Consolidated semi-annual report of VP Bank Group

VP Bank Group generated Group net income of CHF 21.3 million in the first half of 2022, compared to Group net income of CHF 29.9 million in the previous-year period.

VP Bank Group has a strong capital base. As of 30 June 2022, the tier 1 ratio was 22.8 per cent. In December 2021, it was 22.4 per cent.

VP Bank Group’s client assets under management totalled CHF 46.5 billion as of 30 June 2022. Vis-à-vis the end of the previous year with client assets under management of CHF 51.3 billion, this represents a decrease of 9.3 per cent or CHF 4.8 billion. The negative market performance of CHF 4.8 billion was only partially offset by a positive net new money inflow of CHF 0.2 billion. CHF 0.2 billion of assets from sanctioned Russian clients were reclassified as custody assets.

Custody assets decreased by CHF 2.0 billion from CHF 7.5 billion to CHF 5.5 billion compared to the 2021 financial year, representing a decrease of 27.2 per cent.

Client assets including custody assets were listed at CHF 51.9 billion as of 30 June 2022, a decrease of CHF 6.8 billion compared to 31 December 2021 (client assets of CHF 58.8 billion).

In the reporting year, VP Bank generated operating income of CHF 161.5 million. Vis-à-vis the previous-year period, when operating income amounted to CHF 166.6 million, this represents a reduction of CHF 5.1 million or 3.1 per cent.

Income from commission business and services decreased by CHF 6 million or 7.7 per cent to CHF 72 million. Due to the negative development on the financial markets, recurring commission income from wealth management decreased by CHF 0.7 million or 1.3 per cent and amounted to CHF 57.8 million as of 30 June 2022. At CHF 14.1 million, transaction-based commission income decreased by 27.3 per cent vis-à-vis the previous year’s income of CHF 19.4 million.

Net interest income fell slightly by CHF 0.3 million in comparison to the previous year to CHF 55.6 million in the reporting period. Interest income increased by CHF 1.6 million, corresponding to an increase of 2.5 per cent. Interest expenses also increased by CHF 1.8 million or 25.7 per cent due to interest rate trends. 

Income from trading activities amounted to CHF 27.1 million, an increase of CHF 3.0 million or 12.4 per cent compared to the previous-year period. This increase is also mainly related to the increase in USD interest rates, which positively influenced the margins on the swap transactions.

Income from financial investments made a positive contribution of CHF 6.5 million to the semi-annual results. Compared to the previous year, this represents a reduction of CHF 0.8 million. This decrease is mainly due to financial instruments measured at fair value.

Operating expenses rose by CHF 6.2 million or 4.7 per cent from CHF 132.2 million in the previous-year period to CHF 138.4 million in the reporting period.

Compared to the previous-year period, personnel expenses fell by CHF 0.6 million or 0.7 per cent to CHF 85.4 million.

General and administrative expenses rose by CHF 5.8 million to CHF 36.7 million. This increase is mainly due to investments in strategy implementation. Depreciation and amortisation increased by CHF 3.5 million to CHF 19.0 million due to the commissioning of projects.

In the reporting period, valuation adjustments, provisions and losses of CHF 2.8 million net were released, whereas CHF 0.3 million were released in the previous-year period.

Total assets as of 30 June 2022 amount to CHF 13.6 billion. Compared to 31 December 2021, this corresponds to an increase of CHF 0.4 billion or 3.3 per cent. Amounts due from banks increased by CHF 0.6 billion or 35.1 per cent, and financial instruments at amortised cost by CHF 0.2 billion or 8.3 per cent. In contrast, client receivables decreased by CHF 0.3 billion or 5.5 per cent. On the liabilities side, amounts due to banks increased by CHF 0.5 billion and amounts due to clients decreased by CHF 0.1 billion or 0.8 per cent.

VP Bank Group has a very good level of liquidity with liquid assets in the amount of CHF 2.3 billion, which corresponds to 16.8 per cent of total assets and is reflected in a very good liquidity coverage ratio (LCR) of 250 per cent.