2015 highlights

Purchase of all shares

VP Bank’s acquisition of all shares in Centrum Bank was fully completed as planned on 7 January 2015. Centrum Bank thereby becomes a wholly owned subsidiary of VP Bank.

On 15 January 2015 the Swiss National Bank lifted its exchange rate floor of CHF 1.20 per euro. VP Bank adjusted its interest rates and adopted immediate cost-cutting measures.

CHF 20.0 million in group net income

In 2014, VP Bank Group recorded CHF 20.0 million in group net income and a 1.8% increase in client assets under management. Operating expense was further reduced. With a tier 1 ratio of 20.5%, VP Bank Group has a very solid equity position.

VP Bank successfully issued a CHF 200 million bond in two tranches. This bond offering provides VP Bank with its first long-term instrument to refinance the long-term loan book. The bond also protects against the possibility of rising interest rates over the long term.

The 2014 online annual report is “safely ahead” and for the first time will be optimised with a responsive design for various screen sizes, i.e. smart phones, tablets and desktop PCs.

The fund subsidiary VP Fund Solutions (formerly IFOS) received the “World Finance Award” as Liechtenstein’s Best Investment Management company in 2015.

At the extraordinary general meeting of VP Bank in Vaduz, the Board of Directors’ proposals as regards a capital increase and the Centrum Bank merger were approved.

All proposals accepted

At VP Bank’s 52nd annual general meeting in Vaduz, all Board of Directors proposals were approved. Fredy Vogt was re-elected to a three-year term on the Board, while Dr Florian Marxer was elected as a new Board member. The proposed share buyback was also approved.

On 20 May 2015 VP Bank held its second annual Investors Day with around 30 shareholders, investors and analysts in attendance. Adrian Hasler, the Prime Minister of the Principality of Liechtenstein, was the keynote speaker.

The “VP Bank Fund Selection Aktien Natural Resources” fund received five stars from Morningstar, the fund rating agency’s highest rating.

The repurchase of bearer and registered shares as part of VP Bank’s fixed-price offer was successfully completed. A total of 300,750 bearer shares and 114,080 registered shares were repurchased. The repurchased shares are intended to be used for future acquisitions or treasury management purposes.

In the first half of 2015, VP Bank Group recorded group net income of CHF 40.9 million. Total operating income rose by 56.1%. VP Bank’s client assets under management rose by 11.8% from 2014.

Following the review of medium-term goals, VP Bank Group’s Board of Directors set the following new targets to be achieved by end-2020:

• CHF 50 bn in assets under management
• CHF 80 million in Group net income
• Cost/income ratio of less than 70%

VP Bank Group’s funds business was consolidated under one roof at “VP Fund Solutions,” giving VP Bank Group an international funds competency centre.

The rating agency Standard & Poor’s confirmed VP Bank’s outstanding “A–“ rating (A–/A–2), thereby emphasising VP Bank Group’s excellent creditworthiness.

Deutsche Bank again recognised the professional services of VP Bank for the execution of euro payments and gave it the Excellence Award.

The repurchase of treasury bearer and registered shares as part of VP Bank’s second fixed-price public buy-back offer was successfully completed. VP Bank thereby repurchased 298,442 bearer shares and 10,200 registered shares. VP Bank currently owns 9.28% of the outstanding share capital and 6.05% of the voting rights.

VP Bank Group’s 2014 annual report again received numerous international awards. The online annual report, which was further developed, won three awards.

The quality of VP Bank’s asset management advisory is affirmed by the recently upgraded rating in the “Fuchsbriefe Report” as well as the “Cum Laude” distinction in the Elite Report.