Corporate Center
Segment results |
|
|
|
|
in CHF 1,000 | 2020 | 2019 | Variance | Variance |
|---|---|---|---|---|
Total net interest income | 10,543 | –2,580 | 13,123 | n.a. |
Total net income from commission | –10,628 | –9,264 | –1,364 | –14.7 |
Income from trading activities | 22,346 | 28,953 | –6,607 | –22.8 |
Income from financial instruments | 7,900 | 14,269 | –6,369 | –44.6 |
Other income | 615 | –116 | 731 | n.a. |
Total operating income | 30,776 | 31,261 | –485 | –1.6 |
Personnel expenses | 86,854 | 87,019 | –164 | –0.2 |
General and administrative expenses | 46,075 | 42,561 | 3,513 | 8.3 |
Depreciation of property, equipment and intangible assets | 22,652 | 22,013 | 639 | 2.9 |
Credit loss expenses | –27 | –31 | 4 | 12.9 |
Provisions and losses | 3 | 3 | 0 | 9.9 |
Services to/from other segments | –57,495 | –53,737 | –3,758 | –7.0 |
Operating expenses | 98,063 | 97,828 | 234 | 0.2 |
Segment income before income tax | –67,287 | –66,567 | –719 | –1.1 |
|
|
|
|
|
Additional information |
|
|
|
|
Headcount (number of employees) | 553 | 522 | 31.0 | 5.9 |
Headcount (expressed as full-time equivalents) | 507.5 | 479.2 | 28.4 | 5.9 |
Structure
The “Corporate Center” is of great importance for banking operations and the processing of business transactions. In addition, those revenues and expenses of VP Bank Group that have no direct relationship to client-oriented business segments, as well as consolidation adjustments, are reported under the Corporate Center. The revenue- generating business activities of the segment Corporate Center are associated with the exercise of the Group Treasury function. The results of the Group’s own financial investments, the structural contribution and the changes in the value of hedges are reported in this segment.
Segment result
The pre-tax segment result in 2020 amounted to minus CHF 67.3 million as opposed to minus CHF 66.6 million in the previous-year period.
In 2020, operating income decreased slightly by CHF 0.5 million compared to the same period of the previous year.
Net interest income increased by CHF 13.1 million compared with the previous-year period. This is largely due to optimisation of investments of liquid funds.
Commission and service income saw a fall in revenues. This includes bank commissions which are invoiced to front business units by the service units through internal recharging.
Income received by Group Treasury & Execution is reported under trading income. This relates to income generated from the execution of foreign-exchange trades. Income from derivatives for risk minimisation and income from balance sheet management are disclosed under this position too. Compared to the previous year, income from trading activities declined by CHF –6.6 million or –22.8 per cent. This decline is primarily due to the reduced USD/CHF interest margin stemming from the reduction of USD interest rates by the Fed.
Income from financial investments totalled CHF 7.9 million in 2020 due to market performance. This position recorded a result of CHF 14.3 million in the previous-year period. This major decline is primarily associated with the financial instruments measured at fair value, which were reduced in the previous year.
Operating expenses rose by CHF 0.2 million in the report- ing period, from CHF 97.8 million to CHF 98.1 million. General and administrative expenses increased by CHF 3.5 million, and depreciation and amortisation decreased by CHF 0.6 million.
Due to the work that was necessary to strengthen the organisation and its processes, the headcount increased significantly from 479 (as of 31 December 2019) to 508 positions.