VP Bank (VPBN) H2 2024 earnings summary

Executive summary

• Net income declined 58.2% to CHF 18.5 million, impacted by CHF 11.2 million in one-off expenses, mainly restructuring and pension fund changes; adjusted, the decline was 37.3%.

• Client assets under management rose 9.5% to CHF 50.7 billion, with net new money growth of 3.6% (CHF 1.7 billion) after adjustments.

• Efficiency measures included organizational streamlining, product simplification, withdrawal from Hong Kong, and a 6.1% headcount reduction.

Financial highlights

• Operating income fell 9.3% to CHF 330.5 million, mainly due to a 23.5% drop in interest income.

• Operating expenses were CHF 308.3 million (-1.7%); adjusted for one-offs, expenses fell 5.2% to CHF 297.1 million.

• Loan volume increased 8.7% to CHF 5.9 billion.

• Cost/income ratio stood at 93.3% at year-end 2024.

• Commission income decreased 0.6% to CHF 137.1 million, with a decline in high-margin private banking.

Outlook and guidance

• Focus for 2025 is on increasing earnings through revenue growth and cost discipline, with targeted growth initiatives and recruitment of client advisors.

• Efficiency target of at least CHF 20 million to be achieved by end of 2026, aiming for sustained cost/income ratio improvement.

• Financial targets: net new money growth over 4% p.a., revenue growth of 4–6% p.a., cost/income ratio at a competitive level, and Tier 1 ratio above 20%.

• Growth initiatives and value proposition enhancements launched across regions.