Segments

The economic success of VP Bank is broken down into segments and measured based on the range of services offered and the respective market positions.

With CHF 19.1 billion in client assets under management as of the end of 2024, the Liechtenstein & BVI segment is VP Bank’s largest business unit. International is the second-largest business unit, with CHF 16.4 billion in client assets under management. In Asset Servicing, client assets under management amounted to CHF 15.2 billion.

Client assets under management by business unit

in CHF billion

Liechtenstein & BVI

This segment comprises the universal bank in Liechtenstein and the private bank in the British Virgin Islands (BVI).

Liechtenstein

Thanks to its many years of experience in the intermediary business, VP Bank in Liechtenstein occupies a leading position when it comes to doing business with external asset managers and trustees. More than half of assets under management in the segment are attributable to the bank’s intermediary business, which underscores its importance. Private clients also benefit from the bank’s extensive experience in servicing a sophisticated clientele.

In addition to clients in Liechtenstein, the bank has a steadily growing clientele from abroad, who value the Liechtenstein booking centre with its stable financial hub and strong Swiss franc for diversification reasons. The Principality of Liechtenstein has a rating of “AAA” from Moody’s and Standard & Poor’s. The country’s broadly diversified economy, combined with political continuity and stability, gives it a decisive advantage as a location. Through its membership in the European Economic Area, Liechtenstein has outstanding access to the European market. VP Bank has an EU passport, giving it unrestricted access to its target markets, where it can offer comprehensive services.

Cross-border business is of major importance to the bank in terms of achieving its growth ambitions. Target markets include the countries bordering on Liechtenstein, with clients from Germany and Switzerland in particular already constituting a significant portion of its business.

British Virgin Islands

VP Bank (BVI) Ltd holds a local full banking licence for the British Virgin Islands, which enables it to cultivate the market comprehensively with a broad range of products and services. Over the years, the team, which is firmly rooted in the local community, has established the bank as the first port of call for regional private client business.

The economy in the British Virgin Islands is centred around tourism and financial services. VP Bank has positioned itself on the local real estate market as a reliable partner for the financing of first-class real estate for both own use and holiday use. It also finances the development and acquisition of holiday resorts. In addition to financing services, investment solutions and banking services are offered to private clients.

The BVI are also a well-known centre for trustee and corporate services. VP Bank occupies a niche in the area of administration and offers comprehensive wealth management, custody and transaction services to support companies not only in their establishment, expansion and operations but also in the event of their liquidation.

Development of client assets under management: Liechtenstein & BVI

in CHF billion

International

This segment includes the bank’s locations in Switzerland, Luxembourg, Singapore and Hong Kong. The decision was made to close the Hong Kong branch for economic reasons in 2024.

Europe

VP Bank uses its DNA as an intermediary bank and its many years of experience in this segment to offer external asset managers and family offices a modern service platform at its locations in Zurich and Luxembourg. Its expertise in dealing with intermediaries is also made available to European private clients. In addition to Luxembourg and Switzerland, target markets include Germany and the Nordic countries, particularly Sweden and Denmark.

The client base is international. VP Bank provides services to a growing number of external asset managers who are in search of an additional custodian bank at the Switzerland and Luxembourg international financial centres as a complement to their local custodian bank. There is rising demand from European clients looking to diversify their existing currency and booking centres, especially among entrepreneurs and investors whose business activities require international solutions.

VP Bank (Switzerland) Ltd benefits from the opportunities afforded by a simplified exemption in Germany. This exemption allows it to directly and actively attract clients in Germany and to provide them with services on a cross-border basis. In addition, as the largest financial centre for international asset management business, Switzerland is an attractive, stable booking centre.

VP Bank (Luxembourg) SA is in possession of an EU passport for Germany, Sweden, Denmark and other EU markets classified as opportunistic markets. It thus has unrestricted access to its target markets and can offer comprehensive services.

Asia

Asia is an important region for VP Bank Group. Following the closure of the bank’s Hong Kong branch, growth will be driven by Singapore. The bank is particularly focused on promoting synergies between its intermediary and private client businesses.

Target markets are Northeast Asia, with a focus on the Greater China region (mainland China, Hong Kong and Taiwan) and Southeast Asia, where the focus is on Singapore, Indonesia, Malaysia and Thailand. For the intermediary segment, the natural intermediary domiciles that are managed from Singapore are Singapore, Hong Kong, Dubai (DIFC – UAE), Switzerland and Liechtenstein.

VP Bank’s commitment to intermediary business in Asia has been repeatedly underscored with the awarding of “Best Private Bank – Intermediaries”.

Development of client assets under management: International

in CHF billion

Asset Servicing

Asset Servicing includes 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 handle the fund management activities of VP Bank. They encompass the business with third-party funds, private label funds and proprietary funds. The custodial departments at VP Bank Ltd, Liechtenstein, and VP Bank (Luxembourg) SA take care of custodial activities.

The entire range of services for managing UCITS and AIFs is offered as a one-stop shop. This means a broadly diversified offering, from structuring advice to prospectus preparation and coordination with the regulatory authorities to launching, but also regular fund price calculation, maintenance of the unit register, custody of fund assets and satisfaction of all supervisory requirements (e.g. preparing reports). Clients thus have access to all services in a fund’s value chain. Because the approach is modular, it is also possible to make use of only certain parts of it.

The main clientele include family offices, asset managers, banks, insurance companies and wealthy private clients who, for various reasons, would like to manage their assets in a fund structure but would primarily like to concentrate on portfolio management and distribution.

The main markets of Liechtenstein, Switzerland and Germany account for more than 70 per cent of fund assets under management. Other important markets are Luxembourg, Scandinavia and Singapore. The fund assets managed by the two fund management companies consist largely of private label business with external clients; management of the funds of VP Bank Group accounts for less than 10 per cent of the business volume.

With the focus on the fund domiciles of Liechtenstein and Luxembourg, EU/EEA-conforming fund products can be offered at two locations, which because of their EU passport are optimally suited for distribution in Europe but also on other continents, such as Asia.

Development of client assets under management: Asset Servicing

in CHF billion