Segment reporting

Structure

VP Bank’s market areas are split into the segments “Liechtenstein & BVI”, “International” (Region Europe & Asia) and “Asset Servicing” owing to the range of services being offered and the market position. The support units are grouped under “Corporate Center”. External segment reporting reflects the organisational structure of VP Bank Group as of 31 December 2024 and the internal reporting to management. These form the basis for assessing the financial performance of the segments and the allocation of resources to them.

Earnings and expenses as well as assets and liabilities are allocated to the business units based on the responsibilities for the clients. Insofar as a direct allocation is not possible, the positions in question are reported under “Corporate Center”. Consolidation entries are also included under “Corporate Center”.

Liechtenstein & BVI

The “Liechtenstein & BVI” business unit encompasses intermediary business, private banking, universal banking and lending business in Liechtenstein as well as private banking and lending business in the British Virgin Islands.

International

The “International” (Region Europe & Asia) business unit encompasses intermediary and private client business in Switzerland, Luxembourg, Singapore and Hong Kong.

Asset Servicing

The “Asset Servicing” business unit encompasses fund management and custodial activities within VP Bank Group. The two fund management companies VP Fund Solutions (Luxembourg) SA and VP Fund Solutions (Liechtenstein) AG, both of which are legally independent entities, handle fund management activities. The custodial departments at VP Bank Ltd, Liechtenstein, and VP Bank (Luxembourg) SA take care of custodial activities.

Corporate Center

The “Corporate Center” business unit encompasses Group Products & Services, Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Chief Risk Officer. It is of great importance to banking operations and business development. In addition, those earnings and expenses of VP Bank Group that have no direct relationship to client-oriented business units, as well as consolidation adjustments, are reported under “Corporate Center”. The result of the Group’s own financial investments, funds transfer pricing and value adjustments from hedging transactions are reported in this segment.

Business segment reporting 2024

As a general rule, segment reporting is subject to the same accounting principles as the consolidated financial statements.

in CHF 1,000	Liechtenstein & BVI	International	Asset Servicing	Corporate Center	Total Group
Total net interest income	107,841	61,742	7,993	–75,317	102,259
Total net income from commission business and services	63,799	48,025	32,208	–6,942	137,089
Income from trading activities	12,886	12,939	3,677	51,854	81,356
Income from financial instruments		–2	223	4,847	5,068
Other income	1	–263	5,286	–262	4,762
Total operating income	184,526	122,441	49,386	–25,820	330,534
Personnel expenses	25,243	54,168	12,686	91,236	183,334
General and administrative expenses	3,789	11,948	9,734	60,077	85,548
Depreciation of property, equipment and intangible assets	3,572	8,243	606	24,538	36,958
Credit loss expenses	696	241	–1	–212	724
Provisions and losses	1,133	725	–90	–66	1,702
Operating expenses	34,433	75,325	22,936	175,573	308,266
Earnings before income tax	150,093	47,116	26,451	–201,392	22,268
Taxes on income					3,797
Group net income					18,471

Segment assets (in CHF million)	4,379	1,524	38	4,694	10,636
Segment liabilities (in CHF million)	4,654	2,593	572	1,700	9,519
Client assets under management (in CHF billion)¹	19.1	16.4	15.2		50.7
Net new money (in CHF billion)	–0.9	–0.5	1.9		0.5
Headcount (number of employees)	154	255	95	520	1,024
Headcount (expressed as full-time equivalents)	137.2	240.0	87.7	480.6	945.4

1Calculation in accordance with Table P of the Guidelines to the Liechtenstein Banking Ordinance issued by the Government of Liechtenstein (FL-BankO).

Business segment reporting 2023

in CHF 1,000	Liechtenstein & BVI	International	Asset Servicing	Corporate Center	Total Group
Total net interest income	114,413	75,940	8,695	–65,409	133,639
Total net income from commission business and services	63,092	48,918	31,787	–5,901	137,896
Income from trading activities	14,767	20,182	2,858	47,444	85,251
Income from financial instruments			54	5,984	6,038
Other income	–599	1,430	47	729	1,607
Total operating income	191,673	146,470	43,441	–17,153	364,431
Personnel expenses	24,891	52,996	11,720	86,164	175,771
General and administrative expenses	4,383	12,061	6,194	61,891	84,529
Depreciation of property, equipment and intangible assets	3,572	7,905	595	33,836	45,908
Credit loss expenses	4,822	332	–3	–200	4,951
Provisions and losses	865	285	757	462	2,369
Operating expenses	38,533	73,579	19,263	182,153	313,528
Earnings before income tax	153,140	72,891	24,178	–199,306	50,903
Taxes on income					6,694
Group net income					44,209

Segment assets (in CHF million)	4,021	1,410	36	5,982	11,450
Segment liabilities (in CHF million)	5,013	3,004	518	1,808	10,343
Client assets under management (in CHF billion)¹	18.7	15.2	12.5		46.4
Net new money (in CHF billion)	–0.4	–0.2	0.6		0.0
Headcount (number of employees)	149	300	99	537	1,085
Headcount (expressed as full-time equivalents)	133.7	286.4	91.2	495.9	1,007.2

1Calculation in accordance with Table P of the Guidelines to the Liechtenstein Banking Ordinance issued by the Government of Liechtenstein (FL-BankO).

Geographic segment reporting

in CHF 1,000	Liechtenstein	Rest of Europe	Other countries	Total Group
2024
Total operating income	272,032	59,447	–945	330,534
Total assets (in CHF million)	8,217	1,526	893	10,636

2023
Total operating income	281,538	67,091	15,802	364,431
Total assets (in CHF million)	8,834	1,706	910	11,450

The reporting follows the principle of branch accounting.