Business
Vontobel : delivers solid results in a challenging market environment
Vontobel : delivers solid results in a challenging market
About this update from Vontobel Holding Ag
[{"type":"text","content":"\n Assets under management were higher at CHF 233 billion\n Net new money totalled CHF 2.0 billion, driven by very strong Private Clients result and a turnaround in Institutional flows during the second quarter\n Cost/income ratio slightly higher at 77.9 percent and profit before tax down 15 percent to CHF 148 million, impacted by sharp decline in dollar and lower interest rates and normalizing after a record trading performance in the first half of 2024\n Efficiency program on track leading to lower cost base\n Strong capital position with a CET1 ratio of 16.7 percent after absorbing Basel III requirements and recent acquisitions\n \n Vontobel delivered solid results over the past six months, against a challenging market backdrop, characterized by geopolitical uncertainty, a sharp decline in the US dollar and lower interest rates. The firm is focussed on its strategic priorities and is well positioned to achieve its targets.\n Assets under management slightly higher\n Assets under management increased to CHF 233 billion, compared to CHF 229 billion at the end of 2024. Positive net new money (CHF +2.0 billion) and market performance (CHF +11.3 billion, including the CHF 1.8 billion from IHAG) were largely offset by negative FX impact (CHF -9.1 billion), mainly due to a much weaker US dollar vs. the Swiss franc.\n Positive net new money\n Net new money totalled CHF 2.0 billion overall. In the Private Clients segment, net new money reached CHF 3.3 billion, representing a 6 percent annualized growth rate-at the top end of Vontobel's through-the-cycle target range. Institutional Clients saw CHF 1.8 billion in outflows over the last six months, reflecting a challenging market environment for active managers particularly in the first three months of the year. In the second quarter, this trend began to shift, and Institutional Clients flows turned positive, driven by Fixed Income and Equity Solutions.\n Resilient operating income\n Operating income was at CHF 689 million (-5 percent year-on-year), driven by lower interest rates and a sharp decline in the US dollar, partially offset by higher revenues from fees and commissions. While trading results were below last year's record, they remained strong. Despite the market turbulence in April, Vontobel demonstrated resilience, underpinned by the firm's conservative risk appetite.\n Lower c...