying value	Financial assets	Collateral provided	Assets after taking account of netting potential
Financial assets
Reverse repurchase transactions			0			0
Positive replacement values	41,960		41,960	18,365		23,594
Collateral deposited for transactions with derivatives	49,342		49,342	44,177		5,165
Total assets	91,302	0	91,302	62,542	0	28,759

31.12.2023	Balance sheet netting			Netting potential
in CHF 1,000	Amount prior to balance sheet netting	Balance sheet netting	Carrying value	Financial assets	Collateral provided	Liabilities after taking account of netting potential
Financial liabilities
Repurchase transactions			0			0
Negative replacement values	104,288		104,288	18,365	37,701	48,222
Collateral received from transactions with derivatives			0			0
Total liabilities	104,288	0	104,288	18,365	37,701	48,222

38 Scope of consolidation

Company	Registered office	Base currency	Capital	Group share of equity
VP Bank Ltd	Vaduz	CHF	66,154,167	100%
VP Fund Solutions (Liechtenstein) AG	Vaduz	CHF	1,000,000	100%
VP Wealth Management (Hong Kong) Ltd (wind down)	Hong Kong	HKD	43,000,000	100%
VP Bank (Luxembourg) SA	Luxembourg	CHF	20,000,000	100%
VP Fund Solutions (Luxembourg) SA	Luxembourg	CHF	5,000,000	100%
VP Bank (Switzerland) Ltd	Zurich	CHF	20,000,000	100%
VP Bank (BVI) Ltd	Tortola	USD	10,000,000	100%

Shareholdings excluded from the scope of consolidation	none
Joint venture companies excluded from the scope of consolidation	none
Joint venture companies	Data Info Services AG, Vaduz
Companies integrated during the financial year	none
Shareholdings accounted for the first time in accordance with the equity method	none
Asset transfer during the financial year	none
Changes within the scope of consolidation	VP Fund Solutions (Luxembourg) SA from VP Bank (Luxembourg) SA to VP Bank AG

39 Business transactions with related companies and persons

Related companies and persons include the Members of the Board of Directors and Group Executive Management as well as their close relatives and companies in which these persons either hold a majority interest or have a significant influence as a result of their role as a Member of the Board of Directors and/or Executive Board.

in CHF 1,000	2024	2023
Remuneration of the members of the Board of Directors^{1, 2}
Remuneration due in the short term	1,165	1,141
Share-based payment³	373	381

Remuneration of the members of Group Executive Management²
Remuneration due in the short term	3,889	4,005
Post-employment benefits	664	436
Other long-term remuneration due	0	176
Remuneration due upon termination of contract of employment	0	72
Share-based payments⁴	0	986

1Social security contributions on the remuneration of the members of the Board of Directors are not included.

2Expense allowances are not included.

3The shares are not subject to a holding period (Notes 42 and 43).

4Performance and restricted shares with conditional rights to subscribe to VP Bank registered shares A.

VP Bank Group also remunerates related parties within the scope of customary intermediary services and purchased advisory services. Such compensation is in line with standard market conditions. The total amount of these remunerations and professional fees was CHF 0.6 million in 2024 (previous year: CHF 0.6 million). As at 31 December 2024, the Board of Directors, Group Executive Management, persons closely associated with them (excluding qualifying parties) as well as the pension funds held 23,696 registered shares A of VP Bank Ltd, Vaduz (previous year: 39,205 registered shares A).

Loans to related companies and persons developed as follows (from an effective date perspective):

in CHF 1,000	2024	2023
Mortgages and loans at the beginning of the financial year	0	0
Additions	0	0
Repayments	0	0
Mortgages and loans at the end of the financial year	0	0

Loans to Members of the Board of Directors and of Group Executive Management developed as follows (from an effective date perspective):

in CHF 1,000	2024	2023
Mortgages and loans at the beginning of the financial year	4,884	5,519
Additions	2,117	1,500
Repayments	–750	–2,135
Mortgages and loans at the end of the financial year	6,251	4,884

In principle, the same conditions apply to the Members of the Board of Directors and Group Executive Management as to all other employees. They correspond to the market conditions excluding a credit margin. Loans to related companies and persons are transacted at customary market conditions. A guarantee in the amount of CHF 54.427 million (previous year: CHF 53.923 million) was issued for a related person. The securing of the guarantee is significantly above the usual market requirements.

