VP Bank increases half-year profit by 19 percent
17 August 2023
VP Bank Group has increased its profit to 25.5 million Swiss francs or 19 percent for the first half of 2023. The cost-income ratio improved from 85.7 percent to 84 percent. Total client assets under management increased to 47.2 billion Swiss francs.
VP Bank Group increased its income again in the first half of 2023. According to a press release from the bank with headquarters in Vaduz, the total operating income increased by 17 percent to 188.3 million Swiss francs and a half-year profit of 25.5 million Swiss francs was achieved. This corresponds to an increase of 19 percent versus the same period of the previous year and of 35 percent versus the second half of 2022.
According to the press release on the publication of the semi-annual report, the bank has thus “demonstrated a great deal of resilience in a market environment that is challenging”. Group CEO Paul H. Arni commented: “VP Bank has once again demonstrated that it can increase its profitability amidst a market environment that continues to be challenging.” He added that the bank has the necessary means, capital strength, and future-oriented anchor shareholders to be able to plan and trade with foresight, stating that the technical transformation is complete.
The volume of total client assets under management increased by 2 percent to 47.2 billion Swiss francs in the first half of the year as per the press release. Sustained positive new money inflows were affected by forced outflows due to adjustments to the client portfolio, including those with a connection to Russia. Net new money inflow amounted to 0.1 billion Swiss francs.
Operating expenses were 14 percent higher than the same period of the previous year and totalled 158.2 million Swiss francs. However, the cost/income ratio improved from 85.7 percent to 84 percent. The semi-annual report states that VP Bank has very strong capitalization and high liquidity. It is also said to be on track with the implementation of Strategy 2026 and confirms its financial target of annual income growth of 4 to 6 percent.