Vontobel (VONN) Q4 2024 earnings summary

Executive summary

• Profit before tax rose 32% to CHF 354 million, with group net profit up 24% year-over-year and strong revenue growth in both private and institutional client segments.

• Positive net new money of CHF 2.6 billion, reversing prior year outflows, and assets under management increased 11% to CHF 229 billion.

• Maintained a solid capital position with a CET1 ratio of 16.1%, well above the 12% target, and proposed an unchanged dividend of CHF 3 per share.

• Efficiency program delivered CHF 45 million in exit rate savings, reducing cost/income ratio by nearly 5 percentage points to 74.7%.

• Completed two strategic acquisitions: Ancala (private infrastructure) and IHAG (ultra-high-net-worth client book).

Financial highlights

• Revenues grew by 9% to CHF 1.42 billion, with net fee and commission income up 6% and trading/other income up 38%.

• Return on equity improved to 12.3%, with ROCET1 at 22.1% and ROTE at 16.9%.

• Basic EPS increased 23% to CHF 4.76; tangible book value per share up 10% to CHF 29.40.

• Cost/income ratio improved to 74.7% (from 79.2%).

• Dividend payout ratio at 64%.

Outlook and guidance

• Operating income and net new money growth targets set at 4–6% through the cycle.

• Return on equity target above 14%, cost/income ratio target below 72%, and CET1 ratio target above 12%.

• Expect tax rate to normalize to 22%-23% in 2025 and 20% longer term.

• Committed to delivering CHF 100 million in efficiency savings by end 2026 and maintaining a strong capital position.

• Continued focus on efficiency, digital platforms, and expanding private markets and customized solutions.