Vontobel, the Zurich-based private bank, relied on its asset management to generate more money in recent months, while other units struggled to reach the growth targets set.

Vontobel in the first nine months of the year exceeded the result of last year, according to a statement released on Wednesday. Assets under management reached a record of 217.1 billion Swiss francs ($218.6 billion). The result was in line with the bank’s expectations and it is confident to reach the growth and profitability goals set for 2020.

«We are actively addressing change within our industry and are acting from a position of strength,» said Zeno Staub, CEO of Vontobel, in the statement. «This means that in the future – like today – we won’t forego longer-term opportunities for growth in order to achieve short-term cost targets.»

Private Banking Below Expectations

The main growth provider within the group was the asset management division. It generated net new money growth of 14 percent, substantially more than the 4 to 6 percent growth target defined by Vontobel. Assets under management at the unit increased to 131.9 billion francs from 117.5 billion at the end of 2018, the bank said.

In the private banking business, net new money was increasing at a slower pace than the bank aims for and declined slightly in the third quarter. Assets under management rose to 73.6 billion francs from 67.2 billion at the end of last year, not least due to the good performance of the markets. Vontobel expects to complete the integration of Notenstein La Roche by the end of the year.

«Mood of Caution Among Investors»

Vontobel Financial Products however struggled in the year so far. The unit was affected by the «general mood of caution among investors» in the third quarter of 2019. The trend towards lower-margin products also continued during this period, Vontobel said.

In contrast to 2018, which saw strong transaction volumes in the first half of the year, 2019 has not so far been characterized by any phases that could «positively impact on the profitability of Financial Products».