VP Bank AG Class A · SIX:VPBN
VP Bank AG Class A — H1 2017 Earnings Presentation
14 slides from VP Bank AG Class A's earnings presentation, Aug 22, 2017
Slide 1: VP Bank Group in figures
Results presentation · first-half of 2017 VP Bank Group in figures
Slide 2: VP Bank in the first half of 2017
VP Bank in the first half of 2017 Strong income and profit growth Group net income of CHF 31.5 million (+28.8%) Increase in all sources of revenue Cost/income ratio of 64.6% (68.9%*) Increase in costs resulting from agreement with authorities in North Rhine- Westphalia (NRW) Excellent inflow of net
Slide 3: Adjusted Group net income rises
Adjusted Group net income rises Group net income in CHF million Income statement in CHF million 40.9 First half of First half of First half of 2015 2016 2017 Operating income 172.5 129.8 151.1 31.5 Operating expenses –133.2 –101.5 –117.2 1 Taxes 1.7 –3.9 –2.5 24.4 Group net income 40.9 24.4 31.5 15.
Slide 4: Interest income (in CHF million)
Interest income (in CHF million) 51.5 Volume increase in client lending and financial investments 47.3 • 42.4 • Decline in client deposits 14.0 • Active treasury management 12.7 11.6 38.0 37.9 35.2 -4.4 -3.4 -0.4 First half of 2015 First half of 2016 First half of 2017 Clients Treasury Interest rate
Slide 5: Commission business and services (in CHF million)
Commission business and services (in CHF million) • Increase in client activity 65.9 • Friendly market environment 60.7 61.1 • Stable portfolio-based income 19.4 16.7 17.5 46.5 44.0 43.6 First half of 2015 First half of 2016 First half of 2017 Portfolio-based income Transaction-based income 5
Slide 6: Operating expenses (in CHF million)
Operating expenses (in CHF million) 133.3 • Provisions for the agreement with the authorities in North Rhine-Westphalia • Client advisor growth initiatives and recruitment campaign 17.4 117.2 • Digitisation 101.5 9.2 • Brand renewal 19.1 0.7 10.4 11.3 29.6 27.8 24.4 67.2 69.9 65.0 First half of 2015
Slide 7: Solid balance sheet as of 30 June 2017 (in CHF billion)
Solid balance sheet as of 30 June 2017 (in CHF billion) 0.7 Due to banks • Slight increase in balance sheet total • Increase in client lending Cash and 3.2 • High level of liquid assets cash equivalents • Decline in client deposits • Slight increase in risk-weighted assets Due from banks 0.8 9.9 Cli
Slide 8: Strong balance sheet ratios
Strong balance sheet ratios 31.12.2015 31.12.2016 30.06.2017 Balance sheet total in CHF billion 12.4 11.8 12.0 Risk-weighted assets in CHF billion 3.7 3.5 3.6 Equity in CHF million 918.1 936.9 942.3 Core capital in CHF million 911.2 938.5 937.0 Tier 1 ratio 24.4% 27.1% 25.9% Leverage ratio1 7.0% 7.8
Slide 9: Increase in client assets under management (in CHF billion)
Increase in client assets under management (in CHF billion) • Increase in client assets under management • Positive development of inflow of net new money and performance • Expansion of fund business 9
Slide 10: Net new money (in CHF billion)
Net new money (in CHF billion) • Continuous improvement in inflow of net new money over the last three years 1.1 • All locations have made a positive contribution • Significant inflows in fund services and at international locations • Recruitment of new client advisors shows some initial success -0.
Slide 11: Minimal changes in asset classes / currencies
Minimal changes in asset classes / currencies 2014 2015 2016 3% 3% 3% Asset classes 32 % 30 % 29 % 25 % 27 % 27 % Liquidity Bonds Equities 20 % 20 % 20 % 20 % 20 % 21 % Funds Other 13 % 13 % 13 % 26 % 26 % 26 % Currencies 27 % 31 % 33 % CHF EUR 30 % 28 % 34 % USD Other 11
Slide 12: Segment overview as of 30 June 2017
Segment overview as of 30 June 2017 Client Business Client Business Corporate Group Liechtenstein International Center Business volume in CHF1 29.1 billion 13.8 billion – 42.9 billion Net new money in CHF 0.0 billion 1.1 billion – 1.1 billion Pre-tax net income in CHF 54.7 million 5.4 million –26.1
Slide 13: Summary
Summary Growth in line with strategy • Client advisor recruitment campaign • Inflow of net new money at all locations Strong operative performance • Increase in revenues • Further development of front-office activities Secure and stable Bank • High level of liquid assets • Solid equity and strong ti
Slide 14: Contact address and agenda Disclaimer
Contact address and agenda Disclaimer Investor Relations This presentation has been prepared by our employees using sources that we regard as reliable. We have exercised the utmost care in the production of this presentation, Alfred W. Moeckli, Chief Executive Officer which is intended solely for yo