Statement by the Chairman of the
Board and the Chief Executive Officer
Dear Shareholders, Ladies and Gentlemen
The past financial year was characterised by a challenging macro-economic climate. Falling interest rates, unfavourable currency effects and ongoing geopolitical uncertainties created challenging conditions for companies and investors. Nevertheless, international markets once again demonstrated their remarkable resilience. Neither political tensions nor trade conflicts were able to slow down the recovery that increasingly consolidated over the course of the year. Technological advances, particularly in the area of artificial intelligence, were a major driver of this development. The momentum around AI innovation boosted technology stocks to new highs and injected additional momentum into the markets.
Against this backdrop, VP Bank can look back on a successful year. The measures launched in 2024 were pursued systematically according to plan and were a major factor in the positive performance. Thanks to the focussed implementation of our strategic priorities and the high level of commitment by our employees, the bank was able to report an annual profit of CHF 47.0 million.
Earnings supported by higher levels of client activity
Operating revenues developed positively. This development was driven by the growth in commission and service fee income as well as in trading income, both of which benefited from increased client activity. It was possible to increase portfolio-based commission income in both the intermediary business as well as private client business, which can be attributed to the initiative to review of our range of services. Interest income by contrast fell, reflecting the challenges posed by the current interest rate environment. Currency effects also had a negative impact on the result. Overall, operating revenues increased by 2.1 per cent to CHF 337.3 million. Adjusted for the currency effect, the growth would have been 4.9 per cent.
Client assets under management also developed positively, increasing by 5.8 per cent to CHF 53.7 billion. This development was driven by both market effects and positive net new money inflows. Net new money inflow amounted to CHF 1.2 million, representing growth of 2.3 per cent.
In the lending business, the volume remained constant at CHF 5.9 billion, with higher profitability. Less profitable loans were reduced, while funds were allocated to high-quality and more profitable credit relationships.
Cost discipline as the basis for sustainable profitability
On the cost side, VP Bank was able to achieve further progress during the reporting year. Expenses declined by 8.9 per cent to CHF 280.8 million, underscoring the efficacy of the cost measures launched in recent years. Savings extended across all cost types – from staff costs and general and administrative expenses through to depreciation and amortisation and provisions.
Thanks to high cost discipline and the ongoing review of internal processes, it was possible to further increase efficiency and improve the cost/income ratio to 83.2 per cent.
Having systematically implemented our strategic priorities, we can look back on a successful year.
Urs Monstein
Chief Executive Officer
Strong investment solutions
VP Bank was able to effectively leverage market momentum during the reporting year and achieved very good investment performance, which was also impressive when measured against our competitors. This result confirms the quality of our investment process and the expertise of our investment teams.
At the same time, it was possible to further expand the number of mandates. New mandates totalling around CHF 600 million were established, underscoring our clients’ confidence in our asset management services.
A special highlight was the introduction of VP Vida Go, a new discretionary mandate that allows for cost-efficient, professional investment starting from an investment amount of CHF 10,000. In offering this product, we are specifically expanding our product portfolio to include a solution that meets the needs of a broader client group and further opens access to high-quality wealth management.
Growing where we are strong
During the first half of the year, the Board of Directors and the Executive Board thoroughly reviewed the strategic direction of VP Bank. This analysis focused in particular on our business with external asset managers as well as private client business – two areas in which we have traditionally been well positioned and have well established client relationships. The review showed that we can achieve our targeted growth objectives more effectively by concentrating on selected markets.
Specifically, this means that we will focus our resources even more specifically on those markets where we see the greatest growth potential and already have a strong foundation. We consciously invest in these growth markets – among other things by expanding our advisory teams, sharpening our value proposition and increasing the our brand presence.
Intermediary business remains a strategic core area
For VP Bank, business with intermediaries is much more than a supplementary service – it is part of our DNA and will remain a key pillar of our strategic focus in the future. Accordingly, in this area we focus on those markets in which we have many years of experience and strong positions: Liechtenstein, Switzerland, Luxembourg, Singapore and Hong Kong.
Our expertise, combined with personal service and direct access to our specialist – for example in trade, compliance or wealth management – gives us a compelling starting point in competing for this demanding client segment. This enables us to specifically address individual needs and clearly distinguish ourselves on the market through high quality and reliability.
