Strategy

Strategy, business model and value chain (SBM-1)

VP Bank's strategy centres on its domestic market in Liechtenstein and select international client groups within the private clients and intermediaries business. VP Bank aims to achieve sustainable growth in these segments, build on its existing strengths, and solidify its market position in the long term.

Since its foundation in Vaduz in 1956, VP Bank has grown from a small, family-like bank to become one of Liechtenstein's three systemically important banks, as well as an internationally active financial institution. Employing around 1,000 people, the bank provides expertise, flexibility and first-class, personalised solutions.

Clients benefit from:

• an understanding of client needs, even across national borders;
• personal wealth planning, asset management, and investment advisory;
• very good investment performance, including in multi-year comparisons;
• a modern and user-friendly client platform;
• reliability thanks to above-average capitalisation, a strong liquidity position and anchor shareholders with a long-term focus.

Business model

VP Bank was founded by Guido Feger, a successful entrepreneur and one of Liechtenstein's most prominent trustees. Building on this legacy, VP Bank has become a trusted partner for financial intermediaries and high-net-worth private clients.

The business model includes:

• the universal bank in its home market Liechtenstein;
• a partner for intermediaries such as trustees, external asset managers, lawyers, family offices, and fund managers;
• a specialist for private clients with complex needs in the areas of asset protection and investment;
• Asset servicing for third-party and private label funds.

VP Bank aims to achieve the following objectives with its business model:

• VP Bank is a well-established bank in Liechtenstein, offering a wide range of services for everyone, from simple savings accounts to personal investment advice, financial planning and comprehensive financing options.
• VP Bank is the preferred partner for intermediaries. The bank also aims to achieve a leading position among external asset managers in growth markets. In Liechtenstein, VP Bank is the first choice for trustees.
• VP Bank is a recognised specialist in wealth management and asset protection for high-net-worth private clients in selected markets. The bank is also the leading provider of premium real estate financing in the British Virgin Islands.
• In Asset Servicing, VP Bank is the one-stop shop for alternative investment funds.

Information on the respective segments’ revenue shares and other financial disclosures by them can be found in the “Segment reporting” section of the Financial Report 2025 of VP Bank Group. Information on the number of employees in the different regions is provided in the chapter S1-6.

Sustainability strategy

VP Bank is continuously working on economically viable sustainability measures and their targeted anchoring in the various business segments. VP Bank can contribute to the achievement of international sustainability targets primarily through its range of products and services. An overview of the metrics and targets already introduced can be found in the corresponding chapter ESRS 2 MDR-T. The sustainability strategy and targets have been defined within the context of the overall strategy and, above all, make a direct contribution to the following strategic success factors: strong corporate culture, robust risk management and a future-oriented long-term strategy.

VP Bank bases its decisions and actions on the following principles:

• Supporting clients in achieving their sustainability targets with its range of products
• Focusing on key sustainability topics that VP Bank can directly influence
• Integrating sustainability criteria into investment advisory and wealth management processes
• Cooperating and engaging in dialogue with stakeholders to drive improvements in terms of sustainability
• Communicating transparently concerning activities and progress in achieving targets

VP Bank recognises environmental, social and corporate governance factors as being relevant for long-term financial success and ensures that the management of core business segments assumes responsibility for sustainability measures. Responsible business practices involve the application of minimum protection measures in order to minimise any adverse impacts associated with the bank’s business activities. This includes compliance with human rights and labour law, combating money laundering and adhering to the principles of the UN Global Compact and other due diligence requirements as described in chapter G1 IRO-1. VP Bank is committed to the Paris Climate Agreement and develops measures to reduce operational emissions and specific on-balance-sheet financed emissions.

Value chain

The value chain (VC) covers all activities carried out by the organisation itself and its upstream and downstream units for the purposes of providing products and services, from development through to final use. VP Bank has defined a model VC in order to assess impacts, risks and opportunities (IROs) throughout the entire VC. This is based on internal information and publicly available industry information. The model VC at VP Bank is divided into three stages: upstream processes, the bank’s own operations and downstream activities.

Hotspots have been identified for the three stages of the VC, allowing for structured identification and further analysis of potential and actual IROs. In the upstream and downstream VC, hotspots have been identified with reference to the countries and industries in which IROs are concentrated. Country-specific IROs address potential challenges and uncertainties that VP Bank may face in relation to activities or investments in certain countries or markets. Sector-specific IROs refer to aspects that can arise when VP Bank operates or invests in specific industries. These risks arise from a combination of economic, political, social and regulatory factors that may affect business activity, profitability and sustainability.

Within the ambit of the upstream VC, a tier 1 supplier analysis was carried out in which suppliers were examined according to region and product category. The downstream VC focuses on lending business and investments. The mortgage business plays a central role in the lending business, particularly from a sustainability perspective. In the area of the bank’s own investments and client assets, considerable differentiation has arisen as a consequence of broad geographic and industry diversification. The resulting geographic and sectoral IROs have been taken into account in the analysis and evaluation. Further information on the VC at VP Bank can be found in chapter ESRS 2 IRO-1.

The purpose of the Supplier Code of Conduct is to ensure that suppliers of VP Bank adhere to high standards with regard to safe working conditions, fair and respectful treatment of employees and ethical behaviour. As a medium-sized enterprise, VP Bank has limited market power, and in some instances none at all, in its target markets. As a result, only limited influence can be exerted on VC actors. VP Bank only has limited scope to influence its business relationships and their impact. VP Bank is one of the three largest financial institutions in its home market of Liechtenstein, which can give rise to some degree of influence.

Interests and views of stakeholders (SBM-2)

For VP Bank, stakeholders include all organisations and persons that place financial, legal, operational or professional demands on the undertaking. Stakeholder dialogue plays a central role in the implementation and review of the bank’s sustainability efforts (see Table 1). VP Bank engages in dialogue with internal and external stakeholder groups. VP Bank strives to promote a culture of responsible action by means of group-wide training and awareness-raising measures.

Detailed information on stakeholder engagement in the double materiality analysis process and how this process has been shaped by VP Bank’s stakeholders can be found in chapter ESRS 2 IRO-1. The sustainability-related measures and targets defined with reference to strategic objectives are identified based on the results of the materiality analysis. This means that stakeholders’ opinions and expectations are incorporated into strategic adjustments. The findings and results relating to key sustainability topics, including IROs, obtained from the double materiality analysis have been presented to the Board of Directors and Group Executive Management and used as a basis for decision-making.

Memberships

Voluntary commitments provide a practical guide for dealing with sustainability topics. They are a tool for covering areas that are not yet explicitly regulated and provide market participants with guidance and a standardised approach. For VP Bank, group-wide membership of various initiatives is an important aspect of knowledge sharing with its stakeholders. For this reason, VP Bank supports initiatives that provide it with the opportunity to contribute to sustainable development, to learn from experts, to share knowledge and experience, to find out about new topics and to support its strategy and commitments.

Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)

The table below summarises material positive and negative impacts and the risks and opportunities identified as part of the double materiality analysis for VP Bank. No findings are currently available on the expected financial effects of material risks and opportunities. Information on climate scenario analyses can be found in Chapter E1-1. The periods under consideration for the qualitative and quantitative assessment are based on the information set out in chapter ESRS 1. Detailed information concerning the methodology can be found in chapter ESRS 2 IRO-1.