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 30 June 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”.

01.01.–30.06.2024

in CHF 1,000

Liechtenstein & BVI

International

Asset Servicing

Corporate Center

Total Group

Total net interest income

54,408

33,513

3,854

–39,226

52,549

Total net income from commission business and services

31,631

24,468

15,439

–3,282

68,256

Income from trading activities

6,475

6,635

1,742

23,163

38,015

Income from financial instruments

0

0

126

3,396

3,522

Other income

1

1,414

–7

–1,103

305

Total operating income

92,516

66,029

21,155

–17,053

162,647

Personnel expenses

12,915

28,068

6,397

38,326

85,707

General and administrative expenses

2,733

6,770

4,602

29,607

43,712

Depreciation of property, equipment and intangible assets

1,787

3,713

307

12,878

18,685

Credit loss expenses

–48

225

–1

–87

89

Provisions and losses

645

72

–98

9

629

Operating expenses

18,032

38,848

11,208

80,734

148,822

Earnings before income tax

74,484

27,181

9,947

–97,787

13,825

Taxes on income

2,319

Group net income

11,506

Segment assets (in CHF million)

4,279

1,406

67

5,900

11,652

Segment liabilities (in CHF million)

5,201

2,811

625

1,907

10,545

Client assets under management (in CHF billion)1

19.9

16.6

13.9

50.4

Net new money (in CHF billion)

0.1

–0.0

0.5

0.5

Headcount (number of employees)

162

294

99

524

1,079

Headcount (expressed as full-time equivalents)

143.9

280.8

91.2

484.3

1,000.1

Cost/income ratio (in %)2

19.5

58.8

53.0

Change in client assets under management compared to 31.12. prior year (in %)

6.8

9.2

11.2

Total operating income / average client assets under management (bp)3

96.0

83.3

31.9

Segment result / average client assets under management (bp)3

77.3

34.3

15.0

Cost/income ratio operating income (in %)4

16.9

53.9

52.3

as of 31.12.2023

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 (BankO).

2Total operating expenses / total operating income.

3Annualised, average values.

4Operating expenses excluding depreciation and amortisation, valuation allowances, provisions and losses / gross income less other income and income from financial instruments.

01.01.–30.06.2023

in CHF 1,000

Liechtenstein & BVI

International

Asset Servicing

Corporate Center

Total Group

Total net interest income

56,174

38,474

4,337

–26,896

72,089

Total net income from commission business and services

31,483

25,047

16,147

–2,909

69,768

Income from trading activities

7,710

7,307

1,368

22,280

38,665

Income from financial instruments

0

0

–5

5,315

5,310

Other income

1

1,192

2

1,258

2,453

Total operating income

95,368

72,020

21,849

–952

188,285

Personnel expenses

12,802

26,725

5,605

44,716

89,848

General and administrative expenses

1,024

5,590

2,745

31,554

40,913

Depreciation of property, equipment and intangible assets

1,788

3,981

292

16,192

22,253

Credit loss expenses

4,436

104

0

0

4,540

Provisions and losses

470

103

121

0

694

Operating expenses

20,520

36,503

8,763

92,462

158,248

Earnings before income tax

74,848

35,517

13,086

–93,414

30,037

Taxes on income

4,571

Group net income

25,466

Segment assets (in CHF million)

3,885

1,538

24

7,152

12,599

Segment liabilities (in CHF million)

5,725

3,298

723

1,754

11,500

Client assets under management (in CHF billion)1

19.1

15.3

12.9

47.2

Net new money (in CHF billion)

–0.1

–0.3

0.5

0.1

Headcount (number of employees)

155

285

87

536

1,063

Headcount (expressed as full-time equivalents)

138.0

271.7

80.4

494.5

984.6

Cost/income ratio (in %)2

21.5

50.7

40.1

Change in client assets under management compared to 31.12. prior year (in %)

–1.1

–1.2

10.0

Total operating income / average client assets under management (bp)3

99.4

93.7

35.6

Segment result / average client assets under management (bp)3

78.0

46.2

21.3

Cost/income ratio operating income (in %)4

14.5

45.6

38.2

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

2Total operating expenses / total operating income.

3Annualised, average values.

4Operating expenses excluding depreciation and amortisation, valuation allowances, provisions and losses / gross income less other income and income from financial instruments.

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.