Segments
Structure
VP Bank Group consists of the three organisational units “Chief Executive Officer”, “Client Business” and “Chief Financial Officer & Banking Services”.
As previously, the organisational unit “Client Business” is divided into two business segments “Client Business Liechtenstein” and “Client Business International”. Both organisational units “Chief Executive Officer” and “Chief Financial Officer & Banking Services” are regrouped together under the business segment “Corporate Center”.
Centrum Bank, which was merged with VP Bank in 2015, is included in the segment reporting for 2015. The non-recurring positive effect of the “bargain purchase” (gain from the acquisition of Centrum Bank) as well as the charges for restructuring costs (including social plan) and project costs are reported in the Corporate Center. The client assets transferred as well as the client-related revenues arising from this integration are reported in the business segment “Client Business Liechtenstein”. The amortisation of the capitalised value of client assets acquired is also allocated to this business segment. The employment contracts of the employees of Centrum Bank, Vaduz, were transferred to VP Bank and integrated into the existing structure of VP Bank Group. Based upon this allocation, related ongoing regular costs were charged to the respective business unit (“Client Business Liechtenstein” or “Corporate Center”). The prior-year comparative figures exclude Centrum Bank.
Further information about the segments can be found here.
Client Business Liechtenstein
The business segment “Client Business Liechtenstein” encompasses the international private banking business and the business with intermediaries located in Liechtenstein as well as the local universal banking and credit-granting businesses. It includes the units of VP Bank Ltd, Vaduz, which are in direct client contact. In addition, Group Investment, Product & Market Management and VP Fund Solutions (Liechtenstein) AG are allocated to this business segment. From 2015 onwards, this segment includes the employees transferred and customer business of the above-mentioned units from the integration of Centrum Bank.
Segment results
| 2015 | 2014 |
Total net operating income (in CHF million) | 167.1 | 123.7 |
Income before income tax (in CHF million) | 77.2 | 48.2 |
Client assets under management (in CHF billion) | 24.3 | 19.5 |
Headcount (number of employees) | 178 | 157 |
Client Business International
The business segment “Client Business International” encompasses the private banking business in international locations. VP Bank (Switzerland) Ltd, VP Bank (Luxembourg) SA, VP Bank (BVI) Ltd, VP Bank (Singapore) Ltd, VP Wealth Management (Hong Kong) Ltd and VP Fund Solutions (Luxembourg) SA are allocated to this business segment.
Segment results
| 2015 | 2014 |
Total net operating income (in CHF million) | 69.4 | 79.8 |
Income before income tax (in CHF million) | –2.6 | 14.4 |
Client assets under management (in CHF billion) | 10.5 | 11.4 |
Headcount (number of employees) | 245 | 259 |
Corporate Center
The business segment “Corporate Center” is responsible for banking operations and the processing of business transactions. It encompasses the areas Group Operations, Group Information Technology, Group Finance & Risk, Group Treasury & Execution, Group Legal, Compliance & Tax, Group Human Resources Management, Group Communications & Marketing and Group Business Development. In addition, those revenues and expenses of VP Bank Ltd having no direct relationship to the operating divisions, as well as consolidation adjustments, are reported under the Corporate Center. Revenue-generating business activities of the segment Corporate Center arise in connection with the Group Treasury Function. The results of the Group's own financial investments, the structural contribution and the changes in the value of interest-rate hedges are reported in this segment. The non-recurring positive effect of the “bargain purchase” arising from the merger with Centrum Bank (gain from the acquisition of Centrum Bank) as well as the charges for restructuring costs (including social plan) and project costs are reported in the Corporate Center business segment. From 2015 onwards, this segment includes the employees transferred from the above-mentioned units from the integration of Centrum Bank. The effect arising on the reduction of the rate on conversion (IAS 19) also flowed into this segment.
Segment results
| 2015 | 2014 |
Total net operating income (in CHF million) | 70.1 | 19.2 |
Income before income tax (in CHF million) | –14.4 | –42.0 |
Client assets under management (in CHF billion) | 0.0 | 0.0 |
Headcount (number of employees) | 375 | 339 |