VZ (VZN) H2 2023 earnings summary

Executive summary

• 2023 revenue rose 14.8% YoY to CHF 463.8m; EBIT increased 24.2% to CHF 218.9m and net profit grew 23.5% to CHF 187.0m.

• AuM reached CHF 44.9bn, up 14.8% YoY; net new money (NNM) was CHF 4.367bn, while 8,086 net new platform clients were added.

• Growth continued across business lines, supported by higher interest rates, client inflows and increased consulting capacity.

Financial highlights

• Total revenue CHF 463.8m, +14.8% YoY; consulting fees +19.2%, AuM management fees +7.4%, banking income +41.2% and insurance result +48.6%.

• Operating expenses rose 7.6% to CHF 244.9m; personnel expenses +8.5% to CHF 170.2m and other operating expenses +5.1% to CHF 51.6m.

• EBIT increased 24.2% to CHF 218.9m; net profit rose 23.5% to CHF 187.0m. Net finance income was -CHF 0.9m and income taxes were CHF 31.0m.

Outlook and guidance

• 2024 top- and bottom-line growth expected within the long-term historical average, conditional on stable financial markets.

• Interest income expected to rise at a significantly lower growth rate; base effects imply higher growth in 1H than 2H 2024.

• Long-term targets: net profit margin 38%, EBIT margin 44%, personnel expense ratio 39%, and other operating expense ratio 11–13%.

• Target dividend payout rises to 50% in 2025 for FY 2024; CET1 expected around 25% and ROE around 20%.