40 Retirement pension plans

Benefits after termination of employment

The Group maintains a number of pension plans in the Principality of Liechtenstein and abroad for employees meeting the criteria for admission to the pension plans. Among these are both defined-benefit and defined-contribution plans which insure most employees against the effects of death, invalidity and retirement. In addition, there are schemes for service anniversaries which qualify as other long-term employee benefits.

Defined-contribution pension plans

The Group offers defined-contribution pension plans to those employees who meet the appropriate admission criteria. The company is obligated to transfer a predetermined percentage of the annual salary to the pension plans. For certain plans, the employees are also obligated to make contributions. These contributions are typically deducted by the employer from the salary each month and also passed on to the pension plans. Apart from the payment of contributions and the transfer of employee contributions, there are presently no further obligations incumbent on the employer.

The employer contributions to contribution-defined pension plans for the 2024 financial year amounted to CHF 2.6 million (previous year: CHF 2.8 million).

Defined-benefit pension plans

The Group finances defined-benefit pension plans for employees who meet the admission criteria. The most significant of such plans are located in the Principality of Liechtenstein and in Switzerland.

For employees in the Principality of Liechtenstein and Switzerland, the Group operates several pension plans with fixed, predefined admission criteria. The largest of the plans is operated using an autonomous foundation, the remaining plans are handled using collective foundations of insurance companies. In these foundations, the assets available to meet the pension obligations are segregated out.

For the pension plans which are operated using collective foundations, there are pension commissions which comprise an equal number of representatives. The Foundation Board of the autonomous pension plan is also made up of an equal number of employer and employee representatives. On the basis of the law and the rules of the pension fund, the Foundation Board is obligated to act solely in the interests of the Foundation and of the beneficiaries (current actively insured employees and pensioners). Thus, in this plan, the employer cannot himself determine pension benefits and their financing, but resolutions are taken on an equal representation basis. The Foundation Board is responsible for setting the investment strategy, for changes to the rules of the pension fund and, in particular, also for determining how pension benefits are to be financed.

Retirement benefits in this plan are based upon the balance of accumulated capital savings. Annual savings credits and interest (no negative interest is possible) are added to the employee’s capital savings account. Upon retirement, the insured person has the option between a lifetime pension which includes a reversionary spouse’s pension, or the payment of a capital sum.

In addition to retirement benefits, employee benefits also include an invalidity pension, a partner pension and an orphan’s pension. These are computed as a percentage of the insured annual salary. An insured person can also purchase additional benefits to improve his/her pension situation up to a maximum allowed under the pension rules. Upon termination of employment, the accumulated savings capital is transferred to the pension plan of the new employer or to a vested benefits scheme. This form of employment benefit can lead to a situation where pension payments may vary significantly between the various years.

The minimum provisions of the Law on Occupational Pension Plans (BPVG) or the Federal Act on Occupational Old Age, Survivors’ and Invalidity Pension Provision (OPA) and their implementing provisions are to be observed in determining employee benefits. The minimum insurable salary and the minimum savings credits are laid down in the BPVG. The OPA includes more extensive stipulations.

As a result of the form of the pension plan and the legal provisions of the BPVG and OPA respectively, the employer is exposed to actuarial risks, the most significant of which are investment risk, interest rate risk, invalidity risk and longevity risk. The employee and employer contributions are laid down by the Foundation Boards. In this regard, the employer must bear, at a minimum, half of all contributions. In the event of a funding deficit, restructuring contributions to eliminate the funding deficit may be demanded both from the employer and employees.

The latest actuarial valuation of the current value of the defined-benefit obligations and service costs was carried out as of 31 December 2024 by independent actuaries using the projected unit credit method. The fair value of plan assets as of 31 December 2024 was determined based upon information available at the time of preparation of the annual financial statements.

Benefits for various pension plans were adjusted at the end of 2024. Along with further changes to benefits at the collective foundations, these adjustments resulted in service costs of CHF 3.4 million that must subsequently be offset. In August 2024, the employer communicated restructuring measures that led to a gain of CHF 0.3 million from the reduced budget.

