Vontobel's profit idled in the first half, as spending on new locations and staff outpaced revenue. Its asset management arm and investment bank faltered.
The Zurich-based bank's net profit for the first six months stalled at 131.7 million Swiss francs ($133 million), a touch lower than the 132.7 million francs it earned last year, it said in a statement. A 13 percent climb in its spending – including for new locations and bankers – held profits in check.
Vontobel saw a 27 percent surge in profits at its wealth management arm, which has grown by acquisition including last year's purchase of prestigious Basel-based Notenstein La Roche. By contrast, pre-tax profit at its larger asset management arm and its investment bank dropped.
Cautious Outlook
Vontobel repeated targets for next year, but cautioned that the back-end of 2019 will bring it little joy. «We are committed to our ambitious 2020 targets, although we expect the environment to remain challenging in the second half of the year,» the bank said.
Its client assets climbed to 212.9 billion francs (from 192.6 billion at year-end). The rise is at least partly down to rises in financial markets. Vontobel won 5.3 billion francs in net new assets from clients – the bulk in its powerhouse asset management unit.
