Statement by the Chairman of the Board and the Chief Executive Officer
Dear Shareholders, Ladies and Gentlemen
VP Bank can look back on a good first half of 2025. In an environment characterised by falling interest rates, unfavourable currency effects and geopolitical uncertainties, we succeeded in increasing our half-year profit to CHF 28.8 million. Particularly noteworthy is the broad-based net new money inflow, which is a sign of our clients’ confidence in VP Bank.
Growth initiatives are beginning to take effect
The growth initiatives launched last year are beginning to bear fruit. We recorded broad-based net new money inflows of CHF 2.1 billion, corresponding to annualised growth of 8.3 per cent. All regions contributed to this result. Despite negative currency effects, client assets under management rose by 2 per cent to CHF 51.9 billion.
At the same time, we improved our margins. The realignment of our value proposition and the management of our loan portfolio contributed to the improvement in earnings quality.
The commission and services business developed positively, growing by 1 per cent to CHF 69.0 million. Although the interest rate environment remained challenging – net interest income declined by 3.6 per cent – this decline was offset by strong trading business (+29 per cent). In addition, we recognised one-off insurance benefits of CHF 4.6 million. Overall, we achieved an 8 per cent increase in operating income to CHF 175.4 million.
The growth initiatives initiated last year are starting to show results.
Urs Monstein
Chief Executive Officer
Cost discipline maintained
Our actions are also having an increasing impact on the cost side. With the programme launched in 2024 to increase efficiency and accelerate growth, we have laid the foundation for improving our operating performance.
While personnel expenses remained unchanged at CHF 85.9 million, general and administrative expenses fell by 4 per cent to CHF 41.9 million. Depreciation expenses fell by 20 per cent to CHF 15.0 million. As a result, operating expenses decreased by a total of 4 per cent to CHF 142.8 million and the cost/income ratio was reduced to 81.5 per cent.
Operational progress is paying off
These developments led to a half-year profit of CHF 28.8 million – a pleasing result which, even adjusted for one-off corporate earnings, is significantly higher than the previous year’s figure.
This increase underscores the progress we have made in our operational development. It shows that we are on the right track – even though we remain aware of the challenges in the market.
Strategic focus on sustainable growth
In the first half of the year, the Board of Directors and Executive Board conducted a thorough review of VP Bank’s strategic orientation. This analysis focused in particular on our business with external asset managers and private banking. Our assessment is clear: we are active in the right markets and client segments for us. At the same time, we recognise that we need to focus more in order to achieve our growth targets.
In concrete terms, this means that we are concentrating our resources on those markets where we see the greatest growth potential. In the external asset management business, the focus is on Liechtenstein, Switzerland, Luxembourg, Singapore and Hong Kong. In the private client segment, we are focusing our activities in particular on Liechtenstein, Germany, Sweden, Denmark, Singapore, Eastern European countries and the British Virgin Islands. We are investing in these growth markets in a targeted manner – for example, by expanding our advisory teams, strengthening our value proposition and increasing our brand presence.
One of our strengths lies in our many years of experience in cross-border business, particularly with complex client structures. We are recording above-average growth in this area: almost 70 per cent of our end clients use cross-border services. This expertise, combined with personal service and direct access to our specialists – for example in trading, compliance or asset management – puts us in a good position to compete for these clients. This enables us to address individual client needs in a targeted manner and differentiate ourselves in the market.
Another key element of our development is to further strengthen our sales focus. To this end, we will provide specific training programmes, further structure the advisory process and client book planning and make the front organisation more effective overall. Market and segment development across our sites will also be coordinated more closely in future.
We are investing in our growth markets in a targeted manner, for example by expanding our advisory teams and strengthening our value proposition.
Stephan Zimmermann
Chairman of the Board
Outlook for the second half of the year
Despite the encouraging development of our business in the first half of the year, we remain realistic. Geopolitical uncertainties and possible further negative interest rate and currency effects will continue to accompany us in the second half of the year. In addition, seasonal effects such as dividend payments and the aforementioned one-off effects will no longer be felt, which is why we expect the second half of the year to be less strong overall. Nevertheless, we expect a stronger result than in the second half of 2024.
VP Bank continues to stand on a solid foundation. Our capitalisation is strong, our liquidity comfortable and our strategic focus clear. We will continue to work with a high degree of discipline and entrepreneurial focus to further strengthen our position as a reliable partner for our clients.
Appreciation for commitment and trust
We would like to express our special thanks to all VP Bank employees. Their commitment, perseverance and dedication in a challenging environment deserve recognition. The market situation is demanding – we are therefore all the more pleased that we are making progress together with our focused orientation towards our clients.
We would also like to thank you, our valued shareholders, for your continued loyalty and trust in VP Bank. This trust is both an incentive and an obligation for us.
Last but not least, we would like to thank our clients. Your trust and partnership are the foundation of our success – today and in the future.