The most significant assumptions underlying the actuarial computations may be summarised as follows:


	31.12.2024	31.12.2023
Discount rate	0.97%	1.52%
Rate of future salary increases	1.00%	1.75%
Rate of future pension increases	0.00%	0.00%
Lump sum payments at retirement	55.00%	40.00%
Actuarial fundamentals	BVG 2020 generation- tables	BVG 2020 generation- tables
Life expectancy at the age of 65, in years

Year of birth	1959	1958
men	22.95	22.82
women	24.70	24.59

Year of birth	1979	1978
men	25.17	25.07
women	26.67	26.58

The amounts recognised in the income statement and in equity capital can be summarised as follows:

Pension costs


in CHF 1,000	2024	2023
Pension expenses recognised in income statement
Service cost
current service cost	10,434	9,209
past service cost incl. effects from curtailments	3,395	–1,030
plan settlements	0	0
Net interest expenses	56	–52
Administrative costs	240	240
Total pension cost expenses of the period	14,125	8,367

Revaluation components recognised in comprehensive income
Actuarial gains/losses
Result of changes to demographic assumptions	–4,141	–104
Result of changes to financial assumptions	14,151	21,483
Experience adjustments	1,949	–1,974
Return on plan assets (excluding amounts in net interest expenses)	–14,267	–8,253
Changes in asset ceiling	0	–2,369
Total expenses recognised in comprehensive income	–2,308	8,783
Total pension cost	11,817	17,150

The development of the pension liabilities and pension assets can be summarised as follows:

Movement in current value of defined-benefit obligations

in CHF 1,000	2024	2023
Present value of defined-benefit obligations at the beginning of the financial year	355,310	321,810
Current service cost	10,434	9,209
Employee contributions	7,584	7,348
Interest expenses on present value of pension obligations	5,226	7,144
Actuarial gains/losses	11,959	19,405
(Gains)/losses from curtailment	–324	0
Transfer of assets through compensation	3,719	–1,030
Transition pension plan	0	0
Plan settlement	0	0
Pension payments financed by plan assets	–21,345	–8,576
Balance at the end of the financial year	372,563	355,310

Movement in plan assets

in CHF 1,000	2024	2023
Plan assets at the beginning of the financial year	342,263	317,305
Employee contributions	7,584	7,348
Employer contributions	11,247	10,925
Interest income on plan assets	5,170	7,248
Return on plan assets (excluding amounts under interest income)	14,267	8,253
Pension payments financed by plan assets	–21,345	–8,576
Administrative costs	–240	–240
Balance at the end of the financial year	358,946	342,263

The net position from pension liabilities recognised in the balance sheet can be summarised as follows:

Net position of pension obligations recognised in the balance sheet

in CHF 1,000	31.12.2024	31.12.2023
Present value of pension obligations financed through a fund	372,563	355,310
Market value of plan assets	–358,946	–342,263
Lack / excess of funding	13,617	13,047
Present value of pension obligations not financed through a fund	0	0
Unrecognised assets	0	0
Active deferral of pension costs	0	0
Recognised pension obligations	13,617	13,047

In the case of the autonomous pension plan, the Foundation Council issues investment guidelines for the investment of the plan’s assets which contain the tactical asset allocation and the benchmarks for comparing the results with those of the general investment universe. The plan assets are well diversified and, in addition, the legal provisions of the BPVG are to be observed. In the case of collective foundations, the Foundation’s Board of Trustees of the collective foundation issues the investment guidelines. The Foundation’s Board of Trustees reviews on an ongoing basis whether the investment strategy chosen is appropriate to cover the pension benefits and whether the risk budget corresponds to the demographic structure. Compliance with investment guidelines and the investment performance of investment advisors are also subject to ongoing review.

Plan assets primarily consist of the following categories of securities:

in CHF 1,000	31.12.2024	31.12.2023
Equity shares	130,167	125,250
thereof quoted market prices (Level 1)	130,167	125,250
Bonds	132,138	128,470
thereof quoted market prices (Level 1)	132,138	128,470
Alternative financial investments	40,065	34,858
thereof quoted market prices (Level 1)	9,479	8,435
Real estate	27,268	26,708
thereof quoted market prices (Level 1)	15,654	15,085
Qualifying insurance papers	10,104	9,682
Cash equivalents	24,304	14,705
Other financial investments	–5,100	2,590
Total	358,946	342,263
thereof quoted market prices (Level 1)	287,438	277,240

The pension funds hold shares in VP Bank Ltd, Vaduz, with a market value of CHF 0.0 million (previous year: CHF 1.4 million). In 2024, a gain of CHF 19.4 million was recorded on the assets (previous year: CHF 15.5 million). The expected employer contribution for 2025 amounts to CHF 10.8 million.

The defined benefit obligations are divided between active insured, vested leavers and pensioners as follows, resulting in the following term of the obligations:

in CHF 1,000	31.12.2024	31.12.2023
Current actively insured employees	277,666	263,191
Pensioners	94,897	92,119
Total	372,563	355,310

The term of the obligations amounts to approximately 12.2 years (previous year: 13.1 years).

