5. Management of equity resources

The focus of value-oriented risk management is to achieve a sustainable return on the capital invested and one which, from the shareholders’ perspective, is commensurate with the risks involved. To achieve this goal, VP Bank Group supports a rigorous dovetailing of profitability and risk within the scope of the management of its own equity resources; it consciously abandons the goal of gaining short-term interest advantages at the expense of the security of capital. VP Bank Group manages all risks within the risk budget approved by the Board of Directors. In managing the equity resources, VP Bank Group measures both the equity required (minimum amount of equity to cover the bank’s risks in accordance with the requirements of applicable supervisory law) and the available eligible equity (VP Bank Group’s equity is computed in accordance with the criteria of the supervisory authorities) and projects their future development. Equity resources which VP Bank Group does not need for its growth or business activities are returned through dividend payments according to its long-term policy. Thus, through active management, VP Bank Group is able to maintain its robust capitalisation as well as its credit rating and continues to create sustainable value for the shareholders.

Capital indicators

The determination of the required capital and tier capital pursuant to Basel IV is undertaken based on the IFRS consolidated financial statements, with unrealised gains being deducted from core capital. Total capital (core capital and supplementary capital) must amount to a minimum of 12.5 per cent of the risk-weighted assets.

Risk-weighted assets as of 31 December 2025 amounted to CHF 4.3 billion as compared with CHF 4.1 billion in the previous year. Core capital as of 31 December 2025 was CHF 1,112.5 million as compared with CHF 1,066.2 million in the previous year. The overall equity ratio increased by 0.9 per cent, from 25.9 per cent on 31 December 2024 to 26.1 per cent on 31 December 2025. As of both 31 December 2025 and 31 December 2024, VP Bank Group was adequately capitalised in accordance with the respective guidelines of the FMA currently in force. In 2025, VP Bank Group used no hybrid capital under eligible equity and, in accordance with International Financial Reporting Standards (IFRS), netted no assets against liabilities (balance sheet reduction).