Swiss regional bank Valiant has maintained its growth trajectory with higher income and profit and further adjusted its network of business outlets last year. It also managed to attract new client money.
Valiant recorded a 5.2 percent higher net profit of 129.5 million Swiss francs ($140.4 million) last year, with a strong interest rate business and success in its trading unit contributing to the successful annual result for 2022, the bank said in a statement on Wednesday.
Valiant increased its total operating income by 4.1 percent to 448.4 million francs while operating income increased by 10.7 percent to 159.4 million francs.
New Client Assets
Net interest income rose by 2.5 percent year-on-year to 335.5 million francs. Even in the turbulent interest rate environment, Valiant is securing its refinancing over the long term, according to the statement, with client deposits and refinancing through loans and covered bonds forming the central pillars.
Valiant increased its income from commission and service fee activities by 10.9 percent to 76.2 million francs. Adjusted for the effect of a change in accounting practice in the payment card business, income from the commission and services business remained stable.
Commissions from the securities and investment business fell 2.8 percent due to unfavorable stock market valuations. Still, the bank was able to attract new client assets amounting to 783 million francs.
Valiant increased its assets under management by just over 400 million francs last year to 22.552 billion from 22.139 at the end of 2021. The increase was attributable to both private and business clients.
Rising Wages
Adjusted for the model changes, and investments in digitalization and expansion, operating expenses increased by 2.3 percent. Total wages will increase by 2.6 percent in the current year.
Customer loans grew 5.3 percent, exceeding the annual growth target of 3 percent. Since 2017, around 50 percent of the growth in client loans was due to new locations opened as part of the expansion strategy, according to Valiant.
Both retail and corporate clients contributed to the 1.9 percent growth in client assets.
Geographical Restructuring
Valiant has plans to open 14 branches between 2020 and 2024 and create 170 full-time positions, including 140 in client advisory services. With five new branches opening in 2022, Valiant is on the home stretch in expanding its branch network. This year branches in Schaffhausen, Altstetten, and Mutten will open their doors.
Through the end of 2022, the bank closed 23 branches in its home territory as planned and converted three of a total of seven customer zones. 20 of the planned 50 full-time positions were cut. Valiant now operates a total of 84 business outlets.
For the current year, the bank's management expects a higher net profit. The Board of Directors will propose an unchanged dividend of 5 francs per share to the annual general meeting on May 17.