Presented in the following table are the sensitivities for the most important factors in the computation of the current value of pension obligations. Due to the expected interest volatility in CHF, sensitivities are stated as 25 basis points. Sensitivities relating to lump sum payments at retirement are stated at 500 basis points. Sensitivities are shown for changes in life expectancy at +/– 1 year. In each case, only the assumption stated is changed, all other assumptions remaining unchanged.

Changes in the current value of defined-benefit obligations

in CHF 1,000	31.12.2024		31.12.2023
Variance	0.25%	–0.25%	0.25%	–0.25%
Discount rate	–10,007	10,504	–10,195	10,748
Interest on pension capital accounts	2,623	–2,724	2,638	–2,580
Rate of future salary increases	1,385	–1,546	1,237	–1,263
Pension indexation (pensions cannot be reduced)	5,915	0	6,349	0

Variance	5.00%	–5.00%	5.00%	–5.00%
Lump sum payments at retirement	–1,887	1,780	–1,097	1,096

Variance	+1 year	–1 year	+1 year	–1 year
Life expectancy	6,414	–6,575	6,601	–6,650

Other employee benefits paid in the long term

in CHF 1,000	2024	2023
Balance at the beginning of the financial year	3,065	3,201
Expenses financial year	453	277
Employee payments	–327	–410
Exchange differences	2	–3
Balance at the end of the financial year	3,193	3,065

Other employee benefits payable in the long term exist in the form of long service awards. Analogously to the defined-benefit pension plans, actuarial calculations have been performed and accrued expenses have been recognised for these benefits. The Group introduced a uniform regulation for the calculation of benefits from long service awards for most Group employees. For some employees abroad, separate regulations apply. These regulations qualify as plans for other employee benefits payable in the long term.

41 Significant foreign exchange rates

The following exchange rates were used for the most important currencies:

	Year-end rates		Annual average rates
	31.12.2024	31.12.2023	2024	2023
USD/CHF	0.9063	0.8417	0.88071	0.89902
EUR/CHF	0.9384	0.9297	0.95263	0.97166
SGD/CHF	0.6643	0.6380	0.65892	0.66929
HKD/CHF	0.1167	0.1078	0.11286	0.11483
GBP/CHF	1.1350	1.0729	1.12532	1.11722

42 Employee stock-ownership plan

The stock-ownership plan enables employees to subscribe annually to a defined number of bearer shares of VP Bank Ltd, Vaduz, at a preferential price subject to a three-year restriction on selling these shares. Upon expiration of the sales restriction period, or at the time of resignation from VP Bank Group, the related shares become freely available. As the employees are therefore ultimately able to take up the shares at any time and in full, the expense arising from the employee stock-ownership plans is recorded in full at the time of their respective allocation. Half of the number of registered shares A to be subscribed is based on length of service and is proportional to the amount of the annual fixed salary, whereby fixed salary components in excess of CHF 120,000 and variable salary components are not taken into account. The purchase price is determined annually in relation to the market value of the bearer shares on SIX Swiss Exchange (ex-dividend). The shares issued in this manner derive either from share holdings of VP Bank Group or must be purchased for this purpose over the exchange. The expense thereby incurred is charged directly to personnel costs. A total of 21,169 shares (previous year: 19,433 shares) were subscribed at a preferential price in 2024. Share issue expenses in 2024 were CHF 1.0 million (previous year: CHF 0.9 million). There is no stock-ownership plan for the Board of Directors. Its members, however, receive a part of their compensation in the form of equity shares which are not subject to any lock-up period (Note 39). A management stock-ownership plan exists for Group Executive Management and other key managers (Note 43). VP Bank Ltd has defined lock-up periods for the Board of Directors, Group Executive Management and selected key managers and employees, during which it is prohibited to trade in the shares of VP Bank.

43 Management stock-ownership plan

A long-term and value-oriented compensation model is in place for Group Executive Management, the Executive Board and selected key managers. Details can be found in the Compensation Report.

Regardless of the actual cash flow, management stock-ownership plans are recognised in the financial year to which they economically belong. For deferred share and cash plans, the expense for the entire vesting period is estimated, updated and recognised pro rata temporis over this period in personnel expenses.

The total amount of variable compensation is determined within a range known as the “value share” and is based primarily on the net profit of VP Bank Group. The Board of Directors makes a facts-based assessment of the total amount of variable compensation and can adapt the amount. In times of adverse operating conditions, the overall amount of variable compensation is reduced accordingly and can even amount to zero. This takes into consideration the multi-annual, risk-adjusted profitability of VP Bank Group (cf. graph below), the sustainable level of profitability, capital costs and therefore takes account of current and future risks.

