4. Own funds disclosure
The required qualitative and quantitative information on capital adequacy, risk management strategies and procedures, and VP Bank's risk situation is disclosed in the risk report and in the notes to the consolidated financial statements. In addition, VP Bank Group is preparing a disclosure report for the 2025 financial year. The Bank thus fulfils the regulatory requirements under the Banking Ordinance (BankV) and Banking Act (BankG) as well as the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD).
VP Bank computes its required equity in accordance with the provisions of the CRR. In this connection, the following approaches are applied:
- Standardised approach for credit risks in accordance with Part 3, Title II, Chapter 2 of the CRR
- Standardised measurement approach (SMA) for operational risks in accordance with Part 3, Title III, Chapter 2 of the CRR
- Simplified standardised approach for market risks in accordance with Part 3, Title IV, Chapters 2–4 of the CRR
- Basic approach for credit valuation adjustment (CVA) risks in accordance with Article 384 CRR
- Comprehensive method for taking financial collateral into account in accordance with Article 223 CRR
In regard to strategy, business and reputational risk, no explicit regulatory capital adequacy requirements are stipulated in the CRR.
The following table shows the capital adequacy situation of the Group as of 31 December 2025.
Capital adequacy computation (Basel IV)
in CHF 1,000 | 31.12.2025 | 31.12.2024 |
Core capital | ||
Share capital | 66,154 | 66,154 |
Deduction for treasury shares | –40,485 | –44,909 |
Capital reserves | 21,410 | 22,067 |
of which premium for capital instruments | 47,505 | 47,505 |
Retained earnings | 1,166,973 | 1,144,832 |
of which group net income | 47,019 | 18,471 |
Actuarial gains/losses from defined-benefit pension plans | –16,836 | –31,630 |
Unrealised gains/losses on Fair Value Through OCI (FVTOCI) financial instruments | 17,041 | –11,049 |
Foreign-currency translation differences | –38,144 | –28,671 |
Total shareholders’ equity | 1,176,113 | 1,116,794 |
Deduction for dividends as per proposal of Board of Directors | –26,462 | –26,462 |
Deduction for equity instruments as per art. 28 CRR | 0 | 0 |
Deduction for actuarial gains/losses from IAS19 | 16,836 | 31,630 |
Deduction for deferred taxes on IAS 19 | –2,105 | –3,954 |
Deduction for goodwill and intangible assets | –46,768 | –45,863 |
Other deductions (deferred taxes, additional value adjustments (AVA), securitization positions, credit risk adjustments) | –5,097 | –5,973 |
Eligible core capital (CET1 = Tier 1)1 | 1,112,518 | 1,066,172 |
Eligible core capital (adjusted) | 1,112,518 | 1,066,172 |
Credit risk (in accordance with Liechtenstein standard approach) | 283,329 | 272,078 |
thereof price risk regarding equity securities in the banking book | 6,867 | 6,094 |
Market risk (in accordance with Liechtenstein standard approach) | 11,781 | 3,861 |
Operational risk (in accordance with basic indicator approach) | 45,338 | 52,044 |
Credit Value Adjustment (CVA) | 403 | 1,761 |
Total required equity | 340,852 | 329,744 |
Capital buffer | 197,863 | 191,418 |
Total required equity including capital buffer | 538,715 | 521,162 |
CET1 capital ratio | 26.1% | 25.9% |
Tier 1 ratio | 26.1% | 25.9% |
Overall capital ratio | 26.1% | 25.9% |
Total risk-weighted assets | 4,260,655 | 4,121,797 |
Return on investment (net income / average balance sheet total) | 0.4% | 0.2% |
1The CET1 ratio is equal to the core capital ratio (tier 1) and the total capital ratio of VP Bank Group.