«When do we notice that we were a victim of a cyber-attack?»

«When do we notice that we were a victim of a cyber-attack?»

«When do we notice that we were a victim of a cyber-attack?»

Client Business International

Segment results

in CHF 1,000

2016

2015

Vari­ance
ab­solute

Vari­ance
in %

To­tal net in­ter­est in­come1

24,936

20,672

4,264

20.6

To­tal net in­come from com­mis­sion 
busi­ness and ser­vices

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
com­pared to 31.12. prior year (in %)

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

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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.