The wealth manager's profits nearly doubled on the year, despite a pricey hiring push.
The Vaduz-based bank's net profit surged to 29.9 million Swiss francs ($32.7 million) in the first six months, from 14.4 million francs year-ago, it said in a statement on Tuesday. Its results last year were hit by a 20 million franc impairment charge in connection with a loan default on structured products.
VP Bank lifted its assets under management nearly 11 percent to 52.6 billion francs, not including money under custody, mainly thanks to favorable market swings. It swooped up 700 million in net new money in the first half, it said.
Deal Money Filters Through
Volumes from Oehman, a recently acquired lender, also pitched in assets. VP wants to expand its presence in the Duchy as well as in the Nordics via the Luxembourg-based private bank. Its revenue remained largely unchanged at 166.6 million francs, with commission income sharply higher against interest income edging lower.
Notably, VP Bank spent nearly six percent more on personnel, which includes a hiring push in the first six months. CEO Paul Arni in April poached Pamela Phua from Pictet to run VP's Asia business, for example, but the bank also spent more on risk and compliance specialists to avoid a redo of last year's costly lapse.
Cautious On Asset Goal
The bank's cost-income ratio nevertheless improved to 79.4 percent, from 87.7 percent year-ago. Arni, who took over in 2019, revealed five-year targets earlier this year which include lowering the cost-income ratio to 70 percent at most and net profit of at least 100 million.
It also wants to hike its net new assets by four percent annually – a target VP noted «will probably not be fully achieved in the current fiscal year due to anticipated outflows in the institutional funds area.»
