VZ Group has achieved a higher profit in the first half of 2020 than it had hoped for and expects growth to continue into the second half of the year.
VZ Group, which specializes in wealth management and advisory services, increased operating profit by 7.4 percent to 159.8 million Swiss francs ($174.1 million) in the first six months of 2020. Net Income was up 15.8 percent to 56.4 million, the company said in a statement on Wednesday.
The growth in revenues came as the volatility on the markets jumped as consequence of the corona-crisis. Net income growth however was mainly due to a drop in the company’s tax payments.
Further Growth Expected
The company recorded particularly strong growth in platform solutions, adding more than 3,000 new clients to its book. Net new money therefore grew more strongly than a year earlier, adding 1.64 billion francs to the group’s total.
«We expect growth to continue in the second half of the year, both in terms of consulting and platform services,» said CEO Matthias Reinhart. «While banking income is likely to continue to decline, we expect management fees to rise slightly, depending on the development of the stock markets.»
With the increase in revenue and profit, the group also expects to pay out a higher dividend for 2020, Reinhart added.
New Executive Board Member
VZ Group also decided to increase the executive team, appointing Philipp Heer as an additional member as of January 1, 2021. Heer is responsible for Bern, central as well as southern Switzerland, for corporate succession, estate planning, execution of wills and taxes and now also for insurances for private individuals.
