Corporate Center
Segment results |
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in CHF 1,000 | 2022 | 2021 | Variance | Variance |
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Total net interest income | –445 | 13,012 | –13,457 | –103.4 |
Total net income from commission | –7,110 | –9,310 | 2,199 | 23.6 |
Income from trading activities | 31,343 | 15,884 | 15,459 | 97.3 |
Income from financial instruments | 6,620 | 11,122 | –4,502 | –40.5 |
Other income | 704 | 1,028 | –324 | –31.5 |
Total operating income | 31,111 | 31,736 | –625 | –2.0 |
Personnel expenses | 89,647 | 91,492 | –1,845 | –2.0 |
General and administrative expenses | 59,023 | 48,204 | 10,819 | 22.4 |
Depreciation of property, equipment and intangible assets | 33,059 | 29,540 | 3,519 | 11.9 |
Credit loss expenses | –6 | –8 | 2 | 24.3 |
Provisions and losses | –26 | 8 | –34 | –403.7 |
Services to/from other segments | –63,595 | –61,350 | –2,245 | –3.7 |
Operating expenses | 118,103 | 107,887 | 10,216 | 9.5 |
Segment earnings before income tax | –86,992 | –76,151 | –10,841 | –14.2 |
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Additional information |
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Headcount (number of employees) | 550 | 538 | 12.0 | 2.2 |
Headcount (expressed as full-time equivalents) | 506.3 | 492.6 | 13.7 | 2.8 |
Structure
The “Corporate Center” is of great importance for banking operations and the processing of business transactions. In addition, those earnings and expenses of VP Bank Group that have no direct relationship to client-oriented business units, as well as consolidation adjustments, are reported under the Corporate Center. The income-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 2022 amounted to CHF –87.0 million as opposed to CHF –76.2 million in the prior year.
Operating income was kept at the same level as the previous year, at around CHF 31 million. Income from interest-related business dropped by CHF 13.5 million. Due to the increase in USD interest rates in 2022, higher interest credits for passive funds were charged to client units internally at the Bank within funds transfer pricing. Commission and service income 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 heading as well. Income from trading activities increased by CHF 15.5 million compared to the previous year. This increase is mainly due to higher USD and EUR interest margins. Income from financial investments totalled CHF 6.6 million in 2022. This position recorded a result of CHF 11.1 million in the previous-year period.
In the reporting period, operating expenses increased by CHF 10.2 million to CHF 118.1 million, primarily due to investments in Strategy 2026. This led to depreciation and amortisation increasing by CHF 3.5 million. The rise in general and administrative expenses of CHF 10.8 million was, on the one hand, primarily driven by an increase in IT costs of CHF 10.5 million due to the outsourcing of IT infrastructure to Swisscom and upgrades to the core banking system and on the other hand, by the expenses linked to the implementation and monitoring of sanction measures.