The sum of provisions for variable compensation must be affordable on aggregate. Never should VP Bank Group or any individual Group subsidiary fall into financial difficulties as a result. The impact on the Group’s equity situation is taken into consideration in this process.

In accordance with the model approved by the Board of Directors on 26 October 2023, the compensation payable to Group Executive Management consists of the following components:

Calculation of risk-adjusted profit

A fixed base salary; this is contractually agreed between the Board of Directors and individual members. In addition to the base salary, VP Bank pays proportionate contributions to the management insurance scheme and the pension fund.
A Performance Share Plan (PSP); this is a long-term variable management equity-participation programme in the form of registered shares A of VP Bank Ltd and promotes long-term commitment in the form of equity shares. At the end of the five-year plan period and depending upon performance, 50 to 150 per cent of the allocated vested benefits are transferred in the form of equity shares. This vesting multiple is determined from the weighting of the average group net income and the average net new money over the first three years of the plan period. Once the equity shares have been transferred, they remain blocked for one year. Until the time of transfer of ownership, the Board of Directors reserves the right to reduce or suspend the allocated vested benefits in the case of defined occurrences and in extraordinary situations. The share of the PSP makes up 50 per cent of total variable performance-related compensation.
A Cash Deferral Plan (CDP); this is a long-term management equity-participation programme in the form of cash distributions. The payout is distributed pro rata over five years. Until the relevant time of transfer of payout, the Board of Directors reserves the right to reduce or suspend the allocated vested cash benefits in the case of defined occurrences and in extraordinary situations. The share of the cash deferral makes up 10 per cent of total variable performance-related compensation.
An immediate cash compensation (STI); the share of this amounts to 40 per cent of total variable performance-related compensation.

The Board of Directors determines the planning parameters of the variable profit-sharing (PSP, CDP, STI) and their amount annually. The target share of total compensation varies in accordance with function and market customs.

In order to comply with regulatory requirements, a Restricted Share Plan (RSP) may also be used in individual justified cases to implement special retention measures, to compensate for loss of benefits at previous employers or for any severance payments. The RSP will be paid out annually in fifths over a scheduled duration of five years in the form of registered shares A.

In the following table (management stock-ownership plan), in harmony with the compensation principles described above, all share plans operated at VP Bank are shown, and not just the share plans that affect management.

Instruments of variable compensation

Management stock-ownership plan (LTI)

Number	2024	2023	Variance in %
Balance of entitlements at the beginning of the year	26,107	26,549	–1.7
New entitlements	14,525	18,002	–19.3
Changes in entitlements as a result of allocation	–15,034	–14,219	5.7
Changes in entitlements as a result of expiration	89	–788	–111.3
Changes in entitlements as a result of changes in factors	–1,509	–3,437	–56.1
Balance of calculated entitlements at the end of the year	24,178	26,107	–7.4

in CHF 1,000	2024	2023	Variance in %
Personnel expenses recorded over vesting period for allocated management sharing plan	1,587	1,874	–15.3
Fair value of management sharing plan at date of allocation¹	1,406	1,394	0.8

Personnel expenses for management sharing plan expenses for reporting period	1,224	1,326	–7.7
Accrual for management sharing plan in equity at the end of the year	2,269	2,631	–13.8

1The fair value is calculated using the direct method from the number of registered shares A allocated multiplied by the closing price of the registered shares A on the day before the allocation.

44 Consolidated off-balance-sheet transactions

in CHF 1,000	31.12.2024	31.12.2023
Contingent liabilities
Credit guarantees and similar	16,683	22,590
Performance guarantees and similar	87,555	87,917
Irrevocable commitments	0	0
Other contingent liabilities	0	0
Total contingent liabilities	104,238	110,507

Credit risks
Irrevocable facilities granted	168,420	148,537
Total credit risks	168,420	148,537

Fiduciary transactions
Fiduciary deposits¹	532,192	678,216
Total fiduciary transactions	532,192	678,216

Exposure to credit risk on loan commitments and financial guarantee contracts	–434	–252

1Investments made by Group companies in their own name, but for the account and at the risk of clients, with banks outside the reporting entity.

