Corporate Center
Segment results |
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in CHF 1,000 | 2021 | 2020 | Variance | Variance |
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Total net interest income | 13,012 | 10,543 | 2,469 | 23.4 |
Total net income from commission | –9,310 | –10,628 | 1,318 | 12.4 |
Income from trading activities | 15,884 | 22,346 | –6,462 | –28.9 |
Income from financial instruments | 11,122 | 7,900 | 3,222 | 40.8 |
Other income | 1,028 | 615 | 412 | 67.0 |
Total operating income | 31,736 | 30,776 | 960 | 3.1 |
Personnel expenses | 91,492 | 86,854 | 4,637 | 5.3 |
General and administrative expenses | 48,204 | 46,075 | 2,130 | 4.6 |
Depreciation of property, equipment and intangible assets | 29,540 | 22,652 | 6,888 | 30.4 |
Credit loss expenses | –8 | –27 | 19 | 71.5 |
Provisions and losses | 8 | 3 | 5 | 157.0 |
Services to/from other segments | –61,350 | –57,495 | –3,855 | –6.7 |
Operating expenses | 107,887 | 98,063 | 9,824 | 10.0 |
Segment earnings before income tax | –76,151 | –67,287 | –8,864 | –13.2 |
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Additional information |
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Headcount (number of employees) | 538 | 553 | –15.0 | –2.7 |
Headcount (expressed as full-time equivalents) | 492.6 | 507.5 | –14.9 | –2.9 |
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 income
The pre-tax segment income in 2021 amounted to minus CHF 76.2 million as opposed to minus CHF 67.3 million in the prior year.
In 2021, operating income increased by CHF 1.0 million compared to the previous year, while the net interest income grew by CHF 2.5 million. This is largely due to optimisation of investments of liquid funds. Income from commission business and services saw a fall in revenues. This includes bank commissions that were invoiced to front business units by the service units through internal recharging. Income received from Group Treasury & Execution is reported under income from trading activities. 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. Income from trading activities decreased by CHF 6.5 million compared to the previous year. This reduction is mainly due to the reduced US dollar and euro interest margins. Income from financial investments totalled CHF 11.1 million in 2021 due to higher dividend income. This position recorded a result of CHF 7.9 million in the previous-year period.
Operating expenses in the reporting period increased by CHF 9.8 million to CHF 107.9 million. The reason for this increase was mainly the cost of strengthening the organisation along with investments in the IT strategy. Depreciation and amortisation increased compared to the previous year as a result of the outsourcing of the IT infrastructure to Swisscom, which is planned for the first half of 2022.