Valiant (VATN) Q2 2024 earnings summary

Executive summary

• Achieved strong first half of 2024 with stable interest operations, higher trading and commission results, and a 6.0% rise in consolidated profit to CHF 71.3 million.

• Operating income increased 3.9% to CHF 276.5 million, and operating result rose 11.4% year-on-year.

• Loans to customers grew 1.5% to CHF 30.1 billion, and customer deposits increased 0.6% to CHF 22.4 billion.

• Completed geographic expansion with 14 new branches and continued digital enhancements.

• Continued investment in digitalisation, employee development, and sustainability as part of the 2025-2029 strategy.

Financial highlights

• Operating income CHF 276.5m (+3.9% YoY); operating result CHF 116.8m (+11.4% YoY).

• Consolidated profit CHF 71.3m (+6.0% YoY).

• Net result from interest operations CHF 196.0m (+0.3% YoY); trading activities up 31.6%.

• Commission business and services up 10.6% YoY, driven by higher securities trading and investment activity.

• Operating expenses declined 1.1% to CHF 149.1m, reflecting the absence of a prior-year non-recurring pension fund contribution.

Outlook and guidance

• Strategy 2025-2029 focuses on simplicity, customer proximity, digital growth, profitability, client base expansion, SME services, and sustainability.

• ROE target over 7%, payout ratio over 50%, and annual dividend increases planned.

• Management expects consolidated profit to be higher for the full year 2024.

• Implementation of new strategy begins in H2 2024.