Maturity structure

	Maturing within
in CHF 1,000	At sight	1 year	1 to 5 years	Over 5 years	Total
31.12.2024
Contingent liabilities	13,575	22,030	10,321	58,312	104,238
Credit risks	2,721	112,744	28,150	24,805	168,420

31.12.2023
Contingent liabilities	23,204	23,696	2,570	61,037	110,507
Credit risks	83	80,634	42,284	25,536	148,537

Securities lending and repurchase agreements

in CHF 1,000	31.12.2024	31.12.2023
Accounts receivable arising from cash deposits in connection with securities borrowing and reverse-repurchase transactions	0	0
Accounts payable arising from cash deposits in connection with securities borrowing and reverse-repurchase transactions	0	0
Securities lent out within the scope of securities lending or delivered as collateral within the scope of securities borrowing activities, as well as securities in own portfolio transferred within the framework of repurchase transactions	300,493	288,980
of which securities where the unlimited right to sell on or pledge has been granted	212,656	213,197
Securities received as collateral within the scope of securities lending or borrowed within the scope of securities borrowing activities, as well as received under reverse repurchase transactions, where the unlimited right to resell or repledge has been granted	293,850	290,890
of which securities which have been resold or repledged	87,837	75,783

These transactions are carried out at conditions that are customary for securities lending and borrowing activities as well as for transactions in which the bank acts as an intermediary.

45 Client assets

in CHF million	31.12.2024	31.12.2023	Variance absolute	Variance in %
Analysis of client assets under management
Assets in self-administered investment funds	12,520.0	10,181.7	2,338.2	23.0
Assets in discretionary asset management accounts	4,484.7	4,245.6	239.1	5.6
Other client assets under management	33,744.5	31,924.5	1,820.0	5.7
Total client assets under management (including amounts counted twice)	50,749.2	46,351.9	4,397.3	9.5
of which amounts counted twice	1,879.7	1,622.4	257.3	15.9

Change of assets under management
Total client assets under management (including amounts counted twice) at the beginning of the financial year	46,351.9	46,445.9	–94.1	–0.2
of which net new money	463.6	27.3	436.3	n.a.
of which change in market value	3,933.7	–116.3	4,050.0	n.a.
of which other effects¹	0.0	–5.1	5.1	n.a.
Total client assets under management (including amounts counted twice) as of balance sheet date	50,749.2	46,351.9	4,397.3	9.5

Custody assets	5,645.2	4,703.4	941.7	20.0

Total client assets
Total client assets under management (including amounts counted twice)	50,749.2	46,351.9	4,397.3	9.5
Custody assets	5,645.2	4,703.4	941.7	20.0
Total client assets	56,394.3	51,055.3	5,339.0	10.5

Net new money	463.6	27.3	436.3	n.a.

1Includes assets of sanctioned Russian clients reclassified as custody assets.

Calculation method

Client assets under management are all client assets managed or held for investment purposes for which investment advisory and wealth management services are provided. This generally includes all liabilities to clients, fiduciary time deposits and all valued portfolio holdings. The calculation is based on the provisions of the Liechtenstein Banking Ordinance (Annex 3, Section 88a, FL-BankO) and the internal guidelines of VP Bank Group.

Assets in self-administered funds

This item includes the assets of all managed and administered investment funds of VP Bank Group.

Assets in discretionary asset management accounts

The calculation of assets in discretionary asset management accounts includes securities, book-entry securities, precious metals, fiduciary investments placed with third parties at market value as well as client deposits. The information includes assets deposited with Group companies as well as assets deposited with third parties for which Group companies have a management mandate.

Other client assets under management

The calculation of other client assets under management includes securities, book-entry securities, precious metals, fiduciary investments placed with third parties at market value as well as client deposits. The information relates to assets for which an administrative or advisory mandate is exercised.

Amounts counted twice

This position includes fund units from self-managed funds held in client securities accounts with a wealth management mandate, and the other client securities accounts.

Net new money inflow/outflow

This item consists of the acquisition of new clients, client departures and the inflow or outflow of client funds. Performance-related changes in assets such as price changes, interest and dividend payments as well as interest charged to clients are not considered inflows or outflows. Acquisitions and disposals are reported separately and do not represent an inflow or outflow in net new money. If the service provided changes and assets under management are therefore reclassified as custody assets or vice versa, this is recognised as an outflow or inflow in net new money. In 2024, reclassifications of CHF 498.4 million (2023: CHF 0) are included in net new money. Excluded from this practice is, for example, regulatory blocking by the supervisory authorities. Such reclassifications are not recognised in net new money but under other effects.

Custody assets

Assets held exclusively for transaction and safekeeping purposes for which VP Bank Group limits itself to safekeeping and encashment.