Valiant (VATN) Q4 2024 earnings summary

Executive summary

• Achieved record operating result in 2024, with consolidated profit up 4.2% to CHF 150.4m and operating income up 1.1% to CHF 551.7m, the highest since inception.

• Completed 2020-2024 strategy, surpassing key financial and operational goals, and launched new "Valiant 2029" strategy focused on profitability, simplicity, and sustainability.

• Proposed dividend increase to CHF 5.80 per share, continuing a stable payout ratio above 50%.

• Operating income growth driven by strong commission and trading activities.

Financial highlights

• Operating result reached CHF 233.4m (+0.5% year-over-year); consolidated profit CHF 150.4m (+4.2%).

• Loans to customers grew 1.6% to CHF 30.1bn; customer deposits up 0.8% to CHF 22.4bn.

• Net interest margin narrowed to 112bp (from 119bp), reflecting a turbulent interest rate environment.

• Commission business and services income rose 10.8% to CHF 93.0m; trading activities up 25.3%.

• Operating expenses increased 3.4% to CHF 300.0m.

Outlook and guidance

• "Valiant 2029" strategy targets annual loan growth >2%, commission business growth >5%, RoE >7%, and cost/income ratio <55%.

• Consolidated profit expected to be slightly higher in 2025; prudent risk policy and capital strength to be maintained.

• Launching the new Lilac Set free of charge from March 2025 to enhance customer value.