VP Bank (VPBN) H1 2025 earnings summary

Executive summary

• Net income/half-year profit rose 150.2% year-over-year to CHF 28.8 million, driven by strong net new money inflows and improved efficiency, despite falling interest rates, adverse currency effects, and geopolitical uncertainties.

• Net new money inflow reached CHF 2.1 billion, annualized growth of 8.3%, with all regions and segments contributing.

• Client assets under management increased 2.2% to CHF 51.9 billion, despite negative currency impacts.

• Operating income grew 7.8% to CHF 175.4 million, supported by strong trading and commission business.

• Cost discipline led to a 4% reduction in operating expenses and a cost/income ratio improvement to 81.5%.

Financial highlights

• Operating income increased 7.8% year-over-year to CHF 175.4 million; trading income surged 29.5% to CHF 18.9 million.

• Net interest income declined 3.6% to CHF 73.2 million due to lower CHF and EUR rates.

• Commission and services income rose 1.1% to CHF 69.0 million, reflecting asset growth and new mandates.

• One-off insurance benefits of CHF 4.6 million recognized in other income.

• Operating expenses fell 4.0% to CHF 142.8 million; cost/income ratio improved to 81.5%.

Outlook and guidance

• Business development expected to normalise in the second half of 2025 after a strong first half supported by temporary special effects.

• Targets net new money growth above 4% per annum and revenue growth of 4–6% per annum.

• Aims to maintain Tier 1 ratio above 20% and keep cost/income ratio at a sustainably competitive level.

• Strategic focus on core strengths, market presence, and efficiency initiatives.

• Robust demand base and stable operating development anticipated, despite geopolitical uncertainties.