Valiant (VATN) Q2 2025 earnings summary

Executive summary

• Consolidated profit rose 3.0% year-over-year to CHF 73.4 million, with operating result down 2.9% after a strong prior year.

• Strategy 2024 laid the foundation for Valiant 2029, emphasizing profitable income growth, diversification, and sustainability.

• Expansion into new regions and digital channels aims to increase client base and share of wallet.

• Fee and commission income grew 7.7% to CHF 47.8 million, surpassing CHF 45 million for the first time.

• The capital ratio remains strong at 16.8%, well above regulatory requirements.

Financial highlights

• Operating income including value adjustments decreased 0.9% year-over-year; net interest margin narrowed by 4bp to 109bp.

• Commission business and services income grew 7.7% year-over-year, driven by securities trading and investment activities.

• Customer assets increased by CHF 664 million (+2.0%) and customer assets invested rose by CHF 577 million (+5.2%).

• Dividend proposed to increase by CHF 0.30 to CHF 5.80 per share for 2024.

• Operating expenses increased slightly by 0.8% to CHF 150.4 million, reflecting investments in digital transformation and employer marketing.

Outlook and guidance

• Targets for 2029: >2% annual loan growth, >5% annual growth in commission business and services, RoE >7%, CET1 ratio 15-17%, and annual dividend growth with payout ratio >50%.

• Cost/income ratio targeted below 55% before depreciation.

• Consolidated profit is expected to be slightly higher for the full year.

• Continued focus on digitalization, efficiency, and sustainability to drive profitability.