Private Banking International

2012

2011

Variance
absolute 

Variance
in %

20,484

22,017

–1,533

–7.0

33,756

36,864

–3,108

–8.4

8,034

8,845

–811

–9.2

2,055

–291

2,346

n.a.

2,856

430

2,426

564.2

67,185

67,865

–680

–1.0

47,516

43,946

3,570

8.1

18,605

17,295

1,310

7.6

16,097

13,382

2,715

20.3

82,218

74,623

7,595

10.2

–15,033

–6,758

–8,275

–122.4

2,612

3,222

–610

–18.9

4,824

3,124

1,700

54.4

–22,469

–13,104

–9,365

–71.5

 

 

 

 

 

 

 

 

 

122.4

110.0

 

 

126.3

114.7

 

 

10.4

9.8

 

 

7.0

8.9

 

 

0.2

1.5

 

 

66.5

72.4

 

 

–22.2

–14.0

 

 

132.0

110.2

 

19.8

261

265

–4

–1.5

249.7

255.5

–5.8

–2.3

  1. Annualised, average values.
  2. Operating expenses / gross income less other income.

 

Structure

The business segment Private Banking International comprises the private-banking business in international locations. VP Bank (Schweiz) AG, VP Bank (Luxembourg) S.A., VP Bank and Trust Company (BVI) Ltd., VP Bank (Singapore) Ltd. and VP Wealth Management (Hong Kong) Ltd. are allocated to this business segment. Additionally, Investment Service Center is allocated to this division.

 

Segment results

The strong Swiss franc, uncertainties on financial markets, the economic outlook as well as the costs of intense market-development activities adversely impacted the segment results of International Private Banking. On the other hand, market development activities developed positively (net new money inflow of CHF 0.2 billion). 

Year-on-year, the pre-tax segment results recorded a drop of CHF 9.4 million from CHF –13.1 to CHF –22.5 million. 

The gross margin fell to 66.5 basis points (prior-year period: 72.4 basis points). The cost/income ratio increased from 110.2 to 132.0 per cent. The lower level of client activities resulting from economic uncertainties adversely impacted commission and service income. This led to a moderate decline of 1.0 per cent in total operating income to CHF 67.2 million (prior-year period: CHF 67.9 million). 

Operating expenses rose by 10.2 per cent from CHF 74.6 million to CHF 82.2 million as a result of a broadening of market-development activities. Valuation allowances, provisions and losses increased in total by CHF 1.7 million to CHF 4.8 million.

As of 31 December 2012, client assets stood at CHF 10.4 billion (31 December 2011: CHF 9.8 billion). The employee headcount fell from 255.5 (31 December 2011) to 249.7 positions.