Consolidated semi-annual report of VP Bank Group

Consolidated results

VP Bank Group reported net income of CHF 32.4 million for the first half of 2026, an increase of 12.7 per cent compared with the same period last year. The strong result was primarily driven by higher commission income, supported by continued disciplined cost management.

Client assets

Assets under management amounted to CHF 57.1 billion as at 30 June 2026, representing an increase of 6.4 per cent compared with year-end 2025. Both net new money inflows and positive market performance contributed to this growth.

Net new money amounted to CHF 1.4 billion, corresponding to annualised growth of 5.2 per cent. Particularly strong performance was recorded in our home market of Liechtenstein and in Switzerland, as well as in the Intermediaries and Asset Servicing business areas.

Alongside net new money inflows, positive market performance amounting to CHF 2.0 billion was a key driver of the growth in assets under management.

Income statement

Operating income

Total operating income amounted to CHF 171.6 million, 2.2 per cent below the level recorded in the prior-year period. The increase in commission and service income more than offset the decline in net interest income. In addition, income from financial investments benefited from higher dividend income. By contrast, income from trading activities and other income were below the levels achieved in the prior-year period.

Net interest income: Net interest income declined by 4.9 per cent to CHF 69.7 million. The main reasons were the lower Swiss franc interest rate environment and a reduced lending volume.
Commission business and services: Income from commission and service business increased by 7.8 per cent to CHF 74.4 million. The key drivers were higher average assets under management and improved margins in Private Banking following the enhancement of the client value proposition.
Trading activities: Trading income normalised to CHF 16.3 million, representing a decrease of 13.9 per cent compared with the strong prior-year result.
Financial instruments: Income from financial instruments increased by 13.4 per cent to CHF 10.0 million, primarily due to higher dividend income.
Other income: Other income amounted to CHF 1.2 million. The comparative period benefited from one-off insurance proceeds of CHF 4.6 million.

Operating expenses

Total operating expenses fell by 5.3 per cent to CHF 135.2 million. Personnel expenses, general and administrative expenses, and depreciation and amortisation were all lower than in the prior-year period, supporting a further improvement in profitability.

Personnel expenses: Personnel expenses declined by 3.2 per cent to CHF 83.2 million, primarily due to a lower average headcount, which was 1.4 per cent below the level of the prior-year period.
General and administrative expenses: General and administrative expenses decreased by 11.8 per cent to CHF 37.0 million. Significant cost reductions were achieved in particular in the areas of information technology and professional services.
Depreciation: Depreciation fell by 12.0 per cent to CHF 13.2 million. This was mainly attributable to the expiry of depreciation charges on major investments made in previous years.
Credit loss expenses, provisions and losses: Credit loss expenses amounted to CHF -0.1 million. Provisions and losses increased to CHF 1.9 million but remained at an overall low level.

Overall, the cost/income ratio improved by 2.7 percentage points compared with the prior-year period to 78.8 per cent, reflecting the improvement in operational efficiency.

Balance sheet

As at 30 June 2026, total assets stood at CHF 11.5 billion, an increase of 7.3 per cent compared with year-end 2025. Higher client deposits were the principal driver of this increase.

Assets

VP Bank continues to pursue a conservative risk and investment policy. The high quality of its credit portfolio, combined with the broad diversification of its financial investment portfolio, provides the foundation for a stable balance sheet structure. As at 30 June 2026, client loans amounted to CHF 5.8 billion, representing a decrease of 2.6 per cent compared with year-end 2025. Of this amount, CHF 3.7 billion related to mortgage loans.

Liabilities

Client deposits amounted to CHF 9.4 billion as at 30 June 2026, an increase of 9.2 per cent compared with year-end 2025. Accounting for 82.2 per cent of total assets, they remained the most important source of funding for VP Bank Group. The loan-to-deposit ratio stood at 61.3 per cent, underlining the Group’s strong funding position.

Equity capital and liquidity

VP Bank Group continues to maintain a very strong capital and liquidity position. As at 30 June 2026, the CET1 ratio and Tier 1 ratio both stood at 26.0 per cent. The Liquidity Coverage Ratio (LCR) was 157.6 per cent, the leverage ratio 9.9 per cent, and the Net Stable Funding Ratio (NSFR) 164.9 per cent. As a result, all regulatory requirements were exceeded, underscoring the strong financial stability and resilience of VP Bank Group.