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2009 annual results of VP Bank Group |
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For VP Bank Group, 2009 was characterized yet again by turbulence: the first four months of the year witnessed price declines in the equity markets; uncertainties persisted with regard to banking client secrecy and the world’s financial centers; and tax questions as well as margin and cost pressures shaped the business environment. All of these factors placed a burden on our transaction- and inventory-dependent revenue components. |
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Gross income rose by 8 percent to CHF 313.8 million. At the operating level, however, consolidated revenues were down CHF 21 percent versus the previous year, with the interest-differential business generating CHF 121.0 million (-18.5 percent) and the commission and services business CHF 123.5 million (-18.6 percent) of the total. Our operating earnings mirrored the tendencies that were already observable at the half-year point, i.e. interest rates that were clearly below the prior-year level, reduced client trading activity, and the lower amount of client assets under management.
In contrast to the previous year, other income of CHF 51.7 million made a major contribution to the bottom line. There, the measures in connection with the takeover of securities from the VP Bank Cash & Money Market Fund into the Bank’s own financial investment account truly paid off. |
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As a result of our cost containment efforts and the «FOCUS» cost-reduction program, operating expenses declined by 6 percent to CHF 185.1 million (2008: CHF 196.7 million) and the workforce (in fulltime equivalents) decreased by 7 percent to 720.2 (minus 55.5). The cost-reduction measures will be resolutely pursued also in the current year.
Our cost/income ratio improved to 59 percent (2008: 67.8 percent) in response to lower expenditures and higher income. As a result, that reading is taking aim once again at the desired target level of 50 percent.
In 2009, client assets under management increased by 3 percent from CHF 28.5 billion to CHF 29.5 billion. Owing to the uncertainties regarding the crossborder exchange of tax-related information, the outflow of client assets at VP Bank Group amounted to CHF 1.1 billion, 1.0 billion of which was attributable to the first half of 2009; the outflow stabilized in the second half. The equity market rallies since last spring – on average 23 percent over the course of the year – more than compensated for the drain of client assets and led to a CHF 2.1 billion gain in value.
Assets held in custody recorded a further increase (+CHF 5.7 billion). The bottom line: VP Bank currently holds client assets totaling CHF 41.8 billion (+CHF 6.7 billion). |
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Net assets rose by CHF 0.2 billion to CHF 11.6 billion, and shareholders’ equity increased versus the previous year by CHF 86 million to CHF 931 million. The equity ratio stood at 7.9 percent (2008: 7.3 percent). That favorable development also gained expression in VP Bank Group’s consolidated net income of CHF 101.7 million.
The Liechtenstein financial center’s advantageous point of departure and the progress we achieved in the past year give us a firm underpinning for successfully pursuing our strategy again this year.
We will continue to attach the greatest importance to efficient cost management and measures aimed at achieving our goals, as well as to safeguarding the privacy of our clients and offering them highly competent advice despite the challenging times and demanding issues that confront us. |
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