VP Bank suffered a setback in profits last year. Now the Liechtenstein-based institution is overhauling its financial targets.
VP Bank posted an annual profit of 40.2 million francs ($429 million) for 2022, according to a statement Tuesday. The results represent a 20.5 percent drop over 2021 which was a bumper year for the bank.
The bank’s operating income increased by 2 percent to 336.4 million francs, allowing it to continue investing in its strategy until 2026 as planned. Nonetheless, the Group is readjusting its financial targets due to geopolitical uncertainties and the changing market environment. The dividend is to remain unchanged at 5 Swiss francs per share.
Russia Sanctions
The difficult stock market situation also impacted VP Bank's volume. Client assets under management decreased by 9 percent to 46.4 billion francs. The bank saw net new money inflows of 1.1 Swiss francs due to its fund business and Asia region. Costs, on the other hand, grew faster at 7 percent compared to the previous year.
Operating expenses rose to 291.2 million francs, mainly caused by investments in its strategy 2026 and extraordinary costs, including the processing of sanctions among Russian customers.
