Client Business International
Segment results
in CHF 1,000 | 2016 | 2015 | Variance | Variance |
|---|---|---|---|---|
Total net interest income1 | 24,936 | 20,672 | 4,264 | 20.6 |
Total net income from commission | 33,878 | 38,853 | –4,975 | –12.8 |
Income from trading activities1 | 6,565 | 9,790 | –3,225 | –32.9 |
Income from financial instruments | 396 | –897 | 1,293 | 144.1 |
Other income | 1,078 | 983 | 95 | 9.7 |
Total operating income | 66,853 | 69,401 | –2,548 | –3.7 |
Personnel expenses | 39,000 | 36,752 | 2,248 | 6.1 |
General and administrative expenses | 21,544 | 19,071 | 2,473 | 13.0 |
Depreciation and amortisation | 3,336 | 4,455 | –1,119 | –25.1 |
Valuation allowances, provisions and losses | 716 | 11,761 | –11,045 | –93.9 |
Services to/from other segments | 0 | 0 | 0 | 0.0 |
Operating expenses | 64,596 | 72,039 | –7,443 | –10.3 |
Segment income before income tax | 2,257 | –2,638 | 4,895 | 185.6 |
|
|
|
|
|
Additional information |
|
|
|
|
Operating expenses excluding depreciation and amortisation, valuation allowances, provisions and losses / total operating income (in %) | 90.6 | 80.4 |
|
|
Operating expenses excluding valuation allowances, provisions and losses / total operating income (in %) | 95.6 | 86.9 |
|
|
Client assets under management (in CHF billion) | 11.2 | 10.5 |
|
|
Change in client assets under management | 6.6 | –8.2 |
|
|
Net new money (in CHF billion) | 0.2 | 0.2 |
|
|
Gross income / average client assets under management (bp)1 | 61.7 | 63.4 |
|
|
Segment result / average client assets under management (bp)1 | 2.1 | –2.4 |
|
|
Cost/income ratio operating income (in %)2 | 92.6 | 80.5 | 12.1 | 15.0 |
Headcount (number of employees) | 248 | 245 | 3.0 | 1.2 |
Headcount (expressed as full-time equivalents) | 233.2 | 233.4 | –0.2 | –0.1 |
- Annualised, average values.
- Operating expenses excluding depreciation and amortisation, valuation allowances, provisions and losses / gross income less other income and income from financial instruments.
Structure
The business segment “Client Business International” encompasses the business conducted 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 result
In 2016, the pre-tax segment result could be improved, year-on-year, by CHF 4.9 million. Operating income fell by 3.7 per cent from CHF 69.4 million to CHF 66.9 million, particularly resulting from declining commission and service income and trading income. This is attributable, inter alia, to the centralisation of the investment-management activities of VP Bank (Switzerland) Ltd within Liechtenstein which was undertaken in the prior year. Interest income and income from financial investments developed positively and could be increased, year-on-year, by CHF 4.3 million and CHF 1.3 million, respectively. Operating expenses could be reduced by CHF 7.4 million, or 10.3 per cent, to CHF 64.6 million. This decline results from the charges for valuation allowances, provisions and losses as well amortisation and depreciation. In 2015, higher valuation allowances for credit risks and restructuring provisions in connection with the operational integration of all Luxembourg locations had been required. Personnel and general and administrative expenses rose as a result of expanded market-development activities. In the business segment “Client Business International”, the recharging of services is based on actual invoices and recorded under general and administrative expenses.
The gross margin declined to 61.7 basis points (prior year: 63.4 basis points). The cost/income ratio improved from 80.5 per cent to 92.6 per cent.
Net new money developed positively in 2016 in an amount of CHF 0.2 billion. Net new money inflows could again be achieved in Asian markets. Other markets reported money outflows caused by the regulatory environment and tax-related issues. Assets under management at 31 December 2016 totalled CHF 11.2 billion (31 December 2015: CHF 10.5 billion). The employee headcount of 233 individuals remained unchanged from the prior year.