Vontobel expects difficult market conditions in 2019. The Swiss bank still hopes to achieve further growth through its push in U.S. and Japanese markets.
Net income at Zurich-based Vontobel rose 11 percent to 232.2 million Swiss francs ($232 million) in 2018, the company said in a statement on Tuesday. Stripped of the integration costs from the Notenstein La Roche takeover, Vontobel had a profit of 249.2 million francs, which corresponds to an increase of 14 percent.
«Following relatively favorable conditions in the first half of the year, the second half was characterized by increasingly difficult markets and growing political uncertainty around the globe, as expected,» said Vontobel CEO Zeno Staub.
AuM Growth – Dividend Unchanged
Assets under management rose to 192.6 billion francs as of the end of 2018, up from 186.6 billion, despite falling asset prices in the fourth quarter. However, in the second half assets changed only marginally. At the end of the first half, assets under management had amounted to 191.2 billion francs.
Net new money was 5 billion francs in 2018, compared with 5.9 billion a year earlier. All divisions contributed to the increase, Vontobel said. The board of Vontobel decided to keep the dividend unchanged at 2.10 francs per share, despite the increase in profit.
Lombard Odier Deal
«In 2019, Vontobel will remain on course, strengthen its market position and capture opportunities for organic growth. As a result of the acquisitions we have made in the past, we now have an even broader basis for growth – especially in our strong home market of Switzerland. In addition, we will use the power of digitalization to deliver an even better client experience and to thus generate additional growth momentum. In doing so, we are aware of the challenges facing the entire industry as a result of the changing market environment,» added Staub.
Vontobel is targeting further growth in international wealth management in 2019. The company in spring will assume the wealth management portfolio of Lombard Odier in the U.S., having signed an agreement in October 2018.
Overseas Push
Lombard Odier will recommend Vontobel to U.S. wealth management clients looking for a highly qualified Swiss wealth manager with an SEC registration.
Vontobel will seek to boost its business in demanding markets and invest in digitization within asset management. The distribution will be enhanced in both the U.S. and Japan, the company promised.
