Client Solutions

in CHF 1,000	2020	2019	Variance absolute	Variance in %
Segment results
Total net interest income	1,677	2,382	–705	–29.6
Total net income from commission business and services	31,254	31,223	32	0.1
Income from trading activities	2,479	2,137	341	16.0
Income from financial instruments	0	2	–2	–100.0
Other income	323	338	–15	–4.4
Total operating income	35,733	36,082	–349	–1.0
Personnel expenses	10,960	11,056	–96	–0.9
General and administrative expenses	4,973	4,570	404	8.8
Depreciation of property, equipment and intangible assets	527	699	–172	–24.6
Credit loss expenses	–30	–228	198	86.8
Provisions and losses	4	19	–15	–77.8
Services to/from other segments	2,421	2,380	41	1.7
Operating expenses	18,855	18,496	360	1.9
Segment income before income tax	16,878	17,586	–709	–4.0

Additional information
Operating expenses excluding depreciation and amortisation, valuation allowances, provisions and losses / total operating income (in %)	51.4	49.9
Operating expenses excluding valuation allowances, provisions and losses / total operating income (in %)	52.8	51.8
Client assets under management (in CHF billion)	11.5	11.4
Change in client assets under management compared to 31.12. prior year (in %)	0.9	12.8
Net new money (in CHF billion)	0.5	0.6
Total operating income / average client assets under management (bp) (gross margin)1	31.3	33.7
Segment result / average client assets under management (bp)1	14.8	16.4
Cost/income ratio operating income (in %)2	51.8	50.4	1.5	2.9
Headcount (number of employees)	81	72	9.0	12.5
Headcount (expressed as full-time equivalents)	75.3	66.9	8.4	12.6

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 “Client Solutions” business unit now comprises the following functional teams: Private Investment Partners, Collective Private Markets Investments, CSL Access Partners, Fund Client & Investment Services, Philanthropy and Impact, CSL Operations and CSL Legal & Risk. The fund management companies Fund Solutions Luxembourg SA and Fund Solutions Liechtenstein AG remain as independent companies and are now part of “Client Solutions”.

The “Client Solutions” unit is tasked with creating systematic access to new investment opportunities in the private markets business sector. The new business unit will be assuming responsibility for earnings and results, building on the top-notch fund services of VP Bank Fund Solutions and supplementing them with investment solutions in the private market.

Segment result

The pre-tax segment result in 2020 fell by CHF 0.7 million (4.0 per cent) compared to the previous-year period. The operating income declined in particular due to the drop in USD interest income. On the other hand, income from commission business and services increased by 16.0 per cent. Operating expenses increased slightly by CHF 0.4 million to CHF 18.9 million, primarily due to higher licensing and maintenance costs.

The gross margin fell to 31.3 basis points (previous-year period: 33.7 basis points). The cost/income ratio increased from 50.4 per cent to 51.8 per cent.

At CHF 0.5 billion, net new money in the fund business again trended upwards in 2020. Client assets under management as of 31 December 2020 totalled CHF 11.5 billion (31 December 2019: CHF 11.4 billion). The employee headcount rose from 67 (31 December 2019) to 75 positions.