Synergies from the intermediary business as a source of benefit for our private clients
We have also sharpened up our strategic focus within the private client business. Our activities focus on our home market of Liechtenstein and the neighbouring Switzerland, Germany, Singapore, the British Virgin Islands as well as on international clients from Sweden, Denmark and selected eastern European countries. We have particular strengths in these segments: linguistic and cultural proximity, many years of experience in cross-border business as well as a range of services that is specifically tailored to complex international client needs and asset protection.
In Liechtenstein, we are firmly established as a universal bank with a strong brand and have been able to grow sustainably in recent years. The broad contact base of a universal bank also creates additional acquisition opportunities for us, which we aim to leverage even more systematically in the future.
A clear strategic focus is crucial in order to sustainably achieve the growth targets we are seeking to achieve.
Stephan Zimmermann
Chairman of the Board of Directors
Asset servicing as the third pillar of our business model
Asset servicing comprises the third supporting pillar of VP Bank alongside our intermediary and private client business. It has significantly contributed to Group growth in recent years. In terms of market cultivation, we focus primarily on the target markets of VP Bank Group, which allows us to effectively leverage synergies in selling our comprehensive range of services.
In addition to the established one-stop shop offering, cooperation with other management companies is becoming increasingly important. We deal with fund administration and perform custodian functions for those investment funds – an area to which we bring in our long-standing expertise, further strengthening our position as a reliable partner.
Share performance and proposed dividend
VP Bank shares started 2025 with a price of CHF 77.40, continuing the positive trend followed during previous months. The price fell in April due to market conditions, triggered by tariff announcements in the USA. However, the stock quickly recovered and reached its peak for the year following the publication of the 2025 half-year results. At the end of the year it closed at CHF 84.40. Taking into account the dividend distributed of CHF 4.00, this results in a total return of 14.4 per cent.
For the 2025 financial year, the Board of Directors proposes that the annual general meeting to be held on 24 April 2026 pay out a dividend of CHF 4.00 per registered A share and of CHF 0.40 per registered B share. This corresponds to a dividend yield of 4.7 per cent.
Outlook
2026 will also be shaped by an environment that throws up opportunities and challenges alike. The geopolitical climate is still tense, and monetary policy framework conditions are likely to remain challenging. At the same time, increasing warnings are being voiced against exaggerated expectations with regard to investments in artificial intelligence. Moreover, growth will continue to be heavily influenced by the interest environment and VP Bank expects interest income to decline further.
Irrespective of these external factors, we will continue along our path in a prudent and consistent manner. Our focus is on sustainably increasing the profitable growth of VP Bank in all segments and at all locations. The programme launched with this objective is already showing initial results in the area of intermediaries and private clients and will provide an important basis for the coming years.
We already know in precisely which markets and segments we are aiming to grow. This means that the focus is increasingly shifting to the how – that is, the implementation of our strategic priorities. The decisive factor is still how we can consistently align all of our actions with the needs of our clients – entirely in line with our purpose, “Partnership for progress”.
A key element of our further development will involve strengthening our focus on sales. With this objective in mind we will provide specific training programmes, putting in place further structures for the advisory process and client book planning, and also making front-office organisation overall even more effective. Furthermore, market and segment cultivation across our locations should be better coordinated in the future in order to leverage synergies more effectively.
All of this will occur with continued high operational efficiency. Cost discipline remains a key component of our actions. VP Bank continues to operate on a solid foundation. Our capitalisation is strong, our liquidity is comfortable and our strategic focus is clear. This means that we are well positioned to meet the expectations of our stakeholders as regards reliability, transparency and sustainable value creation.
Thanks and appreciation
We would like to express our special thanks to our employees. Their commitment, expertise and dedication have significantly contributed to VP Bank in enabling it to achieve important progress in 2025. Against the backdrop of a challenging environment, they have impressed with their professionalism and team spirit.
We would also like to thank you, our valued shareholders, for your trust and support. We would like also to thank our clients for their partnership with us. Your trust is the basis of our success and also provides an incentive to continue developing VP Bank responsibly and sustainably in the future.
