VP Bank (VPBN) H2 2023 earnings summary

Executive summary

• Group net income rose 10.1% to CHF 44.2 million in 2023 despite negative currency effects; operating income increased 8.3% to CHF 364.4 million.

• A broad-based business model supported earnings in a challenging environment; the cost/income ratio improved slightly to 86.0%.

Financial highlights

• Group net income was CHF 44.2 million, up from CHF 40.2 million in 2022.

• Operating income rose 8.3% to CHF 364.4 million; exchange-rate movements had a negative effect of around 4% versus 2022.

• Operating expenses increased 7.7% to CHF 313.5 million; costs normalised in H2.

• Client assets under management remained CHF 46.4 billion at year-end; average assets under management were 2% lower than in 2022.

Outlook and guidance

• 2026 strategy targets: net new money of 4% p.a. and income growth of 4–6% p.a. over the 2021–2026 strategy cycle.

• 2026 profitability and stability targets are a cost/income ratio below 75% and a Tier 1 ratio above 20%; 2023 figures were 86.0% and 24.9%, respectively.

• 2024 priorities include accelerated growth across regions, active and sustainable cost management, and improved employer attractiveness.

• Planned initiatives include regional market development, Value Proposition Excellence, Client Relationship Excellence, data management, and People & Culture improvements.