Zug-based VZ Group reported first-half profit growth of 12.1 percent, as higher interest rates made up for only slight growth from fees generated by assets under management.
VZ Group’s revenues increased by 9.4 percent compared to the first half year of 2022, and profit rose by 12.1 percent to 86.3 million Swiss francs ($98.3 million), and expects significantly stronger growth in revenues and profit in the second half and above-average growth for the entire financial year, according to mid-year results reported Wednesday.
Fees generated from assets under management grew only slightly, but banking income «developed positively,» mainly thanks to higher interest rates. The first half growth was slightly weaker than in the first half of last year due to base effects, which was expected, according to VZ.
Revenues rose from 205.1 to 224.3 million Swiss francs, an increase of 9.4 percent, although lower than the 11.8 percent in the same period of the previous year.
More New Money and Higher AuM
Net new money came in at 2.4 billion francs, a similar level as in the first half of the previous year. Overall assets under management stood at 43.58 billion francs at the end of June, up from 39.11 billion at the end of last year.
Dividend Increase
«We expect demand for our financial consulting to continue to grow in the current year and conversion to platform services to remain at the same level. Due to the dip in the previous year’s period, we expect significantly stronger growth in revenues and profit in the second half of the year – provided that no unexpected crises occur», said Executive Board Chairman Giulio Vitarelli.
«For the entire 2023 financial year, an above-average increase in profit remains realistic from today’s perspective. Therefore, a further rise in the dividend can be expected,» he went on to say.
Solid Balance Sheet
The 4.7 percent growth in the balance sheet total to 6.2 billion francs since the end of 2022 is mainly due to the increase in client deposits. VZ Group deemed its balance sheet «an extremely low-risk structure, and the capital ratios remain well above the industry average.»
